November 28, 2020
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CS/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 licenses; creating s. 627.714, F.S.;
18requiring coverage under a condominium unit owner's
19residential property policy to include a minimum amount of
20loss assessment coverage; providing coverage requirements;
21requiring the policy to state that such coverage is excess
22coverage; amending s. 718.111, F.S.; requiring that
23association access to a unit must be by two persons, one
24of whom must be a board member or manager or employee of
25the association; providing an exception for emergencies;
26requiring coverage for certain personal property to be the
27responsibility of the condominium unit owner; revising
28board meeting notice requirements; requiring insurance
29policies issued or renewed on or after a specified date to
30conform to specified loss assessment coverage
31requirements; revising and deleting provisions relating to
32hazard or casualty insurance coverage requirements, to
33conform; deleting a provision requiring the condominium
34association to be an additional named insured and loss
35payee on all casualty insurance policies issued to unit
36owners in the condominium operated by the association;
37providing requirements for the selection of condominium
38association board meeting times and locations; providing
39restrictions on the times set for certain meetings;
40prohibiting certain expenditures and contributions by a
41condominium association; providing liability; amending s.
42718.112, F.S.; revising notice requirements for board of
43administration meetings; revising location requirements
44for the annual meeting of unit owners; revising terms of
45board members; revising requirements for the reappointment
46of certain board members; revising election notice
47requirements; providing requirements for the amendment of
48association bylaws; providing for the removal of certain
49directors and officers; providing qualifications for
50service on the board of directors; providing requirements
51for the borrowing of funds or committing to a line of
52credit by the board; amending s. 718.113, F.S.;
53authorizing the association to install code-compliant
54impact glass as hurricane protection in certain areas;
55amending s. 718.116, F.S.; revising provisions limiting
56the liability of a first mortgagee and its successors and
57assignees acquiring title to a unit by foreclosure or by
58deed in lieu of foreclosure for certain unpaid
59assessments; deleting an exemption from liability for
60certain persons acquiring title to a condominium as a
61result of the foreclosure of the mortgage or by deed in
62lieu of the foreclosure of the mortgage; providing
63procedures for a mortgagee filing a foreclosure case on a
64mortgage secured by a condominium unit; requiring
65mortgagees filing for foreclosure to make certain payments
66to the association; amending s. 718.1255, F.S.; requiring
67expedited resolution of election and recall arbitrations;
68establishing a fee; providing notice and hearing
69requirements; requiring the board to produce all original
70ballots and election materials at arbitration; providing
71for removal of board members who fail to appear with such
72ballots and election materials; requiring an immediate
73oral ruling and a conforming written opinion; providing
74for enforcement; prohibiting certain expenses upon receipt
75of a notice of arbitration; amending s. 718.1265, F.S.;
76providing conditions under which the association may use
77certain emergency powers; amending s. 718.501, F.S.;
78revising condominium matters over which the division has
79jurisdiction; revising and providing powers of the
80division; requiring the division to create a specified
81booklet for association directors; amending s. 718.5012,
82F.S.; authorizing the Office of the Condominium Ombudsman
83to assist in the resolution of certain disputes; amending
84s. 718.50151, F.S.; redesignating the Community
85Association Living Study Council as the Community
86Association Study Council; revising council membership;
87amending s. 719.103, F.S.; revising definitions; changing
88references from unit owner to shareholder in statutes
89relating to cooperatives; amending s. 719.104, F.S.;
90requiring that association access to a unit must be by two
91persons, one of whom must be a board member or manager or
92employee of the association; providing an exception for
93emergencies; providing civil penalties for violations of
94accounting records requirements; exempting certain
95personal information from unit owner records requests;
96providing immunity from liability for certain information
97provided by associations to prospective purchasers or
98lienholders under certain circumstances; providing
99legislative intent; requiring that property insurance be
100based upon the replacement cost of the property to be
101insured as determined by an independent insurance
102appraisal or update of a prior appraisal; requiring that
103the full insurable value be determined at specified
104intervals; providing means by which an association may
105provide adequate property insurance coverage; authorizing
106an association to consider certain information when
107determining coverage amounts; providing for coverage by
108developer-controlled associations; providing that policies
109may include deductibles as determined by the association's
110board of directors; providing requirements and guidelines
111for the establishment of such deductibles; requiring that
112the amounts of deductibles be set at a meeting of the
113board; providing requirements for such meeting; requiring
114that an association controlled by shareholders operating
115as a residential cooperative use its best efforts to
116obtain and maintain adequate insurance to protect the
117association and property under its supervision or control;
118authorizing an association to obtain and maintain
119liability insurance for directors and officers, insurance
120for the benefit of association employees, and flood
121insurance for common elements, association property, and
122units; requiring that every property insurance policy
123issued or renewed on or after a specified date for the
124purpose of protecting the cooperative provide certain
125coverage; requiring that such policies contain certain
126provisions; providing responsibilities of the shareholder
127and association with regard to reconstruction work and
128associated costs after a casualty loss; requiring the
129association to maintain certain insurance or fidelity
130bonding for persons who control or disburse funds of the
131association; providing requirements with respect to
132financial statements and reports; providing that the
133operation of the cooperative shall be by the association;
134providing that shareholders shall be members of the
135association; providing legislative intent; providing that
136a director of the association who abstains from voting on
137any action taken on any corporate matter shall be presumed
138to have taken no position with regard to the action;
139providing duties of officers, directors, and agents of a
140cooperative association and liability for monetary damages
141under certain circumstances; providing that the
142association may contract, sue, or be sued with respect to
143the exercise or nonexercise of its powers; providing
144requirements for the borrowing of funds or committing to a
145line of credit by the board; providing powers of the
146association with respect to title to property and purchase
147of units; providing requirements for the selection of
148cooperative association board of directors meeting times
149and locations; providing restrictions on the times set for
150certain meetings; prohibiting certain expenditures and
151contributions by the cooperative association; providing
152liability; amending s. 719.106, F.S.; requiring certain
153items to be placed on the agenda of board meetings;
154revising notice requirements for board meetings; providing
155requirements for shareholder meetings; providing terms of
156office and election requirements for the board of
157directors; providing criteria for the amendment of the
158bylaws; providing eligibility to vote on certain questions
159involving reserve funds; requiring proxy questions
160relating to reserves to contain a specified statement;
161requiring the bylaws to contain certain provisions;
162requiring that directors and officers who are delinquent
163in certain payments owed in excess of certain periods of
164time be deemed to have abandoned their offices; requiring
165that directors and officers charged with certain offenses
166involving an association's funds or property be suspended
167from office pending resolution of the charge; providing
168for the reinstatement of such directors and officers under
169certain circumstances; providing qualifications for
170directors; providing requirements for the borrowing of
171funds or committing to a line of credit by the board;
172repealing s. 719.1064, F.S., relating to the failure to
173fill vacancies on board of administration and the
174appointment of a receiver upon petition of a shareholder;
175amending s. 719.107, F.S.; providing the expense of
176installation, replacement, operation, repair, and
177maintenance of hurricane shutters or other hurricane
178protection shall constitute either a common expense or
179shall be charged individually to the shareholders under
180certain conditions; amending s. 719.108, F.S.; limiting
181the liability of a first mortgagee and its successor and
182assignees acquiring title to a unit by foreclosure or by
183deed in lieu of foreclosure for certain unpaid
184assessments; requiring mortgagees filing for foreclosure
185to make certain payments to the association; providing a
186statement of clarification and applicability; providing a
187definition; providing grounds for disapproval of the
188proposed lease of a unit by an association; providing lien
189requirements; providing for the extension of certain
190liens; providing lien notice and filing requirements;
191providing foreclosure requirements; providing the
192association with the power to purchase a cooperative unit
193at a foreclosure sale; requiring the association to
194provide a certificate of assessment under certain
195conditions; providing for the establishment of fees for
196the preparation of such certificates; providing for the
197refund of certain fees; authorizing the association to
198demand payment of future assessments under certain
199circumstances; creating s. 719.113, F.S.; providing that
200maintenance of common areas is the responsibility of the
201association; providing that the cooperative documents may
202include reference that the association provide certain
203maintenance for the condominium; providing that there
204shall be no material alteration or substantial additions
205to the common areas or to real property which is
206association property; providing for protection of the
207common areas; allowing shareholders to display a United
208States flag as well as other specified flags on designated
209days and patriotic holidays; requiring the board to adopt
210hurricane shutter specifications; authorizing the board to
211install certain hurricane protection; prohibiting the
212board from installing certain hurricane shutters or other
213hurricane protection under certain circumstances;
214providing for the maintenance, repair, and replacement of
215hurricane shutters or other hurricane protection;
216authorizing the board to operate hurricane shutters
217without shareholder permission under certain
218circumstances; prohibiting the board from refusing to
219approve the installation or replacement of hurricane
220shutters under certain conditions; requiring that the
221board inspect certain buildings and issue a report under
222certain conditions; providing an exception; prohibiting
223the board from refusing a request for reasonable
224accommodation for the attachment to a unit of religious
225objects meeting certain size specifications; authorizing
226the board to install solar collectors, clotheslines, or
227other energy-efficient devices upon or within common areas
228or association property; creating s. 719.117, F.S.;
229providing legislative findings; providing provisions
230relating to the termination of the cooperative form of
231ownership of a property due to economic waste or
232impossibility or optional termination; providing grounds
233for termination; providing an exemption; providing that
234the approval of a plan of termination by certain mortgage
235lienholders is not required under certain conditions;
236providing powers and duties of the board relating to the
237plan of termination; providing requirements following
238natural disasters; providing reporting requirements;
239providing requirements for a plan of termination;
240providing for the allocation of proceeds from the sale of
241cooperative property; providing powers and duties of a
242termination trustee; providing notice requirements;
243providing a procedure for contesting a plan of
244termination; providing for recovery of attorney's fees and
245costs; providing rules for the distribution of property
246and sale proceeds; providing for the association's status
247following termination; allowing the creation of another
248cooperative by the trustee; creating s. 719.1224, F.S.;
249prohibiting strategic lawsuits against public
250participation; providing legislative findings and intent;
251prohibiting a governmental entity, business organization,
252or individual from filing certain lawsuits made upon
253specified bases against a shareholder; providing rights of
254a shareholder who has been served with such a lawsuit;
255providing procedures for the resolution of certain claims;
256providing for the award of damages and attorney's fees;
257prohibiting associations from expending association funds
258in prosecuting such a suit against a shareholder; amending
259s. 719.1255, F.S.; requiring the division to provide
260alternative dispute resolution for certain matters;
261creating s. 719.1265, F.S.; authorizing an association to
262exercise certain powers in instances involving damage
263caused by an event for which a state of emergency has been
264declared; limiting the applicability of such powers;
265amending s. 719.301, F.S.; providing circumstances under
266which shareholders other than a developer may elect not
267less than a majority of the members of the board;
268requiring a turnover inspection report; requiring that the
269report contain certain information; creating s. 719.3025,
270F.S.; requiring written contracts for the operation,
271maintenance, or management of a cooperative association or
272cooperative property; providing contract requirements;
273authorizing the association to procure outside services
274under certain circumstances; providing that services or
275obligations not stated on the face of the contract shall
276be unenforceable; providing applicability; amending s.
277719.3026, F.S.; revising a provision authorizing certain
278associations to opt out of provisions relating to
279contracts for products and services; removing provisions
280exempting contracts executed before a specified date from
281certain competitive bid requirements; providing
282requirements for any contract or transaction between an
283association and one or more of its directors or a
284specified other entity in which one or more of its
285directors are directors or officers or have a financial
286interest; amending s. 719.303, F.S.; providing that
287hearings regarding noncompliance with a declaration be
288held before certain persons; amending s. 719.501, F.S.;
289providing authority and responsibilities of the division;
290providing for enforcement actions brought by the division
291in its own name; providing for the imposition of penalties
292by the division; requiring that the division issue a
293subpoena requiring production of certain requested records
294under certain circumstances; providing for the issuance of
295notice of a declaratory statement with respect to
296documents governing a cooperative; deleting requirement
297that the division adopt certain accounting principles;
298requiring that the division provide training and
299educational programs for association board members and
300shareholders; authorizing the division to include certain
301training components, review or approve training and
302educational programs offered by providers, and maintain a
303list of approved programs and providers; requiring the
304division to develop a program to certify both volunteer
305and paid mediators; providing responsibilities of the
306division with regard to such mediators; requiring that
307certain individuals cooperate with the division in any
308investigation conducted by the division; requiring the
309division to cooperate with similar agencies in other
310jurisdictions to establish certain procedures, standards,
311and forms; specifying what constitutes completeness of
312notice to developer; authorizing the division to issue a
313notice to show cause; requiring an association to pay any
314penalty due to the division before having standing to
315maintain or defend any action in the courts of this state;
316creating s. 719.5011, F.S.; requiring the Office of the
317Condominium Ombudsman to assist cooperative associations
318and cooperative shareholders; amending s. 719.503, F.S.;
319providing shareholder disclosure requirements for the sale
320of interest in a cooperative association; amending s.
321720.303, F.S.; prohibiting certain expenditures and
322contributions by the board of a homeowners' association;
323providing liability; providing requirements for the
324borrowing of funds or committing to a line of credit by
325the board; providing requirements relating to transfer
326fees; amending s. 720.304, F.S.; revising requirements
327with respect to the display of flags; creating s.
328720.3065, F.S.; providing requirements for the selection
329of homeowners' association board of administration meeting
330times and locations; providing restrictions on the times
331set for certain meetings; amending s. 720.3085, F.S.;
332revising provisions relating to the effectiveness and
333priority of homeowners' association liens; revising
334provisions limiting the liability of a first mortgagee and
335its successors and assignees acquiring title to a unit by
336foreclosure or by deed in lieu of foreclosure for certain
337unpaid assessments; requiring mortgagees filing for
338foreclosure to make certain payments to the association;
339creating s. 720.314, F.S.; providing for parcel owners to
340file informational complaints regarding homeowners'
341associations and their officers and directors with the
342Office of Program Policy Analysis and Government
343Accountability; providing for an informational complaint
344form and the format of such form; amending s. 721.16,
345F.S.; conforming a cross-reference; requiring a study by
346the Office of Program Policy Analysis and Government
347Accountability for specified purposes; requiring a report
348to the Legislature by a specified date; providing an
349appropriation; providing an effective date.
350
351Be It Enacted by the Legislature of the State of Florida:
352
353     Section 1.  Subsection (10) is added to section 20.165,
354Florida Statutes, to read:
355     20.165  Department of Business and Professional
356Regulation.--There is created a Department of Business and
357Professional Regulation.
358     (10)(a)  All employees authorized by the Division of
359Florida Condominiums, Timeshares, and Mobile Homes shall have
360access to and shall have the right to examine and inspect the
361premises, books, and records of any condominium, cooperative,
362timeshare, or mobile home park regulated by the division. Such
363employees shall also have access to and shall have the right to
364examine and inspect the books and records of any community
365association manager or firm employed by any condominium,
366cooperative, timeshare, or mobile home park regulated by the
367division. The authorized employees shall require of each
368licensee strict compliance with the laws of this state relating
369to the transaction of such business or operation.
370     (b)  Each employee serving as a law enforcement officer for
371the division must meet the qualifications for employment or
372appointment as a law enforcement officer set forth under s.
373943.13 and must be certified as a law enforcement officer by the
374Department of Law Enforcement under chapter 943. Upon
375certification, each law enforcement officer is subject to and
376has the same authority as provided for law enforcement officers
377generally in chapter 901 and has statewide jurisdiction. Each
378officer also has arrest authority as provided for state law
379enforcement officers in s. 901.15. Each officer possesses the
380full law enforcement powers granted to other peace officers of
381this state, including the authority to make arrests, carry
382firearms, serve court process, and seize contraband and the
383proceeds of illegal activities.
384     (c)  The primary responsibility of each officer appointed
385under this subsection is to investigate, enforce, and prosecute,
386throughout the state, violations and violators of part VIII of
387chapter 468, chapters 718, 719, 721, and 723, and the rules
388adopted thereunder, as well as other state laws that the
389division or all state law enforcement officers are specifically
390authorized to enforce. The secondary responsibility of each
391officer appointed under this subsection is to enforce all other
392state laws, provided that the enforcement is incidental to
393exercising the officer's primary responsibility, and the officer
394exercises the powers of a deputy sheriff, only after
395consultation or coordination with the appropriate local
396sheriff's office or municipal police department or when the
397division participates in the Florida Mutual Aid Plan during a
398declared state emergency.
399     Section 2.  Paragraph (b) of subsection (2) of section
400468.436, Florida Statutes, is amended, and subsection (6) is
401added to that section, to read:
402     468.436  Disciplinary proceedings.--
403     (2)  The following acts constitute grounds for which the
404disciplinary actions in subsection (4) may be taken:
405     (b)1.  Violation of any provision of this part.
406     2.  Violation of any lawful order or rule rendered or
407adopted by the department or the council.
408     3.  Being convicted of or pleading nolo contendere to a
409felony in any court in the United States.
410     4.  Obtaining a license or certification or any other
411order, ruling, or authorization by means of fraud,
412misrepresentation, or concealment of material facts.
413     5.  Committing acts of gross misconduct or gross negligence
414in connection with the profession.
415     6.  Contracting, on behalf of an association, with any
416entity in which the licensee has a financial interest that is
417not disclosed.
418     (6)  Upon the fifth or later finding that a community
419association manager is guilty of any of the grounds set forth in
420subsection (2), or upon the third or later finding that a
421community association manager is guilty of a specific ground for
422which the disciplinary actions set forth in subsection (2) may
423be taken, the department's discretion under subsection (4) shall
424not apply and the division shall enter an order permanently
425revoking the license.
426     Section 3.  Section 627.714, Florida Statutes, is created
427to read:
428     627.714  Residential condominium unit owner coverage; loss
429assessment coverage required; excess coverage provision
430required.--For policies issued or renewed on or after July 1,
4312009, coverage under a condominium unit owner's residential
432property policy shall include property loss assessment coverage
433of at least $2,000 for all assessments made as a result of the
434same direct loss to the property, regardless of the number of
435assessments, owned by all members of the association
436collectively when such loss is of the type of loss covered by
437the unit owner's residential property insurance policy, to which
438a deductible of no more than $250 per direct property loss shall
439apply. If a deductible was or will be applied to other property
440loss sustained by the unit owner resulting from the same direct
441loss to the property, no deductible shall apply to the loss
442assessment coverage. Every unit owner's residential property
443policy must contain a provision stating that the coverage
444afforded by such policy is excess coverage over the amount
445recoverable under any other policy covering the same property.
446     Section 4.  Subsections (5) and (11) and paragraph (b) of
447subsection (12) of section 718.111, Florida Statutes, are
448amended, and subsections (15) and (16) are added to that
449section, to read:
450     718.111  The association.--
451     (5)  RIGHT OF ACCESS TO UNITS.--The association has the
452irrevocable right of access to each unit during reasonable
453hours, when necessary for the maintenance, repair, or
454replacement of any common elements or of any portion of a unit
455to be maintained by the association pursuant to the declaration
456or as necessary to prevent damage to the common elements or to a
457unit or units. Except in cases of emergency, the association
458must give the unit owner advance written notice of not less than
45924 hours of its intent to access the unit and such access must
460be by two persons, one of whom must be a member of the board of
461administration or a manager or employee of the association and
462one of whom must be an authorized representative of the
463association. The identity of the authorized representative
464seeking access to the unit shall be provided to the unit owner
465prior to entering the unit.
466     (11)  INSURANCE.--In order to protect the safety, health,
467and welfare of the people of the State of Florida and to ensure
468consistency in the provision of insurance coverage to
469condominiums and their unit owners, this subsection applies to
470every residential condominium in the state, regardless of the
471date of its declaration of condominium. It is the intent of the
472Legislature to encourage lower or stable insurance premiums for
473associations described in this subsection.
474     (a)  Adequate property hazard insurance, regardless of any
475requirement in the declaration of condominium for coverage by
476the association for full insurable value, replacement cost, or
477similar coverage, shall be based upon the replacement cost of
478the property to be insured as determined by an independent
479insurance appraisal or update of a prior appraisal. The full
480insurable value shall be determined at least once every 36
481months.
482     1.  An association or group of associations may provide
483adequate property hazard insurance through a self-insurance fund
484that complies with the requirements of ss. 624.460-624.488.
485     2.  The association may also provide adequate property
486hazard insurance coverage for a group of no fewer than three
487communities created and operating under this chapter, chapter
488719, chapter 720, or chapter 721 by obtaining and maintaining
489for such communities property insurance coverage sufficient to
490cover an amount equal to the probable maximum loss for the
491communities for a 250-year windstorm event. Such probable
492maximum loss must be determined through the use of a competent
493model that has been accepted by the Florida Commission on
494Hurricane Loss Projection Methodology. No policy or program
495providing such coverage shall be issued or renewed after July 1,
4962008, unless it has been reviewed and approved by the Office of
497Insurance Regulation. The review and approval shall include
498approval of the policy and related forms pursuant to ss. 627.410
499and 627.411, approval of the rates pursuant to s. 627.062, a
500determination that the loss model approved by the commission was
501accurately and appropriately applied to the insured structures
502to determine the 250-year probable maximum loss, and a
503determination that complete and accurate disclosure of all
504material provisions is provided to condominium unit owners prior
505to execution of the agreement by a condominium association.
506     3.  When determining the adequate amount of property hazard
507insurance coverage, the association may consider deductibles as
508determined by this subsection.
509     (b)  If an association is a developer-controlled
510association, the association shall exercise its best efforts to
511obtain and maintain property insurance as described in paragraph
512(a). Failure to obtain and maintain adequate property hazard
513insurance during any period of developer control constitutes a
514breach of fiduciary responsibility by the developer-appointed
515members of the board of directors of the association, unless the
516members can show that despite such failure, they have made their
517best efforts to maintain the required coverage.
518     (c)  Policies may include deductibles as determined by the
519board.
520     1.  The deductibles shall be consistent with industry
521standards and prevailing practice for communities of similar
522size and age, and having similar construction and facilities in
523the locale where the condominium property is situated.
524     2.  The deductibles may be based upon available funds,
525including reserve accounts, or predetermined assessment
526authority at the time the property insurance is obtained.
527     3.  The board shall establish the amount of deductibles
528based upon the level of available funds and predetermined
529assessment authority at a meeting of the board. Such meeting
530shall be open to all unit owners in the manner set forth in s.
531718.112(2)(e). The notice of such meeting must state the
532proposed deductible and the available funds and the assessment
533authority relied upon by the board and estimate any potential
534assessment amount against each unit, if any. The meeting
535described in this paragraph may be held in conjunction with a
536meeting to consider the proposed budget or an amendment thereto.
537     (d)  An association controlled by unit owners operating as
538a residential condominium shall use its best efforts to obtain
539and maintain adequate property insurance to protect the
540association, the association property, the common elements, and
541the condominium property that is required to be insured by the
542association pursuant to this subsection.
543     (e)  The declaration of condominium as originally recorded,
544or as amended pursuant to procedures provided therein, may
545provide that condominium property consisting of freestanding
546buildings comprised of no more than one building in or on such
547unit need not be insured by the association if the declaration
548requires the unit owner to obtain adequate property insurance
549for the condominium property. An association may also obtain and
550maintain liability insurance for directors and officers,
551insurance for the benefit of association employees, and flood
552insurance for common elements, association property, and units.
553     (f)  Every property hazard insurance policy issued or
554renewed on or after July January 1, 2009, for the purpose of
555protecting the condominium shall provide primary coverage for:
556     1.  All portions of the condominium property as originally
557installed or replacement of like kind and quality, in accordance
558with the original plans and specifications.
559     2.  All alterations or additions made to the condominium
560property or association property pursuant to s. 718.113(2).
561     3.  The coverage shall exclude all personal property within
562the unit or limited common elements, and floor, wall, and
563ceiling coverings, electrical fixtures, appliances, water
564heaters, water filters, built-in cabinets and countertops, air-
565conditioning and heating equipment that serves a single unit,
566and window treatments, including curtains, drapes, blinds,
567hardware, and similar window treatment components, or
568replacements of any of the foregoing, that are located within
569the boundaries of the unit and serve only such unit. Such
570property and any insurance therefor shall be the responsibility
571of the unit owner.
572     (g)  A condominium unit owner's policy issued after July 1,
5732009, shall conform to the requirements of s. 627.714. Every
574hazard insurance policy issued or renewed on or after January 1,
5752009, to an individual unit owner must contain a provision
576stating that the coverage afforded by such policy is excess
577coverage over the amount recoverable under any other policy
578covering the same property. Such policies must include special
579assessment coverage of no less than $2,000 per occurrence. An
580insurance policy issued to an individual unit owner providing
581such coverage does not provide rights of subrogation against the
582condominium association operating the condominium in which such
583individual's unit is located.
584     1.  All improvements or additions to the condominium
585property that benefit fewer than all unit owners shall be
586insured by the unit owner or owners having the use thereof, or
587may be insured by the association at the cost and expense of the
588unit owners having the use thereof.
589     2.  The association shall require each owner to provide
590evidence of a currently effective policy of hazard and liability
591insurance upon request, but not more than once per year. Upon
592the failure of an owner to provide a certificate of insurance
593issued by an insurer approved to write such insurance in this
594state within 30 days after the date on which a written request
595is delivered, the association may purchase a policy of insurance
596on behalf of an owner. The cost of such a policy, together with
597reconstruction costs undertaken by the association but which are
598the responsibility of the unit owner, may be collected in the
599manner provided for the collection of assessments in s. 718.116.
600     1.3.  All reconstruction work after a casualty loss shall
601be undertaken by the association except as otherwise authorized
602in this section. A unit owner may undertake reconstruction work
603on portions of the unit with the prior written consent of the
604board of administration. However, such work may be conditioned
605upon the approval of the repair methods, the qualifications of
606the proposed contractor, or the contract that is used for that
607purpose. A unit owner shall obtain all required governmental
608permits and approvals prior to commencing reconstruction.
609     2.4.  Unit owners are responsible for the cost of
610reconstruction of any portions of the condominium property for
611which the association does not unit owner is required to carry
612property casualty insurance, and any such reconstruction work
613undertaken by the association shall be chargeable to the unit
614owner and enforceable as an assessment pursuant to s. 718.116.
615The association must be an additional named insured and loss
616payee on all casualty insurance policies issued to unit owners
617in the condominium operated by the association.
618     3.5.  A multicondominium association may elect, by a
619majority vote of the collective members of the condominiums
620operated by the association, to operate such condominiums as a
621single condominium for purposes of insurance matters, including,
622but not limited to, the purchase of the property hazard
623insurance required by this section and the apportionment of
624deductibles and damages in excess of coverage. The election to
625aggregate the treatment of insurance premiums, deductibles, and
626excess damages constitutes an amendment to the declaration of
627all condominiums operated by the association, and the costs of
628insurance shall be stated in the association budget. The
629amendments shall be recorded as required by s. 718.110.
630     (h)  The association shall maintain insurance or fidelity
631bonding of all persons who control or disburse funds of the
632association. The insurance policy or fidelity bond must cover
633the maximum funds that will be in the custody of the association
634or its management agent at any one time. As used in this
635paragraph, the term "persons who control or disburse funds of
636the association" includes, but is not limited to, those
637individuals authorized to sign checks on behalf of the
638association, and the president, secretary, and treasurer of the
639association. The association shall bear the cost of any such
640bonding.
641     (i)  The association may amend the declaration of
642condominium without regard to any requirement for approval by
643mortgagees of amendments affecting insurance requirements for
644the purpose of conforming the declaration of condominium to the
645coverage requirements of this subsection.
646     (j)  Any portion of the condominium property required to be
647insured by the association against property casualty loss
648pursuant to paragraph (f) which is damaged by casualty shall be
649reconstructed, repaired, or replaced as necessary by the
650association as a common expense. All property hazard insurance
651deductibles, uninsured losses, and other damages in excess of
652property hazard insurance coverage under the property hazard
653insurance policies maintained by the association are a common
654expense of the condominium, except that:
655     1.  A unit owner is responsible for the costs of repair or
656replacement of any portion of the condominium property not paid
657by insurance proceeds, if such damage is caused by intentional
658conduct, negligence, or failure to comply with the terms of the
659declaration or the rules of the association by a unit owner, the
660members of his or her family, unit occupants, tenants, guests,
661or invitees, without compromise of the subrogation rights of any
662insurer as set forth in paragraph (g).
663     2.  The provisions of subparagraph 1. regarding the
664financial responsibility of a unit owner for the costs of
665repairing or replacing other portions of the condominium
666property also apply to the costs of repair or replacement of
667personal property of other unit owners or the association, as
668well as other property, whether real or personal, which the unit
669owners are required to insure under paragraph (g).
670     3.  To the extent the cost of repair or reconstruction for
671which the unit owner is responsible under this paragraph is
672reimbursed to the association by insurance proceeds, and, to the
673extent the association has collected the cost of such repair or
674reconstruction from the unit owner, the association shall
675reimburse the unit owner without the waiver of any rights of
676subrogation.
677     4.  The association is not obligated to pay for repair or
678reconstruction or repairs of property casualty losses as a
679common expense if the property casualty losses were known or
680should have been known to a unit owner and were not reported to
681the association until after the insurance claim of the
682association for that property casualty was settled or resolved
683with finality, or denied on the basis that it was untimely
684filed.
685     (k)  An association may, upon the approval of a majority of
686the total voting interests in the association, opt out of the
687provisions of paragraph (j) for the allocation of repair or
688reconstruction expenses and allocate repair or reconstruction
689expenses in the manner provided in the declaration as originally
690recorded or as amended. Such vote may be approved by the voting
691interests of the association without regard to any mortgagee
692consent requirements.
693     (l)  In a multicondominium association that has not
694consolidated its financial operations under subsection (6), any
695condominium operated by the association may opt out of the
696provisions of paragraph (j) with the approval of a majority of
697the total voting interests in that condominium. Such vote may be
698approved by the voting interests without regard to any mortgagee
699consent requirements.
700     (m)  Any association or condominium voting to opt out of
701the guidelines for repair or reconstruction expenses as
702described in paragraph (j) must record a notice setting forth
703the date of the opt-out vote and the page of the official
704records book on which the declaration is recorded. The decision
705to opt out is effective upon the date of recording of the notice
706in the public records by the association. An association that
707has voted to opt out of paragraph (j) may reverse that decision
708by the same vote required in paragraphs (k) and (l), and notice
709thereof shall be recorded in the official records.
710     (n)  The association is not obligated to pay for any
711reconstruction or repair expenses due to property casualty loss
712to any improvements installed by a current or former owner of
713the unit or by the developer if the improvement benefits only
714the unit for which it was installed and is not part of the
715standard improvements installed by the developer on all units as
716part of original construction, whether or not such improvement
717is located within the unit. This paragraph does not relieve any
718party of its obligations regarding recovery due under any
719insurance implemented specifically for any such improvements.
720     (o)  The provisions of this subsection shall not apply to
721timeshare condominium associations. Insurance for timeshare
722condominium associations shall be maintained pursuant to s.
723721.165.
724     (12)  OFFICIAL RECORDS.--
725     (b)  The official records of the association shall be
726maintained within the state for at least 7 years. The records of
727the association shall be made available to a unit owner within
72845 miles of the condominium property or within the county in
729which the condominium property is located within 5 working days
730after receipt of written request by the board or its designee.
731However, such distance requirement does not apply to an
732association governing a timeshare condominium. This paragraph
733may be complied with by having a copy of the official records of
734the association available for inspection or copying on the
735condominium property or association property., or The
736association may offer the option of making the records of the
737association available to a unit owner either electronically via
738the Internet or by allowing the records to be viewed in
739electronic format on a computer screen and printed upon request.
740     (15)  MEETINGS.--Regular meetings of the board of
741administration shall be held at such time and place as provided
742in the bylaws until the first regular meeting of the board held
743on or after October 1, 2009. Thereafter, the location and time
744for regular meetings of the board shall be determined by a
745majority vote of the unit owners at the next regular meeting
746held on or after October 1, 2009. Once the time and place for
747regular meetings of the board have been selected, neither may be
748changed unless approved by a majority vote of the unit owners.
749Regular meetings of the board of administration held on weekdays
750shall be held no earlier than 6 p.m. local time.
751     (16)  LIMIT ON EXPENDITURES.--It shall be unlawful for an
752association to make any expenditure of association funds or to
753make any in-kind contribution of association assets that does
754not relate to the purposes for which the association is
755organized.
756     (a)  The association shall not make any contribution to a
757campaign or committee of continuous existence governed by
758chapter 105 or chapter 106.
759     (b)  The association shall not make any contribution to a
760charitable organization if the association does not receive a
761direct benefit from the organization.
762     (c)  The association shall not make any expenditure in
763order to retain a person or firm for the purposes of lobbying.
764     (d)  Directors of the association shall be jointly and
765severally liable to reimburse the association for any
766contribution, expenditure, or in-kind contribution made in
767violation of this subsection.
768     Section 5.  Paragraphs (c), (d), (h), and (o) of subsection
769(2) of section 718.112, Florida Statutes, are amended, and
770paragraphs (p) and (q) are added to that subsection, to read:
771     718.112  Bylaws.--
772     (2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
773following and, if they do not do so, shall be deemed to include
774the following:
775     (c)  Board of administration meetings.--Meetings of the
776board of administration at which a quorum of the members is
777present shall be open to all unit owners. Any unit owner may
778tape record or videotape meetings of the board of
779administration. The right to attend such meetings includes the
780right to speak at such meetings with reference to all designated
781agenda items. The division shall adopt reasonable rules
782governing the tape recording and videotaping of the meeting. The
783association may adopt written reasonable rules governing the
784frequency, duration, and manner of unit owner statements.
785Adequate notice of all meetings, which notice shall specifically
786incorporate an identification of agenda items, shall be posted
787conspicuously on the condominium property at least 48 continuous
788hours preceding the meeting except in an emergency. If 20
789percent of the voting interests petition the board to address an
790item of business, the board shall at its next regular board
791meeting or at a special meeting of the board, but not later than
79260 days after the receipt of the petition, place the item on the
793agenda. Any item not included on the notice may be taken up on
794an emergency basis by at least a majority plus one of the
795members of the board. Such emergency action shall be noticed and
796ratified at the next regular meeting of the board. However,
797written notice of any meeting at which nonemergency special
798assessments, or at which amendment to rules regarding unit use,
799will be considered shall be mailed, delivered, or electronically
800transmitted to the unit owners and posted conspicuously on the
801condominium property not less than 14 days prior to the meeting.
802Evidence of compliance with this 14-day notice shall be made by
803an affidavit executed by the person providing the notice and
804filed among the official records of the association. Upon notice
805to the unit owners, the board shall by duly adopted rule
806designate a specific location on the condominium property or
807association property upon which all notices of board meetings
808shall be posted. If there is no condominium property or
809association property upon which notices can be posted, notices
810of board meetings shall be mailed, delivered, or electronically
811transmitted at least 14 days before the meeting to the owner of
812each unit. In lieu of or in addition to the physical posting of
813notice of any meeting of the board of administration on the
814condominium property, the association may, by reasonable rule,
815adopt a procedure for conspicuously posting and repeatedly
816broadcasting the notice and the agenda on a closed-circuit cable
817television system serving the condominium association. However,
818if broadcast notice is used in lieu of a notice posted
819physically on the condominium property, the notice and agenda
820must be broadcast at least four times every broadcast hour of
821each day that a posted notice is otherwise required under this
822section. When broadcast notice is provided, the notice and
823agenda must be broadcast in a manner and for a sufficient
824continuous length of time so as to allow an average reader to
825observe the notice and read and comprehend the entire content of
826the notice and the agenda. Notice of any meeting in which
827regular or special assessments against unit owners are to be
828considered for any reason shall specifically state that
829assessments will be considered, and the nature, estimated cost,
830and description of the purposes for such assessments, and the
831proposed cost and percentage amount for possible cost overruns
832as specifically provided for in the proposed contract. Meetings
833of a committee to take final action on behalf of the board or
834make recommendations to the board regarding the association
835budget are subject to the provisions of this paragraph. Meetings
836of a committee that does not take final action on behalf of the
837board or make recommendations to the board regarding the
838association budget are subject to the provisions of this
839section, unless those meetings are exempted from this section by
840the bylaws of the association. Notwithstanding any other law,
841the requirement that board meetings and committee meetings be
842open to the unit owners is inapplicable to meetings between the
843board or a committee and the association's attorney, with
844respect to proposed or pending litigation, when the meeting is
845held for the purpose of seeking or rendering legal advice.
846     (d)  Unit owner meetings.--
847     1.  There shall be an annual meeting of the unit owners
848held at the location provided in the association bylaws and, if
849the bylaws are silent as to the location, the meeting shall be
850held within 45 miles of the condominium property or, if
851facilities are available on the condominium property, the
852meeting shall be held at such facilities. However, such distance
853requirement does not apply to an association governing a
854timeshare condominium. Unless the bylaws provide otherwise, a
855vacancy on the board caused by the expiration of a director's
856term shall be filled by electing a new board member, and the
857election shall be by secret ballot; however, if the number of
858vacancies equals or exceeds the number of candidates, no
859election is required. The terms of all members of the board
860shall expire at the first annual meeting after July 1, 2009, and
861at each the annual meeting thereafter and such board members may
862stand for reelection unless otherwise permitted by the bylaws.
863In the event that the bylaws permit staggered terms of no more
864than 2 years and upon approval of a majority of the total voting
865interests, the association board members may serve 2-year
866staggered terms. If no person is interested in or demonstrates
867an intention to run for the position of a board member whose
868term has expired according to the provisions of this
869subparagraph, such board member whose term has expired shall be
870automatically reappointed to the board of administration and
871need not stand for reelection. In a condominium association of
872more than 10 units, coowners of a unit may not serve as members
873of the board of directors at the same time. Any unit owner
874desiring to be a candidate for board membership shall comply
875with subparagraph 3. A person who has been suspended or removed
876by the division under this chapter, or who is delinquent in the
877payment of any fee or assessment as provided in paragraph (n),
878is not eligible for board membership. A person who has been
879convicted of any felony in this state or in a United States
880District or Territorial Court, or who has been convicted of any
881offense in another jurisdiction that would be considered a
882felony if committed in this state, is not eligible for board
883membership unless such felon's civil rights have been restored
884for a period of no less than 5 years as of the date on which
885such person seeks election to the board. The validity of an
886action by the board is not affected if it is later determined
887that a member of the board is ineligible for board membership
888due to having been convicted of a felony.
889     2.  The bylaws shall provide the method of calling meetings
890of unit owners, including annual meetings. Written notice, which
891notice must include an agenda, shall be mailed, hand delivered,
892or electronically transmitted to each unit owner at least 14
893days prior to the annual meeting and shall be posted in a
894conspicuous place on the condominium property at least 14
895continuous days preceding the annual meeting. Upon notice to the
896unit owners, the board shall by duly adopted rule designate a
897specific location on the condominium property or association
898property upon which all notices of unit owner meetings shall be
899posted; however, if there is no condominium property or
900association property upon which notices can be posted, this
901requirement does not apply. In lieu of or in addition to the
902physical posting of notice of any meeting of the unit owners on
903the condominium property, the association may, by reasonable
904rule, adopt a procedure for conspicuously posting and repeatedly
905broadcasting the notice and the agenda on a closed-circuit cable
906television system serving the condominium association. However,
907if broadcast notice is used in lieu of a notice posted
908physically on the condominium property, the notice and agenda
909must be broadcast at least four times every broadcast hour of
910each day that a posted notice is otherwise required under this
911section. When broadcast notice is provided, the notice and
912agenda must be broadcast in a manner and for a sufficient
913continuous length of time so as to allow an average reader to
914observe the notice and read and comprehend the entire content of
915the notice and the agenda. Unless a unit owner waives in writing
916the right to receive notice of the annual meeting, such notice
917shall be hand delivered, mailed, or electronically transmitted
918to each unit owner. Notice for meetings and notice for all other
919purposes shall be mailed to each unit owner at the address last
920furnished to the association by the unit owner, or hand
921delivered to each unit owner. However, if a unit is owned by
922more than one person, the association shall provide notice, for
923meetings and all other purposes, to that one address which the
924developer initially identifies for that purpose and thereafter
925as one or more of the owners of the unit shall so advise the
926association in writing, or if no address is given or the owners
927of the unit do not agree, to the address provided on the deed of
928record. An officer of the association, or the manager or other
929person providing notice of the association meeting, shall
930provide an affidavit or United States Postal Service certificate
931of mailing, to be included in the official records of the
932association affirming that the notice was mailed or hand
933delivered, in accordance with this provision.
934     3.  The members of the board shall be elected by written
935ballot or voting machine. Proxies shall in no event be used in
936electing the board, either in general elections or elections to
937fill vacancies caused by recall, resignation, or otherwise,
938unless otherwise provided in this chapter. Not less than 60 days
939before a scheduled election, the association shall mail,
940deliver, or electronically transmit, whether by separate
941association mailing or included in another association mailing,
942delivery, or transmission, including regularly published
943newsletters, to each unit owner entitled to a vote, a first
944notice of the date of the election along with a certification
945form provided by the division attesting that he or she has read
946and understands, to the best of his or her ability, the
947governing documents of the association and the provisions of
948this chapter and any applicable rules. Any unit owner or other
949eligible person desiring to be a candidate for the board must
950give written notice to the association not less than 40 days
951before a scheduled election. Together with the written notice
952and agenda as set forth in subparagraph 2., the association
953shall mail, deliver, or electronically transmit a second notice
954of the election to all unit owners entitled to vote therein,
955together with a ballot which shall list all candidates. Upon
956request of a candidate, the association shall include an
957information sheet, no larger than 81/2 inches by 11 inches,
958which must be furnished by the candidate not less than 35 days
959before the election, along with the signed certification form
960provided for in this subparagraph, to be included with the
961mailing, delivery, or transmission of the ballot, with the costs
962of mailing, delivery, or electronic transmission and copying to
963be borne by the association. The association is not liable for
964the contents of the information sheets prepared by the
965candidates. In order to reduce costs, the association may print
966or duplicate the information sheets on both sides of the paper.
967The division shall by rule establish voting procedures
968consistent with the provisions contained herein, including rules
969establishing procedures for giving notice by electronic
970transmission and rules providing for the secrecy of ballots.
971Elections shall be decided by a plurality of those ballots cast.
972There shall be no quorum requirement; however, at least 20
973percent of the eligible voters must cast a ballot in order to
974have a valid election of members of the board. No unit owner
975shall permit any other person to vote his or her ballot, and any
976such ballots improperly cast shall be deemed invalid, provided
977any unit owner who violates this provision may be fined by the
978association in accordance with s. 718.303. A unit owner who
979needs assistance in casting the ballot for the reasons stated in
980s. 101.051 may obtain assistance in casting the ballot. The
981regular election shall occur on the date of the annual meeting.
982The provisions of this subparagraph shall not apply to timeshare
983condominium associations. Notwithstanding the provisions of this
984subparagraph, an election is not required unless more candidates
985file notices of intent to run or are nominated than board
986vacancies exist.
987     4.  Any approval by unit owners called for by this chapter
988or the applicable declaration or bylaws, including, but not
989limited to, the approval requirement in s. 718.111(8), shall be
990made at a duly noticed meeting of unit owners and shall be
991subject to all requirements of this chapter or the applicable
992condominium documents relating to unit owner decisionmaking,
993except that unit owners may take action by written agreement,
994without meetings, on matters for which action by written
995agreement without meetings is expressly allowed by the
996applicable bylaws or declaration or any statute that provides
997for such action.
998     5.  Unit owners may waive notice of specific meetings if
999allowed by the applicable bylaws or declaration or any statute.
1000If authorized by the bylaws, notice of meetings of the board of
1001administration, unit owner meetings, except unit owner meetings
1002called to recall board members under paragraph (j), and
1003committee meetings may be given by electronic transmission to
1004unit owners who consent to receive notice by electronic
1005transmission.
1006     6.  Unit owners shall have the right to participate in
1007meetings of unit owners with reference to all designated agenda
1008items. However, the association may adopt reasonable rules
1009governing the frequency, duration, and manner of unit owner
1010participation.
1011     7.  Any unit owner may tape record or videotape a meeting
1012of the unit owners subject to reasonable rules adopted by the
1013division.
1014     8.  Unless otherwise provided in the bylaws, any vacancy
1015occurring on the board before the expiration of a term may be
1016filled by the affirmative vote of the majority of the remaining
1017directors, even if the remaining directors constitute less than
1018a quorum, or by the sole remaining director. In the alternative,
1019a board may hold an election to fill the vacancy, in which case
1020the election procedures must conform to the requirements of
1021subparagraph 3. unless the association governs 10 units or less
1022and has opted out of the statutory election process, in which
1023case the bylaws of the association control. Unless otherwise
1024provided in the bylaws, a board member appointed or elected
1025under this section shall fill the vacancy for the unexpired term
1026of the seat being filled. Filling vacancies created by recall is
1027governed by paragraph (j) and rules adopted by the division.
1028     9.  Notwithstanding subparagraphs (b)2. and (d)3., an
1029association of 10 or fewer units may, by the affirmative vote of
1030a majority of the total voting interests, provide for different
1031voting and election procedures in its bylaws, which vote may be
1032by a proxy specifically delineating the different voting and
1033election procedures. The different voting and election
1034procedures may provide for elections to be conducted by limited
1035or general proxy.
1036     (h)  Amendment of bylaws.--
1037     1.  The method by which the bylaws may be amended
1038consistent with the provisions of this chapter shall be stated.
1039If the bylaws fail to provide a method of amendment, the bylaws
1040may be amended if the amendment is approved by the owners of not
1041less than two-thirds of the voting interests.
1042     2.  No bylaw shall be revised or amended by reference to
1043its title or number only. Proposals to amend existing bylaws
1044shall contain the full text of the bylaws to be amended; new
1045words shall be inserted in the text underlined, and words to be
1046deleted shall be lined through with hyphens. However, if the
1047proposed change is so extensive that this procedure would
1048hinder, rather than assist, the understanding of the proposed
1049amendment, it is not necessary to use underlining and hyphens as
1050indicators of words added or deleted, but, instead, a notation
1051must be inserted immediately preceding the proposed amendment in
1052substantially the following language: "Substantial rewording of
1053bylaw. See bylaw _____ for present text."
1054     3.  Nonmaterial errors or omissions in the bylaw process
1055will not invalidate an otherwise properly promulgated amendment.
1056     4.  If the bylaws provide for amendment by the board of
1057administration, no bylaw may be amended unless it is heard and
1058noticed at two consecutive meetings of the board of
1059administration that are at least 1 week apart.
1060     (o)  Director or officer offenses.--A director or officer
1061charged by information or indictment with a felony theft or
1062embezzlement offense involving the association's funds or
1063property shall be removed from office, creating a vacancy in the
1064office to be filled according to law. While such director or
1065officer has such criminal charge pending in the state or federal
1066court system, he or she may not be appointed or elected to a
1067position as a director or officer. However, should the charges
1068be resolved without a finding of guilt, the director or officer
1069shall be reinstated for the remainder of his or her term of
1070office, if any.
1071     (p)  Qualification of directors.--In addition to any other
1072requirement for office in statute, a person running for or
1073seeking appointment to the board must meet the following
1074qualifications:
1075     1.  In a condominium association of 10 or more units, only
1076one individual coowner of a unit may serve on the board of
1077administration.
1078     2.  No person may serve as a director of any condominium
1079association in the state if restricted from serving by action of
1080the division pursuant to s. 718.501(1)(d)6.
1081     3.  A person who has been convicted of any felony in this
1082state or in a United States District or Territorial Court, or
1083who has been convicted of any offense in another jurisdiction
1084that would be considered a felony if committed in this state, is
1085not eligible for board membership unless such felon's civil
1086rights have been restored for a period of no less than 5 years
1087as of the date on which such person seeks election to the board.
1088     4.  Within 30 days after being elected or appointed to the
1089board of administration, a director shall certify in writing to
1090the secretary of the association that he or she has read parts I
1091and III of chapter 718 and the association's declaration of
1092condominium, articles of incorporation, bylaws, and current
1093written policies. The director shall further certify that he or
1094she will work to uphold such documents and policies to the best
1095of his or her ability, and that he or she will faithfully
1096discharge his or her fiduciary responsibility to the
1097association's members. If the division finds that a director has
1098falsely certified that he or she has read the required statutes
1099and documents, the division shall order the director removed
1100from the board and shall order the director to reimburse the
1101division for the cost of prosecution and hearing.
1102     5.  After turnover of the association pursuant to s.
1103718.301(2), a director must:
1104     a.  If the unit is owned by an individual or individuals,
1105be one of those individuals.
1106     b.  If the unit is owned by a trust, be an individual
1107qualified pursuant to s. 617.0802.
1108
1109These qualifications shall operate on a continuing basis, and
1110upon the failure of a director at any time to meet a
1111qualification, the director shall be removed from office and
1112that office shall be deemed vacant. However, in the case of a
1113timeshare condominium association, the bylaws of the association
1114shall govern the terms, expiration of terms, and staggered terms
1115of board members, and the eligibility of coowners to serve on
1116the board of administration shall not be restricted except in
1117the manner provided in the bylaws of the timeshare condominium
1118association.
1119     (q)  Borrowing.--The borrowing of funds or committing to a
1120line of credit by the board of administration shall be
1121considered a special assessment, and any meeting of the board of
1122administration to discuss such matters shall be noticed as
1123provided in paragraph (c). The board shall not have the
1124authority to enter into a line of credit or borrow funds for any
1125purpose unless the specific use of the funds from the line of
1126credit or loan is set forth in the notice of meeting with the
1127same specificity as required for a special assessment or unless
1128the borrowing or line of credit has received the prior approval
1129of not less than two-thirds of the voting interests of the
1130association.
1131     Section 6.  Paragraph (a) of subsection (5) of section
1132718.113, Florida Statutes, is amended to read:
1133     718.113  Maintenance; limitation upon improvement; display
1134of flag; hurricane shutters; display of religious decorations.--
1135     (5)  Each board of administration shall adopt hurricane
1136shutter specifications for each building within each condominium
1137operated by the association which shall include color, style,
1138and other factors deemed relevant by the board. All
1139specifications adopted by the board shall comply with the
1140applicable building code.
1141     (a)  The board may, subject to the provisions of s.
1142718.3026, and the approval of a majority of voting interests of
1143the condominium, install hurricane shutters or hurricane
1144protection that complies with or exceeds the applicable building
1145code, or both, except that a vote of the owners is not required
1146if the maintenance, repair, and replacement of hurricane
1147shutters or other forms of hurricane protection are the
1148responsibility of the association pursuant to the declaration of
1149condominium. However, where hurricane protection or laminated
1150glass or window film architecturally designed to function as
1151hurricane protection which complies with or exceeds the current
1152applicable building code has been previously installed, the
1153board may not install hurricane shutters or other hurricane
1154protection. Code-compliant impact glass may be installed by the
1155association as hurricane protection if the area in which the
1156glass is to be installed is an area that is the responsibility
1157of the association. If a unit owner installed code-compliant
1158impact glass prior to the association voting to install such
1159glass, and such glass and the frame thereof complies with the
1160current applicable building codes and is otherwise in good
1161repair, the unit owner shall not be required to pay the unit
1162owner's pro rata share of the cost of installing code-compliant
1163impact glass to the condominium association, notwithstanding s.
1164718.116(9).
1165     Section 7.  Subsection (1) of section 718.116, Florida
1166Statutes, is amended to read:
1167     718.116  Assessments; liability; lien and priority;
1168interest; collection.--
1169     (1)(a)  A unit owner, regardless of how his or her title
1170has been acquired, including by purchase at a foreclosure sale
1171or by deed in lieu of foreclosure, is liable for all assessments
1172which come due while he or she is the unit owner. Additionally,
1173a unit owner is jointly and severally liable with the previous
1174owner for all unpaid assessments that came due up to the time of
1175transfer of title. This liability is without prejudice to any
1176right the owner may have to recover from the previous owner the
1177amounts paid by the owner.
1178     (b)  The liability of a first mortgagee or its successor or
1179assignees who acquire title to a unit by foreclosure or by deed
1180in lieu of foreclosure for the unpaid assessments that became
1181due prior to the mortgagee's acquisition of title is limited to
1182the lesser of:
1183     1.  The unit's unpaid common expenses and regular periodic
1184assessments which accrued or came due during the 6 months
1185immediately preceding the acquisition of title and for which
1186payment in full has not been received by the association; or
1187     2.  One-half of the unit's unpaid common expenses and
1188regular periodic assessments which accrued or came due from the
1189filing of the foreclosure action through the sale of the unit,
1190provided that the mortgagee timely paid in full the payment
1191required by paragraph (e) and, at the same time, remitted to the
1192association advanced common expenses and regular periodic
1193assessments equal to one-half of the total unpaid common
1194expenses and regular periodic assessments that came due in that
1195time period. Any such advance shall be taxed as a cost in the
1196foreclosure action, and the mortgagor shall be personally liable
1197to the mortgagee for the value of the payment made to the
1198association plus interest at the interest rate provided for in
1199the promissory note for advances. One percent of the original
1200mortgage debt. The provisions of this paragraph apply only if
1201the first mortgagee joined the association as a defendant in the
1202foreclosure action. Joinder of the association is not required
1203if, on the date the complaint is filed, the association was
1204dissolved or did not maintain an office or agent for service of
1205process at a location which was known to or reasonably
1206discoverable by the mortgagee.
1207     (c)  The person acquiring title shall pay the amount owed
1208to the association within 30 days after transfer of title.
1209Failure to pay the full amount when due shall entitle the
1210association to record a claim of lien against the parcel and
1211proceed in the same manner as provided in this section for the
1212collection of unpaid assessments.
1213     (d)  With respect to each timeshare unit, each owner of a
1214timeshare estate therein is jointly and severally liable for the
1215payment of all assessments and other charges levied against or
1216with respect to that unit pursuant to the declaration or bylaws,
1217except to the extent that the declaration or bylaws may provide
1218to the contrary.
1219     (e)  A mortgagee who files a foreclosure case on a mortgage
1220secured by a condominium unit shall pay to the association
1221within 15 days after the filing of the action all of the
1222condominium unit's then unpaid common expenses and regular
1223periodic assessments which accrued or came due up to the date of
1224the filing of the foreclosure action. The payment shall be taxed
1225as a cost in the foreclosure action, and the mortgagor shall be
1226personally liable to the mortgagee for the value of the payment
1227made to the association plus interest at the interest rate
1228provided for in the promissory note for advances. The court
1229shall dismiss a foreclosure action on the association's motion
1230to dismiss for failure to make such payment and shall award the
1231association the costs and reasonable attorney's fees related to
1232the motion. Notwithstanding the provisions of paragraph (b), a
1233first mortgagee or its successor or assignees who acquire title
1234to a condominium unit as a result of the foreclosure of the
1235mortgage or by deed in lieu of foreclosure of the mortgage shall
1236be exempt from liability for all unpaid assessments attributable
1237to the parcel or chargeable to the previous owner which came due
1238prior to acquisition of title if the first mortgage was recorded
1239prior to April 1, 1992. If, however, the first mortgage was
1240recorded on or after April 1, 1992, or on the date the mortgage
1241was recorded, the declaration included language incorporating by
1242reference future amendments to this chapter, the provisions of
1243paragraph (b) shall apply.
1244     (f)  The provisions of this subsection are intended to
1245clarify existing law, and shall not be available in any case
1246where the unpaid assessments sought to be recovered by the
1247association are secured by a lien recorded prior to the
1248recording of the mortgage. Notwithstanding the provisions of
1249chapter 48, the association shall be a proper party to intervene
1250in any foreclosure proceeding to seek equitable relief.
1251     (g)  For purposes of this subsection, the term "successor
1252or assignee" as used with respect to a first mortgagee includes
1253only a subsequent holder of the first mortgage.
1254     Section 8.  Subsection (5) of section 718.1255, Florida
1255Statutes, is amended to read:
1256     718.1255  Alternative dispute resolution; voluntary
1257mediation; mandatory nonbinding arbitration; legislative
1258findings.--
1259     (5)  DISPUTES INVOLVING ELECTION AND RECALL
1260IRREGULARITIES.--
1261     (a)  Every arbitration petition received by the division
1262and required to be filed under this section challenging the
1263legality of the election of any director of the board of
1264administration, or challenging the failure or refusal of a board
1265of administration to conduct a recall election or to recognize
1266the results of a recall election, must be handled on an
1267expedited basis.
1268     (b)  The provisions of this subsection shall control over
1269any conflicting provision of subsection (4).
1270     (c)  An election or recall arbitration hearing shall be
1271conducted within 15 days after the filing of the arbitration
1272petition. The filing fee for a petition under this subsection is
1273$150. Upon receipt of the petition and fee, the division shall
1274immediately notify the board of the petition and shall order the
1275board and the petitioner to appear at a certain date and time
1276for the arbitration hearing. When possible, an arbitration
1277hearing shall be conducted in a meeting room within the
1278condominium property that is capable of accommodating all
1279members desiring to attend.
1280     (d)  The notice of the hearing shall specify that the board
1281is to appear with all of the original ballots and other relevant
1282election materials. The failure of the board to appear with the
1283ballots and other election materials is grounds for removing the
1284members of the board from office and ruling in favor of the
1285petitioner.
1286     (e)  The arbitrator shall, at the conclusion of the
1287hearing, issue an oral ruling that shall go into effect
1288immediately regardless of whether a trial de novo is requested.
1289The arbitrator shall issue a conforming written opinion within
129010 days after the hearing. The date of the written opinion shall
1291be the date from which the date to file for a trial de novo
1292shall be calculated. The prevailing party may seek enforcement
1293of the oral ruling in the circuit court.
1294     (f)  Upon receipt of the notice of arbitration under this
1295subsection, the director may not make or authorize any
1296extraordinary expense except in an emergency.
1297     (g)  The arbitration shall be conducted in the manner
1298provided by the division's rules for election and recall
1299arbitration disputes.
1300     Section 9.  Subsection (2) of section 718.1265, Florida
1301Statutes, is amended to read:
1302     718.1265  Association emergency powers.--
1303     (2)  The special powers authorized under subsection (1)
1304shall be limited to that time reasonably necessary to protect
1305the health, safety, and welfare of the association and the unit
1306owners and the unit owners' family members, tenants, guests,
1307agents, or invitees and shall be reasonably necessary to
1308mitigate further damage and make emergency repairs.
1309Additionally, unless 20 percent or more of the units are made
1310uninhabitable by the emergency, the special powers authorized
1311under subsection (1) shall only be exercised during the term of
1312the Governor's executive order or proclamation declaring the
1313state of emergency in the locale in which the condominium is
1314located.
1315     Section 10.  Subsection (1) of section 718.501, Florida
1316Statutes, is amended, and subsection (3) is added to that
1317section, to read:
1318     718.501  Authority, responsibility, and duties of Division
1319of Florida Condominiums, Timeshares, and Mobile Homes.--
1320     (1)  The Division of Florida Condominiums, Timeshares, and
1321Mobile Homes of the Department of Business and Professional
1322Regulation, referred to as the "division" in this part, has the
1323power to enforce and ensure compliance with the provisions of
1324this chapter and rules relating to the development,
1325construction, sale, lease, ownership, operation, and management
1326of residential condominium units. In performing its duties, the
1327division has complete jurisdiction to investigate complaints and
1328enforce compliance with the provisions of this chapter with
1329respect to associations that are still under developer control
1330and complaints against developers involving improper turnover or
1331failure to turnover, pursuant to s. 718.301. However, after
1332turnover has occurred, the division shall only have jurisdiction
1333to investigate complaints related to financial issues, failure
1334to maintain common elements, elections, and unit owner access to
1335association records pursuant to s. 718.111(12).
1336     (a)1.  The division may make necessary public or private
1337investigations within or outside this state to determine whether
1338any person has violated this chapter or any rule or order
1339hereunder, to aid in the enforcement of this chapter, or to aid
1340in the adoption of rules or forms hereunder.
1341     2.  The division may submit any official written report,
1342worksheet, or other related paper, or a duly certified copy
1343thereof, compiled, prepared, drafted, or otherwise made by and
1344duly authenticated by a financial examiner or analyst to be
1345admitted as competent evidence in any hearing in which the
1346financial examiner or analyst is available for cross-examination
1347and attests under oath that such documents were prepared as a
1348result of an examination or inspection conducted pursuant to
1349this chapter.
1350     (b)  The division may require or permit any person to file
1351a statement in writing, under oath or otherwise, as the division
1352determines, as to the facts and circumstances concerning a
1353matter to be investigated.
1354     (c)  For the purpose of any investigation under this
1355chapter, the division director or any officer or employee
1356designated by the division director may administer oaths or
1357affirmations, subpoena witnesses and compel their attendance,
1358take evidence, and require the production of any matter which is
1359relevant to the investigation, including the existence,
1360description, nature, custody, condition, and location of any
1361books, documents, or other tangible things and the identity and
1362location of persons having knowledge of relevant facts or any
1363other matter reasonably calculated to lead to the discovery of
1364material evidence. Upon the failure by a person to obey a
1365subpoena or to answer questions propounded by the investigating
1366officer and upon reasonable notice to all persons affected
1367thereby, the division may apply to the circuit court for an
1368order compelling compliance.
1369     (d)  Notwithstanding any remedies available to unit owners
1370and associations, if the division has reasonable cause to
1371believe that a violation of any provision of this chapter or
1372related rule has occurred, the division may institute
1373enforcement proceedings in its own name against any developer,
1374association, officer, or member of the board of administration,
1375or its assignees or agents, as follows:
1376     1.  The division may permit a person whose conduct or
1377actions may be under investigation to waive formal proceedings
1378and enter into a consent proceeding whereby orders, rules, or
1379letters of censure or warning, whether formal or informal, may
1380be entered against the person.
1381     2.  The division may issue an order requiring the
1382developer, association, developer-designated officer, or
1383developer-designated member of the board of administration,
1384developer-designated assignees or agents, community association
1385manager, or community association management firm to cease and
1386desist from the unlawful practice and take such affirmative
1387action as in the judgment of the division will carry out the
1388purposes of this chapter. If the division finds that a
1389developer, association, officer, or member of the board of
1390administration, or its assignees or agents, is violating or is
1391about to violate any provision of this chapter, any rule adopted
1392or order issued by the division, or any written agreement
1393entered into with the division, and presents an immediate danger
1394to the public requiring an immediate final order, it may issue
1395an emergency cease and desist order reciting with particularity
1396the facts underlying such findings. The emergency cease and
1397desist order is effective for 90 days. If the division begins
1398nonemergency cease and desist proceedings, the emergency cease
1399and desist order remains effective until the conclusion of the
1400proceedings under ss. 120.569 and 120.57.
1401     3.  If a developer fails to pay any restitution determined
1402by the division to be owed, plus any accrued interest at the
1403highest rate permitted by law, within 30 days after expiration
1404of any appellate time period of a final order requiring payment
1405of restitution or the conclusion of any appeal thereof,
1406whichever is later, the division shall bring an action in
1407circuit or county court on behalf of any association, class of
1408unit owners, lessees, or purchasers for restitution, declaratory
1409relief, injunctive relief, or any other available remedy. The
1410division may also temporarily revoke its acceptance of the
1411filing for the developer to which the restitution relates until
1412payment of restitution is made.
1413     4.  The division may petition the court for the appointment
1414of a receiver or conservator. If appointed, the receiver or
1415conservator may take action to implement the court order to
1416ensure the performance of the order and to remedy any breach
1417thereof. In addition to all other means provided by law for the
1418enforcement of an injunction or temporary restraining order, the
1419circuit court may impound or sequester the property of a party
1420defendant, including books, papers, documents, and related
1421records, and allow the examination and use of the property by
1422the division and a court-appointed receiver or conservator.
1423     5.  The division may apply to the circuit court for an
1424order of restitution whereby the defendant in an action brought
1425pursuant to subparagraph 4. shall be ordered to make restitution
1426of those sums shown by the division to have been obtained by the
1427defendant in violation of this chapter. Such restitution shall,
1428at the option of the court, be payable to the conservator or
1429receiver appointed pursuant to subparagraph 4. or directly to
1430the persons whose funds or assets were obtained in violation of
1431this chapter.
1432     6.  The division may impose a civil penalty against a
1433developer or association, or its assignee or agent, for any
1434violation of this chapter or a rule adopted under this chapter.
1435The division may impose a civil penalty individually against any
1436officer or board member who willfully and knowingly violates a
1437provision of this chapter, adopted rule, or a final order of the
1438division; may order the removal of such individual as an officer
1439or from the board of administration or as an officer of the
1440association; and may prohibit such individual from serving as an
1441officer or on the board of a community association for a period
1442of time. The term "willfully and knowingly" means that the
1443division informed the officer or board member that his or her
1444action or intended action violates this chapter, a rule adopted
1445under this chapter, or a final order of the division and that
1446the officer or board member refused to comply with the
1447requirements of this chapter, a rule adopted under this chapter,
1448or a final order of the division. The division, prior to
1449initiating formal agency action under chapter 120, shall afford
1450the officer or board member an opportunity to voluntarily comply
1451with this chapter, a rule adopted under this chapter, or a final
1452order of the division. An officer or board member who complies
1453within 10 days is not subject to a civil penalty. A penalty may
1454be imposed on the basis of each day of continuing violation, but
1455in no event shall the penalty for any offense exceed $5,000. By
1456January 1, 1998, the division shall adopt, by rule, penalty
1457guidelines applicable to possible violations or to categories of
1458violations of this chapter or rules adopted by the division. The
1459guidelines must specify a meaningful range of civil penalties
1460for each such violation of the statute and rules and must be
1461based upon the harm caused by the violation, the repetition of
1462the violation, and upon such other factors deemed relevant by
1463the division. For example, the division may consider whether the
1464violations were committed by a developer or owner-controlled
1465association, the size of the association, and other factors. The
1466guidelines must designate the possible mitigating or aggravating
1467circumstances that justify a departure from the range of
1468penalties provided by the rules. It is the legislative intent
1469that minor violations be distinguished from those which endanger
1470the health, safety, or welfare of the condominium residents or
1471other persons and that such guidelines provide reasonable and
1472meaningful notice to the public of likely penalties that may be
1473imposed for proscribed conduct. This subsection does not limit
1474the ability of the division to informally dispose of
1475administrative actions or complaints by stipulation, agreed
1476settlement, or consent order. All amounts collected shall be
1477deposited with the Chief Financial Officer to the credit of the
1478Division of Florida Condominiums, Timeshares, and Mobile Homes
1479Trust Fund. If a developer fails to pay the civil penalty and
1480the amount deemed to be owed to the association, the division
1481shall issue an order directing that such developer cease and
1482desist from further operation until such time as the civil
1483penalty is paid or may pursue enforcement of the penalty in a
1484court of competent jurisdiction. If an association fails to pay
1485the civil penalty, the division shall pursue enforcement in a
1486court of competent jurisdiction, and the order imposing the
1487civil penalty or the cease and desist order will not become
1488effective until 20 days after the date of such order. Any action
1489commenced by the division shall be brought in the county in
1490which the division has its executive offices or in the county
1491where the violation occurred.
1492     7.  If a unit owner presents the division with proof that
1493the unit owner has requested access to official records in
1494writing by certified mail, and that after 10 days the unit owner
1495again made the same request for access to official records in
1496writing by certified mail, and that more than 10 days has
1497elapsed since the second request and the association has still
1498failed or refused to provide access to official records as
1499required by this chapter, the division shall issue a subpoena
1500requiring production of the requested records where the records
1501are kept pursuant to s. 718.112.
1502     8.  In addition to subparagraph 6., the division may seek
1503the imposition of a civil penalty through the circuit court for
1504any violation for which the division may issue a notice to show
1505cause under paragraph (r). The civil penalty shall be at least
1506$500 but no more than $5,000 for each violation. The court may
1507also award to the prevailing party court costs and reasonable
1508attorney's fees and, if the division prevails, may also award
1509reasonable costs of investigation.
1510     9.  Notwithstanding subparagraph 6., when the division
1511finds that an officer or director has intentionally falsified
1512association records with the intent to conceal material facts
1513from the division, the board, or unit owners, the division shall
1514prohibit the officer or director from acting as an officer or
1515director of any condominium, cooperative, or homeowners'
1516association for at least 1 year.
1517     10.  When the division finds that any person has derived an
1518improper personal benefit from a condominium association, the
1519division shall order the person to pay restitution to the
1520association and shall order the person to pay to the division
1521the costs of investigation and prosecution.
1522     (e)  The division may prepare and disseminate a prospectus
1523and other information to assist prospective owners, purchasers,
1524lessees, and developers of residential condominiums in assessing
1525the rights, privileges, and duties pertaining thereto.
1526     (f)  The division has authority to adopt rules pursuant to
1527ss. 120.536(1) and 120.54 to implement and enforce the
1528provisions of this chapter.
1529     (g)  The division shall establish procedures for providing
1530notice to an association and the developer during the period
1531where the developer controls the association when the division
1532is considering the issuance of a declaratory statement with
1533respect to the declaration of condominium or any related
1534document governing in such condominium community.
1535     (h)  The division shall furnish each association which pays
1536the fees required by paragraph (2)(a) a copy of this act,
1537subsequent changes to this act on an annual basis, an amended
1538version of this act as it becomes available from the Secretary
1539of State's office on a biennial basis, and the rules adopted
1540thereto on an annual basis.
1541     (i)  The division shall annually provide each association
1542with a summary of declaratory statements and formal legal
1543opinions relating to the operations of condominiums which were
1544rendered by the division during the previous year.
1545     (j)  The division shall provide training and educational
1546programs for condominium association board members and unit
1547owners. The training may, in the division's discretion, include
1548web-based electronic media, and live training and seminars in
1549various locations throughout the state. The division shall have
1550the authority to review and approve education and training
1551programs for board members and unit owners offered by providers
1552and shall maintain a current list of approved programs and
1553providers and shall make such list available to board members
1554and unit owners in a reasonable and cost-effective manner.
1555     (k)  The division shall maintain a toll-free telephone
1556number accessible to condominium unit owners.
1557     (l)  The division shall develop a program to certify both
1558volunteer and paid mediators to provide mediation of condominium
1559disputes. The division shall provide, upon request, a list of
1560such mediators to any association, unit owner, or other
1561participant in arbitration proceedings under s. 718.1255
1562requesting a copy of the list. The division shall include on the
1563list of volunteer mediators only the names of persons who have
1564received at least 20 hours of training in mediation techniques
1565or who have mediated at least 20 disputes. In order to become
1566initially certified by the division, paid mediators must be
1567certified by the Supreme Court to mediate court cases in county
1568or circuit courts. However, the division may adopt, by rule,
1569additional factors for the certification of paid mediators,
1570which factors must be related to experience, education, or
1571background. Any person initially certified as a paid mediator by
1572the division must, in order to continue to be certified, comply
1573with the factors or requirements imposed by rules adopted by the
1574division.
1575     (m)  When a complaint is made, the division shall conduct
1576its inquiry with due regard to the interests of the affected
1577parties. Within 30 days after receipt of a complaint, the
1578division shall acknowledge the complaint in writing and notify
1579the complainant whether the complaint is within the jurisdiction
1580of the division and whether additional information is needed by
1581the division from the complainant. The division shall conduct
1582its investigation and shall, within 90 days after receipt of the
1583original complaint or of timely requested additional
1584information, take action upon the complaint. However, the
1585failure to complete the investigation within 90 days does not
1586prevent the division from continuing the investigation,
1587accepting or considering evidence obtained or received after 90
1588days, or taking administrative action if reasonable cause exists
1589to believe that a violation of this chapter or a rule of the
1590division has occurred. If an investigation is not completed
1591within the time limits established in this paragraph, the
1592division shall, on a monthly basis, notify the complainant in
1593writing of the status of the investigation. When reporting its
1594action to the complainant, the division shall inform the
1595complainant of any right to a hearing pursuant to ss. 120.569
1596and 120.57.
1597     (n)  Condominium association directors, officers, and
1598employees; condominium developers; community association
1599managers; and community association management firms have an
1600ongoing duty to reasonably cooperate with the division in any
1601investigation pursuant to this section. The division shall refer
1602to local law enforcement authorities any person whom the
1603division believes has altered, destroyed, concealed, or removed
1604any record, document, or thing required to be kept or maintained
1605by this chapter with the purpose to impair its verity or
1606availability in the department's investigation.
1607     (o)  The division may:
1608     1.  Contract with agencies in this state or other
1609jurisdictions to perform investigative functions; or
1610     2.  Accept grants-in-aid from any source.
1611     (p)  The division shall cooperate with similar agencies in
1612other jurisdictions to establish uniform filing procedures and
1613forms, public offering statements, advertising standards, and
1614rules and common administrative practices.
1615     (q)  The division shall consider notice to a developer to
1616be complete when it is delivered to the developer's address
1617currently on file with the division.
1618     (r)  In addition to its enforcement authority, the division
1619may issue a notice to show cause, which shall provide for a
1620hearing, upon written request, in accordance with chapter 120.
1621     (s)  The division shall submit to the Governor, the
1622President of the Senate, the Speaker of the House of
1623Representatives, and the chairs of the legislative
1624appropriations committees an annual report that includes, but
1625need not be limited to, the number of training programs provided
1626for condominium association board members and unit owners, the
1627number of complaints received by type, the number and percent of
1628complaints acknowledged in writing within 30 days and the number
1629and percent of investigations acted upon within 90 days in
1630accordance with paragraph (m), and the number of investigations
1631exceeding the 90-day requirement. The annual report shall also
1632include an evaluation of the division's core business processes
1633and make recommendations for improvements, including statutory
1634changes. The report shall be submitted by September 30 following
1635the end of the fiscal year.
1636     (3)  The division shall create a booklet of the laws that a
1637director must read as required by s. 718.112(2)(p)4. The booklet
1638shall be available for free download from the division's
1639website. The division may provide a printed version to directors
1640for free or for a cost not to exceed the division's actual cost
1641of production and mailing.
1642     Section 11.  Subsection (9) of section 718.5012, Florida
1643Statutes, is amended to read:
1644     718.5012  Ombudsman; powers and duties.--The ombudsman
1645shall have the powers that are necessary to carry out the duties
1646of his or her office, including the following specific powers:
1647     (9)  To assist with the resolution of disputes between unit
1648owners and the association or between unit owners when the
1649dispute is not within the jurisdiction of the division to
1650resolve or the division has declined to resolve a dispute.
1651     Section 12.  Subsection (1) of section 718.50151, Florida
1652Statutes, is amended to read:
1653     718.50151  Community Association Living Study Council;
1654membership functions.--
1655     (1)  There is created the Community Association Living
1656Study Council. The council shall consist of seven appointed
1657members. Two members shall be appointed by the President of the
1658Senate, two members shall be appointed by the Speaker of the
1659House of Representatives, and three members shall be appointed
1660by the Governor. One member that is appointed by the Governor
1661may represent timeshare condominiums. The council shall be
1662created as of October 1 every 5 years, commencing July October
16631, 2009 2008, and shall exist for a 6-month term. The director
1664of the division shall appoint an ex officio nonvoting member.
1665The Legislature intends that the persons appointed represent a
1666cross-section of persons experienced interested in community
1667association issues. No member of the council may be a registered
1668lobbyist, partner or shareholder in a firm providing lobbying
1669services, or principal or employee of a lobbying firm who is
1670provided compensation by community associations. The council
1671shall be located within the division for administrative
1672purposes. Members of the council shall serve without
1673compensation but are entitled to receive per diem and travel
1674expenses pursuant to s. 112.061 while on official business. The
1675initial members of the council shall be those persons formerly
1676appointed to the Community Association Living Study Council who
1677are otherwise qualified to serve on the Community Association
1678Study Council.
1679     Section 13.  Subsections (11) and (26) of section 719.103,
1680Florida Statutes, are amended to read:
1681     719.103  Definitions.--As used in this chapter:
1682     (11)  "Conspicuous type" means bold type in capital letters
1683no smaller than the largest type, exclusive of headings, on the
1684page on which it appears and, in all cases, at least 10-point
1685type. When conspicuous type is required, it must be separated on
1686all sides from other type and print. Conspicuous type may be
1687used in a contract for purchase and sale of a unit, a lease of a
1688unit for more than 5 years, or a prospectus or offering circular
1689only when required by law.
1690     (26)  "Unit owner," or "owner of a unit," or "shareholder"
1691means the person holding a share in the cooperative association
1692and a lease or other muniment of title or possession of a unit
1693that is granted by the association as the owner of the
1694cooperative property.
1695     Section 14.  Section 719.104, Florida Statutes, is amended
1696to read:
1697     719.104  The association Cooperatives; access to units;
1698records; financial reports; assessments; purchase of leases.--
1699     (1)  RIGHT OF ACCESS TO UNITS.--The association has the
1700irrevocable right of access to each unit from time to time
1701during reasonable hours when necessary for the maintenance,
1702repair, or replacement of any structural components of the
1703building or of any mechanical, electrical, or plumbing elements
1704necessary to prevent damage to the building or to another unit.
1705Except in cases of emergency, the association must give the
1706shareholder advance written notice of not less than 24 hours of
1707its intent to access the unit and such access must be by two
1708persons, one of whom must be a member of the board of
1709administration or a manager or employee of the association and
1710one of whom must be an authorized representative of the
1711association. The identity of the authorized representative
1712seeking access to the unit shall be provided to the unit owner
1713prior to entering the unit.
1714     (2)  OFFICIAL RECORDS.--
1715     (a)  From the inception of the association, the association
1716shall maintain a copy of each of the following, where
1717applicable, which shall constitute the official records of the
1718association:
1719     1.  The plans, permits, warranties, and other items
1720provided by the developer pursuant to s. 719.301(4).
1721     2.  A photocopy of the cooperative documents.
1722     3.  A copy of the current rules of the association.
1723     4.  A book or books containing the minutes of all meetings
1724of the association, of the board of directors, and of the
1725shareholders unit owners, which minutes shall be retained for a
1726period of not less than 7 years.
1727     5.  A current roster of all shareholders unit owners and
1728their mailing addresses, unit identifications, voting
1729certifications, and, if known, telephone numbers. The
1730association shall also maintain the electronic mailing addresses
1731and the numbers designated by shareholders unit owners for
1732receiving notice sent by electronic transmission of those
1733shareholders unit owners consenting to receive notice by
1734electronic transmission. The electronic mailing addresses and
1735numbers provided by shareholders unit owners to receive notice
1736by electronic transmission shall be removed from association
1737records when consent to receive notice by electronic
1738transmission is revoked. However, the association is not liable
1739for an erroneous disclosure of the electronic mail address or
1740the number for receiving electronic transmission of notices.
1741     6.  All current insurance policies of the association.
1742     7.  A current copy of any management agreement, lease, or
1743other contract to which the association is a party or under
1744which the association or the shareholders unit owners have an
1745obligation or responsibility.
1746     8.  Bills of sale or transfer for all property owned by the
1747association.
1748     9.  Accounting records for the association and separate
1749accounting records for each unit it operates, according to good
1750accounting practices. Any person who knowingly or intentionally
1751defaces or destroys accounting records required to be maintained
1752by this chapter, or who knowingly or intentionally fails to
1753create or maintain accounting records required to be maintained
1754by this chapter, is personally subject to a civil penalty
1755pursuant to s. 719.501(1)(d). All accounting records shall be
1756maintained for a period of not less than 7 years. The accounting
1757records shall include, but not be limited to:
1758     a.  Accurate, itemized, and detailed records of all
1759receipts and expenditures.
1760     b.  A current account and a monthly, bimonthly, or
1761quarterly statement of the account for each unit designating the
1762name of the shareholder unit owner, the due date and amount of
1763each assessment, the amount paid upon the account, and the
1764balance due.
1765     c.  All audits, reviews, accounting statements, and
1766financial reports of the association.
1767     d.  All contracts for work to be performed. Bids for work
1768to be performed shall also be considered official records and
1769shall be maintained for a period of 1 year.
1770     10.  Ballots, sign-in sheets, voting proxies, and all other
1771papers relating to voting by shareholders unit owners, which
1772shall be maintained for a period of 1 year after the date of the
1773election, vote, or meeting to which the document relates.
1774     11.  All rental records where the association is acting as
1775agent for the rental of units.
1776     12.  A copy of the current question and answer sheet as
1777described in s. 719.504.
1778     13.  All other records of the association not specifically
1779included in the foregoing which are related to the operation of
1780the association.
1781     (b)  The official records of the association shall be
1782maintained within the state for at least 7 years. The records of
1783the association shall be made available to a shareholder unit
1784owner within 5 working days after receipt of written request by
1785the board or its designee. This paragraph may be complied with
1786by having a copy of the official records available for
1787inspection or copying on the cooperative property.
1788     (c)  The official records of the association shall be open
1789to inspection by any association member or the authorized
1790representative of such member at all reasonable times. Failure
1791to permit inspection of the association records as provided
1792herein entitles any person prevailing in an enforcement action
1793to recover reasonable attorney's fees from the person in control
1794of the records who, directly or indirectly, knowingly denies
1795access to the records for inspection. The right to inspect the
1796records includes the right to make or obtain copies, at the
1797reasonable expense, if any, of the association member. The
1798association may adopt reasonable rules regarding the frequency,
1799time, location, notice, and manner of record inspections and
1800copying. The failure of an association to provide the records
1801within 10 working days after receipt of a written request
1802creates a rebuttable presumption that the association willfully
1803failed to comply with this paragraph. A shareholder unit owner
1804who is denied access to official records is entitled to the
1805actual damages or minimum damages for the association's willful
1806failure to comply with this paragraph. The minimum damages shall
1807be $50 per calendar day up to 10 days, the calculation to begin
1808on the 11th day after receipt of the written request. Any person
1809who knowingly or intentionally defaces or destroys records that
1810are required by this chapter, or knowingly or intentionally
1811fails to create or maintain records that are required by this
1812chapter, is personally subject to a civil penalty pursuant to s.
1813719.501(1)(d). The association shall maintain an adequate number
1814of copies of the declaration, articles of incorporation, bylaws,
1815and rules, and all amendments to each of the foregoing, as well
1816as the question and answer sheet provided for in s. 719.504, on
1817the cooperative property to ensure their availability to
1818shareholders unit owners and prospective purchasers, and may
1819charge its actual costs for preparing and furnishing these
1820documents to those requesting the same. Notwithstanding the
1821provisions of this paragraph, the following records shall not be
1822accessible to shareholders unit owners:
1823     1.  A record that was prepared by an association attorney
1824or prepared at the attorney's express direction; that reflects a
1825mental impression, conclusion, litigation strategy, or legal
1826theory of the attorney or the association; or that was prepared
1827exclusively for civil or criminal litigation or for adversarial
1828administrative proceedings or in anticipation of imminent civil
1829or criminal litigation or imminent adversarial administrative
1830proceedings, until the conclusion of the litigation or
1831adversarial administrative proceedings.
1832     2.  Information obtained by an association in connection
1833with the approval of the lease, sale, or other transfer of a
1834unit.
1835     3.  Medical records of shareholders unit owners.
1836     4.  Social security numbers, driver's license numbers,
1837credit card numbers, and other personal identifying information
1838of any person.
1839     (d)  The association or its authorized agent shall not be
1840required to provide a prospective purchaser or lienholder with
1841information about the cooperative or association other than the
1842information or documents required by this chapter to be made
1843available or disclosed. The association or its authorized agent
1844shall be entitled to charge a reasonable fee to the prospective
1845purchaser, lienholder, or the current shareholder unit owner for
1846its time in providing good faith responses to requests for
1847information by or on behalf of a prospective purchaser or
1848lienholder, other than that required by law, provided that such
1849fee shall not exceed $150 plus the reasonable cost of
1850photocopying and any attorney's fees incurred by the association
1851in connection with the association's response. An association
1852and its authorized agent are not liable for providing such
1853information in good faith pursuant to a written request if the
1854person providing the information includes a written statement in
1855substantially the following form: "The responses herein are made
1856in good faith and to the best of my ability as to their
1857accuracy."
1858     (3)  INSURANCE.--In order to protect the safety, health,
1859and welfare of the people of the state and to ensure consistency
1860in the provision of insurance coverage to cooperatives and their
1861shareholders, this subsection applies to every residential
1862cooperative in the state, regardless of the date of its
1863cooperative documents. It is the intent of the Legislature to
1864encourage lower or stable insurance premiums for associations
1865described in this subsection.
1866     (a)  Adequate property insurance, regardless of any
1867requirement in the cooperative documents for coverage by the
1868association for full insurable value, replacement cost, or
1869similar coverage, shall be based upon the replacement cost of
1870the property to be insured as determined by an independent
1871insurance appraisal or update of a prior appraisal. The full
1872insurable value shall be determined at least once every 36
1873months.
1874     1.  An association or group of associations may provide
1875adequate property insurance through a self-insurance fund that
1876complies with the requirements of ss. 624.460-624.488.
1877     2.  The association may also provide adequate property
1878insurance coverage for a group of no fewer than three
1879communities created and operating under this chapter, chapter
1880718, chapter 720, or chapter 721 by obtaining and maintaining
1881for such communities insurance coverage sufficient to cover an
1882amount equal to the probable maximum loss for the communities
1883for a 250-year windstorm event. Such probable maximum loss must
1884be determined through the use of a competent model that has been
1885accepted by the Florida Commission on Hurricane Loss Projection
1886Methodology. No policy or program providing such coverage shall
1887be issued or renewed after July 1, 2009, unless it has been
1888reviewed and approved by the Office of Insurance Regulation. The
1889review and approval shall include approval of the policy and
1890related forms pursuant to ss. 627.410 and 627.411, approval of
1891the rates pursuant to s. 627.062, a determination that the loss
1892model approved by the commission was accurately and
1893appropriately applied to the insured structures to determine the
1894250-year probable maximum loss, and a determination that
1895complete and accurate disclosure of all material provisions is
1896provided to cooperative shareholders prior to execution of the
1897agreement by a cooperative association.
1898     3.  When determining the adequate amount of property
1899insurance coverage, the association may consider deductibles as
1900determined by this subsection.
1901     (b)  If an association is a developer-controlled
1902association, the association shall exercise its best efforts to
1903obtain and maintain insurance as described in paragraph (a).
1904Failure to obtain and maintain adequate property insurance
1905during any period of developer control constitutes a breach of
1906fiduciary responsibility by the developer-appointed members of
1907the board of directors of the association, unless the members
1908can show that despite such failure they have made their best
1909efforts to maintain the required coverage.
1910     (c)  Policies may include deductibles as determined by the
1911board.
1912     1.  The deductibles shall be consistent with industry
1913standards and prevailing practice for communities of similar
1914size and age, and having similar construction and facilities in
1915the locale where the cooperative property is situated.
1916     2.  The deductibles may be based upon available funds,
1917including reserve accounts, or predetermined assessment
1918authority at the time the insurance is obtained.
1919     3.  The board shall establish the amount of deductibles
1920based upon the level of available funds and predetermined
1921assessment authority at a meeting of the board. Such meeting
1922shall be open to all shareholders in the manner set forth in s.
1923719.106(1)(e). The notice of such meeting must state the
1924proposed deductible and the available funds and the assessment
1925authority relied upon by the board and estimate any potential
1926assessment amount against each unit, if any. The meeting
1927described in this subparagraph may be held in conjunction with a
1928meeting to consider the proposed budget or an amendment thereto.
1929     (d)  An association controlled by shareholders operating as
1930a residential cooperative shall use its best efforts to obtain
1931and maintain adequate insurance to protect the association, the
1932association property, the common elements, and the cooperative
1933property that is required to be insured by the association
1934pursuant to this subsection.
1935     (e)  An association may also obtain and maintain liability
1936insurance for directors and officers, insurance for the benefit
1937of association employees, and flood insurance for common
1938elements, association property, and units.
1939     (f)  Every property insurance policy issued or renewed on
1940or after July 1, 2009, for the purpose of protecting the
1941cooperative shall provide primary coverage for:
1942     1.  All portions of the cooperative property as originally
1943installed or replacement of like kind and quality, in accordance
1944with the original plans and specifications.
1945     2.  All alterations or additions made to the cooperative
1946property or association property pursuant to s. 719.113(2).
1947
1948The coverage shall exclude all personal property within the
1949unit, and floor, wall, and ceiling coverings, electrical
1950fixtures, appliances, water heaters, water filters, built-in
1951cabinets and countertops, air-conditioning and heating equipment
1952that serves a single unit, and window treatments, including
1953curtains, drapes, blinds, hardware, and similar window treatment
1954components, or replacements of any of the foregoing. Such
1955property and insurance therefore shall be the responsibility of
1956the shareholder.
1957     (g)  A cooperative shareholders policy issued after July 1,
19582009, shall conform to the requirements of s. 627.714.
1959     1.  All reconstruction work after a casualty loss shall be
1960undertaken by the association except as otherwise authorized in
1961this section. A shareholder may undertake reconstruction work on
1962portions of the unit with the prior written consent of the board
1963of directors. However, such work may be conditioned upon the
1964approval of the repair methods, the qualifications of the
1965proposed contractor, or the contract that is used for that
1966purpose. A shareholder shall obtain all required governmental
1967permits and approvals prior to commencing reconstruction.
1968     2.  Shareholders are responsible for the cost of
1969reconstruction of any portions of the cooperative property for
1970which the association does not carry property insurance, and any
1971such reconstruction work undertaken by the association shall be
1972chargeable to the shareholder and enforceable as an assessment
1973pursuant to s. 719.108.
1974     (h)  The association shall maintain insurance or fidelity
1975bonding of all persons who control or disburse funds of the
1976association. The insurance policy or fidelity bond must cover
1977the maximum funds that will be in the custody of the association
1978or its management agent at any one time. As used in this
1979paragraph, the term "persons who control or disburse funds of
1980the association" includes, but is not limited to, those
1981individuals authorized to sign checks on behalf of the
1982association, and the president, secretary, and treasurer of the
1983association. The association shall bear the cost of any such
1984bonding.
1985     (i)  The association may amend the cooperative documents
1986without regard to any requirement for approval by mortgagees of
1987amendments affecting insurance requirements for the purpose of
1988conforming the cooperative documents to the coverage
1989requirements of this subsection.
1990     (j)  Any portion of the cooperative property required to be
1991insured by the association against casualty loss pursuant to
1992paragraph (f) which is damaged by casualty shall be
1993reconstructed, repaired, or replaced as necessary by the
1994association as a common expense. All property insurance
1995deductibles, uninsured losses, and other damages in excess of
1996property insurance coverage under the property insurance
1997policies maintained by the association are a common expense of
1998the cooperative, except that:
1999     1.  A shareholder is responsible for the costs of repair or
2000replacement of any portion of the cooperative property not paid
2001by insurance proceeds, if such damage is caused by intentional
2002conduct, negligence, or failure to comply with the terms of the
2003declaration or the rules of the association by a shareholder,
2004the members of his or her family, unit occupants, tenants,
2005guests, or invitees.
2006     2.  The provisions of subparagraph 1. regarding the
2007financial responsibility of a shareholder for the costs of
2008repairing or replacing other portions of the cooperative
2009property also apply to the costs of repair or replacement of
2010personal property of other shareholders or the association, as
2011well as other property, whether real or personal, which the
2012shareholders are required to insure under paragraph (g).
2013     3.  To the extent the cost of repair or reconstruction for
2014which the shareholder is responsible under this paragraph is
2015reimbursed to the association by insurance proceeds, and, to the
2016extent the association has collected the cost of such repair or
2017reconstruction from the shareholder, the association shall
2018reimburse the shareholder.
2019     4.  The association is not obligated to pay for repair or
2020reconstruction or repairs of casualty losses as a common expense
2021if the casualty losses were known or should have been known to a
2022shareholder and were not reported to the association until after
2023the insurance claim of the association for that casualty was
2024settled or resolved with finality, or denied on the basis that
2025it was untimely filed.
2026     (k)  An association may, upon the approval of a majority of
2027the total voting interests in the association, opt out of the
2028provisions of paragraph (j) for the allocation of repair or
2029reconstruction expenses and allocate repair or reconstruction
2030expenses in the manner provided in the cooperative documents
2031originally recorded or as amended. Such vote may be approved by
2032the voting interests of the association without regard to any
2033mortgagee consent requirements.
2034     (l)  Any association or cooperative voting to opt out of
2035the guidelines for repair or reconstruction expenses as
2036described in paragraph (j) must record a notice setting forth
2037the date of the opt-out vote and the page of the official
2038records book on which the cooperative documents are recorded.
2039The decision to opt out is effective upon the date of recording
2040of the notice in the public records by the association. An
2041association that has voted to opt out of paragraph (j) may
2042reverse that decision by the same vote required in paragraph
2043(k), and notice thereof shall be recorded in the official
2044records.
2045     (m)  The association is not obligated to pay for any
2046reconstruction or repair expenses due to casualty loss to any
2047improvements installed by a current or former owner of the unit
2048or by the developer if the improvement benefits only the unit
2049for which it was installed and is not part of the standard
2050improvements installed by the developer on all units as part of
2051original construction, whether or not such improvement is
2052located within the unit. This paragraph does not relieve any
2053party of its obligations regarding recovery due under any
2054insurance implemented specifically for any such improvements.
2055The association shall use its best efforts to obtain and
2056maintain adequate insurance to protect the association property.
2057The association may also obtain and maintain liability insurance
2058for directors and officers, insurance for the benefit of
2059association employees, and flood insurance. A copy of each
2060policy of insurance in effect shall be made available for
2061inspection by unit owners at reasonable times.
2062     (a)  Windstorm insurance coverage for a group of no fewer
2063than three communities created and operating under chapter 718,
2064this chapter, chapter 720, or chapter 721 may be obtained and
2065maintained for the communities if the insurance coverage is
2066sufficient to cover an amount equal to the probable maximum loss
2067for the communities for a 250-year windstorm event. Such
2068probable maximum loss must be determined through the use of a
2069competent model that has been accepted by the Florida Commission
2070on Hurricane Loss Projection Methodology. Such insurance
2071coverage is deemed adequate windstorm insurance for the purposes
2072of this section.
2073     (b)  An association or group of associations may self-
2074insure against claims against the association, the association
2075property, and the cooperative property required to be insured by
2076an association, upon compliance with the applicable provisions
2077of ss. 624.460-624.488, which shall be considered adequate
2078insurance for purposes of this section.
2079     (4)  FINANCIAL REPORTING REPORT.--Within 90 days after the
2080end of the fiscal year, or annually on a date provided in the
2081bylaws, the association shall prepare and complete, or contract
2082for the preparation and completion of, a financial report for
2083the preceding fiscal year. Within 21 days after the final
2084financial report is completed by the association or received
2085from the third party, but not later than 120 days after the end
2086of the fiscal year or other date as provided in the bylaws, the
2087association shall mail to each shareholder at the address last
2088furnished to the association by the shareholder, or hand deliver
2089to each shareholder, a copy of the financial report or a notice
2090that a copy of the financial report will be mailed or hand
2091delivered to the shareholder, without charge, upon receipt of a
2092written request from the shareholder. The division shall adopt
2093rules setting forth uniform accounting principles and standards
2094to be used by all associations. The rules shall include, but not
2095be limited to, uniform accounting principles and standards for
2096stating the disclosure of at least a summary of the reserves,
2097including information as to whether such reserves are being
2098funded at a level sufficient to prevent the need for a special
2099assessment and, if not, the amount of assessments necessary to
2100bring the reserves up to the level necessary to avoid a special
2101assessment. The person preparing the financial reports shall be
2102entitled to rely on an inspection report prepared for or
2103provided to the association to meet the fiscal and fiduciary
2104standards of this chapter. In adopting such rules, the division
2105shall consider the number of members and annual revenues of an
2106association. Financial reports shall be prepared as follows:
2107     (a)  An association that meets the criteria of this
2108paragraph shall prepare or cause to be prepared a complete set
2109of financial statements in accordance with generally accepted
2110accounting principles. The financial statements shall be based
2111upon the association's total annual revenues, as follows:
2112     1.  An association with total annual revenues of $100,000
2113or more, but less than $200,000, shall prepare compiled
2114financial statements.
2115     2.  An association with total annual revenues of at least
2116$200,000, but less than $400,000, shall prepare reviewed
2117financial statements.
2118     3.  An association with total annual revenues of $400,000
2119or more shall prepare audited financial statements.
2120     (b)1.  An association with total annual revenues of less
2121than $100,000 shall prepare a report of cash receipts and
2122expenditures.
2123     2.  An association which operates less than 50 units,
2124regardless of the association's annual revenues, shall prepare a
2125report of cash receipts and expenditures in lieu of financial
2126statements required by paragraph (a).
2127     3.  A report of cash receipts and disbursements must
2128disclose the amount of receipts by accounts and receipt
2129classifications and the amount of expenses by accounts and
2130expense classifications, including, but not limited to, the
2131following, as applicable: costs for security, professional and
2132management fees and expenses, taxes, costs for recreation
2133facilities, expenses for refuse collection and utility services,
2134expenses for lawn care, costs for building maintenance and
2135repair, insurance costs, administration and salary expenses, and
2136reserves accumulated and expended for capital expenditures,
2137deferred maintenance, and any other category for which the
2138association maintains reserves.
2139     (c)  An association may prepare or cause to be prepared,
2140without a meeting of or approval by the shareholders:
2141     1.  Compiled, reviewed, or audited financial statements, if
2142the association is required to prepare a report of cash receipts
2143and expenditures;
2144     2.  Reviewed or audited financial statements, if the
2145association is required to prepare compiled financial
2146statements; or
2147     3.  Audited financial statements, if the association is
2148required to prepare reviewed financial statements.
2149     (d)  If approved by a majority of the voting interests
2150present at a properly called meeting of the association, an
2151association may prepare or cause to be prepared:
2152     1.  A report of cash receipts and expenditures in lieu of a
2153compiled, reviewed, or audited financial statement;
2154     2.  A report of cash receipts and expenditures or a
2155compiled financial statement in lieu of a reviewed or audited
2156financial statement; or
2157     3.  A report of cash receipts and expenditures, a compiled
2158financial statement, or a reviewed financial statement in lieu
2159of an audited financial statement.
2160
2161Such meeting and approval must occur prior to the end of the
2162fiscal year and is effective only for the fiscal year in which
2163the vote is taken, except that the approval also may be
2164effective for the following fiscal year. With respect to an
2165association to which the developer has not turned over control
2166of the association, all shareholders, including the developer,
2167may vote on issues related to the preparation of financial
2168reports for the first 2 fiscal years of the association's
2169operation, beginning with the fiscal year in which the
2170declaration is recorded. Thereafter, all shareholders except the
2171developer may vote on such issues until control is turned over
2172to the association by the developer. Any audit or review
2173prepared under this section shall be paid for by the developer
2174if done prior to turnover of control of the association. An
2175association may not waive the financial reporting requirements
2176of this subsection for more than 3 consecutive years.
2177     (a)  Within 60 days following the end of the fiscal or
2178calendar year or annually on such date as is otherwise provided
2179in the bylaws of the association, the board of administration of
2180the association shall mail or furnish by personal delivery to
2181each unit owner a complete financial report of actual receipts
2182and expenditures for the previous 12 months, or a complete set
2183of financial statements for the preceding fiscal year prepared
2184in accordance with generally accepted accounting procedures. The
2185report shall show the amounts of receipts by accounts and
2186receipt classifications and shall show the amounts of expenses
2187by accounts and expense classifications including, if
2188applicable, but not limited to, the following:
2189     1.  Costs for security;
2190     2.  Professional and management fees and expenses;
2191     3.  Taxes;
2192     4.  Costs for recreation facilities;
2193     5.  Expenses for refuse collection and utility services;
2194     6.  Expenses for lawn care;
2195     7.  Costs for building maintenance and repair;
2196     8.  Insurance costs;
2197     9.  Administrative and salary expenses; and
2198     10.  Reserves for capital expenditures, deferred
2199maintenance, and any other category for which the association
2200maintains a reserve account or accounts.
2201     (b)  The division shall adopt rules that may require that
2202the association deliver to the unit owners, in lieu of the
2203financial report required by this section, a complete set of
2204financial statements for the preceding fiscal year. The
2205financial statements shall be delivered within 90 days following
2206the end of the previous fiscal year or annually on such other
2207date as provided in the bylaws. The rules of the division may
2208require that the financial statements be compiled, reviewed, or
2209audited, and the rules shall take into consideration the
2210criteria set forth in s. 719.501(1)(j). The requirement to have
2211the financial statements compiled, reviewed, or audited does not
2212apply to associations if a majority of the voting interests of
2213the association present at a duly called meeting of the
2214association have determined for a fiscal year to waive this
2215requirement. In an association in which turnover of control by
2216the developer has not occurred, the developer may vote to waive
2217the audit requirement for the first 2 years of the operation of
2218the association, after which time waiver of an applicable audit
2219requirement shall be by a majority of voting interests other
2220than the developer. The meeting shall be held prior to the end
2221of the fiscal year, and the waiver shall be effective for only
2222one fiscal year. This subsection does not apply to a cooperative
2223that consists of 50 or fewer units.
2224     (5)  ASSESSMENTS.--The association has the power to make
2225and collect assessments and to lease, maintain, repair, and
2226replace the common areas. However, the association may not
2227charge a use fee against a shareholder the unit owner for the
2228use of common areas unless otherwise provided for in the
2229cooperative documents or by a majority vote of the association
2230or unless the charges relate to expenses incurred by a
2231shareholder an owner having exclusive use of common areas.
2232     (6)  PURCHASE OF LEASES.--The association has the power to
2233purchase any land or recreation lease upon the approval of such
2234voting interest as is required by the cooperative documents. If
2235the cooperative documents make no provision for acquisition of
2236the land or recreational lease, the vote required is that
2237required to amend the cooperative documents to permit the
2238acquisition.
2239     (7)  COMMINGLING.--All funds shall be maintained separately
2240in the association's name. Reserve and operating funds of the
2241association shall not be commingled unless combined for
2242investment purposes. This subsection is not meant to prohibit
2243prudent investment of association funds even if combined with
2244operating or other reserve funds of the same association, but
2245such funds must be accounted for separately, and the combined
2246account balance may not, at any time, be less than the amount
2247identified as reserve funds in the combined account. No manager
2248or business entity required to be licensed or registered under
2249s. 468.432, or an agent, employee, officer, or director of a
2250cooperative association may commingle any association funds with
2251his or her own funds or with the funds of any other cooperative
2252association or community association as defined in s. 468.431.
2253     (8)  CORPORATE ENTITY.--
2254     (a)  The operation of the cooperative shall be by the
2255association, which must be a Florida corporation not for profit.
2256The shareholders shall be members of the association. The
2257officers and directors of the association have a fiduciary
2258relationship to the shareholders unit owners. It is the intent
2259of the Legislature that nothing in this paragraph shall be
2260construed as providing for or removing a requirement of a
2261fiduciary relationship between any manager employed by the
2262association and the shareholders. An officer, director, or
2263manager may not solicit, offer to accept, or accept any thing or
2264service of value for which consideration has not been provided
2265for his or her own benefit or that of his or her immediate
2266family, from any person providing or proposing to provide goods
2267or services to the association. Any such officer, director, or
2268manager who knowingly solicits, offers to accept, or accepts any
2269thing or service of value is subject to a civil penalty pursuant
2270to s. 719.501(1)(d). However, this paragraph does not prohibit
2271an officer, director, or manager from accepting services or
2272items received in connection with trade fairs or education
2273programs.
2274     (b)  A director of the association who is present at a
2275meeting of its board at which action on any corporate matter is
2276taken is presumed to have assented to the action taken unless
2277the director votes against such action or abstains from voting
2278in respect thereto because of an asserted conflict of interest.
2279A director of the association who abstains from voting on any
2280action taken on any corporate matter shall be presumed to have
2281taken no position with regard to the action. Directors may not
2282vote by proxy or by secret ballot at board meetings, except that
2283officers may be elected by secret ballot. A vote or abstention
2284for each member present shall be recorded in the minutes.
2285     (c)  A shareholder unit owner does not have any authority
2286to act for the association by reason of being a shareholder unit
2287owner.
2288     (d)  As required by s. 617.0830, an officer, director, or
2289agent shall discharge his or her duties in good faith, with the
2290care an ordinarily prudent person in a like position would
2291exercise under similar circumstances, and in a manner he or she
2292reasonably believes to be in the interests of the association.
2293An officer, director, or agent shall be liable for monetary
2294damages as provided in s. 617.0834 if such officer, director, or
2295agent breached or failed to perform his or her duties and the
2296breach of, or failure to perform, his or her duties constitutes
2297a violation of criminal law as provided in s. 617.0834;
2298constitutes a transaction from which the officer or director
2299derived an improper personal benefit, either directly or
2300indirectly; or constitutes recklessness or an act or omission
2301that was in bad faith, with malicious purpose, or in a manner
2302exhibiting wanton and willful disregard of human rights, safety,
2303or property.
2304     (9)  EASEMENTS.--Unless prohibited by the cooperative
2305documents, the board of administration has the authority,
2306without the joinder of any shareholder unit owner, to grant,
2307modify, or move any easement, if the easement constitutes part
2308of or crosses the common areas or association property. This
2309subsection does not authorize the board of administration to
2310modify, move, or vacate any easement created in whole or in part
2311for the use or benefit of anyone other than the shareholders
2312unit owners, or crossing the property of anyone other than the
2313shareholders unit owners, without the consent or approval of
2314those other persons having the use or benefit of the easement,
2315as required by law or by the instrument creating the easement.
2316     (10)  POWERS AND DUTIES.--The powers and duties of the
2317association include those set forth in this section and, except
2318as expressly limited or restricted in this chapter, those set
2319forth in the articles of incorporation and bylaws and chapters
2320607 and 617, as applicable.
2321     (11)  NOTIFICATION OF DIVISION.--When the board of
2322directors intends to dissolve or merge the cooperative
2323association, the board shall so notify the division before
2324taking any action to dissolve or merge the cooperative
2325association.
2326     (12)  POWER TO MANAGE COOPERATIVE PROPERTY AND TO CONTRACT,
2327SUE, BE SUED, AND BORROW MONEY.--
2328     (a)  The association may contract, sue, or be sued with
2329respect to the exercise or nonexercise of its powers. For these
2330purposes, the powers of the association include, but are not
2331limited to, the maintenance, management, and operation of the
2332cooperative property.
2333     (b)  After control of the association is obtained by
2334shareholders other than the developer, the association may
2335institute, maintain, settle, or appeal actions or hearings in
2336its name on behalf of all shareholders concerning matters of
2337common interest to most or all shareholders, including, but not
2338limited to, the common areas; the roof and structural components
2339of a building or other improvements; mechanical, electrical, and
2340plumbing elements serving an improvement or a building;
2341representations of the developer pertaining to any existing or
2342proposed commonly used facilities; and protesting ad valorem
2343taxes on commonly used facilities and units; and the association
2344may defend actions in eminent domain or bring inverse
2345condemnation actions.
2346     (c)  If the association has the authority to maintain a
2347class action, the association may be joined in an action as
2348representative of that class with reference to litigation and
2349disputes involving the matters for which the association could
2350bring a class action. Nothing herein limits any statutory or
2351common-law right of any individual shareholder or class of
2352shareholders to bring any action without participation by the
2353association which may otherwise be available.
2354     (d)  The borrowing of funds or committing to a line of
2355credit by the board of administration shall be considered a
2356special assessment, and any meeting of the board of
2357administration to discuss such matters shall be noticed in the
2358same manner as provided in s. 719.106(1)(c). The board shall not
2359have the authority to enter in a line of credit or borrow funds
2360for any purpose unless the specific use of the funds from the
2361line of credit or loan is set forth in the notice of meeting
2362with the same specificity as required for a special assessment
2363or unless the borrowing or line of credit has received the prior
2364approval of not less than two-thirds of the voting interests of
2365the association.
2366     (13)  TITLE TO PROPERTY.--
2367     (a)  The association has the power to acquire title to
2368property or otherwise hold, convey, lease, and mortgage
2369association property for the use and benefit of its
2370shareholders. The power to acquire personal property shall be
2371exercised by the board of directors. Except as otherwise
2372provided in subsections (6) and (14), no association may
2373acquire, convey, lease, or mortgage association real property
2374except in the manner provided in the cooperative documents, and
2375if the cooperative documents do not specify the procedure, then
2376approval of 75 percent of the total voting interests shall be
2377required.
2378     (b)  Subject to the provisions of s. 719.106(1)(m), the
2379association, through its board, has the limited power to convey
2380a portion of the common areas to a condemning authority for the
2381purposes of providing utility easements, right-of-way expansion,
2382or other public purposes, whether negotiated or as a result of
2383eminent domain proceedings.
2384     (14)  PURCHASE OF UNITS.--The association has the power,
2385unless prohibited by the cooperative documents, to purchase
2386units in the cooperative and to acquire and hold, lease,
2387mortgage, and convey the units. There shall be no limitation on
2388the association's right to purchase a unit at a foreclosure sale
2389resulting from the association's foreclosure of its lien for
2390unpaid assessments, or to take title by deed in lieu of
2391foreclosure.
2392     (15)  MEETINGS.--Regular meetings of the board of directors
2393shall be held at such time and place as provided in the bylaws
2394until the first regular meeting of the board held on or after
2395October 1, 2009. Thereafter, the location and time for regular
2396meetings of the board shall be determined by a majority vote of
2397the shareholders at the next regular meeting held on or after
2398October 1, 2009. Once the time and place for regular meetings of
2399the board have been selected, neither may be changed unless
2400approved by a majority vote of the shareholders. Regular
2401meetings of the board of directors held on weekdays shall be
2402held no earlier than 6 p.m. local time.
2403     (16)  LIMIT ON EXPENDITURES.--It shall be unlawful for an
2404association to make any expenditure of association funds or to
2405make any in-kind contribution of association assets that does
2406not relate to the purposes for which the association is
2407organized.
2408     (a)  The association shall not make any contribution to a
2409campaign or committee of continuous existence governed by
2410chapter 105 or chapter 106.
2411     (b)  The association shall not make any contribution to a
2412charitable organization if the association does not receive a
2413direct benefit from the organization.
2414     (c)  The association shall not make any expenditure in
2415order to retain a person or firm for the purposes of lobbying.
2416     (d)  Members of the board shall be jointly and severally
2417liable to reimburse the association for any contribution,
2418expenditure, or in-kind contribution made in violation of this
2419subsection.
2420     Section 15.  Section 719.106, Florida Statutes, is amended
2421to read:
2422     719.106  Bylaws; cooperative ownership.--
2423     (1)  MANDATORY PROVISIONS.--The bylaws or other cooperative
2424documents shall provide for the following, and if they do not,
2425they shall be deemed to include the following:
2426     (a)  Administration.--
2427     1.  The form of administration of the association shall be
2428described, indicating the titles of the officers and board of
2429administration and specifying the powers, duties, manner of
2430selection and removal, and compensation, if any, of officers and
2431board members. In the absence of such a provision, the board of
2432administration shall be composed of five members, except in the
2433case of cooperatives having five or fewer units, in which case
2434in not-for-profit corporations, the board shall consist of not
2435fewer than three members. In the absence of provisions to the
2436contrary, the board of administration shall have a president, a
2437secretary, and a treasurer, who shall perform the duties of
2438those offices customarily performed by officers of corporations.
2439Unless prohibited in the bylaws, the board of administration may
2440appoint other officers and grant them those duties it deems
2441appropriate. Unless otherwise provided in the bylaws, the
2442officers shall serve without compensation and at the pleasure of
2443the board. Unless otherwise provided in the bylaws, the members
2444of the board shall serve without compensation.
2445     2.  When a shareholder unit owner files a written inquiry
2446by certified mail with the board of administration, the board
2447shall respond in writing to the shareholder unit owner within 30
2448days of receipt of the inquiry. The board's response shall
2449either give a substantive response to the inquirer, notify the
2450inquirer that a legal opinion has been requested, or notify the
2451inquirer that advice has been requested from the division. If
2452the board requests advice from the division, the board shall,
2453within 10 days of its receipt of the advice, provide in writing
2454a substantive response to the inquirer. If a legal opinion is
2455requested, the board shall, within 60 days after the receipt of
2456the inquiry, provide in writing a substantive response to the
2457inquirer. The failure to provide a substantive response to the
2458inquirer as provided herein precludes the board from recovering
2459attorney's fees and costs in any subsequent litigation,
2460administrative proceeding, or arbitration arising out of the
2461inquiry. The association may, through its board of
2462administration, adopt reasonable rules and regulations regarding
2463the frequency and manner of responding to the shareholders' unit
2464owners' inquiries, one of which may be that the association is
2465obligated to respond to only one written inquiry per unit in any
2466given 30-day period. In such case, any additional inquiry or
2467inquiries must be responded to in the subsequent 30-day period,
2468or periods, as applicable.
2469     (b)  Quorum; voting requirements; proxies.--
2470     1.  Unless otherwise provided in the bylaws, the percentage
2471of voting interests required to constitute a quorum at a meeting
2472of the members shall be a majority of voting interests, and
2473decisions shall be made by owners of a majority of the voting
2474interests. Unless otherwise provided in this chapter, or in the
2475articles of incorporation, bylaws, or other cooperative
2476documents, and except as provided in subparagraph (d)1.,
2477decisions shall be made by owners of a majority of the voting
2478interests represented at a meeting at which a quorum is present.
2479     2.  Except as specifically otherwise provided herein, after
2480January 1, 1992, shareholders unit owners may not vote by
2481general proxy, but may vote by limited proxies substantially
2482conforming to a limited proxy form adopted by the division.
2483Limited proxies and general proxies may be used to establish a
2484quorum. Limited proxies shall be used for votes taken to waive
2485or reduce reserves in accordance with subparagraph (j)2., for
2486votes taken to waive the financial reporting requirements of s.
2487719.104(4)(b), for votes taken to amend the articles of
2488incorporation or bylaws pursuant to this section, and for any
2489other matter for which this chapter requires or permits a vote
2490of the shareholders unit owners. Except as provided in paragraph
2491(d), after January 1, 1992, no proxy, limited or general, shall
2492be used in the election of board members. General proxies may be
2493used for other matters for which limited proxies are not
2494required, and may also be used in voting for nonsubstantive
2495changes to items for which a limited proxy is required and
2496given. Notwithstanding the provisions of this section,
2497shareholders unit owners may vote in person at shareholder unit
2498owner meetings. Nothing contained herein shall limit the use of
2499general proxies or require the use of limited proxies or require
2500the use of limited proxies for any agenda item or election at
2501any meeting of a timeshare cooperative.
2502     3.  Any proxy given shall be effective only for the
2503specific meeting for which originally given and any lawfully
2504adjourned meetings thereof. In no event shall any proxy be valid
2505for a period longer than 90 days after the date of the first
2506meeting for which it was given. Every proxy shall be revocable
2507at any time at the pleasure of the shareholder unit owner
2508executing it.
2509     4.  A member of the board of administration or a committee
2510may submit in writing his or her agreement or disagreement with
2511any action taken at a meeting that the member did not attend.
2512This agreement or disagreement may not be used as a vote for or
2513against the action taken and may not be used for the purposes of
2514creating a quorum.
2515     5.  When some or all of the board or committee members meet
2516by telephone conference, those board or committee members
2517attending by telephone conference may be counted toward
2518obtaining a quorum and may vote by telephone. A telephone
2519speaker shall be utilized so that the conversation of those
2520board or committee members attending by telephone may be heard
2521by the board or committee members attending in person, as well
2522as by shareholders unit owners present at a meeting.
2523     (c)  Board of administration meetings.--Meetings of the
2524board of administration at which a quorum of the members is
2525present shall be open to all shareholders unit owners. Any
2526shareholder unit owner may tape record or videotape meetings of
2527the board of administration. The right to attend such meetings
2528includes the right to speak at such meetings with reference to
2529all designated agenda items. The division shall adopt reasonable
2530rules governing the tape recording and videotaping of the
2531meeting. The association may adopt reasonable written rules
2532governing the frequency, duration, and manner of shareholder
2533unit owner statements. Adequate notice of all meetings shall be
2534posted in a conspicuous place upon the cooperative property at
2535least 48 continuous hours preceding the meeting, except in an
2536emergency. If 20 percent of the voting interests petition the
2537board to address an item of business, the board shall at its
2538next regular board meeting or at a special meeting of the board,
2539but not later than 60 days after the receipt of the petition,
2540place the item on the agenda. Any item not included on the
2541notice may be taken up on an emergency basis by at least a
2542majority plus one of the members of the board. Such emergency
2543action shall be noticed and ratified at the next regular meeting
2544of the board. However, written notice of any meeting at which
2545nonemergency special assessments, or at which amendment to rules
2546regarding unit use, will be considered shall be mailed,
2547delivered, or electronically transmitted to the shareholders
2548unit owners and posted conspicuously on the cooperative property
2549not less than 14 days prior to the meeting. Evidence of
2550compliance with this 14-day notice shall be made by an affidavit
2551executed by the person providing the notice and filed among the
2552official records of the association. Upon notice to the
2553shareholders unit owners, the board shall by duly adopted rule
2554designate a specific location on the cooperative property upon
2555which all notices of board meetings shall be posted. In lieu of
2556or in addition to the physical posting of notice of any meeting
2557of the board of administration on the cooperative property, the
2558association may, by reasonable rule, adopt a procedure for
2559conspicuously posting and repeatedly broadcasting the notice and
2560the agenda on a closed-circuit cable television system serving
2561the cooperative association. However, if broadcast notice is
2562used in lieu of a notice posted physically on the cooperative
2563property, the notice and agenda must be broadcast at least four
2564times every broadcast hour of each day that a posted notice is
2565otherwise required under this section. When broadcast notice is
2566provided, the notice and agenda must be broadcast in a manner
2567and for a sufficient continuous length of time so as to allow an
2568average reader to observe the notice and read and comprehend the
2569entire content of the notice and the agenda. Notice of any
2570meeting in which regular or special assessments against
2571shareholders unit owners are to be considered for any reason
2572shall specifically state contain a statement that assessments
2573will be considered, and the nature and description of any such
2574assessments, and the proposed cost and percentage amount for
2575possible cost overruns as specifically provided for in the
2576proposed contract. Meetings of a committee to take final action
2577on behalf of the board or to make recommendations to the board
2578regarding the association budget are subject to the provisions
2579of this paragraph. Meetings of a committee that does not take
2580final action on behalf of the board or make recommendations to
2581the board regarding the association budget are subject to the
2582provisions of this section, unless those meetings are exempted
2583from this section by the bylaws of the association.
2584Notwithstanding any other law to the contrary, the requirement
2585that board meetings and committee meetings be open to the
2586shareholders unit owners is inapplicable to meetings between the
2587board or a committee and the association's attorney, with
2588respect to proposed or pending litigation, when the meeting is
2589held for the purpose of seeking or rendering legal advice.
2590     (d)  Shareholder meetings.--There shall be an annual
2591meeting of the shareholders held at the location provided in the
2592association bylaws and, if the bylaws are silent as to the
2593location, the meeting shall be held within 45 miles of the
2594cooperative property. However, such distance requirement does
2595not apply to an association governing a timeshare cooperative.
2596All members of the board of administration shall be elected at
2597the first annual meeting after July 1, 2009, and annually
2598thereafter, except that if unless the bylaws provide for
2599staggered election terms of no more than 2 years, the
2600association board members may serve 2-year staggered terms. If
2601no person is interested in or demonstrates an intention to run
2602for the position of a board member whose term has expired, such
2603board member whose term has expired shall be automatically
2604reappointed to the board of administration and need not stand
2605for reelection or for their election at another meeting. Any
2606shareholder unit owner desiring to be a candidate for board
2607membership shall comply with subparagraph 1. The bylaws shall
2608provide the method for calling meetings, including annual
2609meetings. Written notice, which notice shall incorporate an
2610identification of agenda items, shall be given to each
2611shareholder unit owner at least 14 days prior to the annual
2612meeting and shall be posted in a conspicuous place on the
2613cooperative property at least 14 continuous days preceding the
2614annual meeting. Upon notice to the shareholders unit owners, the
2615board shall by duly adopted rule designate a specific location
2616on the cooperative property upon which all notice of shareholder
2617unit owner meetings shall be posted. In lieu of or in addition
2618to the physical posting of notice of any meeting of the
2619shareholders on the cooperative property, the association may,
2620by reasonable rule, adopt a procedure for conspicuously posting
2621and repeatedly broadcasting the notice and the agenda on a
2622closed-circuit cable television system serving the cooperative
2623association. However, if broadcast notice is used in lieu of a
2624notice posted physically on the cooperative property, the notice
2625and agenda must be broadcast at least four times every broadcast
2626hour of each day that a posted notice is otherwise required
2627under this section. When broadcast notice is provided, the
2628notice and agenda must be broadcast in a manner and for a
2629sufficient continuous length of time so as to allow an average
2630reader to observe the notice and read and comprehend the entire
2631content of the notice and the agenda. Unless a shareholder unit
2632owner waives in writing the right to receive notice of the
2633annual meeting, the notice of the annual meeting shall be sent
2634by mail, hand delivered, or electronically transmitted to each
2635shareholder unit owner. An officer of the association shall
2636provide an affidavit or United States Postal Service certificate
2637of mailing, to be included in the official records of the
2638association, affirming that notices of the association meeting
2639were mailed, hand delivered, or electronically transmitted, in
2640accordance with this provision, to each shareholder unit owner
2641at the address last furnished to the association.
2642     1.  After January 1, 1992, the board of administration
2643shall be elected by written ballot or voting machine. Proxies
2644shall in no event be used in electing the board of
2645administration, either in general elections or elections to fill
2646vacancies caused by recall, resignation, or otherwise unless
2647otherwise provided in this chapter. Not less than 60 days before
2648a scheduled election, the association shall mail, deliver, or
2649transmit, whether by separate association mailing, delivery, or
2650electronic transmission or included in another association
2651mailing, delivery, or electronic transmission, including
2652regularly published newsletters, to each shareholder unit owner
2653entitled to vote, a first notice of the date of the election.
2654Any shareholder unit owner or other eligible person desiring to
2655be a candidate for the board of administration shall give
2656written notice to the association not less than 40 days before a
2657scheduled election. Together with the written notice and agenda
2658as set forth in this section, the association shall mail,
2659deliver, or electronically transmit a second notice of election
2660to all shareholders unit owners entitled to vote therein,
2661together with a ballot which shall list all candidates. Upon
2662request of a candidate, the association shall include an
2663information sheet, no larger than 81/2 inches by 11 inches,
2664which must be furnished by the candidate not less than 35 days
2665prior to the election, to be included with the mailing,
2666delivery, or electronic transmission of the ballot, with the
2667costs of mailing, delivery, or transmission and copying to be
2668borne by the association. The association has no liability for
2669the contents of the information sheets provided by the
2670candidates. In order to reduce costs, the association may print
2671or duplicate the information sheets on both sides of the paper.
2672The division shall by rule establish voting procedures
2673consistent with the provisions contained herein, including rules
2674establishing procedures for giving notice by electronic
2675transmission and rules providing for the secrecy of ballots.
2676Elections shall be decided by a plurality of those ballots cast.
2677There shall be no quorum requirement. However, at least 20
2678percent of the eligible voters must cast a ballot in order to
2679have a valid election of members of the board of administration.
2680No shareholder unit owner shall permit any other person to vote
2681his or her ballot, and any such ballots improperly cast shall be
2682deemed invalid. A shareholder unit owner who needs assistance in
2683casting the ballot for the reasons stated in s. 101.051 may
2684obtain assistance in casting the ballot. Any shareholder unit
2685owner violating this provision may be fined by the association
2686in accordance with s. 719.303. The regular election shall occur
2687on the date of the annual meeting. The provisions of this
2688subparagraph shall not apply to timeshare cooperatives.
2689Notwithstanding the provisions of this subparagraph, an election
2690and balloting are not required unless more candidates file a
2691notice of intent to run or are nominated than vacancies exist on
2692the board.
2693     2.  Any approval by shareholders unit owners called for by
2694this chapter, or the applicable cooperative documents, shall be
2695made at a duly noticed meeting of shareholders unit owners and
2696shall be subject to all requirements of this chapter or the
2697applicable cooperative documents relating to shareholder unit
2698owner decisionmaking, except that shareholders unit owners may
2699take action by written agreement, without meetings, on matters
2700for which action by written agreement without meetings is
2701expressly allowed by the applicable cooperative documents or any
2702Florida statute which provides for the shareholder unit owner
2703action.
2704     3.  Shareholders Unit owners may waive notice of specific
2705meetings if allowed by the applicable cooperative documents or
2706any Florida statute. If authorized by the bylaws, notice of
2707meetings of the board of administration, shareholder meetings,
2708except shareholder meetings called to recall board members under
2709paragraph (f), and committee meetings may be given by electronic
2710transmission to shareholders unit owners who consent to receive
2711notice by electronic transmission.
2712     4.  Shareholders Unit owners shall have the right to
2713participate in meetings of shareholders unit owners with
2714reference to all designated agenda items. However, the
2715association may adopt reasonable rules governing the frequency,
2716duration, and manner of shareholder unit owner participation.
2717     5.  Any shareholder unit owner may tape record or videotape
2718meetings of the shareholders unit owners subject to reasonable
2719rules adopted by the division.
2720
2721Notwithstanding subparagraphs (b)2. and (d)1., an association of
272210 units or less may, by the affirmative vote of a majority of
2723the total voting interests, provide for a different voting and
2724election procedure in its bylaws, which vote may be by a proxy
2725specifically delineating the different voting and election
2726procedures. The different voting and election procedures may
2727provide for elections to be conducted by limited or general
2728proxy.
2729     (e)  Budget procedures.--
2730     1.  The board of administration shall mail, hand deliver,
2731or electronically transmit to each shareholder unit owner at the
2732address last furnished to the association, a meeting notice and
2733copies of the proposed annual budget of common expenses to the
2734shareholders unit owners not less than 14 days prior to the
2735meeting at which the budget will be considered. Evidence of
2736compliance with this 14-day notice must be made by an affidavit
2737executed by an officer of the association or the manager or
2738other person providing notice of the meeting and filed among the
2739official records of the association. The meeting must be open to
2740the shareholders unit owners.
2741     2.  If an adopted budget requires assessment against the
2742shareholders unit owners in any fiscal or calendar year which
2743exceeds 115 percent of the assessments for the preceding year,
2744the board upon written application of 10 percent of the voting
2745interests to the board, shall call a special meeting of the
2746shareholders unit owners within 30 days, upon not less than 10
2747days' written notice to each shareholder unit owner. At the
2748special meeting, shareholders unit owners shall consider and
2749enact a budget. Unless the bylaws require a larger vote, the
2750adoption of the budget requires a vote of not less than a
2751majority of all the voting interests.
2752     3.  The board of administration may, in any event, propose
2753a budget to the shareholders unit owners at a meeting of members
2754or by writing, and if the budget or proposed budget is approved
2755by the shareholders unit owners at the meeting or by a majority
2756of all voting interests in writing, the budget is adopted. If a
2757meeting of the shareholders unit owners has been called and a
2758quorum is not attained or a substitute budget is not adopted by
2759the shareholders unit owners, the budget adopted by the board of
2760directors goes into effect as scheduled.
2761     4.  In determining whether assessments exceed 115 percent
2762of similar assessments for prior years, any authorized
2763provisions for reasonable reserves for repair or replacement of
2764cooperative property, anticipated expenses by the association
2765which are not anticipated to be incurred on a regular or annual
2766basis, or assessments for betterments to the cooperative
2767property must be excluded from computation. However, as long as
2768the developer is in control of the board of administration, the
2769board may not impose an assessment for any year greater than 115
2770percent of the prior fiscal or calendar year's assessment
2771without approval of a majority of all voting interests.
2772     (f)  Recall of board members.--Subject to the provisions of
2773s. 719.301, any member of the board of administration may be
2774recalled and removed from office with or without cause by the
2775vote or agreement in writing by a majority of all the voting
2776interests. A special meeting of the voting interests to recall
2777any member of the board of administration may be called by 10
2778percent of the shareholders unit owners giving notice of the
2779meeting as required for a meeting of shareholders unit owners,
2780and the notice shall state the purpose of the meeting.
2781Electronic transmission may not be used as a method of giving
2782notice of a meeting called in whole or in part for this purpose.
2783     1.  If the recall is approved by a majority of all voting
2784interests by a vote at a meeting, the recall shall be effective
2785as provided herein. The board shall duly notice and hold a board
2786meeting within 5 full business days of the adjournment of the
2787shareholder unit owner meeting to recall one or more board
2788members. At the meeting, the board shall either certify the
2789recall, in which case such member or members shall be recalled
2790effective immediately and shall turn over to the board within 5
2791full business days any and all records and property of the
2792association in their possession, or shall proceed as set forth
2793in subparagraph 3.
2794     2.  If the proposed recall is by an agreement in writing by
2795a majority of all voting interests, the agreement in writing or
2796a copy thereof shall be served on the association by certified
2797mail or by personal service in the manner authorized by chapter
279848 and the Florida Rules of Civil Procedure. The board of
2799administration shall duly notice and hold a meeting of the board
2800within 5 full business days after receipt of the agreement in
2801writing. At the meeting, the board shall either certify the
2802written agreement to recall members of the board, in which case
2803such members shall be recalled effective immediately and shall
2804turn over to the board, within 5 full business days, any and all
2805records and property of the association in their possession, or
2806proceed as described in subparagraph 3.
2807     3.  If the board determines not to certify the written
2808agreement to recall members of the board, or does not certify
2809the recall by a vote at a meeting, the board shall, within 5
2810full business days after the board meeting, file with the
2811division a petition for binding arbitration pursuant to the
2812procedures of s. 719.1255. For purposes of this paragraph, the
2813shareholders unit owners who voted at the meeting or who
2814executed the agreement in writing shall constitute one party
2815under the petition for arbitration. If the arbitrator certifies
2816the recall as to any member of the board, the recall shall be
2817effective upon mailing of the final order of arbitration to the
2818association. If the association fails to comply with the order
2819of the arbitrator, the division may take action pursuant to s.
2820719.501. Any member so recalled shall deliver to the board any
2821and all records and property of the association in the member's
2822possession within 5 full business days of the effective date of
2823the recall.
2824     4.  If the board fails to duly notice and hold a board
2825meeting within 5 full business days of service of an agreement
2826in writing or within 5 full business days of the adjournment of
2827the shareholder unit owner recall meeting, the recall shall be
2828deemed effective and the board members so recalled shall
2829immediately turn over to the board any and all records and
2830property of the association.
2831     5.  If a vacancy occurs on the board as a result of a
2832recall or removal and less than a majority of the board members
2833are removed, the vacancy may be filled by the affirmative vote
2834of a majority of the remaining directors, notwithstanding any
2835provision to the contrary contained in this chapter. If
2836vacancies occur on the board as a result of a recall and a
2837majority or more of the board members are removed, the vacancies
2838shall be filled in accordance with procedural rules to be
2839adopted by the division, which rules need not be consistent with
2840this chapter. The rules must provide procedures governing the
2841conduct of the recall election as well as the operation of the
2842association during the period after a recall but prior to the
2843recall election.
2844     (g)  Common expenses.--The manner of collecting from the
2845shareholders unit owners their shares of the common expenses
2846shall be stated. Assessments shall be made against shareholders
2847unit owners not less frequently than quarterly, in an amount no
2848less than is required to provide funds in advance for payment of
2849all of the anticipated current operating expense and for all of
2850the unpaid operating expense previously incurred. Nothing in
2851this paragraph shall preclude the right of an association to
2852accelerate assessments of a shareholder an owner delinquent in
2853payment of common expenses in actions taken pursuant to s.
2854719.104(5)(4).
2855     (h)  Amendment of bylaws.--
2856     1.  The method by which the bylaws may be amended
2857consistent with the provisions of this chapter shall be stated.
2858If the bylaws fail to provide a method of amendment, the bylaws
2859may be amended if the amendment is approved by shareholders
2860owners of not less than two-thirds of the voting interests.
2861     2.  No bylaw shall be revised or amended by reference to
2862its title or number only. Proposals to amend existing bylaws
2863shall contain the full text of the bylaws to be amended; new
2864words shall be inserted in the text underlined, and words to be
2865deleted shall be lined through with hyphens. However, if the
2866proposed change is so extensive that this procedure would
2867hinder, rather than assist, the understanding of the proposed
2868amendment, it is not necessary to use underlining and hyphens as
2869indicators of words added or deleted, but, instead, a notation
2870must be inserted immediately preceding the proposed amendment in
2871substantially the following language: "Substantial rewording of
2872bylaw. See bylaw _____ for present text."
2873     3.  Nonmaterial errors or omissions in the bylaw process
2874shall not invalidate an otherwise properly promulgated
2875amendment.
2876     4.  If the bylaws provide for amendment by the board of
2877directors, no bylaw may be amended unless it is heard and
2878noticed at two consecutive meetings of the board of directors
2879that are at least 1 week apart.
2880     (i)  Transfer fees.--No charge may be made by the
2881association or any body thereof in connection with the sale,
2882mortgage, lease, sublease, or other transfer of a unit unless
2883the association is required to approve such transfer and a fee
2884for such approval is provided for in the cooperative documents.
2885Any such fee may be preset, but in no event shall it exceed $100
2886per applicant other than husband/wife or parent/dependent child,
2887which are considered one applicant. However, if the lease or
2888sublease is a renewal of a lease or sublease with the same
2889lessee or sublessee, no charge shall be made. Nothing in this
2890paragraph shall be construed to prohibit an association from
2891requiring as a condition to permitting the letting or renting of
2892a unit, when the association has such authority in the
2893documents, the depositing into an escrow account maintained by
2894the association a security deposit in an amount not to exceed
2895the equivalent of 1 month's rent. The security deposit shall
2896protect against damages to the common areas or cooperative
2897property. Within 15 days after a tenant vacates the premises,
2898the association shall refund the full security deposit or give
2899written notice to the tenant of any claim made against the
2900security. Disputes under this paragraph shall be handled in the
2901same fashion as disputes concerning security deposits under s.
290283.49.
2903     (j)  Annual budget.--
2904     1.  The proposed annual budget of estimated revenues and
2905common expenses shall be detailed and shall show the amounts
2906budgeted by accounts and expense classifications, including, if
2907applicable, but not limited to, those expenses listed in s.
2908719.504(20).
2909     2.  In addition to annual operating expenses, the budget
2910shall include reserve accounts for capital expenditures and
2911deferred maintenance. These accounts shall include, but not be
2912limited to, roof replacement, building painting, and pavement
2913resurfacing, regardless of the amount of deferred maintenance
2914expense or replacement cost, and for any other items for which
2915the deferred maintenance expense or replacement cost exceeds
2916$10,000. The amount to be reserved shall be computed by means of
2917a formula which is based upon estimated remaining useful life
2918and estimated replacement cost or deferred maintenance expense
2919of each reserve item. The association may adjust replacement
2920reserve assessments annually to take into account any changes in
2921estimates or extension of the useful life of a reserve item
2922caused by deferred maintenance. This paragraph shall not apply
2923to any budget in which the members of an association have, at a
2924duly called meeting of the association, determined for a fiscal
2925year to provide no reserves or reserves less adequate than
2926required by this subsection. However, prior to turnover of
2927control of an association by a developer to shareholders unit
2928owners other than a developer pursuant to s. 719.301, the
2929developer may vote to waive the reserves or reduce the funding
2930of reserves for the first 2 years of the operation of the
2931association after which time reserves may only be waived or
2932reduced upon the vote of a majority of all nondeveloper voting
2933interests voting in person or by limited proxy at a duly called
2934meeting of the association. If a meeting of the shareholders
2935unit owners has been called to determine to provide no reserves,
2936or reserves less adequate than required, and such result is not
2937attained or a quorum is not attained, the reserves as included
2938in the budget shall go into effect.
2939     3.  Reserve funds and any interest accruing thereon shall
2940remain in the reserve account or accounts, and shall be used
2941only for authorized reserve expenditures unless their use for
2942other purposes is approved in advance by a vote of the majority
2943of the voting interests, voting in person or by limited proxy at
2944a duly called meeting of the association. Prior to turnover of
2945control of an association by a developer to shareholders unit
2946owners other than the developer under s. 719.301, the developer
2947may not vote to use reserves for purposes other than that for
2948which they were intended without the approval of a majority of
2949all nondeveloper voting interests, voting in person or by
2950limited proxy at a duly called meeting of the association.
2951     4.  The only voting interests which are eligible to vote on
2952questions that involve waiving or reducing the funding of
2953reserves, or using existing reserve funds for purposes other
2954than purposes for which the reserves were intended, are the
2955voting interests of the units subject to assessment to fund the
2956reserves in question. Proxy questions relating to waiving or
2957reducing the funding of reserves or using existing reserve funds
2958for purposes other than purposes for which the reserves were
2959intended shall contain the following statement in capitalized,
2960bold letters in a font size larger than any other used on the
2961face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
2962PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
2963RESULT IN SHAREHOLDER LIABILITY FOR PAYMENT OF UNANTICIPATED
2964SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
2965     (k)  Insurance or fidelity bonds.--The association shall
2966obtain and maintain adequate insurance or fidelity bonding of
2967all persons who control or disburse funds of the association.
2968The insurance policy or fidelity bond must cover the maximum
2969funds that will be in the custody of the association or its
2970management agent at any one time. As used in this paragraph, the
2971term "persons who control or disburse funds of the association"
2972includes, but is not limited to, those individuals authorized to
2973sign checks, and the president, secretary, and treasurer of the
2974association. The association shall bear the cost of bonding and
2975insurance.
2976     (l)  Arbitration.--There shall be a provision for mandatory
2977nonbinding arbitration of internal disputes arising from the
2978operation of the cooperative in accordance with s. 719.1255.
2979     (m)  Common areas; limited power to convey.--
2980     1.  The bylaws shall include a provision granting the
2981association a limited power to convey a portion of the common
2982areas to a condemning authority for the purpose of providing
2983utility easements, right-of-way expansion, or other public
2984purposes, whether negotiated or as a result of eminent domain
2985proceedings.
2986     2.  In any case in which the bylaws are silent as to the
2987association's power to convey common areas as described in
2988subparagraph 1., the bylaws shall be deemed to include the
2989provision described in subparagraph 1.
2990     (n)  Director or officer delinquencies.--A director or
2991officer more than 90 days delinquent in the payment of regular
2992assessments shall be deemed to have abandoned the office,
2993creating a vacancy in the office to be filled according to law.
2994     (o)  Director or officer offenses.--A director or officer
2995charged by information or indictment with a felony theft or
2996embezzlement offense involving the association's funds or
2997property shall be removed from office, creating a vacancy in the
2998office to be filled according to law. While such director or
2999officer has such criminal charge pending in the state or federal
3000court system, he or she may not be appointed or elected to a
3001position as a director or officer. However, should the charges
3002be resolved without a finding of guilt, the director or officer
3003shall be reinstated for the remainder of his or her term of
3004office, if any.
3005     (p)  Qualifications of directors.-- In addition to any
3006other requirement for office in statute, a person running for or
3007seeking appointment to the board must meet the following
3008qualifications:
3009     1.  In a cooperative association of 10 or more units, only
3010one individual coowner of a unit may serve on the board of
3011administration.
3012     2.  No person may serve as a director of any cooperative
3013association in the state if restricted from serving by action of
3014the division pursuant to s. 719.501.
3015     3.  A person who has been convicted of any felony in this
3016state or in a United States District or Territorial Court, or
3017who has been convicted of any offense in another jurisdiction
3018that would be considered a felony if committed in this state, is
3019not eligible for board membership unless such felon's civil
3020rights have been restored for a period of no less than 5 years
3021as of the date on which such person seeks election to the board.
3022     4.  Within 30 days after being elected or appointed to the
3023board of directors, a director shall certify in writing to the
3024secretary of the association that he or she has read parts I and
3025III of chapter 719 and the association's cooperative documents,
3026bylaws, and current written policies. The director shall further
3027certify that he or she will work to uphold such documents and
3028policies to the best of his or her ability, and that he or she
3029will faithfully discharge his or her fiduciary responsibility to
3030the association's members. If the division finds that a director
3031has falsely certified that he or she has read the required
3032statutes and documents, the division shall order the director
3033removed the board and shall order the director to reimburse the
3034division for the cost of prosecution and hearing.
3035     5.  After turnover of the association pursuant to s.
3036718.301(4), a director must:
3037     a.  If the unit is owned by an individual or individuals,
3038be one of those individuals.
3039     b.  If the unit is owned by a trust, be an individual
3040qualified pursuant to s. 617.0802.
3041
3042These qualifications shall operate on a continuing basis, and
3043upon the failure of a director at any time to meet a
3044qualification, the director shall be removed from office and
3045that office shall be deemed vacant.
3046     (q)  Borrowing.--The borrowing of funds or committing to a
3047line of credit by the board of administration shall be
3048considered a special assessment, and any meeting of the board of
3049administration to discuss such matters shall be noticed as
3050provided in paragraph (c). The board shall not have the
3051authority to enter into a line of credit or borrow funds for any
3052purpose unless the specific use of the funds from the line of
3053credit or loan is set forth in the notice of meeting with the
3054same specificity as required for a special assessment or unless
3055the borrowing or line of credit has received the prior approval
3056of not less than two-thirds of the voting interests of the
3057association.
3058     (2)  OPTIONAL PROVISIONS.--The bylaws may provide for the
3059following:
3060     (a)  Administrative rules.--A method of adopting and of
3061amending administrative rules and regulations governing the
3062details of the operation and use of the common areas.
3063     (b)  Use and maintenance restrictions.--Restrictions on,
3064and requirements for, the use, maintenance, and appearance of
3065the units and the use of the common areas, not inconsistent with
3066the cooperative documents, designed to prevent unreasonable
3067interference with the use of the units and common areas.
3068     (c)  Notice of meetings.--Provisions for giving notice by
3069electronic transmissions in a manner authorized by law of
3070meetings of the board of directors and committees and of annual
3071and special meetings of the members.
3072     (d)  Other matters.--Other provisions not inconsistent with
3073this chapter or with the cooperative documents as may be
3074desired.
3075     Section 16.  Section 719.1064, Florida Statutes, is
3076repealed.
3077     Section 17.  Paragraphs (b) and (c) of subsection (1) and
3078subsection (2) of section 719.107, Florida Statutes, are
3079amended, and subsection (3) is added to that section, to read:
3080     719.107  Common expenses; assessment.--
3081     (1)
3082     (b)  If so provided in the bylaws, the cost of a master
3083antenna television system or duly franchised cable television
3084service obtained pursuant to a bulk contract shall be deemed a
3085common expense, and if not obtained pursuant to a bulk contract,
3086such cost shall be considered common expense if it is designated
3087as such in a written contract between the board of
3088administration and the company providing the master television
3089antenna system or the cable television service. The contract
3090shall be for a term of not less than 2 years.
3091     1.  Any contract made by the board after April 2, 1992, for
3092a community antenna system or duly franchised cable television
3093service may be canceled by a majority of the voting interests
3094present at the next regular or special meeting of the
3095association. Any member may make a motion to cancel the
3096contract, but if no motion is made or if such motion fails to
3097obtain the required majority at the next regular or special
3098meeting, whichever is sooner, following the making of the
3099contract, then such contract shall be deemed ratified for the
3100term therein expressed.
3101     2.  Any such contract shall provide, and shall be deemed to
3102provide if not expressly set forth, that any hearing impaired or
3103legally blind shareholder unit owner who does not occupy the
3104unit with a nonhearing impaired or sighted person may
3105discontinue the service without incurring disconnect fees,
3106penalties, or subsequent service charges, and as to such units,
3107the shareholders owners shall not be required to pay any common
3108expenses charge related to such service. If less than all
3109members of an association share the expenses of cable
3110television, the expense shall be shared equally by all
3111participating shareholders unit owners. The association may use
3112the provisions of s. 719.108 to enforce payment of the shares of
3113such costs by the shareholders unit owners receiving cable
3114television.
3115     (c)  If any unpaid share of common expenses or assessments
3116is extinguished by foreclosure of a superior lien or by a deed
3117in lieu of foreclosure thereof, the unpaid share of common
3118expenses or assessments are common expenses collectible from all
3119the shareholders unit owners in the cooperative in which the
3120unit is located.
3121     (2)  Funds for the payment of common expenses shall be
3122collected by assessments against shareholders unit owners in the
3123proportions or percentages of sharing common expenses provided
3124in the cooperative documents.
3125     (3)  The expense of installation, replacement, operation,
3126repair, and maintenance of hurricane shutters or other hurricane
3127protection by the board pursuant to s. 719.113(5) shall
3128constitute a common expense as defined in this section and shall
3129be collected as provided in this section if the association is
3130responsible for the maintenance, repair, and replacement of the
3131hurricane shutters or other hurricane protection pursuant to the
3132cooperative documents. However, if the maintenance, repair, and
3133replacement of the hurricane shutters or other hurricane
3134protection is the responsibility of the shareholders pursuant to
3135the cooperative documents, the cost of the installation of the
3136hurricane shutters or other hurricane protection shall not be a
3137common expense, but shall be charged individually to the
3138shareholders based on the cost of installation of the hurricane
3139shutters or other hurricane protection appurtenant to the unit.
3140Notwithstanding the provisions of s. 719.108(8), and regardless
3141of whether or not the cooperative documents requires the
3142association or shareholders maintain, repair, or replace
3143hurricane shutters or other hurricane protection, a shareholder
3144who has previously installed hurricane shutters in accordance
3145with s. 719.113(5), other hurricane protection, or laminated
3146glass architecturally designed to function as hurricane
3147protection, which hurricane shutters or other hurricane
3148protection or laminated glass comply with the current applicable
3149building code, shall receive a credit equal to the pro rata
3150portion of the assessed installation cost assigned to each unit.
3151However, such shareholder shall remain responsible for the pro
3152rata share of expenses for hurricane shutters or other hurricane
3153protection installed on common areas by the board pursuant to s.
3154719.113(5), and shall remain responsible for a pro rata share of
3155the expense of the replacement, operation, repair, and
3156maintenance of such shutters or other hurricane protection.
3157     Section 18.  Section 719.108, Florida Statutes, is amended
3158to read:
3159     719.108  Rents and assessments; liability; lien and
3160priority; interest; collection; cooperative ownership.--
3161     (1)(a)  A shareholder unit owner, regardless of how title
3162is acquired, including, without limitation, a purchaser at a
3163judicial sale or by deed in lieu of foreclosure, shall be liable
3164for all rents and assessments coming due while the shareholder
3165unit owner is in exclusive possession of a unit. In a voluntary
3166transfer, The shareholder unit owner in exclusive possession
3167shall be jointly and severally liable with the previous
3168shareholder unit owner for all unpaid rents and assessments
3169against the previous shareholder unit owner for his or her share
3170of the common expenses up to the time of the transfer, without
3171prejudice to the rights of the shareholder unit owner in
3172exclusive possession to recover from a the previous shareholder
3173unit owner the amounts paid by the shareholder unit owner in
3174exclusive possession therefor.
3175     (b)  The liability of a first mortgagee or its successor or
3176assignees who acquire title to a unit by foreclosure or by deed
3177in lieu of foreclosure for the unpaid assessments that became
3178due prior to the mortgagee's acquisition of title is limited to
3179the lesser of:
3180     1.  The unit's unpaid common expenses and regular periodic
3181assessments which accrued or came due during the 6 months
3182immediately preceding the acquisition of title and for which
3183payment in full has not been received by the association; or
3184     2.  One-half of the unit's unpaid common expenses and
3185regular periodic assessments which accrued or came due from the
3186filing of the foreclosure action through the sale of the unit,
3187provided that the mortgagee timely paid in full the payment
3188required by paragraph (d) and, at the same time, remitted to the
3189association advanced common expenses and regular periodic
3190assessments equal to one-half of the total unpaid common
3191expenses and regular periodic assessments that came due in that
3192time period. Any such advance shall be taxed as a cost in the
3193foreclosure action, and the mortgagor shall be personally liable
3194to the mortgagee for the value of the payment made to the
3195association plus interest at the interest rate provided for in
3196the promissory note for advances.
3197     (c)  The person acquiring title shall pay the amount owed
3198to the association within 30 days after transfer of title.
3199Failure to pay the full amount when due shall entitle the
3200association to record a claim of lien against the parcel and
3201proceed in the same manner as provided in this section for the
3202collection of unpaid assessments.
3203     (d)  A mortgagee who files a foreclosure case on a mortgage
3204secured by a condominium unit shall pay to the association
3205within 15 days after the filing of the action all of the
3206condominium unit's then unpaid common expenses and regular
3207periodic assessments which accrued or came due up to the date of
3208the filing of the foreclosure action. The payment shall be taxed
3209as a cost in the foreclosure action, and the mortgagor shall be
3210personally liable to the mortgagee for the value of the payment
3211made to the association plus interest at the interest rate
3212provided for in the promissory note for advances. The court
3213shall dismiss a foreclosure action on the association's motion
3214to dismiss for failure to make such payment and shall award the
3215association the costs and reasonable attorney's fees related to
3216the motion.
3217     (e)  The provisions of this subsection are intended to
3218clarify existing law and shall not be available in any case
3219where the unpaid assessments sought to be recovered by the
3220association are secured by a lien recorded prior to the
3221recording of the mortgage. Notwithstanding the provisions of
3222chapter 48, the association shall be a proper party to intervene
3223in any foreclosure proceeding to seek equitable relief. For
3224purposes of this subsection, the term "successor or assignee" as
3225used with respect to a first mortgagee includes only a
3226subsequent holder of the first mortgage.
3227     (2)  The liability for rents and assessments may not be
3228avoided by waiver of the use or enjoyment of any common areas or
3229by abandonment of the unit for which the rents and assessments
3230are made.
3231     (3)  Rents and assessments, and installments on them, not
3232paid when due bear interest at the rate provided in the
3233cooperative documents from the date due until paid. This rate
3234may not exceed the rate allowed by law, and, if no rate is
3235provided in the cooperative documents, then interest shall
3236accrue at 18 percent per annum. Also, if the cooperative
3237documents or bylaws so provide, the association may charge an
3238administrative late fee in addition to such interest, in an
3239amount not to exceed the greater of $25 or 5 percent of each
3240installment of the assessment for each delinquent installment
3241that the payment is late. Any payment received by an association
3242shall be applied first to any interest accrued by the
3243association, then to any administrative late fee, then to any
3244costs and reasonable attorney's fees incurred in collection, and
3245then to the delinquent assessment. The foregoing shall be
3246applicable notwithstanding any restrictive endorsement,
3247designation, or instruction placed on or accompanying a payment.
3248A late fee is not subject to chapter 687 or s. 719.303(3).
3249     (4)  If the association is authorized by the cooperative
3250documents or bylaws to approve or disapprove a proposed lease of
3251a unit, the grounds for disapproval may include, but are not
3252limited to, a shareholder being delinquent in the payment of an
3253assessment at the time approval is sought.
3254     (5)(a)(4)  The association has shall have a lien on each
3255cooperative parcel to secure the payment of for any unpaid rents
3256and assessments, plus interest, against the shareholder who owns
3257unit owner of the cooperative parcel. If authorized by the
3258cooperative documents, said lien shall also secure reasonable
3259attorney's fees incurred by the association incident to the
3260collection of the rents and assessments or enforcement of such
3261lien. The lien is effective from and shall relate back to and
3262after the recording of the cooperative documents a claim of lien
3263in the public records in the county in which the cooperative
3264parcel is located which states the description of the
3265cooperative parcel, the name of the unit owner, the amount due,
3266and the due dates.
3267     (b)  To be valid, a claim of lien must state the
3268description of the cooperative parcel, the name of the record
3269owner, the name and address of the association, the amount due,
3270and the due dates. The claim of lien must be executed and
3271acknowledged by an officer or authorized agent of the
3272association. The lien shall expire if a claim of lien is not
3273filed within 1 year after the date the assessment was due, and
3274no such lien shall continue for a longer period than 1 year
3275after the claim of lien has been recorded unless, within that
3276time, an action to enforce the lien is commenced in a court of
3277competent jurisdiction. The 1-year period shall automatically be
3278extended for any length of time during which the association is
3279prevented from filing a foreclosure action by an automatic stay
3280resulting from a bankruptcy petition filed by the shareholder or
3281any other person claiming an interest in the parcel. The claim
3282of lien shall secure all unpaid assessments which are due and
3283which may accrue subsequent to the recording of the claim of
3284lien and prior to the entry of a certificate of title, as well
3285as interest and all reasonable costs and attorney's fees
3286incurred by the association incident to the collection process.
3287Upon payment in full, the person making the payment is entitled
3288to a satisfaction of the lien. No lien may be filed by the
3289association against a cooperative parcel until 30 days after the
3290date on which a notice of intent to file a lien has been served
3291on the unit owner of the cooperative parcel by certified mail or
3292by personal service in the manner authorized by chapter 48 and
3293the Florida Rules of Civil Procedure.
3294     (c)  By recording a notice in substantially the following
3295form, a shareholder or the shareholder's agent or attorney may
3296require the association to enforce a recorded claim of lien
3297against his or her cooperative parcel:
3298
3299
NOTICE OF CONTEST OF LIEN
3300
3301     TO:   (Name and address of association)   You are notified
3302that the undersigned contests the claim of lien filed by you on
3303_____,   (year)  , and recorded in Official Records Book _____
3304at Page _____, of the public records of _____ County, Florida,
3305and that the time within which you may file suit to enforce your
3306lien is limited to 90 days after the date of service of this
3307notice. Executed this _____ day of _____,   (year)  .
3308
3309Signed:   (Shareholder or Attorney)
3310
3311After notice of contest of lien has been recorded, the clerk of
3312the circuit court shall mail a copy of the recorded notice to
3313the association by certified mail, return receipt requested, at
3314the address shown in the claim of lien or most recent amendment
3315to the claim of lien and shall certify to the service on the
3316face of the notice. Service is complete upon mailing. After
3317service, the association has 90 days in which to file an action
3318to enforce the lien; and, if the action is not filed within the
331990-day period, the lien is void. However, the 90-day period
3320shall be extended for any length of time that the association is
3321prevented from filing its action because of an automatic stay
3322resulting from the filing of a bankruptcy petition by the
3323shareholder or by any other person claiming an interest in the
3324parcel.
3325     (6)(a)(5)  Liens for rents and assessments may be
3326foreclosed by suit brought in the name of the association, in
3327like manner as a foreclosure of a mortgage on real property. In
3328any foreclosure, the shareholder unit owner shall pay a
3329reasonable rental for the cooperative parcel, if so provided in
3330the cooperative documents, and the plaintiff in the foreclosure
3331is entitled to the appointment of a receiver to collect the
3332rent. The association has the power, unless prohibited by the
3333cooperative documents, to bid on the cooperative parcel at the
3334foreclosure sale and to acquire and hold, lease, mortgage, or
3335convey it. Suit to recover a money judgment for unpaid rents and
3336assessments may be maintained without waiving the lien securing
3337them.
3338     (b)  No foreclosure judgment may be entered until at least
333930 days after the association gives written notice to the
3340shareholder of its intention to foreclose its lien to collect
3341the unpaid rents and assessments. If this notice is not given at
3342least 30 days before the foreclosure action is filed, and if the
3343unpaid rents and assessments, including those coming due after
3344the claim of lien is recorded, are paid before the entry of a
3345final judgment of foreclosure, the association shall not recover
3346attorney's fees or costs. The notice must be given by delivery
3347of a copy of it to the shareholder or by certified or registered
3348mail, return receipt requested, addressed to the shareholder at
3349his or her last known address; and, upon such mailing, the
3350notice shall be deemed to have been given, and the court shall
3351proceed with the foreclosure action and may award attorney's
3352fees and costs as permitted by law. The notice requirements of
3353this paragraph are satisfied if the shareholder records a notice
3354of contest of lien as provided in subsection (5). The notice
3355requirements of this paragraph do not apply if an action to
3356foreclose a mortgage on the cooperative unit is pending before
3357any court; if the rights of the association would be affected by
3358such foreclosure; and if actual, constructive, or substitute
3359service of process has been made on the shareholder.
3360     (c)  If the shareholder remains in possession of the unit
3361after a foreclosure judgment has been entered, the court, in its
3362discretion, may require the shareholder to pay a reasonable
3363rental for the unit. If the unit is rented or leased during the
3364pendency of the foreclosure action, the association is entitled
3365to the appointment of a receiver to collect the rent. The
3366expenses of the receiver shall be paid by the party which does
3367not prevail in the foreclosure action.
3368     (d)  The association has the power to purchase the
3369cooperative unit at the foreclosure sale and to hold, lease,
3370mortgage, or convey it.
3371     (7)  Within 15 days after receiving a written request
3372therefor from a shareholder or his or her designee, or a unit
3373mortgagee or his or her designee, the association shall provide
3374a certificate signed by an officer or agent of the association
3375stating all assessments and other moneys owed to the association
3376by the shareholder with respect to the cooperative parcel.
3377     (a)  Any person other than the shareholder who relies upon
3378such certificate shall be protected thereby.
3379     (b)  A summary proceeding pursuant to s. 51.011 may be
3380brought to compel compliance with this subsection, and in any
3381such action the prevailing party is entitled to recover
3382reasonable attorney's fees.
3383     (c)  Notwithstanding any limitation on transfer fees
3384contained in s. 719.106(1)(i), the association or its authorized
3385agent may charge a reasonable fee for the preparation of the
3386certificate. The amount of the fee must be included on the
3387certificate.
3388     (d)  The authority to charge a fee for the certificate
3389shall be established by a written resolution adopted by the
3390board or provided by a written management, bookkeeping, or
3391maintenance contract and is payable upon the preparation of the
3392certificate. If the certificate is requested in conjunction with
3393the sale or mortgage of a unit but the closing does not occur
3394and no later than 30 days after the closing date for which the
3395certificate was sought the preparer receives a written request,
3396accompanied by reasonable documentation, that the sale did not
3397occur from a payor that is not the shareholder, the fee shall be
3398refunded to that payor within 30 days after receipt of the
3399request. The refund is the obligation of the shareholder, and
3400the association may collect the refund from that shareholder in
3401the same manner as an assessment as provided in this section.
3402     (6)  Within 15 days after request by a unit owner or
3403mortgagee, the association shall provide a certificate stating
3404all assessments and other moneys owed to the association by the
3405unit owner with respect to the cooperative parcel. Any person
3406other than the unit owner who relies upon such certificate shall
3407be protected thereby. Notwithstanding any limitation on transfer
3408fees contained in s. 719.106(1)(i), the association or its
3409authorized agent may charge a reasonable fee for the preparation
3410of the certificate.
3411     (7)  The remedies provided in this section do not exclude
3412other remedies provided by the cooperative documents and
3413permitted by law.
3414     (8)(a)  No shareholder unit owner may be excused from the
3415payment of his or her share of the rents or assessments of a
3416cooperative unless all shareholders unit owners are likewise
3417proportionately excused from payment, except as provided in
3418subsection (6) and in the following cases:
3419     1.  If the cooperative documents so provide, a developer or
3420other person owning cooperative units offered for sale may be
3421excused from the payment of the share of the common expenses,
3422assessments, and rents related to those units for a stated
3423period of time. The period must terminate no later than the
3424first day of the fourth calendar month following the month in
3425which the right of exclusive possession is first granted to a
3426shareholder unit owner. However, the developer must pay the
3427portion of common expenses incurred during that period which
3428exceed the amount assessed against other shareholders unit
3429owners.
3430     2.  A developer, or other person with an ownership interest
3431in cooperative units or having an obligation to pay common
3432expenses, may be excused from the payment of his or her share of
3433the common expenses which would have been assessed against those
3434units during the period of time that he or she shall have
3435guaranteed to each purchaser in the purchase contract or in the
3436cooperative documents, or by agreement between the developer and
3437a majority of the shareholders unit owners other than the
3438developer, that the assessment for common expenses of the
3439cooperative imposed upon the shareholders unit owners would not
3440increase over a stated dollar amount and shall have obligated
3441himself or herself to pay any amount of common expenses incurred
3442during that period and not produced by the assessments at the
3443guaranteed level receivable from other shareholders unit owners.
3444     (b)  If the purchase contract, cooperative documents, or
3445agreement between the developer and a majority of shareholders
3446unit owners other than the developer provides for the developer
3447or another person to be excused from the payment of assessments
3448pursuant to paragraph (a), no funds receivable from shareholders
3449unit owners payable to the association or collected by the
3450developer on behalf of the association, other than regular
3451periodic assessments for common expenses as provided in the
3452cooperative documents and disclosed in the estimated operating
3453budget pursuant to s. 719.503(1)(b)6. or s. 719.504(20)(b), may
3454be used for payment of common expenses prior to the expiration
3455of the period during which the developer or other person is so
3456excused. This restriction applies to funds including, but not
3457limited to, capital contributions or startup funds collected
3458from shareholders unit purchasers at closing.
3459     (9)  The specific purposes of any special assessment,
3460including any contingent special assessment levied in
3461conjunction with the purchase of an insurance policy authorized
3462by s. 719.104(3), approved in accordance with the cooperative
3463documents shall be set forth in a written notice of such
3464assessment sent or delivered to each shareholder unit owner. The
3465funds collected pursuant to a special assessment shall be used
3466only for the specific purpose or purposes set forth in such
3467notice or returned to the shareholders unit owners. However,
3468upon completion of such specific purposes, any excess funds
3469shall be considered common surplus and may, at the discretion of
3470the board, either be returned to the shareholders unit owners or
3471applied as a credit toward future assessments.
3472     (10)  During the pendency of any foreclosure action of a
3473cooperative unit, if the unit is occupied by a tenant and the
3474shareholder is delinquent in the payment of regular assessments,
3475the association may demand that the tenant pay to the
3476association the future regular assessments related to the
3477cooperative unit. The demand shall be continuing in nature, and
3478upon demand the tenant shall continue to pay the regular
3479assessments to the association until the association releases
3480the tenant or the tenant discontinues tenancy in the unit. The
3481association shall mail written notice to the shareholder of the
3482association's demand that the tenant pay regular assessments to
3483the association. The tenant shall not be liable for increases in
3484the amount of the regular assessment due unless the tenant was
3485reasonably notified of the increase prior to the day that the
3486rent is due. The tenant shall be given a credit against rents
3487due to the shareholder in the amount of assessments paid to the
3488association. The association shall, upon request, provide the
3489tenant with written receipts for payments made. The association
3490may issue notices under s. 83.56 and may sue for eviction under
3491ss. 83.59-83.625 as if the association were a landlord under
3492part II of chapter 83 should the tenant fail to pay an
3493assessment.  However, the association shall not otherwise be
3494considered a landlord under chapter 83 and shall specifically
3495not have any duty under s. 83.51. The tenant shall not, by
3496virtue of payment of assessments, have any of the rights of a
3497shareholder to vote in any election or to examine the books and
3498records of the association. A court may supersede the effect of
3499this subsection by appointing a receiver.
3500     Section 19.  Section 719.113, Florida Statutes, is created
3501to read:
3502     719.113  Maintenance; limitation upon improvement; display
3503of flag; hurricane shutters; display of religious decorations.--
3504     (1)  Maintenance of the common areas is the responsibility
3505of the association. The cooperative documents may provide that
3506certain limited common areas shall be maintained by those
3507entitled to use the limited common areas or that the association
3508shall provide the maintenance, either as a common expense or
3509with the cost shared only by those entitled to use the limited
3510common areas. If the maintenance is to be provided by the
3511association at the expense of only those entitled to use the
3512limited common areas, the cooperative documents shall describe
3513in detail the method of apportioning such costs among those
3514entitled to use the limited common areas. The association may
3515use the provisions of s. 719.108 to enforce payment of the
3516shares of such costs by the shareholders entitled to use the
3517limited common areas.
3518     (2)  Except as otherwise provided in this section, there
3519shall be no material alteration or substantial additions to the
3520common areas, except in a manner provided in the cooperative
3521documents as originally recorded or as amended under the
3522procedures provided therein. If the cooperative documents as
3523originally recorded or as amended under the procedures provided
3524therein do not specify the procedure for approval of material
3525alterations or substantial additions, 75 percent of the total
3526voting interests of the association must approve the alterations
3527or additions. This subsection is intended to clarify existing
3528law and applies to associations existing on July 1, 2009.
3529     (3)  A shareholder shall not do anything within his or her
3530unit or on the common areas which would adversely affect the
3531safety or soundness of the common areas or any portion of the
3532association property or cooperative property which is to be
3533maintained by the association.
3534     (4)  Any shareholder may display within the boundaries of
3535the shareholder's unit one portable, removable United States
3536flag in a respectful way and, on Armed Forces Day, Memorial Day,
3537Flag Day, Independence Day, and Veterans' Day, may display in a
3538respectful way portable, removable official flags, not larger
3539than 4 1/2 feet by 6 feet, that represent the United States
3540Army, Navy, Air Force, Marine Corps, or Coast Guard, regardless
3541of any declaration rules or requirements dealing with flags or
3542decorations.
3543     (5)  Each board of directors shall adopt hurricane shutter
3544specifications for each building within each cooperative which
3545shall include color, style, and other factors deemed relevant by
3546the board. All specifications adopted by the board shall comply
3547with the applicable building code.
3548     (a)  The board may, subject to the provisions of s.
3549719.3026 and the approval of a majority of voting interests of
3550the condominium, install hurricane shutters or hurricane
3551protection that complies with or exceeds the applicable building
3552code, or both, except that a vote of the shareholders is not
3553required if the maintenance, repair, and replacement of
3554hurricane shutters or other forms of hurricane protection are
3555the responsibility of the association pursuant to the
3556declaration of condominium. However, when hurricane protection
3557or laminated glass or window film architecturally designed to
3558function as hurricane protection which complies with or exceeds
3559the current applicable building code has been previously
3560installed, the board may not install hurricane shutters or other
3561hurricane protection. Code-compliant impact glass may be
3562installed by the association as hurricane protection if the area
3563in which the glass is to be installed is an area that is the
3564responsibility of the association. Notwithstanding s.
3565719.107(3), if a shareholder installed code-compliant impact
3566glass prior to the association voting to install such glass, and
3567such glass and the frame thereof complies with the current
3568applicable building codes and is otherwise in good repair, the
3569shareholder shall not be required to pay the shareholders' pro
3570rata share of the cost of installing code-compliant impact glass
3571in the cooperative association.
3572     (b)  The association shall be responsible for the
3573maintenance, repair, and replacement of the hurricane shutters
3574or other hurricane protection authorized by this subsection if
3575such hurricane shutters or other hurricane protection is the
3576responsibility of the association pursuant to the declaration of
3577condominium. If the hurricane shutters or other hurricane
3578protection authorized by this subsection are the responsibility
3579of the shareholders pursuant to the cooperative documents, the
3580responsibility for the maintenance, repair, and replacement of
3581such items shall be the responsibility of the shareholder.
3582     (c)  The board may operate hurricane shutters installed
3583pursuant to this subsection without permission of the
3584shareholders only when such operation is necessary to preserve
3585and protect the cooperative property and association property.
3586The installation, replacement, operation, repair, and
3587maintenance of such shutters in accordance with the procedures
3588set forth herein shall not be deemed a material alteration to
3589the common elements or association property within the meaning
3590of this section.
3591     (d)  Notwithstanding any provision to the contrary in the
3592cooperative documents, if approval is required by the documents,
3593a board shall not refuse to approve the installation or
3594replacement of hurricane shutters by a shareholder conforming to
3595the specifications adopted by the board.
3596     (6)  As to any cooperative building greater than three
3597stories in height, at least every 5 years, and within 5 years if
3598not available for inspection on July 1, 2009, the board shall
3599have the cooperative building inspected to provide a report
3600under seal of an architect or engineer authorized to practice in
3601this state attesting to required maintenance, useful life, and
3602replacement costs of the common areas. However, if approved by a
3603majority of the voting interests present at a properly called
3604meeting of the association, an association may waive this
3605requirement. Such meeting and approval must occur prior to the
3606end of the 5-year period and is effective only for that 5-year
3607period.
3608     (7)  An association may not refuse the request of a
3609shareholder for a reasonable accommodation for the attachment on
3610the mantel or frame of the door of the shareholder of a
3611religious object not to exceed 3 inches wide, 6 inches high, and
36121.5 inches deep.
3613     (8)  Notwithstanding the provisions of this section or the
3614governing documents of a cooperative association, the board of
3615directors may, without any requirement for approval of the
3616shareholders, install upon or within the common areas or
3617association property solar collectors, clotheslines, or other
3618energy-efficient devices based on renewable resources for the
3619benefit of the shareholders.
3620     Section 20.  Section 719.117, Florida Statutes, is created
3621to read:
3622     719.117  Termination of cooperative.--
3623     (1)  LEGISLATIVE FINDINGS.--The Legislature finds that
3624cooperatives are created as authorized by statute. In
3625circumstances that may create economic waste, areas of
3626disrepair, or obsolescence of a cooperative property for its
3627intended use and thereby lower property tax values, the
3628Legislature further finds that it is the public policy of this
3629state to provide by statute a method to preserve the value of
3630the property interests and the rights of alienation thereof that
3631shareholders have in the cooperative property before and after
3632termination. The Legislature further finds that it is contrary
3633to the public policy of this state to require the continued
3634operation of a cooperative when to do so constitutes economic
3635waste or when the ability to do so is made impossible by law or
3636regulation. This section applies to all cooperatives in this
3637state in existence on or after July 1, 2009.
3638     (2)  TERMINATION BECAUSE OF ECONOMIC WASTE OR
3639IMPOSSIBILITY.--
3640     (a)  Notwithstanding any provision to the contrary in the
3641cooperative documents, the cooperative form of ownership of a
3642property may be terminated by a plan of termination approved by
3643the lesser of the lowest percentage of voting interests
3644necessary to amend the articles of incorporation when:
3645     1.  The total estimated cost of repairs necessary to
3646restore the improvements to their former condition or bring them
3647into compliance with applicable laws or regulations exceeds the
3648combined fair market value of all units in the cooperative after
3649completion of the repairs; or
3650     2.  It becomes impossible to operate or reconstruct a
3651cooperative in its prior physical configuration because of land
3652use laws or regulations.
3653     (b)  Notwithstanding paragraph (a), a cooperative in which
365475 percent or more of the units are timeshare units may be
3655terminated only pursuant to a plan of termination approved by 80
3656percent of the total voting interests of the association and the
3657holders of 80 percent of the original principal amount of
3658outstanding recorded mortgage liens of timeshare estates in the
3659cooperative, unless the declaration provides for a lower voting
3660percentage.
3661     (3)  OPTIONAL TERMINATION.--Except as provided in
3662subsection (2) or unless the declaration provides for a lower
3663percentage, the cooperative form of ownership of the property
3664may be terminated pursuant to a plan of termination approved by
3665at least 80 percent of the total voting interests of the
3666cooperative if not more than 10 percent of the total voting
3667interests of the cooperative have rejected the plan of
3668termination by negative vote or by providing written objections
3669thereto. This subsection does not apply to cooperatives in which
367075 percent or more of the units are timeshare units.
3671     (4)  EXEMPTION.--A plan of termination is not an amendment
3672subject to s. 719.1055(1).
3673     (5)  MORTGAGE LIENHOLDERS.--Notwithstanding any provision
3674to the contrary in the declaration or this chapter, approval of
3675a plan of termination by the holder of a recorded mortgage lien
3676affecting a cooperative parcel in which fewer than 75 percent of
3677the units are timeshare units is not required unless the plan of
3678termination will result in less than the full satisfaction of
3679the mortgage lien affecting the cooperative parcel. If such
3680approval is required and not given, a holder of a recorded
3681mortgage lien who objects to the plan of termination may contest
3682the plan as provided in subsection (16). At the time of sale,
3683the lien shall be transferred to the proportionate share of the
3684proceeds assigned to the cooperative parcel in the plan of
3685termination or as subsequently modified by the court.
3686     (6)  POWERS IN CONNECTION WITH TERMINATION.--The approval
3687of the plan of termination does not terminate the association.
3688The association shall continue in existence following approval
3689of the plan of termination with all powers and duties it had
3690before approval of the plan. Notwithstanding any provision to
3691the contrary in the declaration or bylaws, after approval of the
3692plan the board shall:
3693     (a)  Employ directors, agents, attorneys, and other
3694professionals to liquidate or conclude its affairs.
3695     (b)  Conduct the affairs of the association as necessary
3696for the liquidation or termination.
3697     (c)  Carry out contracts and collect, pay, and settle debts
3698and claims for and against the association.
3699     (d)  Defend suits brought against the association.
3700     (e)  Sue in the name of the association for all sums due or
3701owed to the association or to recover any of its property.
3702     (f)  Perform any act necessary to maintain, repair, or
3703demolish unsafe or uninhabitable improvements or other
3704cooperative property in compliance with applicable codes.
3705     (g)  Sell at public or private sale or exchange, convey, or
3706otherwise dispose of assets of the association for an amount
3707deemed to be in the best interests of the association, and
3708execute bills of sale and deeds of conveyance in the name of the
3709association.
3710     (h)  Collect and receive rents, profits, accounts
3711receivable, income, maintenance fees, special assessments, or
3712insurance proceeds for the association.
3713     (i)  Contract and do anything in the name of the
3714association which is proper or convenient to terminate the
3715affairs of the association.
3716     (7)  NATURAL DISASTERS.--
3717     (a)  If, after a natural disaster, the identity of the
3718directors or their right to hold office is in doubt, if they are
3719deceased or unable to act, if they fail or refuse to act, or if
3720they cannot be located, any interested person may petition the
3721circuit court to determine the identity of the directors or, if
3722found to be in the best interests of the shareholders, to
3723appoint a receiver to conclude the affairs of the association
3724after a hearing following notice to such persons as the court
3725directs. Lienholders shall be given notice of the petition and
3726have the right to propose persons for the consideration by the
3727court as receiver. If a receiver is appointed, the court shall
3728direct the receiver to provide to all shareholders written
3729notice of his or her appointment as receiver. Such notice shall
3730be mailed or delivered within 10 days after the appointment.
3731Notice by mail to a shareholder shall be sent to the address
3732used by the county property appraiser for notice to the
3733shareholder.
3734     (b)  The receiver shall have all powers given to the board
3735pursuant to the declaration, bylaws, and subsection (6), and any
3736other powers that are necessary to conclude the affairs of the
3737association and are set forth in the order of appointment. The
3738appointment of the receiver is subject to the bonding
3739requirements of such order. The order shall also provide for the
3740payment of a reasonable fee to the receiver from the sources
3741identified in the order, which may include rents, profits,
3742incomes, maintenance fees, or special assessments collected from
3743the cooperative property.
3744     (8)  REPORTS AND REPLACEMENT OF RECEIVER.--
3745     (a)  The association, receiver, or termination trustee
3746shall prepare reports each quarter following the approval of the
3747plan of termination setting forth the status and progress of the
3748termination, the costs and fees incurred, the date the
3749termination is expected to be completed, and the current
3750financial condition of the association, receivership, or
3751trusteeship and provide copies of the report by regular mail to
3752the shareholders and lienors at the mailing address provided to
3753the association by the shareholders and the lienors.
3754     (b)  The shareholders of an association in termination may
3755recall or remove members of the board of administration with or
3756without cause at any time as provided in s. 718.106(1)(f).
3757     (c)  The lienors of an association in termination
3758representing at least 50 percent of the outstanding amount of
3759liens may petition the court for the appointment of a
3760termination trustee, which shall be granted upon good cause
3761shown.
3762     (9)  PLAN OF TERMINATION.--The plan of termination must be
3763a written document executed in the same manner as a deed by
3764shareholders having the requisite percentage of voting interests
3765to approve the plan and by the termination trustee. A copy of
3766the proposed plan of termination shall be given to all
3767shareholders, in the same manner as provided for notice of an
3768annual meeting, at least 14 days prior to the meeting at which
3769the plan of termination is to be voted upon or prior to or
3770simultaneously with the distribution of the solicitation seeking
3771execution of the plan of termination or written consent to or
3772joinder in the plan. A shareholder may document assent to the
3773plan by executing the plan or by consent to or joinder in the
3774plan in the manner of a deed. A plan of termination and the
3775consents or joinders of shareholders and, if required, consents
3776or joinders of mortgagees must be recorded in the public records
3777of each county in which any portion of the cooperative is
3778located. The plan is effective only upon recordation or at a
3779later date specified in the plan.
3780     (10)  PLAN OF TERMINATION; REQUIRED PROVISIONS.--The plan
3781of termination must specify:
3782     (a)  The name, address, and powers of the termination
3783trustee.
3784     (b)  A date after which the plan of termination is void if
3785it has not been recorded.
3786     (c)  The interests of the respective shareholders in the
3787association property, common surplus, and other assets of the
3788association, which shall be the same as the respective interests
3789of the shareholders in the common areas immediately before the
3790termination, unless otherwise provided in the declaration.
3791     (d)  The interests of the respective shareholders in any
3792proceeds from the sale of the cooperative property. The plan of
3793termination may apportion those proceeds pursuant to any method
3794prescribed in subsection (12). If, pursuant to the plan of
3795termination, cooperative property or real property owned by the
3796association is to be sold following termination, the plan must
3797provide for the sale and may establish any minimum sale terms.
3798     (e)  Any interests of the respective shareholders in
3799insurance proceeds or condemnation proceeds that are not used
3800for repair or reconstruction at the time of termination. Unless
3801the declaration expressly addresses the distribution of
3802insurance proceeds or condemnation proceeds, the plan of
3803termination may apportion those proceeds pursuant to any method
3804prescribed in subsection (12).
3805     (11)  PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL
3806TERMINATION.--
3807     (a)  The plan of termination may provide that each
3808shareholder retains the exclusive right of possession to the
3809portion of the real estate that formerly constituted the unit,
3810in which case the plan must specify the conditions of
3811possession.
3812     (b)  In a conditional termination, the plan must specify
3813the conditions for termination. A conditional plan does not vest
3814title in the termination trustee until the plan and a
3815certificate executed by the association with the formalities of
3816a deed, confirming that the conditions in the conditional plan
3817have been satisfied or waived by the requisite percentage of the
3818voting interests, have been recorded.
3819     (12)  ALLOCATION OF PROCEEDS OF SALE OF COOPERATIVE
3820PROPERTY.--
3821     (a)  Unless the declaration expressly provides for the
3822allocation of the proceeds of sale of cooperative property, the
3823plan of termination must first apportion the proceeds between
3824the aggregate value of all units and the value of the common
3825areas, based on their respective fair market values immediately
3826before the termination, as determined by one or more independent
3827appraisers selected by the association or termination trustee.
3828     (b)  The portion of proceeds allocated to the units shall
3829be further apportioned among the individual units. The
3830apportionment is deemed fair and reasonable if it is so
3831determined by the shareholders, who may approve the plan of
3832termination by any of the following methods:
3833     1.  The respective values of the units based on the fair
3834market values of the units immediately before the termination,
3835as determined by one or more independent appraisers selected by
3836the association or termination trustee;
3837     2.  The respective values of the units based on the most
3838recent market value of the units before the termination, as
3839provided in the county property appraiser's records; or
3840     3.  The respective interests of the units in the common
3841elements specified in the cooperative documents immediately
3842before the termination.
3843     (c)  The methods of apportionment in paragraph (b) do not
3844prohibit any other method of apportioning the proceeds of sale
3845allocated to the units agreed upon in the plan of termination.
3846The portion of the proceeds allocated to the common elements
3847shall be apportioned among the units based upon their respective
3848interests in the common areas as provided in the declaration.
3849     (d)  Liens that encumber a unit shall be transferred to the
3850proceeds of sale of the cooperative property and the proceeds of
3851sale or other distribution of association property, common
3852surplus, or other association assets attributable to such unit
3853in their same priority. The proceeds of any sale of cooperative
3854property pursuant to a plan of termination may not be deemed to
3855be common surplus or association property.
3856     (13)  TERMINATION TRUSTEE.--The association shall serve as
3857termination trustee unless another person is appointed in the
3858plan of termination. If the association is unable, unwilling, or
3859fails to act as trustee, any shareholder may petition the court
3860to appoint a trustee. Upon the date of the recording or at a
3861later date specified in the plan, title to the cooperative
3862property vests in the trustee. Unless prohibited by the plan,
3863the termination trustee shall be vested with the powers given to
3864the board pursuant to the cooperative documents, bylaws, and
3865subsection (6). If the association is not the termination
3866trustee, the trustee's powers shall be coextensive with those of
3867the association to the extent not prohibited in the plan of
3868termination or the order of appointment. If the association is
3869not the termination trustee, the association shall transfer any
3870association property to the trustee. If the association is
3871dissolved, the trustee shall also have such other powers
3872necessary to conclude the affairs of the association.
3873     (14)  TITLE VESTED IN TERMINATION TRUSTEE.--If termination
3874is pursuant to a plan of termination under subsection (2) or
3875subsection (3), the shareholders' rights and title as tenants in
3876common in undivided interests in the cooperative property vest
3877in the termination trustee when the plan is recorded or at a
3878later date specified in the plan. The shareholders thereafter
3879become the beneficiaries of the proceeds realized from the plan
3880of termination. The termination trustee may deal with the
3881cooperative property or any interest therein if the plan confers
3882on the trustee the authority to protect, conserve, manage, sell,
3883or dispose of the cooperative property. The trustee, on behalf
3884of the shareholders, may contract for the sale of real property,
3885but the contract is not binding on the shareholders until the
3886plan is approved pursuant to subsection (2) or subsection (3).
3887     (15)  NOTICE.--
3888     (a)  Within 30 days after a plan of termination has been
3889recorded, the termination trustee shall deliver by certified
3890mail, return receipt requested, notice to all shareholders,
3891lienors of the cooperative property, and lienors of all units at
3892their last known addresses that a plan of termination has been
3893recorded. The notice must include the book and page number of
3894the public records in which the plan was recorded, notice that a
3895copy of the plan shall be furnished upon written request, and
3896notice that the shareholder or lienor has the right to contest
3897the fairness of the plan.
3898     (b)  The trustee, within 90 days after the effective date
3899of the plan, shall provide to the division a certified copy of
3900the recorded plan, the date the plan was recorded, and the
3901county, book, and page number of the public records in which the
3902plan is recorded.
3903     (16)  RIGHT TO CONTEST.--A shareholder or lienor may
3904contest a plan of termination by initiating a summary procedure
3905pursuant to s. 51.011 within 90 days after the date the plan is
3906recorded. A shareholder or lienor who does not contest the plan
3907within the 90-day period is barred from asserting or prosecuting
3908a claim against the association, the termination trustee, any
3909shareholder, or any successor in interest to the cooperative
3910property. In an action contesting a plan of termination, the
3911person contesting the plan has the burden of pleading and
3912proving that the apportionment of the proceeds from the sale
3913among the shareholders was not fair and reasonable. The
3914apportionment of sale proceeds is presumed fair and reasonable
3915if it was determined pursuant to the methods prescribed in
3916subsection (12). The court shall determine the rights and
3917interests of the parties and order the plan of termination to be
3918implemented if it is fair and reasonable. If the court
3919determines that the plan of termination is not fair and
3920reasonable, the court may void the plan or may modify the plan
3921to apportion the proceeds in a fair and reasonable manner
3922pursuant to this section based upon the proceedings and order
3923the modified plan of termination to be implemented. In such
3924action, the prevailing party shall recover reasonable attorney's
3925fees and costs.
3926     (17)  DISTRIBUTION.--
3927     (a)  Following termination of the cooperative, the
3928cooperative property, association property, common surplus, and
3929other assets of the association shall be held by the termination
3930trustee, as trustee for shareholders and holders of liens on the
3931units, in their order of priority.
3932     (b)  Not less than 30 days before the first distribution,
3933the termination trustee shall deliver by certified mail, return
3934receipt requested, a notice of the estimated distribution to all
3935shareholders, lienors of the cooperative property, and lienors
3936of each unit at their last known addresses stating a good faith
3937estimate of the amount of the distributions to each class and
3938the procedures and deadline for notifying the termination
3939trustee of any objections to the amount. The deadline must be at
3940least 15 days after the date the notice was mailed. The notice
3941may be sent with or after the notice required by subsection
3942(15). If a shareholder or lienor files a timely objection with
3943the termination trustee, the trustee need not distribute the
3944funds and property allocated to the respective shareholder or
3945lienor until the trustee has had a reasonable time to determine
3946the validity of the adverse claim. In the alternative, the
3947trustee may interplead the shareholder, lienor, and any other
3948person claiming an interest in the unit and deposit the funds
3949allocated to the unit in the court registry, at which time the
3950cooperative property, association property, common surplus, and
3951other assets of the association are free of all claims and liens
3952of the parties to the suit. In an interpleader action, the
3953trustee and prevailing party may recover reasonable attorney's
3954fees and costs.
3955     (c)  The proceeds from any sale of cooperative property or
3956association property and any remaining cooperative property or
3957association property, common surplus, and other assets shall be
3958distributed in the following priority:
3959     1.  To pay the reasonable termination trustee's fees and
3960costs and accounting fees and costs.
3961     2.  To lienholders of liens recorded prior to the recording
3962of the cooperative documents.
3963     3.  To purchase-money lienholders on units to the extent
3964necessary to satisfy their liens; however, the distribution may
3965not exceed a shareholder's share of the proceeds.
3966     4.  To creditors of the association, as their interests
3967appear.
3968     5.  To shareholders, the proceeds of any sale of
3969cooperative property subject to satisfaction of liens on each
3970unit in their order of priority, in shares specified in the plan
3971of termination, unless objected to by a shareholder or lienor as
3972provided in paragraph (b).
3973     6.  To shareholders, the remaining cooperative property,
3974subject to satisfaction of liens on each unit in their order of
3975priority, in shares specified in the plan of termination, unless
3976objected to by a shareholder or a lienor as provided in
3977paragraph (b).
3978     7.  To shareholders, the proceeds of any sale of
3979association property, the remaining association property, common
3980surplus, and other assets of the association, subject to
3981satisfaction of liens on each unit in their order of priority,
3982in shares specified in the plan of termination, unless objected
3983to by a shareholder or a lienor as provided in paragraph (b).
3984     (d)  After determining that all known debts and liabilities
3985of an association in the process of termination have been paid
3986or adequately provided for, the termination trustee shall
3987distribute the remaining assets pursuant to the plan of
3988termination. If the termination is by court proceeding or
3989subject to court supervision, the distribution may not be made
3990until any period for the presentation of claims ordered by the
3991court has elapsed.
3992     (e)  Assets held by an association upon a valid condition
3993requiring return, transfer, or conveyance, which condition has
3994occurred or will occur, shall be returned, transferred, or
3995conveyed in accordance with the condition. The remaining
3996association assets shall be distributed pursuant to paragraph
3997(c).
3998     (f)  Distribution may be made in money, property, or
3999securities and in installments or as a lump sum, if it can be
4000done fairly and ratably and in conformity with the plan of
4001termination. Distribution shall be made as soon as is reasonably
4002consistent with the beneficial liquidation of the assets.
4003     (18)  ASSOCIATION STATUS.--The termination of a cooperative
4004does not change the corporate status of the association that
4005operated the cooperative property. The association continues to
4006exist to conclude its affairs, prosecute and defend actions by
4007or against it, collect and discharge obligations, dispose of and
4008convey its property, and collect and divide its assets, but not
4009to act except as necessary to conclude its affairs.
4010     (19)  CREATION OF ANOTHER COOPERATIVE.--The termination of
4011a cooperative does not bar the creation by the termination
4012trustee of another cooperative affecting any portion of the same
4013property.
4014     Section 21.  Section 719.1224, Florida Statutes, is created
4015to read:
4016     719.1224  Prohibition against SLAPP suits.--
4017     (1)  It is the intent of the Legislature to protect the
4018right of cooperative shareholders to exercise their rights to
4019instruct their representatives and petition for redress of
4020grievances before the various governmental entities of this
4021state as protected by the First Amendment to the United States
4022Constitution and s. 5, Art. I of the State Constitution. The
4023Legislature recognizes that strategic lawsuits against public
4024participation, or "SLAPP suits," as they are typically referred
4025to, have occurred when association members are sued by
4026individuals, business entities, or governmental entities arising
4027out of a cooperative shareholder's appearance and presentation
4028before a governmental entity on matters related to the
4029cooperative association. However, it is the public policy of
4030this state that governmental entities, business organizations,
4031and individuals not engage in SLAPP suits because such actions
4032are inconsistent with the right of cooperative shareholders to
4033participate in the state's institutions of government.
4034Therefore, the Legislature finds and declares that prohibiting
4035such lawsuits by governmental entities, business entities, and
4036individuals against cooperative shareholders who address matters
4037concerning their cooperative association will preserve this
4038fundamental state policy, preserve the constitutional rights of
4039cooperative shareholders, and ensure the continuation of
4040representative government in this state. It is the intent of the
4041Legislature that such lawsuits be expeditiously disposed of by
4042the courts. As used in this subsection, the term "governmental
4043entity" means the state, including the executive, legislative,
4044and judicial branches of government; the independent
4045establishments of the state, counties, municipalities,
4046districts, authorities, boards, or commissions; or any agencies
4047of these branches that are subject to chapter 286.
4048     (2)  A governmental entity, business organization, or
4049individual in this state may not file or cause to be filed
4050through its employees or agents any lawsuit, cause of action,
4051claim, cross-claim, or counterclaim against a cooperative
4052shareholder without merit and solely because such cooperative
4053shareholder has exercised the right to instruct his or her
4054representatives or the right to petition for redress of
4055grievances before the various governmental entities of this
4056state, as protected by the First Amendment to the United States
4057Constitution and s. 5, Art. I of the State Constitution.
4058     (3)  A cooperative shareholder sued by a governmental
4059entity, business organization, or individual in violation of
4060this section has a right to an expeditious resolution of a claim
4061that the suit is in violation of this section. A cooperative
4062shareholder may petition the court for an order dismissing the
4063action or granting final judgment in favor of that cooperative
4064shareholder. The petitioner may file a motion for summary
4065judgment, together with supplemental affidavits, seeking a
4066determination that the governmental entity's, business
4067organization's, or individual's lawsuit has been brought in
4068violation of this section. The governmental entity, business
4069organization, or individual shall thereafter file its response
4070and any supplemental affidavits. As soon as practicable, the
4071court shall set a hearing on the petitioner's motion, which
4072shall be held at the earliest possible time after the filing of
4073the governmental entity's, business organization's, or
4074individual's response. The court may award the cooperative
4075shareholder sued by the governmental entity, business
4076organization, or individual actual damages arising from the
4077governmental entity's, individual's, or business organization's
4078violation of this section. A court may treble the damages
4079awarded to a prevailing cooperative shareholder and shall state
4080the basis for the treble damages award in its judgment. The
4081court shall award the prevailing party reasonable attorney's
4082fees and costs incurred in connection with a claim that an
4083action was filed in violation of this section.
4084     (4)  Cooperative associations may not expend association
4085funds in prosecuting a SLAPP suit against a cooperative
4086shareholder.
4087     Section 22.  Section 719.1255, Florida Statutes, is amended
4088to read:
4089     719.1255  Alternative resolution of disputes.--The Division
4090of Florida Condominiums, Timeshares, and Mobile Homes of the
4091Department of Business and Professional Regulation shall provide
4092for alternative dispute resolution of matters related to
4093cooperative associations and shareholders in a manner like that
4094provided to condominium associations and unit owners in
4095accordance with s. 718.1255.
4096     Section 23.  Section 719.1265, Florida Statutes, is created
4097to read:
4098     719.1265  Association emergency powers.--
4099     (1)  To the extent allowed by law and unless specifically
4100prohibited by the cooperative documents or the bylaws of an
4101association, and consistent with the provisions of s. 617.0830,
4102the board of directors, in response to damage caused by an event
4103for which a state of emergency is declared pursuant to s. 252.36
4104in the locale in which the cooperative is located, may, but is
4105not required to, exercise the following powers:
4106     (a)  Conduct board meetings and shareholder meetings with
4107notice given as is practicable. Such notice may be given in any
4108practicable manner, including publication, radio, United States
4109mail, the Internet, public service announcements, and
4110conspicuous posting on the cooperative property or any other
4111means the board deems reasonable under the circumstances. Notice
4112of board decisions may be communicated as provided in this
4113paragraph.
4114     (b)  Cancel and reschedule any association meeting.
4115     (c)  Name as assistant officers persons who are not
4116directors, which assistant officers shall have the same
4117authority as the executive officers to whom they are assistants
4118for during the state of emergency to accommodate the incapacity
4119or unavailability of any officer of the association.
4120     (d)  Relocate the association's principal office or
4121designate alternative principal offices.
4122     (e)  Enter into agreements with local counties and
4123municipalities to assist counties and municipalities with debris
4124removal.
4125     (f)  Implement a disaster plan before or immediately
4126following the event for which a state of emergency is declared
4127which may include, but is not limited to, shutting down or off
4128elevators; electricity; water, sewer, or security systems; or
4129air conditioners.
4130     (g)  Based upon advice of emergency management officials or
4131upon the advice of licensed professionals retained by the board,
4132determine any portion of the cooperative property unavailable
4133for entry or occupancy by shareholders, family members, tenants,
4134guests, agents, or invitees to protect the health, safety, or
4135welfare of such persons.
4136     (h)  Require the evacuation of the cooperative property in
4137the event of a mandatory evacuation order in the locale in which
4138the cooperative is located. Should any shareholder or other
4139occupant of a cooperative fail or refuse to evacuate the
4140cooperative property when the board has required evacuation, the
4141association shall be immune from liability or injury to persons
4142or property arising from such failure or refusal.
4143     (i)  Based upon advice of emergency management officials or
4144upon the advice of licensed professionals retained by the board,
4145determine whether the cooperative property can be safely
4146inhabited or occupied. However, such determination is not
4147conclusive as to any determination of habitability pursuant to
4148the declaration.
4149     (j)  Mitigate further damage, including taking action to
4150contract for the removal of debris and to prevent or mitigate
4151the spread of fungus, including, but not limited to, mold or
4152mildew, by removing and disposing of wet drywall, insulation,
4153carpet, cabinetry, or other fixtures on or within the
4154cooperative property, even if the shareholder is obligated by
4155the cooperative documents or law to insure or replace those
4156fixtures and to remove personal property from a unit.
4157     (k)  Contract, on behalf of any shareholder or
4158shareholders, for items or services for which the shareholder or
4159shareholders are otherwise individually responsible, but which
4160are necessary to prevent further damage to the cooperative
4161property. In such event, the shareholder or shareholders on
4162whose behalf the board has contracted are responsible for
4163reimbursing the association for the actual costs of the items or
4164services, and the association may use its lien authority
4165provided by s. 719.108 to enforce collection of the charges.
4166Without limitation, such items or services may include the
4167drying of units, the boarding of broken windows or doors, and
4168the replacement of damaged air conditioners or air handlers to
4169provide climate control in the units or other portions of the
4170property.
4171     (l)  Regardless of any provision to the contrary and even
4172if such authority does not specifically appear in the
4173cooperative documents or bylaws of the association, levy special
4174assessments without a vote of the shareholders.
4175     (m)  Without shareholders' approval, borrow money and
4176pledge association assets as collateral to fund emergency
4177repairs and carry out the duties of the association when
4178operating funds are insufficient. This paragraph does not limit
4179the general authority of the association to borrow money,
4180subject to such restrictions as are contained in the cooperative
4181documents or bylaws of the association.
4182     (2)  The special powers authorized under subsection (1)
4183shall be limited to the time reasonably necessary to protect the
4184health, safety, and welfare of the association and the
4185shareholders and the shareholders' family members, tenants,
4186guests, agents, or invitees and the time reasonably necessary to
4187mitigate further damage and make emergency repairs.
4188Additionally, unless 20 percent or more of the units are made
4189uninhabitable by the emergency, the special powers authorized
4190under subsection (1) shall only be exercised during the term of
4191the Governor's executive order or proclamation declaring the
4192state of emergency in the locale in which the condominium is
4193located.
4194     Section 24.  Subsections (1) and (4) of section 719.301,
4195Florida Statutes, are amended to read:
4196     719.301  Transfer of association control.--
4197     (1)  When shareholders unit owners other than the developer
4198own 15 percent or more of the units in a cooperative that will
4199be operated ultimately by an association, the shareholders unit
4200owners other than the developer shall be entitled to elect not
4201less than one-third of the members of the board of
4202administration of the association. Shareholders Unit owners
4203other than the developer are entitled to elect not less than a
4204majority of the members of the board of administration of an
4205association:
4206     (a)  Three years after 50 percent of the units that will be
4207operated ultimately by the association have been conveyed to
4208purchasers;
4209     (b)  Three months after 90 percent of the units that will
4210be operated ultimately by the association have been conveyed to
4211purchasers;
4212     (c)  When all the units that will be operated ultimately by
4213the association have been completed, some have been conveyed to
4214purchasers, and none of the others are being offered for sale by
4215the developer in the ordinary course of business;
4216     (d)  When some of the units have been conveyed to
4217purchasers and none of the others are being constructed or
4218offered for sale by the developer in the ordinary course of
4219business; or
4220     (e)  When the developer files a petition seeking protection
4221in bankruptcy;
4222     (f)  When a receiver for the developer is appointed by a
4223circuit court and is not discharged within 30 days after such
4224appointment; or
4225     (g)(e)  Seven years after creation of the cooperative
4226association,
4227
4228whichever occurs first. The developer is entitled to elect at
4229least one member of the board of administration of an
4230association as long as the developer holds for sale in the
4231ordinary course of business at least 5 percent in cooperatives
4232with fewer than 500 units and 2 percent in cooperatives with 500
4233or more units in a cooperative operated by the association.
4234After the developer relinquishes control of the association, the
4235developer may exercise the right to vote any developer-owned
4236units in the same manner as any other shareholder unit owner
4237except for purposes of reacquiring control of the association or
4238selecting the majority of the members of the board.
4239     (4)  When shareholders unit owners other than the developer
4240elect a majority of the members of the board of administration
4241of an association, the developer shall relinquish control of the
4242association, and the shareholders unit owners shall accept
4243control. Simultaneously, or for the purpose of paragraph (c) not
4244more than 90 days thereafter, the developer shall deliver to the
4245association, at the developer's expense, all property of the
4246shareholders unit owners and of the association held or
4247controlled by the developer, including, but not limited to, the
4248following items, if applicable, as to each cooperative operated
4249by the association:
4250     (a)1.  The original or a photocopy of the recorded
4251cooperative documents and all amendments thereto. If a photocopy
4252is provided, it shall be certified by affidavit of the
4253developer, or an officer or agent of the developer, as being a
4254complete copy of the actual recorded cooperative documents.
4255     2.  A certified copy of the association's articles of
4256incorporation, or if it is not incorporated, then copies of the
4257documents creating the association.
4258     3.  A copy of the bylaws.
4259     4.  The minute books, including all minutes, and other
4260books and records of the association, if any.
4261     5.  Any house rules and regulations which have been
4262promulgated.
4263     (b)  Resignations of officers and members of the board of
4264administration who are required to resign because the developer
4265is required to relinquish control of the association.
4266     (c)  The financial records, including financial statements
4267of the association, and source documents since the incorporation
4268of the association through the date of turnover. The records
4269shall be audited for the period of the incorporation of the
4270association or for the period covered by the last audit, if an
4271audit has been performed for each fiscal year since
4272incorporation, by an independent certified public accountant.
4273All financial statements shall be prepared in accordance with
4274generally accepted accounting standards and shall be audited in
4275accordance with generally accepted auditing standards as
4276prescribed by the Board of Accountancy. The accountant
4277performing the review shall examine to the extent necessary
4278supporting documents and records, including the cash
4279disbursements and related paid invoices to determine if
4280expenditures were for association purposes and the billings,
4281cash receipts, and related records to determine that the
4282developer was charged and paid the proper amounts of
4283assessments.
4284     (d)  Association funds or control thereof.
4285     (e)  All tangible personal property that is property of the
4286association, represented by the developer to be part of the
4287common areas or ostensibly part of the common areas, and an
4288inventory of that property.
4289     (f)  A copy of the plans and specifications utilized in the
4290construction or remodeling of improvements and the supplying of
4291equipment to the cooperative and in the construction and
4292installation of all mechanical components serving the
4293improvements and the site, with a certificate in affidavit form
4294of the developer, the developer's agent, or an architect or
4295engineer authorized to practice in this state that such plans
4296and specifications represent, to the best of their knowledge and
4297belief, the actual plans and specifications utilized in the
4298construction and improvement of the cooperative property and for
4299the construction and installation of the mechanical components
4300serving the improvements. If the cooperative property has been
4301organized as a cooperative more than 3 years after the
4302completion of construction or remodeling of the improvements,
4303the requirements of this paragraph shall not apply.
4304     (g)  A list of the names and addresses, of which the
4305developer had knowledge at any time in the development of the
4306cooperative, of all contractors, subcontractors, and suppliers
4307utilized in the construction or remodeling of the improvements
4308and in the landscaping.
4309     (h)  Insurance policies.
4310     (i)  Copies of any certificates of occupancy which may have
4311been issued for the cooperative property.
4312     (j)  Any other permits issued by governmental bodies
4313applicable to the cooperative property in force or issued within
43141 year prior to the date the shareholders unit owners other than
4315the developer take control of the association.
4316     (k)  All written warranties of the contractor,
4317subcontractors, suppliers, and manufacturers, if any, that are
4318still effective.
4319     (l)  A roster of shareholders unit owners and their
4320addresses and telephone numbers, if known, as shown on the
4321developer's records.
4322     (m)  Leases of the common areas and other leases to which
4323the association is a party.
4324     (n)  Employment contracts or service contracts in which the
4325association is one of the contracting parties or service
4326contracts in which the association or the shareholders unit
4327owners have an obligation or responsibility, directly or
4328indirectly, to pay some or all of the fee or charge of the
4329person or persons performing the service.
4330     (o)  All other contracts to which the association is a
4331party.
4332     (p)  A turnover inspection report included in the official
4333records, under seal of an architect or engineer authorized to
4334practice in this state, attesting to required maintenance,
4335useful life, and replacement costs of the following applicable
4336common areas:
4337     1.  Roof.
4338     2.  Structure.
4339     3.  Fireproofing and fire protection systems.
4340     4.  Elevators.
4341     5.  Heating and cooling systems.
4342     6.  Plumbing.
4343     7.  Electrical systems.
4344     8.  Swimming pool or spa and equipment.
4345     9.  Seawalls.
4346     10.  Pavement and parking areas.
4347     11.  Drainage systems.
4348     12.  Painting.
4349     13.  Irrigation systems.
4350     Section 25.  Section 719.3025, Florida Statutes, is created
4351to read:
4352     719.3025  Agreements for operation, maintenance, or
4353management of cooperatives; specific requirements.--
4354     (1)  No written contract between a party contracting to
4355provide maintenance or management services and an association
4356which contract provides for operation, maintenance, or
4357management of a cooperative association or property serving the
4358shareholders of a cooperative shall be valid or enforceable
4359unless the contract:
4360     (a)  Specifies the services, obligations, and
4361responsibilities of the party contracting to provide maintenance
4362or management services to the shareholders.
4363     (b)  Specifies those costs incurred in the performance of
4364those services, obligations, or responsibilities which are to be
4365reimbursed by the association to the party contracting to
4366provide maintenance or management services.
4367     (c)  Provides an indication of how often each service,
4368obligation, or responsibility is to be performed, whether stated
4369for each service, obligation, or responsibility or in categories
4370thereof.
4371     (d)  Specifies a minimum number of personnel to be employed
4372by the party contracting to provide maintenance or management
4373services for the purpose of providing service to the
4374association.
4375     (e)  Discloses any financial or ownership interest which
4376the developer, if the developer is in control of the
4377association, holds with regard to the party contracting to
4378provide maintenance or management services.
4379     (f)  Discloses any financial or ownership interest a board
4380member or any party providing maintenance or management services
4381to the association holds with the contracting party.
4382     (2)  In any case in which the party contracting to provide
4383maintenance or management services fails to provide such
4384services in accordance with the contract, the association is
4385authorized to procure such services from some other party and
4386shall be entitled to collect any fees or charges paid for
4387services performed by another party from the party contracting
4388to provide maintenance or management services.
4389     (3)  Any services or obligations not stated on the face of
4390the contract shall be unenforceable.
4391     (4)  Notwithstanding the fact that certain vendors contract
4392with associations to maintain equipment or property which is
4393made available to serve shareholders, it is the intent of the
4394Legislature that this section applies to contracts for
4395maintenance or management services for which the association
4396pays compensation. This section does not apply to contracts for
4397services or property made available for the convenience of
4398shareholders by lessees or licensees of the association, such as
4399coin-operated laundry, food, soft drink, or telephone vendors;
4400cable television operators; retail store operators; businesses;
4401restaurants; or similar vendors.
4402     Section 26.  Section 719.3026, Florida Statutes, is amended
4403to read:
4404     719.3026  Contracts for products and services; in writing;
4405bids; exceptions.--Associations with 10 or fewer less than 100
4406units may opt out of the provisions of this section if two-
4407thirds of the shareholders unit owners vote to do so, which opt-
4408out may be accomplished by a proxy specifically setting forth
4409the exception from this section.
4410     (1)  All contracts as further described herein or any
4411contract that is not to be fully performed within 1 year after
4412the making thereof, for the purchase, lease, or renting of
4413materials or equipment to be used by the association in
4414accomplishing its purposes under this chapter, and all contracts
4415for the provision of services, shall be in writing. If a
4416contract for the purchase, lease, or renting of materials or
4417equipment, or for the provision of services, requires payment by
4418the association in an amount which in the aggregate exceeds 5
4419percent of the association's budget, including reserves, the
4420association shall obtain competitive bids for the materials,
4421equipment, or services. Nothing contained herein shall be
4422construed to require the association to accept the lowest bid.
4423     (2)(a)1.  Notwithstanding the foregoing, contracts with
4424employees of the association, and contracts for attorney,
4425accountant, architect, community association manager, timeshare
4426management firm, engineering, and landscape architect services
4427shall not be subject to the provisions of this section.
4428     2.  A contract executed before January 1, 1992, and any
4429renewal thereof, is not subject to the competitive bid
4430requirements of this section. If a contract was awarded under
4431the competitive bid procedures of this section, any renewal of
4432that contract is not subject to such competitive bid
4433requirements if the contract contains a provision that allows
4434the board to cancel the contract on 30 days' notice. Materials,
4435equipment, or services provided to a cooperative pursuant to a
4436local government franchise agreement by a franchise holder are
4437not subject to the competitive bid requirement. A contract with
4438a manager, if made by a competitive bid, may be made for up to 3
4439years. A condominium whose declaration or bylaws provides for
4440competitive bidding for services may operate under the
4441provisions of that declaration or bylaws in lieu of this section
4442if those provisions are not less stringent than the requirements
4443of this section.
4444     (b)  This section does not limit the ability of an
4445association to obtain needed products and services in an
4446emergency.
4447     (c)  This section does not apply if the business entity
4448with which the association desires to enter into a contract is
4449the only source of supply within the county serving the
4450association.
4451     (d)  Nothing contained in this subsection shall excuse a
4452party contracting to provide maintenance or management services
4453from compliance with s. 719.3025.
4454     (3)  As to any contract or other transaction between an
4455association and one or more of its directors or any other
4456corporation, firm, association, or entity in which one or more
4457of its directors are directors or officers or are financially
4458interested:
4459     (a)  The association shall comply with the requirements of
4460s. 617.0832.
4461     (b)  The disclosures required by s. 617.0832 shall be
4462entered into the written minutes of the meeting.
4463     (c)  Approval of the contract or other transaction shall
4464require an affirmative vote of two-thirds of the directors
4465present.
4466     (d)  At the next regular or special meeting of the
4467shareholders, the existence of the contract or other transaction
4468shall be disclosed to the shareholders. Upon motion of any
4469shareholder, the contract or transaction shall be brought up for
4470a vote and may be canceled by a majority vote of the
4471shareholders present. Should the shareholders cancel the
4472contract, the association shall only be liable for the
4473reasonable value of goods and services provided up to the time
4474of cancellation and shall not be liable for any termination fee,
4475liquidated damages, or other form of penalty for such
4476cancellation.
4477     Section 27.  Section 719.303, Florida Statutes, is amended
4478to read:
4479     719.303  Obligations of shareholders owners.--
4480     (1)  Each shareholder unit owner, each tenant and other
4481invitee, and each association shall be governed by, and shall
4482comply with the provisions of, this chapter, the cooperative
4483documents, the documents creating the association, and the
4484association bylaws, and the provisions thereof shall be deemed
4485expressly incorporated into any lease of a unit. Actions for
4486damages or for injunctive relief, or both, for failure to comply
4487with these provisions may be brought by the association or by a
4488shareholder unit owner against:
4489     (a)  The association.
4490     (b)  A shareholder unit owner.
4491     (c)  Directors designated by the developer, for actions
4492taken by them prior to the time control of the association is
4493assumed by shareholders unit owners other than the developer.
4494     (d)  Any director who willfully and knowingly fails to
4495comply with these provisions.
4496     (e)  Any tenant leasing a unit, and any other invitee
4497occupying a unit.
4498
4499The prevailing party in any such action or in any action in
4500which the purchaser claims a right of voidability based upon
4501contractual provisions as required in s. 719.503(1)(a) is
4502entitled to recover reasonable attorney's fees. A shareholder
4503unit owner prevailing in an action between the association and
4504the shareholder unit owner under this section, in addition to
4505recovering his or her reasonable attorney's fees, may recover
4506additional amounts as determined by the court to be necessary to
4507reimburse the shareholder unit owner for his or her share of
4508assessments levied by the association to fund its expenses of
4509the litigation. This relief does not exclude other remedies
4510provided by law. Actions arising under this subsection shall not
4511be deemed to be actions for specific performance.
4512     (2)  A provision of this chapter may not be waived if the
4513waiver would adversely affect the rights of a shareholder unit
4514owner or the purpose of the provision, except that shareholders
4515unit owners or members of a board of administration may waive
4516notice of specific meetings in writing if provided by the
4517bylaws. Any instrument given in writing by the shareholder unit
4518owner or purchaser to an escrow agent may be relied upon by an
4519escrow agent, whether or not such instruction and the payment of
4520funds thereunder might constitute a waiver of any provision of
4521this chapter.
4522     (3)  If the cooperative documents so provide, the
4523association may levy reasonable fines against a shareholder unit
4524owner for failure of the shareholder unit owner or his or her
4525licensee or invitee or the unit's occupant to comply with any
4526provision of the cooperative documents or reasonable rules of
4527the association. No fine shall become a lien against a unit. No
4528fine shall exceed $100 per violation. However, a fine may be
4529levied on the basis of each day of a continuing violation, with
4530a single notice and opportunity for hearing, provided that no
4531such fine shall in the aggregate exceed $1,000. No fine may be
4532levied except after giving reasonable notice and opportunity for
4533a hearing to the shareholder unit owner and, if applicable, his
4534or her licensee or invitee. The hearing shall be held before a
4535committee of other shareholders who are neither board members
4536nor persons residing in a board member's household unit owners.
4537If the committee does not agree with the fine, it shall not be
4538levied. This subsection does not apply to unoccupied units.
4539     Section 28.  Section 719.501, Florida Statutes, is amended
4540to read:
4541     719.501  Authority, responsibilities, Powers and duties of
4542Division of Florida Condominiums, Timeshares, and Mobile
4543Homes.--
4544     (1)  The Division of Florida Condominiums, Timeshares, and
4545Mobile Homes of the Department of Business and Professional
4546Regulation, referred to as the "division" in this part, in
4547addition to other powers and duties prescribed by chapter 718,
4548has the power to enforce and ensure compliance with this chapter
4549and adopted rules relating to the development, construction,
4550sale, lease, ownership, operation, and management of residential
4551cooperative units. In performing its duties, the division has
4552complete jurisdiction to investigate complaints and enforce
4553compliance with the provisions of this chapter. shall have the
4554following powers and duties:
4555     (a)  The division may make necessary public or private
4556investigations within or outside this state to determine whether
4557any person has violated this chapter or any rule or order
4558hereunder, to aid in the enforcement of this chapter, or to aid
4559in the adoption of rules or forms hereunder.
4560     (b)  The division may require or permit any person to file
4561a statement in writing, under oath or otherwise, as the division
4562determines, as to the facts and circumstances concerning a
4563matter to be investigated.
4564     (c)  For the purpose of any investigation under this
4565chapter, the division director or any officer or employee
4566designated by the division director may administer oaths or
4567affirmations, subpoena witnesses and compel their attendance,
4568take evidence, and require the production of any matter which is
4569relevant to the investigation, including the existence,
4570description, nature, custody, condition, and location of any
4571books, documents, or other tangible things and the identity and
4572location of persons having knowledge of relevant facts or any
4573other matter reasonably calculated to lead to the discovery of
4574material evidence. Upon failure by a person to obey a subpoena
4575or to answer questions propounded by the investigating officer
4576and upon reasonable notice to all persons affected thereby, the
4577division may apply to the circuit court for an order compelling
4578compliance.
4579     (d)  Notwithstanding any remedies available to shareholders
4580unit owners and associations, if the division has reasonable
4581cause to believe that a violation of any provision of this
4582chapter or related rule has occurred, the division may institute
4583enforcement proceedings in its own name against a developer,
4584association, officer, or member of the board, or its assignees
4585or agents, as follows:
4586     1.  The division may permit a person whose conduct or
4587actions may be under investigation to waive formal proceedings
4588and enter into a consent proceeding whereby orders, rules, or
4589letters of censure or warning, whether formal or informal, may
4590be entered against the person.
4591     2.  The division may issue an order requiring the
4592developer, association, officer, or member of the board, or its
4593assignees or agents, or any community association manager or
4594community association management firm to cease and desist from
4595the unlawful practice and take such affirmative action as in the
4596judgment of the division will carry out the purposes of this
4597chapter. If the division finds that a developer, association,
4598officer, or member of the board of directors, or its assignees
4599or agents, or any community association manager or community
4600association management firm is violating or is about to violate
4601any provision of this chapter, any rule adopted or order issued
4602by the division, or any written agreement entered into with the
4603division, and presents an immediate danger to the public
4604requiring an immediate final order, it may issue an emergency
4605cease and desist order reciting with particularity the facts
4606underlying such findings. The emergency cease and desist order
4607is effective for 90 days. If the division begins nonemergency
4608cease and desist proceedings, the emergency cease and desist
4609order remains effective until the conclusion of the proceedings
4610under ss. 120.569 and 120.57. Such affirmative action may
4611include, but is not limited to, an order requiring a developer
4612to pay moneys determined to be owed to a condominium
4613association.
4614     3.  If a developer fails to pay any restitution determined
4615by the division to be owed, plus any accrued interest at the
4616highest rate permitted by law, within 30 days after expiration
4617of any appellate time period of a final order requiring payment
4618of restitution or the conclusion of any appeal thereof,
4619whichever is later, the division shall bring an action in
4620circuit or county court on behalf of any association, class of
4621shareholders, lessees, or purchasers for restitution,
4622declaratory relief, injunctive relief, or any other available
4623remedy. The division may also temporarily revoke its acceptance
4624of the filing for the developer to which the restitution relates
4625until payment of restitution is made. The division may bring an
4626action in circuit court on behalf of a class of unit owners,
4627lessees, or purchasers for declaratory relief, injunctive
4628relief, or restitution.
4629     4.  The division may petition the court for the appointment
4630of a receiver or conservator. If appointed, the receiver or
4631conservator may take action to implement the court order to
4632ensure the performance of the order and to remedy any breach
4633thereof. In addition to all other means provided by law for the
4634enforcement of an injunction or temporary restraining order, the
4635circuit court may impound or sequester the property of a party
4636defendant, including books, papers, documents, and related
4637records, and allow the examination and use of the property by
4638the division and a court-appointed receiver or conservator.
4639     5.  The division may apply to the circuit court for an
4640order of restitution in which the defendant in an action brought
4641pursuant to subparagraph 4. shall be ordered to make restitution
4642of those sums shown by the division to have been obtained by the
4643defendant in violation of this chapter. Such restitution shall,
4644at the option of the court, be payable to the conservator or
4645receiver appointed pursuant to subparagraph 4. or directly to
4646the persons whose funds or assets were obtained in violation of
4647this chapter.
4648     6.4.  The division may impose a civil penalty against a
4649developer or association, or its assignees or agents, for any
4650violation of this chapter or related rule adopted under this
4651chapter. The division may impose a civil penalty individually
4652against any officer or board member who willfully and knowingly
4653violates a provision of this chapter, a rule adopted pursuant to
4654this chapter, or a final order of the division; may order the
4655removal of such individual as an officer or from the board of
4656directors or as an officer of the association; and may prohibit
4657such individual from serving as an officer or on the board of a
4658community association for a stated period of time. The term
4659"willfully and knowingly" means that the division informed the
4660officer or board member that his or her action or intended
4661action violates this chapter, a rule adopted under this chapter,
4662or a final order of the division, and that the officer or board
4663member refused to comply with the requirements of this chapter,
4664a rule adopted under this chapter, or a final order of the
4665division. The division, prior to initiating formal agency action
4666under chapter 120, shall afford the officer or board member an
4667opportunity to voluntarily comply with this chapter, a rule
4668adopted under this chapter, or a final order of the division. An
4669officer or board member who complies within 10 days is not
4670subject to a civil penalty. A penalty may be imposed on the
4671basis of each day of continuing violation, but in no event shall
4672the penalty for any offense exceed $5,000. By January 1, 1998,
4673the division shall adopt, by rule, penalty guidelines applicable
4674to possible violations or to categories of violations of this
4675chapter or rules adopted by the division. The guidelines must
4676specify a meaningful range of civil penalties for each such
4677violation of the statute and rules and must be based upon the
4678harm caused by the violation, the repetition of the violation,
4679and upon such other factors deemed relevant by the division. For
4680example, the division may consider whether the violations were
4681committed by a developer or shareholder-controlled owner-
4682controlled association, the size of the association, and other
4683factors. The guidelines must designate the possible mitigating
4684or aggravating circumstances that justify a departure from the
4685range of penalties provided by the rules. It is the legislative
4686intent that minor violations be distinguished from those which
4687endanger the health, safety, or welfare of the cooperative
4688residents or other persons and that such guidelines provide
4689reasonable and meaningful notice to the public of likely
4690penalties that may be imposed for proscribed conduct. This
4691subsection does not limit the ability of the division to
4692informally dispose of administrative actions or complaints by
4693stipulation, agreed settlement, or consent order. All amounts
4694collected shall be deposited with the Chief Financial Officer to
4695the credit of the Division of Florida Condominiums, Timeshares,
4696and Mobile Homes Trust Fund. If a developer fails to pay the
4697civil penalty and the amount deemed to be owed to the
4698association, the division shall thereupon issue an order
4699directing that such developer cease and desist from further
4700operation until such time as the civil penalty is paid or may
4701pursue enforcement of the penalty in a court of competent
4702jurisdiction. If an association fails to pay the civil penalty,
4703the division shall thereupon pursue enforcement in a court of
4704competent jurisdiction, and the order imposing the civil penalty
4705or the cease and desist order shall not become effective until
470620 days after the date of such order. Any action commenced by
4707the division shall be brought in the county in which the
4708division has its executive offices or in the county where the
4709violation occurred.
4710     7.  If a shareholder presents the division with proof that
4711the shareholder has requested access to official records in
4712writing by certified mail, and that after 10 days the
4713shareholder again made the same request for access to official
4714records in writing by certified mail, and that more than 10 days
4715has elapsed since the second request and the association has
4716still failed or refused to provide access to official records as
4717required by this chapter, the division shall issue a subpoena
4718requiring production of the requested records where the records
4719are kept pursuant to s. 719.104.
4720     8.  In addition to subparagraph 6., the division may seek
4721the imposition of a civil penalty through the circuit court for
4722any violation for which the division may issue a notice to show
4723cause under paragraph (r). The civil penalty shall be at least
4724$500 but no more than $5,000 for each violation. The court may
4725also award to the prevailing party court costs and reasonable
4726attorney's fees and, if the division prevails, may also award
4727reasonable costs of investigation.
4728     9.  When the division finds that any person has derived an
4729improper personal benefit from a cooperative association, the
4730division shall order the person to pay restitution to the
4731association and shall order the person to pay to the division
4732the costs of investigation and prosecution.
4733     (e)  The division may prepare and disseminate a prospectus
4734and other information to assist prospective shareholders owners,
4735purchasers, lessees, and developers of residential cooperatives
4736in assessing the rights, privileges, and duties pertaining
4737thereto.
4738     (f)  The division has authority to adopt rules pursuant to
4739ss. 120.536(1) and 120.54 to implement and enforce the
4740provisions of this chapter.
4741     (g)  The division shall establish procedures for providing
4742notice to an association and the developer during the period
4743when the developer controls the association when the division is
4744considering the issuance of a declaratory statement with respect
4745to the cooperative documents governing such cooperative
4746community.
4747     (h)  The division shall furnish each association which pays
4748the fees required by paragraph (2)(a) a copy of this chapter
4749act, subsequent changes to this act on an annual basis, as an
4750amended version of this act as it becomes available from the
4751Secretary of State's office on a biennial basis, and the rules
4752adopted thereto on an annual basis.
4753     (i)  The division shall annually provide each association
4754with a summary of declaratory statements and formal legal
4755opinions relating to the operations of cooperatives which were
4756rendered by the division during the previous year.
4757     (j)  The division shall adopt uniform accounting
4758principles, policies, and standards to be used by all
4759associations in the preparation and presentation of all
4760financial statements required by this chapter. The principles,
4761policies, and standards shall take into consideration the size
4762of the association and the total revenue collected by the
4763association.
4764     (j)(k)  The division shall provide training and educational
4765programs for cooperative association board members and
4766shareholders unit owners. The training may, in the division's
4767discretion, include web-based electronic media and live training
4768and seminars in various locations throughout the state. The
4769division shall have the authority to review and approve
4770educational and training programs for board members and
4771shareholders offered by providers and shall maintain a current
4772list of approved programs and providers and shall make such list
4773available to board members and shareholders in a reasonable and
4774cost-effective manner.
4775     (k)(l)  The division shall maintain a toll-free telephone
4776number accessible to cooperative shareholders unit owners.
4777     (l)  The division shall develop a program to certify both
4778volunteer and paid mediators to provide mediation of cooperative
4779disputes. The division shall provide, upon request, a list of
4780such mediators to any association, shareholder, or other
4781participant in arbitration proceedings under s. 719.1255
4782requesting a copy of the list. The division shall include on the
4783list of volunteer mediators only the names of persons who have
4784received at least 20 hours of training in mediation techniques
4785or who have mediated at least 20 disputes. In order to become
4786initially certified by the division, paid mediators must be
4787certified by the Supreme Court to mediate court cases in county
4788or circuit courts. However, the division may adopt, by rule,
4789additional factors for the certification of paid mediators,
4790which factors must be related to experience, education, or
4791background. Any person initially certified as a paid mediator by
4792the division must, in order to continue to be certified, comply
4793with the factors or requirements imposed by rules adopted by the
4794division.
4795     (m)  When a complaint is made to the division, the division
4796shall conduct its inquiry with reasonable dispatch and with due
4797regard to the interests of the affected parties. Within 30 days
4798after receipt of a complaint, the division shall acknowledge the
4799complaint in writing and notify the complainant whether the
4800complaint is within the jurisdiction of the division and whether
4801additional information is needed by the division from the
4802complainant. The division shall conduct its investigation and
4803shall, within 90 days after receipt of the original complaint or
4804timely requested additional information, take action upon the
4805complaint. However, the failure to complete the investigation
4806within 90 days does not prevent the division from continuing the
4807investigation, accepting or considering evidence obtained or
4808received after 90 days, or taking administrative action if
4809reasonable cause exists to believe that a violation of this
4810chapter or a rule of the division has occurred. If an
4811investigation is not completed within the time limits
4812established in this paragraph, the division shall, on a monthly
4813basis, notify the complainant in writing of the status of the
4814investigation. When reporting its action to the complainant, the
4815division shall inform the complainant of any right to a hearing
4816pursuant to ss. 120.569 and 120.57.
4817     (n)  Cooperative association directors, officers, and
4818employees; cooperative developers; community association
4819managers; and community association management firms have an
4820ongoing duty to reasonably cooperate with the division in any
4821investigation pursuant to this section. The division shall refer
4822to local law enforcement authorities any person whom the
4823division believes has altered, destroyed, concealed, or removed
4824any record, document, or thing required to be kept or maintained
4825by this chapter with the purpose to impair its verity or
4826availability in the department's investigation.
4827     (o)  The division may:
4828     1.  Contract with agencies in this state or other
4829jurisdictions to perform investigative functions; or
4830     2.  Accept grants-in-aid from any source.
4831     (p)  The division shall cooperate with similar agencies in
4832other jurisdictions to establish uniform filing procedures and
4833forms, public offering statements, advertising standards, and
4834rules and common administrative practices.
4835     (q)  The division shall consider notice to a developer to
4836be complete when it is delivered to the developer's address
4837currently on file with the division.
4838     (r)  In addition to its enforcement authority, the division
4839may issue a notice to show cause, which shall provide for a
4840hearing, upon written request, in accordance with chapter 120.
4841     (s)  In the reports required by s. 718.501(1)(s), the
4842division shall also report the same information for cooperative
4843associations. The division may combine figures and issues into
4844one report covering both condominiums and cooperatives. The
4845division shall develop a program to certify both volunteer and
4846paid mediators to provide mediation of cooperative disputes. The
4847division shall provide, upon request, a list of such mediators
4848to any association, unit owner, or other participant in
4849arbitration proceedings under s. 718.1255 requesting a copy of
4850the list. The division shall include on the list of voluntary
4851mediators only persons who have received at least 20 hours of
4852training in mediation techniques or have mediated at least 20
4853disputes. In order to become initially certified by the
4854division, paid mediators must be certified by the Supreme Court
4855to mediate court cases in county or circuit courts. However, the
4856division may adopt, by rule, additional factors for the
4857certification of paid mediators, which factors must be related
4858to experience, education, or background. Any person initially
4859certified as a paid mediator by the division must, in order to
4860continue to be certified, comply with the factors or
4861requirements imposed by rules adopted by the division.
4862     (2)(a)  Each cooperative association shall pay to the
4863division, on or before January 1 of each year, an annual fee in
4864the amount of $4 for each residential unit in cooperatives
4865operated by the association. If the fee is not paid by March 1,
4866then the association shall be assessed a penalty of 10 percent
4867of the amount due, and the association shall not have the
4868standing to maintain or defend any action in the courts of this
4869state until the amount due, plus any penalty, is paid.
4870     (b)  All fees shall be deposited in the Division of Florida
4871Condominiums, Timeshares, and Mobile Homes Trust Fund as
4872provided by law.
4873     Section 29.  Section 719.5011, Florida Statutes, is created
4874to read:
4875     719.5011  Ombudsman.--The Office of the Condominium
4876Ombudsman, created in s. 718.5011, shall assist cooperative
4877associations and cooperative shareholders and have the powers
4878and duties related to cooperative associations and cooperative
4879shareholders as if such associations and shareholders were
4880condominium associations and condominium shareholders.
4881     Section 30.  Paragraph (b) of subsection (1) and paragraph
4882(a) of subsection (2) of section 719.503, Florida Statutes, are
4883amended to read:
4884     719.503  Disclosure prior to sale.--
4885     (1)  DEVELOPER DISCLOSURE.--
4886     (b)  Copies of documents to be furnished to prospective
4887buyer or lessee.--Until such time as the developer has furnished
4888the documents listed below to a person who has entered into a
4889contract to purchase a unit or lease it for more than 5 years,
4890the contract may be voided by that person, entitling the person
4891to a refund of any deposit together with interest thereon as
4892provided in s. 719.202. The contract may be terminated by
4893written notice from the proposed buyer or lessee delivered to
4894the developer within 15 days after the buyer or lessee receives
4895all of the documents required by this section. The developer
4896shall not close for 15 days following the execution of the
4897agreement and delivery of the documents to the buyer as
4898evidenced by a receipt for documents signed by the buyer unless
4899the buyer is informed in the 15-day voidability period and
4900agrees to close prior to the expiration of the 15 days. The
4901developer shall retain in his or her records a separate signed
4902agreement as proof of the buyer's agreement to close prior to
4903the expiration of said voidability period. Said proof shall be
4904retained for a period of 5 years after the date of the closing
4905transaction. The documents to be delivered to the prospective
4906buyer are the prospectus or disclosure statement with all
4907exhibits, if the development is subject to the provisions of s.
4908719.504, or, if not, then copies of the following which are
4909applicable:
4910     1.  The question and answer sheet described in s. 719.504,
4911and cooperative documents, or the proposed cooperative documents
4912if the documents have not been recorded, which shall include the
4913certificate of a surveyor approximately representing the
4914locations required by s. 719.104.
4915     2.  The documents creating the association.
4916     3.  The bylaws.
4917     4.  The ground lease or other underlying lease of the
4918cooperative.
4919     5.  The management contract, maintenance contract, and
4920other contracts for management of the association and operation
4921of the cooperative and facilities used by the shareholders unit
4922owners having a service term in excess of 1 year, and any
4923management contracts that are renewable.
4924     6.  The estimated operating budget for the cooperative and
4925a schedule of expenses for each type of unit, including fees
4926assessed to a shareholder who has exclusive use of limited
4927common areas, where such costs are shared only by those entitled
4928to use such limited common areas.
4929     7.  The lease of recreational and other facilities that
4930will be used only by shareholders unit owners of the subject
4931cooperative.
4932     8.  The lease of recreational and other common areas that
4933will be used by shareholders unit owners in common with
4934shareholders unit owners of other cooperatives.
4935     9.  The form of unit lease if the offer is of a leasehold.
4936     10.  Any declaration of servitude of properties serving the
4937cooperative but not owned by shareholders unit owners or leased
4938to them or the association.
4939     11.  If the development is to be built in phases or if the
4940association is to manage more than one cooperative, a
4941description of the plan of phase development or the arrangements
4942for the association to manage two or more cooperatives.
4943     12.  If the cooperative is a conversion of existing
4944improvements, the statements and disclosure required by s.
4945719.616.
4946     13.  The form of agreement for sale or lease of units.
4947     14.  A copy of the floor plan of the unit and the plot plan
4948showing the location of the residential buildings and the
4949recreation and other common areas.
4950     15.  A copy of all covenants and restrictions which will
4951affect the use of the property and which are not contained in
4952the foregoing.
4953     16.  If the developer is required by state or local
4954authorities to obtain acceptance or approval of any dock or
4955marina facilities intended to serve the cooperative, a copy of
4956any such acceptance or approval acquired by the time of filing
4957with the division pursuant to s. 719.502(1) or a statement that
4958such acceptance or approval has not been acquired or received.
4959     17.  Evidence demonstrating that the developer has an
4960ownership, leasehold, or contractual interest in the land upon
4961which the cooperative is to be developed.
4962     (2)  NONDEVELOPER DISCLOSURE.--
4963     (a)  Each shareholder unit owner who is not a developer as
4964defined by this chapter must comply with the provisions of this
4965subsection prior to the sale of his or her interest in the
4966association. Each prospective purchaser who has entered into a
4967contract for the purchase of an interest in a cooperative is
4968entitled, at the seller's expense, to a current copy of the
4969articles of incorporation of the association, the bylaws, and
4970rules of the association, as well as a copy of the question and
4971answer sheet as provided in s. 719.504. On and after July 1,
49722009, the prospective purchaser shall also be entitled to
4973receive from the seller a copy of a governance form. Such form
4974shall be provided by the division summarizing governance of
4975cooperative associations. In addition to such other information
4976as the division considers helpful to a prospective purchaser in
4977understanding association governance, the governance form shall
4978address the following subjects:
4979     1.  The role of the board in conducting the day-to-day
4980affairs of the association on behalf of, and in the best
4981interests of, the shareholders.
4982     2.  The board's responsibility to provide advance notice of
4983board and shareholder meetings.
4984     3.  The rights of shareholders to attend and speak at board
4985and shareholder meetings.
4986     4.  The responsibility of the board and shareholders with
4987respect to maintenance of the cooperative property.
4988     5.  The responsibility of the board and shareholders to
4989abide by the cooperative documents, this chapter, rules adopted
4990by the division, and reasonable rules adopted by the board.
4991     6.  Shareholders' rights to inspect and copy association
4992records and the limitations on such rights.
4993     7.  Remedies available to shareholders with respect to
4994actions by the board which may be abusive or beyond the board's
4995power and authority.
4996     8.  The right of the board to hire a property management
4997firm, subject to its own primary responsibility for such
4998management.
4999     9.  The responsibility of shareholders with regard to
5000payment of regular or special assessments necessary for the
5001operation of the property and the potential consequences of
5002failure to pay such assessments.
5003     10.  The voting rights of shareholders.
5004     11.  Rights and obligations of the board in enforcement of
5005rules in the cooperative documents and rules adopted by the
5006board.
5007
5008The governance form shall also include the following statement
5009in conspicuous type: "This publication is intended as an
5010informal educational overview of cooperative governance. In the
5011event of a conflict, the provisions of chapter 719, Florida
5012Statutes, rules adopted by the Division of Florida Condominiums,
5013Timeshares, and Mobile Homes of the Department of Business and
5014Professional Regulation, the provisions of the cooperative
5015documents, and reasonable rules adopted by the cooperative
5016association's board of directors prevail over the contents of
5017this publication."
5018     Section 31.  Subsections (12), (13), and (14) are added to
5019section 720.303, Florida Statutes, to read:
5020     720.303  Association powers and duties; meetings of board;
5021official records; budgets; financial reporting; association
5022funds; recalls.--
5023     (12)  LIMIT ON EXPENDITURES.--It shall be unlawful for the
5024board to make any expenditure of association funds or to make
5025any in-kind contribution of association assets that does not
5026relate to the purposes for which the association is organized.
5027     (a)  The board shall not make any contribution to a
5028campaign or committee of continuous existence governed by
5029chapter 105 or chapter 106.
5030     (b)  The board shall not make any contribution to a
5031charitable organization if the association does not receive a
5032direct benefit from the organization.
5033     (c)  The board shall not make any expenditure in order to
5034retain a person or firm for the purposes of lobbying.
5035     (d)  Members of the board shall be jointly and severally
5036liable to reimburse the association for any contribution,
5037expenditure, or in-kind contribution made in violation of this
5038subsection.
5039     (13)  BORROWING.--The borrowing of funds or committing to a
5040line of credit by the board of administration shall be
5041considered a special assessment, and any meeting of the board of
5042administration to discuss such matters shall be noticed as
5043provided in paragraph (2)(c). The board shall not have the
5044authority to enter into a line of credit or borrow funds for any
5045purpose unless the specific use of the funds from the line of
5046credit or loan is set forth in the notice of meeting with the
5047same specificity as required for a special assessment or unless
5048the borrowing or line of credit has received the prior approval
5049of not less than two-thirds of the voting interests of the
5050association.
5051     (14)  TRANSFER FEES.--No charge may be made by the
5052association or any body thereof in connection with the sale,
5053mortgage, lease, sublease, or other transfer of a parcel.
5054Nothing in this subsection shall be construed to prohibit an
5055association from requiring as a condition to permitting the
5056letting or renting of a parcel, when the association has such
5057authority in the documents, the depositing into an escrow
5058account maintained by the association a security deposit in an
5059amount not to exceed the equivalent of 1 month's rent. The
5060security deposit shall protect against damages to the common
5061areas or association property. Within 15 days after a tenant
5062vacates the premises, the association shall refund the full
5063security deposit or give written notice to the tenant of any
5064claim made against the security. Disputes under this subsection
5065shall be handled in the same fashion as disputes concerning
5066security deposits under s. 83.49.
5067     Section 32.  Paragraph (a) of subsection (2) of section
5068720.304, Florida Statutes, is amended to read:
5069     720.304  Right of owners to peaceably assemble; display of
5070flag; SLAPP suits prohibited.--
5071     (2)(a)  Any homeowner may display within the boundaries of
5072the homeowner's parcel one portable, removable United States
5073flag or official flag of the State of Florida in a respectful
5074manner, and one portable, removable official flag, in a
5075respectful way and, on Armed Forces Day, Memorial Day, Flag Day,
5076Independence Day, and Veterans' Day, may display in a respectful
5077way portable, removable official flags manner, not larger than 4
50781/2 feet by 6 feet, that represent which represents the United
5079States Army, Navy, Air Force, Marine Corps, or Coast Guard, or a
5080POW-MIA flag, regardless of any declaration covenants,
5081restrictions, bylaws, rules, or requirements dealing with flags
5082or decorations of the association.
5083     Section 33.  Section 720.3065, Florida Statutes, is created
5084to read:
5085     720.3065  Meetings.--Regular meetings of the board of
5086administration shall be held at such time and place as provided
5087in the bylaws until the first regular meeting held on or after
5088October 1, 2009. Thereafter, the location and time for regular
5089board meetings shall be determined by a majority vote of the
5090parcel owners at the next regular meeting held on or after
5091October 1, 2009. Once the time and place for regular board
5092meetings have been selected, neither may be changed unless
5093approved by a majority vote of the parcel owners. Regular
5094meetings of the board of administration held on weekdays shall
5095be held no earlier than 6 p.m. local time.
5096     Section 34.  Subsections (1) and (2) of section 720.3085,
5097Florida Statutes, are amended to read:
5098     720.3085  Payment for assessments; lien claims.--
5099     (1)  When authorized by the governing documents, the
5100association has a lien on each parcel to secure the payment of
5101assessments and other amounts provided for by this section.
5102Except as otherwise set forth in this section, the lien is
5103effective from and shall relate back to the date on which the
5104original declaration of the community was recorded. However, as
5105to first mortgages of record, the lien is effective from and
5106after recording of a claim of lien in the public records of the
5107county in which the parcel is located. This subsection does not
5108bestow upon any lien, mortgage, or certified judgment of record
5109on July 1, 2008, including the lien for unpaid assessments
5110created in this section, a priority that, by law, the lien,
5111mortgage, or judgment did not have before July 1, 2008.
5112     (a)  To be valid, a claim of lien must state the
5113description of the parcel, the name of the record owner, the
5114name and address of the association, the assessment amount due,
5115and the due date. The claim of lien shall secure all unpaid
5116assessments that are due and that may accrue subsequent to the
5117recording of the claim of lien and before entry of a certificate
5118of title, as well as interest, late charges, and reasonable
5119costs and attorney's fees incurred by the association incident
5120to the collection process. The person making the payment is
5121entitled to a satisfaction of the lien upon payment in full.
5122     (b)  By recording a notice in substantially the following
5123form, a parcel owner or the parcel owner's agent or attorney may
5124require the association to enforce a recorded claim of lien
5125against his or her parcel:
5126
5127
NOTICE OF CONTEST OF LIEN
5128
5129TO:   (Name and address of association)  
5130
5131You are notified that the undersigned contests the claim of lien
5132filed by you on _____,   (year)  , and recorded in Official
5133Records Book _____ at page _____, of the public records of _____
5134County, Florida, and that the time within which you may file
5135suit to enforce your lien is limited to 90 days following the
5136date of service of this notice. Executed this _____ day of
5137_____,   (year)  .
5138
5139Signed:   (Owner or Attorney)  
5140
5141After the notice of a contest of lien has been recorded, the
5142clerk of the circuit court shall mail a copy of the recorded
5143notice to the association by certified mail, return receipt
5144requested, at the address shown in the claim of lien or the most
5145recent amendment to it and shall certify to the service on the
5146face of the notice. Service is complete upon mailing. After
5147service, the association has 90 days in which to file an action
5148to enforce the lien and, if the action is not filed within the
514990-day period, the lien is void. However, the 90-day period
5150shall be extended for any length of time that the association is
5151prevented from filing its action because of an automatic stay
5152resulting from the filing of a bankruptcy petition by the parcel
5153owner or by any other person claiming an interest in the parcel.
5154     (c)  The association may bring an action in its name to
5155foreclose a lien for assessments in the same manner in which a
5156mortgage of real property is foreclosed and may also bring an
5157action to recover a money judgment for the unpaid assessments
5158without waiving any claim of lien. The association is entitled
5159to recover its reasonable attorney's fees incurred in an action
5160to foreclose a lien or an action to recover a money judgment for
5161unpaid assessments.
5162     (d)  If the parcel owner remains in possession of the
5163parcel after a foreclosure judgment has been entered, the court
5164may require the parcel owner to pay a reasonable rent for the
5165parcel. If the parcel is rented or leased during the pendency of
5166the foreclosure action, the association is entitled to the
5167appointment of a receiver to collect the rent. The expenses of
5168the receiver must be paid by the party who does not prevail in
5169the foreclosure action.
5170     (e)  The association may purchase the parcel at the
5171foreclosure sale and hold, lease, mortgage, or convey the
5172parcel.
5173     (2)(a)  A parcel owner, regardless of how his or her title
5174to property has been acquired, including by purchase at a
5175foreclosure sale or by deed in lieu of foreclosure, is liable
5176for all assessments that come due while he or she is the parcel
5177owner. The parcel owner's liability for assessments may not be
5178avoided by waiver or suspension of the use or enjoyment of any
5179common area or by abandonment of the parcel upon which the
5180assessments are made.
5181     (b)  A parcel owner is jointly and severally liable with
5182the previous parcel owner for all unpaid assessments that came
5183due up to the time of transfer of title. This liability is
5184without prejudice to any right the present parcel owner may have
5185to recover any amounts paid by the present owner from the
5186previous owner.
5187     (c)  Notwithstanding anything to the contrary contained in
5188this section, the liability of a first mortgagee, or its
5189successor or assignee as a subsequent holder of the first
5190mortgage who acquires title to a parcel by foreclosure or by
5191deed in lieu of foreclosure for the unpaid assessments that
5192became due before the mortgagee's acquisition of title, shall be
5193the lesser of:
5194     1.  The parcel's unpaid common expenses and regular
5195periodic or special assessments that accrued or came due during
5196the 24 12 months immediately preceding the acquisition of title
5197and for which payment in full has not been received by the
5198association; or
5199     2.  One-half of the parcel owner's unpaid common expenses
5200and regular periodic assessments which accrued or came due from
5201the filing of the foreclosure action through the sale of the
5202unit, provided that the mortgagee timely paid in full the
5203payment required by paragraph (d) and, at the same time,
5204remitted to the association advanced common expenses and regular
5205periodic assessments equal to one-half of the total unpaid
5206common expenses and regular periodic assessments that came due
5207in that time period. Any such advance shall be taxed as a cost
5208in the foreclosure action, and the mortgagor shall be personally
5209liable to the mortgagee for the value of the payment made to the
5210association plus interest at the interest rate provided for in
5211the promissory note for advances. One percent of the original
5212mortgage debt.
5213
5214The limitations on first mortgagee liability provided by this
5215paragraph apply only if the first mortgagee filed suit against
5216the parcel owner and initially joined the association as a
5217defendant in the mortgagee foreclosure action. Joinder of the
5218association is not required if, on the date the complaint is
5219filed, the association was dissolved or did not maintain an
5220office or agent for service of process at a location that was
5221known to or reasonably discoverable by the mortgagee.
5222     (d)  A mortgagee who files a foreclosure case on a mortgage
5223secured by a parcel in a homeowners' association shall pay to
5224the association within 15 days after the filing of the action
5225all of the parcel's then unpaid common expenses and regular
5226periodic assessments which accrued or came due up to the date of
5227the filing of the foreclosure action. The payment shall be taxed
5228as a cost in the foreclosure action, and the mortgagor shall be
5229personally liable to the mortgagee for the value of the payment
5230made to the association plus interest at the interest rate
5231provided for in the promissory note for advances. The court
5232shall dismiss a foreclosure action on the association's motion
5233to dismiss for failure to make such payment and shall award the
5234association the costs and reasonable attorney's fees related to
5235the motion.
5236     Section 35.  Section 720.314, Florida Statutes, is created
5237to read:
5238     720.314  Parcel owner informational complaint.--
5239     (1)  Any parcel owner may file an informational complaint
5240to report alleged failures by the homeowners' association or
5241officers or directors of the association to comply with the
5242provisions of this chapter. The informational complaint shall be
5243in writing and signed by the complainant, and the accuracy of
5244the facts alleged shall be sworn to before a notary public.
5245Properly filed informational complaints shall be used for
5246analysis and recommendations to the Legislature for changes to
5247this chapter.
5248     (2)  The informational complaint shall be in the format
5249provided in subsection (3) and shall be filed with the Office of
5250Program Policy Analysis and Government Accountability. If the
5251form does not comply with the requirements provided in
5252subsection (3), it shall be returned to the complainant as not
5253in compliance with the requirements of this section and shall
5254not be considered by the Office of Program Policy Analysis and
5255Government Accountability for any purpose.
5256     (3)  The informational complaint shall be in substantially
5257the following form:
5258
5259
PARCEL OWNER COMPLAINT
5260
5261NAME OF COMPLAINANT:  
5262ADDRESS OF COMPLAINANT:  
5263NAME OF ASSOCIATION:  
5264ADDRESS OF ASSOCIATION:  
5265STATUTE NOT COMPLIED WITH:  
5266NAME OF OFFICER:  
5267NAME OF DIRECTOR:  
5268FACTS SUPPORTING VIOLATION (50 words or less):  
5269________
5270Signature of Complainant
5271
5272SWORN TO AND SUBSCRIBED TO THIS _____ DAY OF ______, 20__
5273________
5274Notary Public
5275     Section 36.  Subsection (3) of section 721.16, Florida
5276Statutes, is amended to read:
5277     721.16  Liens for overdue assessments; liens for labor
5278performed on, or materials furnished to, a timeshare unit.--
5279     (3)  The lien is effective from the date of recording a
5280claim of lien in the public records of the county or counties in
5281which the accommodations and facilities constituting the
5282timeshare plan are located. The claim of lien shall state the
5283name of the timeshare plan and identify the timeshare interest
5284for which the lien is effective, state the name of the
5285purchaser, state the assessment amount due, and state the due
5286dates. Notwithstanding any provision of s. 718.116(5)(a) or s.
5287719.108(5)(4) to the contrary, the lien is effective until
5288satisfied or until 5 years have expired after the date the claim
5289of lien is recorded unless, within that time, an action to
5290enforce the lien is commenced pursuant to subsection (2). A
5291claim of lien for assessments may include only assessments which
5292are due when the claim is recorded. A claim of lien shall be
5293signed and acknowledged by an officer or agent of the managing
5294entity. Upon full payment, the person making the payment is
5295entitled to receive a satisfaction of the lien.
5296     Section 37.  The Office of Program Policy Analysis and
5297Government Accountability shall conduct a study to evaluate
5298whether the state should regulate homeowners' associations in a
5299manner similar to the regulation of condominiums and
5300cooperatives. The study's scope shall include, but need not be
5301limited to, estimating the number of homeowners' associations
5302and the number of homes that are members of a homeowners'
5303association. The office shall submit its report to the President
5304of the Senate and the Speaker of the House of Representatives by
5305January 1, 2010.
5306     Section 38.  The sums of $21,619 in nonrecurring funds and
5307$300,963 in recurring funds are appropriated from the Division
5308of Florida Condominiums, Timeshares, and Mobile Homes Trust Fund
5309to the Division of Florida Condominiums, Timeshares, and Mobile
5310Homes for five full-time equivalent positions to carry out the
5311purposes of section 1 of this act.
5312     Section 39.  This act shall take effect July 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.
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