October 19, 2019
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       Florida Senate - 2010                                     SB 864
       
       
       
       By Senator Garcia
       
       
       
       
       40-00877A-10                                           2010864__
    1                        A bill to be entitled                      
    2         An act relating to community associations; amending s.
    3         20.165, F.S.; providing certain inspection powers for
    4         employees of the Division of Florida Condominiums,
    5         Timeshares, and Mobile Homes; amending s. 468.436,
    6         F.S.; revising a ground for disciplinary action
    7         relating to misconduct or negligence; requiring the
    8         Department of Business and Professional Regulation to
    9         enter an order permanently revoking the license of a
   10         community association manager under certain
   11         circumstances; amending s. 718.103, F.S.; revising the
   12         definition of the term “developer”; amending s.
   13         718.111, F.S.; providing requirements for association
   14         access to a unit, including prior notice; providing an
   15         exception for emergencies; providing requirements for
   16         the selection of condominium association board meeting
   17         times and locations; providing restrictions on the
   18         times set for certain meetings; prohibiting certain
   19         expenditures and contributions by a condominium
   20         association; providing liability; amending s. 718.112,
   21         F.S.; revising notice requirements for board of
   22         administration meetings; revising location
   23         requirements for the annual meeting of unit owners;
   24         revising terms of board members; revising election
   25         notice requirements; providing requirements for the
   26         amendment of association bylaws; providing for the
   27         removal of certain directors and officers; providing
   28         qualifications for service on the board of directors;
   29         providing requirements for the borrowing of funds or
   30         committing to a line of credit by the board; amending
   31         s. 718.113, F.S.; authorizing the association to
   32         install code-compliant impact glass as hurricane
   33         protection in certain areas; amending s. 718.116,
   34         F.S.; authorizing an association to demand future
   35         regular assessments related to the condominium unit
   36         under specified conditions; providing that the demand
   37         is continuing in nature; requiring that a tenant
   38         continue to pay assessments until the occurrence of
   39         specified events; requiring the delivery of notice of
   40         such demand; limiting the liability of a tenant;
   41         providing requirements for a notice of delinquency;
   42         limiting collection fees; amending s. 718.1265, F.S.;
   43         providing conditions under which the association may
   44         use certain emergency powers; amending s. 718.301,
   45         F.S.; revising conditions under which unit owners
   46         other than the developer may elect not less than a
   47         majority of the members of the board of administration
   48         of an association; amending s. 718.303, F.S.;
   49         authorizing an association to suspend, for a
   50         reasonable time, the right of a unit owner or the
   51         unit’s occupant, licensee, or invitee to use certain
   52         common elements under certain conditions; excluding
   53         certain common elements from such authorization;
   54         prohibiting a fine from being levied or a suspension
   55         from being imposed unless the association meets
   56         certain notice requirements; providing circumstances
   57         under which such notice requirements do not apply;
   58         providing procedures and notice requirements for
   59         levying a fine or imposing a suspension; amending s.
   60         718.501, F.S.; revising condominium matters over which
   61         the Division of Florida Condominiums, Timeshares, and
   62         Mobile Homes has jurisdiction; revising and providing
   63         powers of the division; requiring the division to
   64         create a specified booklet for association directors;
   65         amending s. 718.5012, F.S.; authorizing the Office of
   66         the Condominium Ombudsman to assist in the resolution
   67         of certain disputes; amending s. 718.50151, F.S.;
   68         redesignating the Community Association Living Study
   69         Council as the Community Association Study Council;
   70         revising council membership; amending s. 719.103,
   71         F.S.; revising definitions; changing references from
   72         unit owner to shareholder in statutes relating to
   73         cooperatives; amending s. 719.104, F.S.; providing
   74         requirements for association access to a unit,
   75         including prior notice; providing an exception for
   76         emergencies; providing civil penalties for violations
   77         of accounting records requirements; exempting certain
   78         personal information from unit owner records requests;
   79         providing immunity from liability for certain
   80         information provided by associations to prospective
   81         purchasers or lienholders under certain circumstances;
   82         providing requirements with respect to financial
   83         statements and reports; providing that the operation
   84         of the cooperative shall be by the association;
   85         providing that shareholders shall be members of the
   86         association; providing legislative intent; providing
   87         that a director of the association who abstains from
   88         voting on any action taken on any corporate matter
   89         shall be presumed to have taken no position with
   90         regard to the action; providing duties of officers,
   91         directors, and agents of a cooperative association and
   92         liability for monetary damages under certain
   93         circumstances; providing that the association may
   94         contract, sue, or be sued with respect to the exercise
   95         or nonexercise of its powers; providing powers of the
   96         association with respect to title to property and
   97         purchase of units; providing requirements for the
   98         selection of cooperative association board of
   99         directors meeting times and locations; providing
  100         restrictions on the times set for certain meetings;
  101         prohibiting certain expenditures and contributions by
  102         a cooperative association; providing liability;
  103         amending s. 719.106, F.S.; requiring certain items to
  104         be placed on the agenda of board meetings; revising
  105         notice requirements for board meetings; providing
  106         requirements for shareholder meetings; providing terms
  107         of office and election requirements for the board of
  108         directors; providing criteria for the amendment of the
  109         bylaws; providing eligibility to vote on certain
  110         questions involving reserve funds; requiring proxy
  111         questions relating to reserves to contain a specified
  112         statement; requiring the bylaws to contain certain
  113         provisions; requiring that directors and officers who
  114         are delinquent in certain payments owed in excess of
  115         certain periods of time be deemed to have abandoned
  116         their offices; requiring that directors and officers
  117         charged with certain offenses involving an
  118         association’s funds or property be suspended from
  119         office pending resolution of the charge; providing for
  120         the reinstatement of such directors and officers under
  121         certain circumstances; providing qualifications for
  122         directors; providing requirements for the borrowing of
  123         funds or committing to a line of credit by the board;
  124         repealing s. 719.1064, F.S., relating to the failure
  125         to fill vacancies on board of administration and the
  126         appointment of a receiver upon petition of a
  127         shareholder; amending s. 719.107, F.S.; providing that
  128         the expense of installation, replacement, operation,
  129         repair, and maintenance of hurricane shutters or other
  130         hurricane protection shall either constitute a common
  131         expense or be charged individually to the shareholders
  132         under certain conditions; amending s. 719.108, F.S.;
  133         providing grounds for disapproval of the proposed
  134         lease of a unit by an association; providing lien
  135         requirements; providing for the extension of certain
  136         liens; providing lien notice and filing requirements;
  137         providing requirements for a notice of delinquency;
  138         providing foreclosure requirements; providing the
  139         association with the power to purchase a cooperative
  140         unit at a foreclosure sale; requiring the association
  141         to provide a certificate of assessment under certain
  142         conditions; providing for the establishment of fees
  143         for the preparation of such certificates; providing
  144         for the refund of certain fees; authorizing the
  145         association to demand payment of future assessments
  146         under specified conditions; providing that the demand
  147         is continuing in nature; requiring that a tenant
  148         continue to pay assessments until the occurrence of
  149         specified events; requiring the delivery of notice of
  150         such demand; limiting the liability of a tenant;
  151         creating s. 719.113, F.S.; providing that maintenance
  152         of common areas is the responsibility of the
  153         association; providing that the cooperative documents
  154         may include reference that the association provide
  155         certain maintenance for the condominium; providing
  156         that there shall be no material alteration or
  157         substantial additions to the common areas or to real
  158         property which is association property; providing for
  159         protection of the common areas; allowing shareholders
  160         to display a United States flag as well as other
  161         specified flags on designated days and patriotic
  162         holidays; requiring the board to adopt hurricane
  163         shutter specifications; authorizing the board to
  164         install certain hurricane protection; prohibiting the
  165         board from installing certain hurricane shutters or
  166         other hurricane protection under certain
  167         circumstances; providing for the maintenance, repair,
  168         and replacement of hurricane shutters or other
  169         hurricane protection; authorizing the board to operate
  170         hurricane shutters without shareholder permission
  171         under certain circumstances; prohibiting the board
  172         from refusing to approve the installation or
  173         replacement of hurricane shutters under certain
  174         conditions; requiring that the board inspect certain
  175         buildings and issue a report under certain conditions;
  176         providing an exception; prohibiting the board from
  177         refusing a request for reasonable accommodation for
  178         the attachment to a unit of religious objects meeting
  179         certain size specifications; authorizing the board to
  180         install solar collectors, clotheslines, or other
  181         energy-efficient devices upon or within common areas
  182         or association property; creating s. 719.117, F.S.;
  183         providing legislative findings; providing provisions
  184         relating to the termination of the cooperative form of
  185         ownership of a property due to economic waste or
  186         impossibility or optional termination; providing
  187         grounds for termination; providing an exemption;
  188         providing that the approval of a plan of termination
  189         by certain mortgage lienholders is not required under
  190         certain conditions; providing powers and duties of the
  191         board relating to the plan of termination; providing
  192         requirements following natural disasters; providing
  193         reporting requirements; providing requirements for a
  194         plan of termination; providing for the allocation of
  195         proceeds from the sale of cooperative property;
  196         providing powers and duties of a termination trustee;
  197         providing notice requirements; providing a procedure
  198         for contesting a plan of termination; providing for
  199         recovery of attorney’s fees and costs; providing rules
  200         for the distribution of property and sale proceeds;
  201         providing for the association’s status following
  202         termination; allowing the creation of another
  203         cooperative by the trustee; creating s. 719.1224,
  204         F.S.; prohibiting strategic lawsuits against public
  205         participation; providing legislative findings and
  206         intent; prohibiting a governmental entity, business
  207         organization, or individual from filing certain
  208         lawsuits made upon specified bases against a
  209         shareholder; providing rights of a shareholder who has
  210         been served with such a lawsuit; providing procedures
  211         for the resolution of certain claims; providing for
  212         the award of damages and attorney’s fees; prohibiting
  213         associations from expending association funds in
  214         prosecuting such a suit against a shareholder;
  215         amending s. 719.1255, F.S.; requiring the division to
  216         provide alternative dispute resolution for certain
  217         matters; creating s. 719.1265, F.S.; authorizing an
  218         association to exercise certain powers in instances
  219         involving damage caused by an event for which a state
  220         of emergency has been declared; limiting the
  221         applicability of such powers; amending s. 719.301,
  222         F.S.; providing circumstances under which shareholders
  223         other than a developer may elect not less than a
  224         majority of the members of the board; requiring a
  225         turnover inspection report; requiring that the report
  226         contain certain information; creating s. 719.3025,
  227         F.S.; requiring written contracts for the operation,
  228         maintenance, or management of a cooperative
  229         association or cooperative property; providing
  230         contract requirements; authorizing the association to
  231         procure outside services under certain circumstances;
  232         providing that services or obligations not stated on
  233         the face of the contract are unenforceable; providing
  234         applicability; amending s. 719.3026, F.S.; revising a
  235         provision authorizing certain associations to opt out
  236         of provisions relating to contracts for products and
  237         services; removing provisions exempting contracts
  238         executed before a specified date from certain
  239         competitive bid requirements; providing requirements
  240         for any contract or transaction between an association
  241         and one or more of its directors or a specified other
  242         entity in which one or more of its directors are
  243         directors or officers or have a financial interest;
  244         amending s. 719.303, F.S.; authorizing an association
  245         to suspend, for a reasonable time, the right of a
  246         shareholder or a shareholder’s occupant, licensee, or
  247         invitee to use certain common elements under certain
  248         conditions; excluding certain common elements from
  249         such authorization; providing that hearings regarding
  250         noncompliance with a declaration be held before
  251         certain persons; providing an exception to certain
  252         notice and hearing requirements; amending s. 719.501,
  253         F.S.; providing authority and responsibilities of the
  254         division; providing for enforcement actions brought by
  255         the division in its own name; providing for the
  256         imposition of penalties by the division; requiring
  257         that the division issue a subpoena requiring
  258         production of certain requested records under certain
  259         circumstances; providing for the issuance of notice of
  260         a declaratory statement with respect to documents
  261         governing a cooperative; deleting requirement that the
  262         division adopt certain accounting principles;
  263         requiring that the division provide training and
  264         educational programs for association board members and
  265         shareholders; providing that the division shall
  266         include certain training components, may review or
  267         approve training and educational programs offered by
  268         providers, and shall maintain a list of approved
  269         programs and providers; requiring that certain
  270         individuals cooperate with the division in any
  271         investigation conducted by the division; requiring the
  272         division to cooperate with similar agencies in other
  273         jurisdictions to establish certain procedures,
  274         standards, and forms; specifying what constitutes
  275         completeness of notice to a developer; authorizing the
  276         division to issue a notice to show cause; requiring
  277         the division to include certain information relating
  278         to cooperatives in a specified annual report relating
  279         to condominiums; requiring an association to pay any
  280         penalty due to the division before having standing to
  281         maintain or defend any action in the courts of this
  282         state; amending s. 719.503, F.S.; providing
  283         nondeveloper shareholder disclosure requirements for
  284         the sale of interest in a cooperative association,
  285         including a governance form; requiring the division to
  286         provide the governance form; providing requirements
  287         for the governance form; amending s. 720.303, F.S.;
  288         revising notice requirements for board meetings;
  289         providing requirements for the borrowing of funds or
  290         committing to a line of credit by the board of
  291         directors of a homeowners’ association; providing
  292         requirements relating to transfer fees; prohibiting
  293         certain expenditures and contributions by a
  294         homeowners’ association; providing liability; amending
  295         s. 720.304, F.S.; revising requirements with respect
  296         to the display of flags by a homeowner; amending s.
  297         720.306, F.S.; revising instances in which the
  298         governing documents of the association may be amended;
  299         providing circumstances and methods by which the
  300         association bylaws may be amended; creating s.
  301         720.3065, F.S.; providing circumstances for removal of
  302         a director or officer of, and providing qualifications
  303         for service on, the board of directors of a
  304         homeowners’ association; creating s. 720.3068, F.S.;
  305         providing requirements for the selection of
  306         homeowners’ association board meeting times and
  307         locations; providing restrictions on the times set for
  308         certain meetings; amending s. 720.3085, F.S.; revising
  309         provisions relating to the effectiveness and priority
  310         of homeowners’ association liens; providing
  311         requirements for a notice of delinquency; authorizing
  312         an association to demand future regular assessments
  313         related to the parcel under specified conditions;
  314         providing that the demand is continuing in nature;
  315         requiring that a tenant continue to pay assessments
  316         until the occurrence of specified events; requiring
  317         the delivery of written notice of such demand;
  318         limiting the liability of a tenant; creating s.
  319         720.314, F.S.; providing for parcel owners to file
  320         informational complaints regarding homeowners’
  321         associations and their officers and directors with the
  322         Office of Program Policy Analysis and Government
  323         Accountability; providing for an informational
  324         complaint form and the format of such form; amending
  325         s. 721.16, F.S.; conforming a cross-reference;
  326         providing an effective date.
  327  
  328  Be It Enacted by the Legislature of the State of Florida:
  329  
  330         Section 1. Subsection (10) is added to section 20.165,
  331  Florida Statutes, to read:
  332         20.165 Department of Business and Professional Regulation.
  333  There is created a Department of Business and Professional
  334  Regulation.
  335         (10) All employees authorized by the Division of Florida
  336  Condominiums, Timeshares, and Mobile Homes shall have access to
  337  and shall have the right to examine and inspect the premises,
  338  books, and records of any condominium, cooperative, timeshare,
  339  or mobile home park regulated by the division. Such employees
  340  shall also have access to and shall have the right to examine
  341  and inspect the books and records of any community association
  342  manager or firm employed by any condominium, cooperative,
  343  timeshare, or mobile home park regulated by the division.
  344         Section 2. Paragraph (b) of subsection (2) of section
  345  468.436, Florida Statutes, is amended, and subsection (6) is
  346  added to that section, to read:
  347         468.436 Disciplinary proceedings.—
  348         (2) The following acts constitute grounds for which the
  349  disciplinary actions in subsection (4) may be taken:
  350         (b)1. Violation of any provision of this part.
  351         2. Violation of any lawful order or rule rendered or
  352  adopted by the department or the council.
  353         3. Being convicted of or pleading nolo contendere to a
  354  felony in any court in the United States.
  355         4. Obtaining a license or certification or any other order,
  356  ruling, or authorization by means of fraud, misrepresentation,
  357  or concealment of material facts.
  358         5. Committing acts of gross misconduct or gross negligence
  359  in connection with the profession.
  360         6. Contracting, on behalf of an association, with any
  361  entity in which the licensee has a financial interest that is
  362  not disclosed.
  363         (6) Upon the fifth or later finding that a community
  364  association manager is guilty of any of the grounds set forth in
  365  subsection (2), or upon the third or later finding that a
  366  community association manager is guilty of a specific ground for
  367  which the disciplinary actions set forth in subsection (2) may
  368  be taken, the department’s discretion under subsection (4) shall
  369  not apply and the division shall enter an order permanently
  370  revoking the license.
  371         Section 3. Subsection (16) of section 718.103, Florida
  372  Statutes, is amended to read:
  373         718.103 Definitions.—As used in this chapter, the term:
  374         (16) “Developer” means a person who creates a condominium
  375  or offers condominium parcels for sale or lease in the ordinary
  376  course of business, but does not include:
  377         (a) An owner or lessee of a condominium or cooperative unit
  378  who has acquired the unit for his or her own occupancy;, nor
  379  does it include
  380         (b) A cooperative association that which creates a
  381  condominium by conversion of an existing residential cooperative
  382  after control of the association has been transferred to the
  383  unit owners if, following the conversion, the unit owners will
  384  be the same persons who were unit owners of the cooperative and
  385  no units are offered for sale or lease to the public as part of
  386  the plan of conversion; or.
  387         (c) A state, county, or municipal entity is not a developer
  388  for any purposes under this act when it is acting as a lessor
  389  and not otherwise named as a developer in the declaration of
  390  condominium association.
  391         Section 4. Subsection (5) and paragraph (b) of subsection
  392  (12) of section 718.111, Florida Statutes, are amended, and
  393  subsections (15) and (16) are added to that section, to read:
  394         718.111 The association.—
  395         (5) RIGHT OF ACCESS TO UNITS.—The association has the
  396  irrevocable right of access to each unit during reasonable
  397  hours, when necessary for the maintenance, repair, or
  398  replacement of any common elements or of any portion of a unit
  399  to be maintained by the association pursuant to the declaration
  400  or as necessary to prevent damage to the common elements or to a
  401  unit or units. Except in cases of emergency, the association
  402  must give the unit owner advance written notice of not less than
  403  24 hours of its intent to access the unit and such access must
  404  be by two persons, one of whom must be a member of the board of
  405  administration or a manager or employee of the association and
  406  one of whom must be an authorized representative of the
  407  association. The identity of the authorized representative
  408  seeking access to the unit must be provided to the unit owner
  409  prior to entering the unit.
  410         (12) OFFICIAL RECORDS.—
  411         (b) The official records of the association shall be
  412  maintained within the state for at least 7 years. The records of
  413  the association shall be made available to a unit owner within
  414  45 miles of the condominium property or within the county in
  415  which the condominium property is located within 5 working days
  416  after receipt of written request by the board or its designee.
  417  However, such distance requirement does not apply to an
  418  association governing a timeshare condominium. This paragraph
  419  may be complied with by having a copy of the official records of
  420  the association available for inspection or copying on the
  421  condominium property or association property., or The
  422  association may offer the option of making the records of the
  423  association available to a unit owner either electronically via
  424  the Internet or by allowing the records to be viewed in
  425  electronic format on a computer screen and printed upon request.
  426         (15) MEETINGS.—Regular meetings of the board of
  427  administration shall be held at such time and place as provided
  428  in the bylaws until the first regular meeting of the board held
  429  on or after October 1, 2010. Thereafter, the location and time
  430  for regular meetings of the board shall be determined by a
  431  majority vote of the unit owners at the next regular meeting
  432  held on or after October 1, 2010. Once the time and place for
  433  regular meetings of the board have been selected, neither may be
  434  changed unless approved by a majority vote of the unit owners.
  435  Regular meetings of the board of administration held on weekdays
  436  may be held no earlier than 6 p.m. local time.
  437         (16) LIMIT ON EXPENDITURES AND CONTRIBUTIONS.—It shall be
  438  unlawful for an association to make any expenditure of
  439  association funds or to make any in-kind contribution of
  440  association assets which does not relate to the purposes for
  441  which the association is organized.
  442         (a) The association shall not make any contribution to a
  443  campaign or committee of continuous existence governed by
  444  chapter 105 or chapter 106.
  445         (b) The association shall not make any contribution to a
  446  charitable organization if the association does not receive a
  447  direct benefit from the organization.
  448         (c) Members of the board of administration shall be jointly
  449  and severely liable to reimburse the association for any
  450  contribution, expenditure, or in-kind contribution made in
  451  violation of this subsection.
  452         Section 5. Paragraphs (c), (d), (h), and (o) of subsection
  453  (2) of section 718.112, Florida Statutes, are amended, and
  454  paragraphs (p) and (q) are added to that subsection, to read:
  455         718.112 Bylaws.—
  456         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  457  following and, if they do not do so, shall be deemed to include
  458  the following:
  459         (c) Board of administration meetings.—Meetings of the board
  460  of administration at which a quorum of the members is present
  461  shall be open to all unit owners. Any unit owner may tape record
  462  or videotape meetings of the board of administration. The right
  463  to attend such meetings includes the right to speak at such
  464  meetings with reference to all designated agenda items. The
  465  division shall adopt reasonable rules governing the tape
  466  recording and videotaping of the meeting. The association may
  467  adopt written reasonable rules governing the frequency,
  468  duration, and manner of unit owner statements. Adequate notice
  469  of all meetings, which notice shall specifically incorporate an
  470  identification of agenda items, shall be posted conspicuously on
  471  the condominium property at least 48 continuous hours preceding
  472  the meeting except in an emergency. If 20 percent of the voting
  473  interests petition the board to address an item of business, the
  474  board shall at its next regular board meeting or at a special
  475  meeting of the board, but not later than 60 days after the
  476  receipt of the petition, place the item on the agenda. Any item
  477  not included on the notice may be taken up on an emergency basis
  478  by at least a majority plus one of the members of the board.
  479  Such emergency action shall be noticed and ratified at the next
  480  regular meeting of the board. However, written notice of any
  481  meeting at which nonemergency special assessments, or at which
  482  amendment to rules regarding unit use, will be considered shall
  483  be mailed, delivered, or electronically transmitted to the unit
  484  owners and posted conspicuously on the condominium property not
  485  less than 14 days prior to the meeting. Evidence of compliance
  486  with this 14-day notice shall be made by an affidavit executed
  487  by the person providing the notice and filed among the official
  488  records of the association. Upon notice to the unit owners, the
  489  board shall by duly adopted rule designate a specific location
  490  on the condominium property or association property upon which
  491  all notices of board meetings shall be posted. If there is no
  492  condominium property or association property upon which notices
  493  can be posted, notices of board meetings shall be mailed,
  494  delivered, or electronically transmitted at least 14 days before
  495  the meeting to the owner of each unit. In lieu of or in addition
  496  to the physical posting of notice of any meeting of the board of
  497  administration on the condominium property, the association may,
  498  by reasonable rule, adopt a procedure for conspicuously posting
  499  and repeatedly broadcasting the notice and the agenda on a
  500  closed-circuit cable television system serving the condominium
  501  association. However, if broadcast notice is used in lieu of a
  502  notice posted physically on the condominium property, the notice
  503  and agenda must be broadcast at least four times every broadcast
  504  hour of each day that a posted notice is otherwise required
  505  under this section. When broadcast notice is provided, the
  506  notice and agenda must be broadcast in a manner and for a
  507  sufficient continuous length of time so as to allow an average
  508  reader to observe the notice and read and comprehend the entire
  509  content of the notice and the agenda. Notice of any meeting in
  510  which regular or special assessments against unit owners are to
  511  be considered for any reason shall specifically state that
  512  assessments will be considered and the nature of, the actual
  513  estimated cost of, and a description of the purposes for such
  514  assessments. Meetings of a committee to take final action on
  515  behalf of the board or make recommendations to the board
  516  regarding the association budget are subject to the provisions
  517  of this paragraph. Meetings of a committee that does not take
  518  final action on behalf of the board or make recommendations to
  519  the board regarding the association budget are subject to the
  520  provisions of this section, unless those meetings are exempted
  521  from this section by the bylaws of the association.
  522  Notwithstanding any other law, the requirement that board
  523  meetings and committee meetings be open to the unit owners is
  524  inapplicable to meetings between the board or a committee and
  525  the association’s attorney, with respect to proposed or pending
  526  litigation, when the meeting is held for the purpose of seeking
  527  or rendering legal advice.
  528         (d) Unit owner meetings.—
  529         1. There shall be an annual meeting of the unit owners held
  530  at the location provided in the association bylaws and, if the
  531  bylaws are silent as to the location, the meeting shall be held
  532  within 45 miles of the condominium property or, if facilities
  533  are available on the condominium property, the meeting shall be
  534  held at such facilities. However, such distance requirement does
  535  not apply to an association governing a timeshare condominium.
  536  Unless the bylaws provide otherwise, a vacancy on the board
  537  caused by the expiration of a director’s term shall be filled by
  538  electing a new board member, and the election shall be by secret
  539  ballot; however, if the number of vacancies equals or exceeds
  540  the number of candidates, no election is required. Except in
  541  timeshare condominiums, the terms of all members of the board
  542  shall expire at the first annual meeting after July 1, 2010, and
  543  at each the annual meeting thereafter and such board members may
  544  stand for reelection unless otherwise permitted by the bylaws.
  545  In the event that the bylaws permit staggered terms of no more
  546  than 2 years and upon approval of a majority of the total voting
  547  interests, the association board members may serve 2-year
  548  staggered terms. If no person is interested in or demonstrates
  549  an intention to run for the position of a board member whose
  550  term has expired according to the provisions of this
  551  subparagraph, such board member whose term has expired shall be
  552  automatically reappointed to the board of administration and
  553  need not stand for reelection. In a condominium association of
  554  more than 10 units, coowners of a unit may not serve as members
  555  of the board of directors at the same time. Any unit owner
  556  desiring to be a candidate for board membership shall comply
  557  with subparagraph 3. A person who has been suspended or removed
  558  by the division under this chapter, or who is delinquent in the
  559  payment of any fee or assessment as provided in paragraph (n),
  560  is not eligible for board membership. A person who has been
  561  convicted of any felony in this state or in a United States
  562  District or Territorial Court, or who has been convicted of any
  563  offense in another jurisdiction that would be considered a
  564  felony if committed in this state, is not eligible for board
  565  membership unless such felon’s civil rights have been restored
  566  for a period of no less than 5 years as of the date on which
  567  such person seeks election to the board. The validity of an
  568  action by the board is not affected if it is later determined
  569  that a member of the board is ineligible for board membership
  570  due to having been convicted of a felony.
  571         2. The bylaws shall provide the method of calling meetings
  572  of unit owners, including annual meetings. Written notice, which
  573  notice must include an agenda, shall be mailed, hand delivered,
  574  or electronically transmitted to each unit owner at least 14
  575  days prior to the annual meeting and shall be posted in a
  576  conspicuous place on the condominium property at least 14
  577  continuous days preceding the annual meeting. Upon notice to the
  578  unit owners, the board shall by duly adopted rule designate a
  579  specific location on the condominium property or association
  580  property upon which all notices of unit owner meetings shall be
  581  posted; however, if there is no condominium property or
  582  association property upon which notices can be posted, this
  583  requirement does not apply. In lieu of or in addition to the
  584  physical posting of notice of any meeting of the unit owners on
  585  the condominium property, the association may, by reasonable
  586  rule, adopt a procedure for conspicuously posting and repeatedly
  587  broadcasting the notice and the agenda on a closed-circuit cable
  588  television system serving the condominium association. However,
  589  if broadcast notice is used in lieu of a notice posted
  590  physically on the condominium property, the notice and agenda
  591  must be broadcast at least four times every broadcast hour of
  592  each day that a posted notice is otherwise required under this
  593  section. When broadcast notice is provided, the notice and
  594  agenda must be broadcast in a manner and for a sufficient
  595  continuous length of time so as to allow an average reader to
  596  observe the notice and read and comprehend the entire content of
  597  the notice and the agenda. Unless a unit owner waives in writing
  598  the right to receive notice of the annual meeting, such notice
  599  shall be hand delivered, mailed, or electronically transmitted
  600  to each unit owner. Notice for meetings and notice for all other
  601  purposes shall be mailed to each unit owner at the address last
  602  furnished to the association by the unit owner, or hand
  603  delivered to each unit owner. However, if a unit is owned by
  604  more than one person, the association shall provide notice, for
  605  meetings and all other purposes, to that one address which the
  606  developer initially identifies for that purpose and thereafter
  607  as one or more of the owners of the unit shall so advise the
  608  association in writing, or if no address is given or the owners
  609  of the unit do not agree, to the address provided on the deed of
  610  record. An officer of the association, or the manager or other
  611  person providing notice of the association meeting, shall
  612  provide an affidavit or United States Postal Service certificate
  613  of mailing, to be included in the official records of the
  614  association affirming that the notice was mailed or hand
  615  delivered, in accordance with this provision.
  616         3. The members of the board shall be elected by written
  617  ballot or voting machine. Proxies shall in no event be used in
  618  electing the board, either in general elections or elections to
  619  fill vacancies caused by recall, resignation, or otherwise,
  620  unless otherwise provided in this chapter. Not less than 60 days
  621  before a scheduled election, the association shall mail,
  622  deliver, or electronically transmit, whether by separate
  623  association mailing or included in another association mailing,
  624  delivery, or transmission, including regularly published
  625  newsletters, to each unit owner entitled to a vote, a first
  626  notice of the date of the election along with a certification
  627  form provided by the division attesting that he or she has read
  628  and understands, to the best of his or her ability, the
  629  governing documents of the association and the provisions of
  630  this chapter and any applicable rules. Any unit owner or other
  631  eligible person desiring to be a candidate for the board must
  632  give written notice to the association not less than 40 days
  633  before a scheduled election. Together with the written notice
  634  and agenda as set forth in subparagraph 2., the association
  635  shall mail, deliver, or electronically transmit a second notice
  636  of the election to all unit owners entitled to vote therein,
  637  together with a ballot which shall list all candidates. Upon
  638  request of a candidate, the association shall include an
  639  information sheet, no larger than 8 1/2 inches by 11 inches,
  640  which must be furnished by the candidate not less than 35 days
  641  before the election, along with the signed certification form
  642  provided for in this subparagraph, to be included with the
  643  mailing, delivery, or transmission of the ballot, with the costs
  644  of mailing, delivery, or electronic transmission and copying to
  645  be borne by the association. The association is not liable for
  646  the contents of the information sheets prepared by the
  647  candidates. In order to reduce costs, the association may print
  648  or duplicate the information sheets on both sides of the paper.
  649  The division shall by rule establish voting procedures
  650  consistent with the provisions contained herein, including rules
  651  establishing procedures for giving notice by electronic
  652  transmission and rules providing for the secrecy of ballots.
  653  Elections shall be decided by a plurality of those ballots cast.
  654  There shall be no quorum requirement; however, at least 20
  655  percent of the eligible voters must cast a ballot in order to
  656  have a valid election of members of the board. No unit owner
  657  shall permit any other person to vote his or her ballot, and any
  658  such ballots improperly cast shall be deemed invalid, provided
  659  any unit owner who violates this provision may be fined by the
  660  association in accordance with s. 718.303. A unit owner who
  661  needs assistance in casting the ballot for the reasons stated in
  662  s. 101.051 may obtain assistance in casting the ballot. The
  663  regular election shall occur on the date of the annual meeting.
  664  The provisions of this subparagraph shall not apply to timeshare
  665  condominium associations. Notwithstanding the provisions of this
  666  subparagraph, an election is not required unless more candidates
  667  file notices of intent to run or are nominated than board
  668  vacancies exist.
  669         4. Any approval by unit owners called for by this chapter
  670  or the applicable declaration or bylaws, including, but not
  671  limited to, the approval requirement in s. 718.111(8), shall be
  672  made at a duly noticed meeting of unit owners and shall be
  673  subject to all requirements of this chapter or the applicable
  674  condominium documents relating to unit owner decisionmaking,
  675  except that unit owners may take action by written agreement,
  676  without meetings, on matters for which action by written
  677  agreement without meetings is expressly allowed by the
  678  applicable bylaws or declaration or any statute that provides
  679  for such action.
  680         5. Unit owners may waive notice of specific meetings if
  681  allowed by the applicable bylaws or declaration or any statute.
  682  If authorized by the bylaws, notice of meetings of the board of
  683  administration, unit owner meetings, except unit owner meetings
  684  called to recall board members under paragraph (j), and
  685  committee meetings may be given by electronic transmission to
  686  unit owners who consent to receive notice by electronic
  687  transmission.
  688         6. Unit owners shall have the right to participate in
  689  meetings of unit owners with reference to all designated agenda
  690  items. However, the association may adopt reasonable rules
  691  governing the frequency, duration, and manner of unit owner
  692  participation.
  693         7. Any unit owner may tape record or videotape a meeting of
  694  the unit owners subject to reasonable rules adopted by the
  695  division.
  696         8. Unless otherwise provided in the bylaws, any vacancy
  697  occurring on the board before the expiration of a term may be
  698  filled by the affirmative vote of the majority of the remaining
  699  directors, even if the remaining directors constitute less than
  700  a quorum, or by the sole remaining director. In the alternative,
  701  a board may hold an election to fill the vacancy, in which case
  702  the election procedures must conform to the requirements of
  703  subparagraph 3. unless the association governs 10 or fewer units
  704  or less and has opted out of the statutory election process, in
  705  which case the bylaws of the association control. Unless
  706  otherwise provided in the bylaws, a board member appointed or
  707  elected under this section shall fill the vacancy for the
  708  unexpired term of the seat being filled. Filling vacancies
  709  created by recall is governed by paragraph (j) and rules adopted
  710  by the division.
  711         9. Notwithstanding subparagraphs (b)2. and (d)3., an
  712  association of 10 or fewer units may, by the affirmative vote of
  713  a majority of the total voting interests, provide for different
  714  voting and election procedures in its bylaws, which vote may be
  715  by a proxy specifically delineating the different voting and
  716  election procedures. The different voting and election
  717  procedures may provide for elections to be conducted by limited
  718  or general proxy.
  719         (h) Amendment of bylaws.—
  720         1. The method by which the bylaws may be amended consistent
  721  with the provisions of this chapter shall be stated. If the
  722  bylaws fail to provide a method of amendment, the bylaws may be
  723  amended if the amendment is approved by the owners of not less
  724  than two-thirds of the voting interests.
  725         2. No bylaw shall be revised or amended by reference to its
  726  title or number only. Proposals to amend existing bylaws shall
  727  contain the full text of the bylaws to be amended; new words
  728  shall be inserted in the text underlined, and words to be
  729  deleted shall be lined through with hyphens. However, if the
  730  proposed change is so extensive that this procedure would
  731  hinder, rather than assist, the understanding of the proposed
  732  amendment, it is not necessary to use underlining and hyphens as
  733  indicators of words added or deleted, but, instead, a notation
  734  must be inserted immediately preceding the proposed amendment in
  735  substantially the following language: “Substantial rewording of
  736  bylaw. See bylaw .... for present text.”
  737         3. Nonmaterial errors or omissions in the bylaw process
  738  will not invalidate an otherwise properly promulgated amendment.
  739         4. If the bylaws provide for amendment by the board of
  740  administration, no bylaw may be amended unless it is heard and
  741  noticed at two consecutive meetings of the board of
  742  administration which are at least 1 week apart.
  743         (o) Director or officer offenses.—A director or officer
  744  charged by information or indictment with a felony theft or
  745  embezzlement offense involving the association’s funds or
  746  property shall be removed from office, creating a vacancy in the
  747  office to be filled according to law. While such director or
  748  officer has such criminal charge pending in the state or federal
  749  court system, he or she may not be appointed or elected to a
  750  position as a director or officer. However, should the charges
  751  be resolved without a finding of guilt, the director or officer
  752  shall be reinstated for the remainder of his or her term of
  753  office, if any.
  754         (p) Qualification of directors.—In addition to any other
  755  requirement for office in statute, a person running for, seeking
  756  appointment to, or serving as a director of the board must meet
  757  the following qualifications:
  758         1. In a condominium association of 10 or more units, only
  759  one individual coowner of a unit may serve on the board of
  760  administration.
  761         2. No person may serve as a director of any condominium
  762  association in the state if restricted from serving by action of
  763  the division pursuant to s. 718.501(1)(d)6.
  764         3. A person who has been convicted of any felony in this
  765  state or in a United States District or Territorial Court, or
  766  who has been convicted of any offense in another jurisdiction
  767  which would be considered a felony if committed in this state,
  768  is not eligible for board membership unless such felon’s civil
  769  rights have been restored for a period of no less than 5 years
  770  as of the date on which such person seeks election to the board.
  771         4. A director more than 90 days delinquent in the payment
  772  of regular assessments shall be deemed to have abandoned his or
  773  her office.
  774         5. Within 30 days after being elected or appointed to the
  775  board of administration, a director must certify in writing to
  776  the secretary of the association that he or she has read this
  777  part and part III and the association’s declaration of
  778  condominium, articles of incorporation, bylaws, and current
  779  written policies. The director shall further certify that he or
  780  she will work to uphold such documents and policies to the best
  781  of his or her ability and that he or she will faithfully
  782  discharge his or her fiduciary responsibility to the
  783  association’s members. If the division finds that a director has
  784  falsely certified that he or she has read the required statutes
  785  and documents, the division shall order the director removed
  786  from the board and shall order the director to reimburse the
  787  division for the cost of prosecution and hearing.
  788         6. After turnover of the association pursuant to s.
  789  718.301(2), a director must:
  790         a. If the unit is owned by an individual or individuals, be
  791  one of those individuals.
  792         b. If the unit is owned by a trust, be an individual
  793  qualified pursuant to s. 617.0802.
  794  
  795  These qualifications shall operate on a continuing basis, and
  796  upon the failure of a director at any time to meet a
  797  qualification, the director shall be removed from office and
  798  that office shall be deemed vacant. However, in the case of a
  799  timeshare condominium association, the bylaws of the association
  800  shall govern the terms, expiration of terms, and staggered terms
  801  of board members, and the eligibility of coowners to serve on
  802  the board of administration shall not be restricted except in
  803  the manner provided in the bylaws of the timeshare condominium
  804  association.
  805         (q) Borrowing.—The borrowing of funds or committing to a
  806  line of credit by the board of administration shall be
  807  considered a special assessment, and any meeting of the board of
  808  administration to discuss such matters must be noticed as
  809  provided in paragraph (c). The board may not borrow funds or
  810  enter into a line of credit or borrow funds for any purpose
  811  unless the specific use of the funds from the loan or line of
  812  credit is set forth in the notice of meeting with the same
  813  specificity as required for a special assessment or unless the
  814  borrowing or line of credit has received the prior approval of
  815  at least two-thirds of the voting interests of the association.
  816         Section 6. Paragraph (a) of subsection (5) of section
  817  718.113, Florida Statutes, is amended to read:
  818         718.113 Maintenance; limitation upon improvement; display
  819  of flag; hurricane shutters; display of religious decorations.—
  820         (5) Each board of administration shall adopt hurricane
  821  shutter specifications for each building within each condominium
  822  operated by the association which shall include color, style,
  823  and other factors deemed relevant by the board. All
  824  specifications adopted by the board shall comply with the
  825  applicable building code.
  826         (a) The board may, subject to the provisions of s.
  827  718.3026, and the approval of a majority of voting interests of
  828  the condominium, install hurricane shutters or hurricane
  829  protection that complies with or exceeds the applicable building
  830  code, or both, except that a vote of the owners is not required
  831  if the maintenance, repair, and replacement of hurricane
  832  shutters or other forms of hurricane protection are the
  833  responsibility of the association pursuant to the declaration of
  834  condominium. However, where hurricane protection or laminated
  835  glass or window film architecturally designed to function as
  836  hurricane protection which complies with or exceeds the current
  837  applicable building code has been previously installed, the
  838  board may not install hurricane shutters or other hurricane
  839  protection. Code-compliant impact glass may be installed by the
  840  association as hurricane protection if the area in which the
  841  glass is to be installed is an area that is the responsibility
  842  of the association. If a unit owner installed code-compliant
  843  impact glass prior to the association voting to install such
  844  glass, and such glass and the frame thereof complies with the
  845  current applicable building codes and is otherwise in good
  846  repair, the unit owner shall not be required to pay the unit
  847  owner’s pro rata share of the cost of installing code-compliant
  848  impact glass to the condominium association, notwithstanding s.
  849  718.116(9).
  850         Section 7. Subsections (11) and (12) are added to section
  851  718.116, Florida Statutes, to read:
  852         718.116 Assessments; liability; lien and priority;
  853  interest; collection.—
  854         (11) During the pendency of any foreclosure action of a
  855  condominium unit, if the unit is occupied by a tenant and the
  856  unit owner is delinquent in the payment of regular assessments,
  857  the association may demand that the tenant pay to the
  858  association the future regular assessments related to the
  859  condominium unit. The demand shall be continuing in nature, and
  860  upon demand the tenant shall continue to pay the regular
  861  assessments to the association until the association releases
  862  the tenant or the tenant discontinues tenancy in the unit. The
  863  association shall mail written notice to the unit owner of the
  864  association’s demand that the tenant pay regular assessments to
  865  the association. The tenant shall not be liable for increases in
  866  the amount of the regular assessments due unless the tenant was
  867  reasonably notified of the increase prior to the day that the
  868  rent is due. The tenant shall be given a credit against rents
  869  due to the unit owner in the amount of assessments paid to the
  870  association. The association shall, upon request, provide the
  871  tenant with written receipts for payments made. The association
  872  may issue notices under s. 83.56 and may sue for eviction under
  873  ss. 83.59-83.625 as if the association were a landlord under
  874  part II of chapter 83 should the tenant fail to pay an
  875  assessment. However, the association shall not otherwise be
  876  considered a landlord under chapter 83 and shall specifically
  877  not have any duty under s. 83.51. The tenant shall not, by
  878  virtue of payment of assessments, have any of the rights of a
  879  unit owner to vote in any election or to examine the books and
  880  records of the association. A court may supersede the effect of
  881  this subsection by appointing a receiver.
  882         (12)(a) A notice of delinquency sent to a unit owner shall
  883  provide an overall total of assessments claimed and shall
  884  specify each assessment or charge that is claimed by the
  885  association, listing for each assessment or charge the date of
  886  the assessment or charge, the principal balance owed for the
  887  assessment or charge, and affiliated late fees or collection
  888  charges.
  889         (b) Costs to a unit owner secured by the association’s
  890  claim of lien with regard to collection efforts by management
  891  companies or licensed managers as to any delinquent installment
  892  of an assessment may not exceed $50. However, there shall be no
  893  charge for the first notice of a delinquency to the unit owner.
  894         Section 8. Subsection (2) of section 718.1265, Florida
  895  Statutes, is amended to read:
  896         718.1265 Association emergency powers.—
  897         (2) The special powers authorized under subsection (1)
  898  shall be limited to that time reasonably necessary to protect
  899  the health, safety, and welfare of the association and the unit
  900  owners and the unit owners’ family members, tenants, guests,
  901  agents, or invitees and shall be reasonably necessary to
  902  mitigate further damage and make emergency repairs.
  903  Additionally, unless 20 percent or more of the units are made
  904  uninhabitable by the emergency, the special powers authorized
  905  under subsection (1) may only be exercised during the term of
  906  the Governor’s executive order or proclamation declaring the
  907  state of emergency in the locale in which the condominium is
  908  located.
  909         Section 9. Subsection (1) of section 718.301, Florida
  910  Statutes, is amended to read:
  911         718.301 Transfer of association control; claims of defect
  912  by association.—
  913         (1) When unit owners other than the developer own 15
  914  percent or more of the units in a condominium that will be
  915  operated ultimately by an association, the unit owners other
  916  than the developer shall be entitled to elect no less than one
  917  third of the members of the board of administration of the
  918  association. Unit owners other than the developer are entitled
  919  to elect not less than a majority of the members of the board of
  920  administration of an association:
  921         (a) Three years after 50 percent of the units that will be
  922  operated ultimately by the association have been conveyed to
  923  purchasers;
  924         (b) Three months after 90 percent of the units that will be
  925  operated ultimately by the association have been conveyed to
  926  purchasers;
  927         (c) When all the units that will be operated ultimately by
  928  the association have been completed, some of them have been
  929  conveyed to purchasers, and none of the others are being offered
  930  for sale by the developer in the ordinary course of business;
  931         (d) When some of the units have been conveyed to purchasers
  932  and none of the others are being constructed or offered for sale
  933  by the developer in the ordinary course of business;
  934         (e) When the developer files a petition seeking protection
  935  in bankruptcy;
  936         (f) When a receiver for the developer is appointed by a
  937  circuit court and is not discharged within 30 days after such
  938  appointment, unless the court determines within 30 days after
  939  appointment of the receiver that transfer of control would be
  940  detrimental to the association or its members; or
  941         (g) Seven years after recordation of the declaration of
  942  condominium; or, in the case of an association which may
  943  ultimately operate more than one condominium, 7 years after
  944  recordation of the declaration for the first condominium it
  945  operates; or, in the case of an association operating a phase
  946  condominium created pursuant to s. 718.403, 7 years after
  947  recordation of the declaration creating the initial phase,
  948  
  949  whichever occurs first. The developer is entitled to elect at
  950  least one member of the board of administration of an
  951  association as long as the developer holds for sale in the
  952  ordinary course of business at least 5 percent, in condominiums
  953  with fewer than 500 units, and 2 percent, in condominiums with
  954  more than 500 units, of the units in a condominium operated by
  955  the association. Following the time the developer relinquishes
  956  control of the association, the developer may exercise the right
  957  to vote any developer-owned units in the same manner as any
  958  other unit owner except for purposes of reacquiring control of
  959  the association or selecting the majority members of the board
  960  of administration.
  961         Section 10. Section 718.303, Florida Statutes, is amended
  962  to read:
  963         718.303 Obligations of owners and occupants; waiver; levy
  964  of fines, suspension of use or voting rights, and other
  965  nonexclusive remedies in law or equity fine against unit by an
  966  association.—
  967         (1) Each unit owner, each tenant and other invitee, and
  968  each association shall be governed by, and shall comply with the
  969  provisions of, this chapter, the declaration, the documents
  970  creating the association, and the association bylaws and the
  971  provisions thereof shall be deemed expressly incorporated into
  972  any lease of a unit. Actions for damages or for injunctive
  973  relief, or both, for failure to comply with these provisions may
  974  be brought by the association or by a unit owner against:
  975         (a) The association.
  976         (b) A unit owner.
  977         (c) Directors designated by the developer, for actions
  978  taken by them prior to the time control of the association is
  979  assumed by unit owners other than the developer.
  980         (d) Any director who willfully and knowingly fails to
  981  comply with these provisions.
  982         (e) Any tenant leasing a unit, and any other invitee
  983  occupying a unit.
  984  
  985  The prevailing party in any such action or in any action in
  986  which the purchaser claims a right of voidability based upon
  987  contractual provisions as required in s. 718.503(1)(a) is
  988  entitled to recover reasonable attorney’s fees. A unit owner
  989  prevailing in an action between the association and the unit
  990  owner under this section, in addition to recovering his or her
  991  reasonable attorney’s fees, may recover additional amounts as
  992  determined by the court to be necessary to reimburse the unit
  993  owner for his or her share of assessments levied by the
  994  association to fund its expenses of the litigation. This relief
  995  does not exclude other remedies provided by law. Actions arising
  996  under this subsection shall not be deemed to be actions for
  997  specific performance.
  998         (2) A provision of this chapter may not be waived if the
  999  waiver would adversely affect the rights of a unit owner or the
 1000  purpose of the provision, except that unit owners or members of
 1001  a board of administration may waive notice of specific meetings
 1002  in writing if provided by the bylaws. Any instruction given in
 1003  writing by a unit owner or purchaser to an escrow agent may be
 1004  relied upon by an escrow agent, whether or not such instruction
 1005  and the payment of funds thereunder might constitute a waiver of
 1006  any provision of this chapter.
 1007         (3) If a unit owner is delinquent for more than 90 days in
 1008  the payment of regular or special assessments or the declaration
 1009  or bylaws so provide, the association may suspend, for a
 1010  reasonable time, the right of a unit owner or a unit’s occupant,
 1011  licensee, or invitee to use common elements, common facilities,
 1012  or any other association property. This subsection does not
 1013  apply to limited common elements intended to be used only by
 1014  that unit, common elements that must be used to access the unit,
 1015  utility services provided to the unit, parking spaces, or
 1016  elevators. The association may also levy reasonable fines
 1017  against a unit for the failure of the owner of the unit, or its
 1018  occupant, licensee, or invitee, to comply with any provision of
 1019  the declaration, the association bylaws, or reasonable rules of
 1020  the association. No fine will become a lien against a unit. A No
 1021  fine may not exceed $100 per violation. However, a fine may be
 1022  levied on the basis of each day of a continuing violation, with
 1023  a single notice and opportunity for hearing, provided that no
 1024  such fine shall in the aggregate exceed $1,000. A No fine may
 1025  not be levied and a suspension may not be imposed unless the
 1026  association first gives except after giving reasonable notice
 1027  and opportunity for a hearing to the unit owner and, if
 1028  applicable, its occupant, licensee, or invitee. The hearing must
 1029  be held before a committee of other unit owners who are neither
 1030  board members nor persons residing in a board member’s
 1031  household. If the committee does not agree with the fine or
 1032  suspension, the fine or suspension may not be levied or imposed.
 1033  The provisions of this subsection do not apply to unoccupied
 1034  units.
 1035         (4) The notice and hearing requirements of subsection (3)
 1036  do not apply to the imposition of suspensions or fines against a
 1037  unit owner or a unit’s occupant, licensee, or invitee because of
 1038  the failure to pay any amounts due the association. If such a
 1039  fine or suspension is imposed, the association must levy the
 1040  fine or impose a reasonable suspension at a properly noticed
 1041  board meeting, and after the imposition of such fine or
 1042  suspension, the association must notify the unit owner and, if
 1043  applicable, the unit’s occupant, licensee, or invitee by mail or
 1044  hand delivery.
 1045         Section 11. Subsection (1) of section 718.501, Florida
 1046  Statutes, is amended, and subsection (3) is added to that
 1047  section, to read:
 1048         718.501 Authority, responsibility, and duties of Division
 1049  of Florida Condominiums, Timeshares, and Mobile Homes.—
 1050         (1) The Division of Florida Condominiums, Timeshares, and
 1051  Mobile Homes of the Department of Business and Professional
 1052  Regulation, referred to as the “division” in this part, has the
 1053  power to enforce and ensure compliance with the provisions of
 1054  this chapter and rules relating to the development,
 1055  construction, sale, lease, ownership, operation, and management
 1056  of residential condominium units. In performing its duties, the
 1057  division has complete jurisdiction to investigate complaints and
 1058  enforce compliance with the provisions of this chapter with
 1059  respect to associations that are still under developer control
 1060  and complaints against developers involving improper turnover or
 1061  failure to turnover, pursuant to s. 718.301. However, after
 1062  turnover has occurred, the division shall only have jurisdiction
 1063  to investigate complaints related to financial issues, failure
 1064  to maintain common elements, elections, and unit owner access to
 1065  association records pursuant to s. 718.111(12).
 1066         (a)1. The division may make necessary public or private
 1067  investigations within or outside this state to determine whether
 1068  any person has violated this chapter or any rule or order
 1069  hereunder, to aid in the enforcement of this chapter, or to aid
 1070  in the adoption of rules or forms hereunder.
 1071         2. The division may submit any official written report,
 1072  worksheet, or other related paper, or a duly certified copy
 1073  thereof, compiled, prepared, drafted, or otherwise made by and
 1074  duly authenticated by a financial examiner or analyst to be
 1075  admitted as competent evidence in any hearing in which the
 1076  financial examiner or analyst is available for cross-examination
 1077  and attests under oath that such documents were prepared as a
 1078  result of an examination or inspection conducted pursuant to
 1079  this chapter.
 1080         (b) The division may require or permit any person to file a
 1081  statement in writing, under oath or otherwise, as the division
 1082  determines, as to the facts and circumstances concerning a
 1083  matter to be investigated.
 1084         (c) For the purpose of any investigation under this
 1085  chapter, the division director or any officer or employee
 1086  designated by the division director may administer oaths or
 1087  affirmations, subpoena witnesses and compel their attendance,
 1088  take evidence, and require the production of any matter which is
 1089  relevant to the investigation, including the existence,
 1090  description, nature, custody, condition, and location of any
 1091  books, documents, or other tangible things and the identity and
 1092  location of persons having knowledge of relevant facts or any
 1093  other matter reasonably calculated to lead to the discovery of
 1094  material evidence. Upon the failure by a person to obey a
 1095  subpoena or to answer questions propounded by the investigating
 1096  officer and upon reasonable notice to all persons affected
 1097  thereby, the division may apply to the circuit court for an
 1098  order compelling compliance.
 1099         (d) Notwithstanding any remedies available to unit owners
 1100  and associations, if the division has reasonable cause to
 1101  believe that a violation of any provision of this chapter or
 1102  related rule has occurred, the division may institute
 1103  enforcement proceedings in its own name against any developer,
 1104  association, officer, or member of the board of administration,
 1105  or its assignees or agents, as follows:
 1106         1. The division may permit a person whose conduct or
 1107  actions may be under investigation to waive formal proceedings
 1108  and enter into a consent proceeding whereby orders, rules, or
 1109  letters of censure or warning, whether formal or informal, may
 1110  be entered against the person.
 1111         2. The division may issue an order requiring the developer,
 1112  association, developer-designated officer, or developer
 1113  designated member of the board of administration, developer
 1114  designated assignees or agents, community association manager,
 1115  or community association management firm to cease and desist
 1116  from the unlawful practice and take such affirmative action as
 1117  in the judgment of the division will carry out the purposes of
 1118  this chapter. If the division finds that a developer,
 1119  association, officer, or member of the board of administration,
 1120  or its assignees or agents, is violating or is about to violate
 1121  any provision of this chapter, any rule adopted or order issued
 1122  by the division, or any written agreement entered into with the
 1123  division, and presents an immediate danger to the public
 1124  requiring an immediate final order, it may issue an emergency
 1125  cease and desist order reciting with particularity the facts
 1126  underlying such findings. The emergency cease and desist order
 1127  is effective for 90 days. If the division begins nonemergency
 1128  cease and desist proceedings, the emergency cease and desist
 1129  order remains effective until the conclusion of the proceedings
 1130  under ss. 120.569 and 120.57.
 1131         3. If a developer fails to pay any restitution determined
 1132  by the division to be owed, plus any accrued interest at the
 1133  highest rate permitted by law, within 30 days after expiration
 1134  of any appellate time period of a final order requiring payment
 1135  of restitution or the conclusion of any appeal thereof,
 1136  whichever is later, the division shall bring an action in
 1137  circuit or county court on behalf of any association, class of
 1138  unit owners, lessees, or purchasers for restitution, declaratory
 1139  relief, injunctive relief, or any other available remedy. The
 1140  division may also temporarily revoke its acceptance of the
 1141  filing for the developer to which the restitution relates until
 1142  payment of restitution is made.
 1143         4. The division may petition the court for the appointment
 1144  of a receiver or conservator. If appointed, the receiver or
 1145  conservator may take action to implement the court order to
 1146  ensure the performance of the order and to remedy any breach
 1147  thereof. In addition to all other means provided by law for the
 1148  enforcement of an injunction or temporary restraining order, the
 1149  circuit court may impound or sequester the property of a party
 1150  defendant, including books, papers, documents, and related
 1151  records, and allow the examination and use of the property by
 1152  the division and a court-appointed receiver or conservator.
 1153         5. The division may apply to the circuit court for an order
 1154  of restitution whereby the defendant in an action brought
 1155  pursuant to subparagraph 4. shall be ordered to make restitution
 1156  of those sums shown by the division to have been obtained by the
 1157  defendant in violation of this chapter. Such restitution shall,
 1158  at the option of the court, be payable to the conservator or
 1159  receiver appointed pursuant to subparagraph 4. or directly to
 1160  the persons whose funds or assets were obtained in violation of
 1161  this chapter.
 1162         6. The division may impose a civil penalty against a
 1163  developer or association, or its assignee or agent, for any
 1164  violation of this chapter or a rule adopted under this chapter.
 1165  The division may impose a civil penalty individually against any
 1166  officer or board member who willfully and knowingly violates a
 1167  provision of this chapter, adopted rule, or a final order of the
 1168  division; may order the removal of such individual as an officer
 1169  or from the board of administration or as an officer of the
 1170  association; and may prohibit such individual from serving as an
 1171  officer or on the board of a community association for a period
 1172  of time. The term “willfully and knowingly” means that the
 1173  division informed the officer or board member that his or her
 1174  action or intended action violates this chapter, a rule adopted
 1175  under this chapter, or a final order of the division and that
 1176  the officer or board member refused to comply with the
 1177  requirements of this chapter, a rule adopted under this chapter,
 1178  or a final order of the division. The division, prior to
 1179  initiating formal agency action under chapter 120, shall afford
 1180  the officer or board member an opportunity to voluntarily comply
 1181  with this chapter, a rule adopted under this chapter, or a final
 1182  order of the division. An officer or board member who complies
 1183  within 10 days is not subject to a civil penalty. A penalty may
 1184  be imposed on the basis of each day of continuing violation, but
 1185  in no event shall the penalty for any offense exceed $5,000. By
 1186  January 1, 1998, the division shall adopt, by rule, penalty
 1187  guidelines applicable to possible violations or to categories of
 1188  violations of this chapter or rules adopted by the division. The
 1189  guidelines must specify a meaningful range of civil penalties
 1190  for each such violation of the statute and rules and must be
 1191  based upon the harm caused by the violation, the repetition of
 1192  the violation, and upon such other factors deemed relevant by
 1193  the division. For example, the division may consider whether the
 1194  violations were committed by a developer or owner-controlled
 1195  association, the size of the association, and other factors. The
 1196  guidelines must designate the possible mitigating or aggravating
 1197  circumstances that justify a departure from the range of
 1198  penalties provided by the rules. It is the legislative intent
 1199  that minor violations be distinguished from those which endanger
 1200  the health, safety, or welfare of the condominium residents or
 1201  other persons and that such guidelines provide reasonable and
 1202  meaningful notice to the public of likely penalties that may be
 1203  imposed for proscribed conduct. This subsection does not limit
 1204  the ability of the division to informally dispose of
 1205  administrative actions or complaints by stipulation, agreed
 1206  settlement, or consent order. All amounts collected shall be
 1207  deposited with the Chief Financial Officer to the credit of the
 1208  Division of Florida Condominiums, Timeshares, and Mobile Homes
 1209  Trust Fund. If a developer fails to pay the civil penalty and
 1210  the amount deemed to be owed to the association, the division
 1211  shall issue an order directing that such developer cease and
 1212  desist from further operation until such time as the civil
 1213  penalty is paid or may pursue enforcement of the penalty in a
 1214  court of competent jurisdiction. If an association fails to pay
 1215  the civil penalty, the division shall pursue enforcement in a
 1216  court of competent jurisdiction, and the order imposing the
 1217  civil penalty or the cease and desist order will not become
 1218  effective until 20 days after the date of such order. Any action
 1219  commenced by the division shall be brought in the county in
 1220  which the division has its executive offices or in the county
 1221  where the violation occurred.
 1222         7. If a unit owner presents the division with proof that
 1223  the unit owner has requested access to official records in
 1224  writing by certified mail, and that after 10 days the unit owner
 1225  again made the same request for access to official records in
 1226  writing by certified mail, and that more than 10 days has
 1227  elapsed since the second request and the association has still
 1228  failed or refused to provide access to official records as
 1229  required by this chapter, the division shall issue a subpoena
 1230  requiring production of the requested records where the records
 1231  are kept pursuant to s. 718.112.
 1232         8. In addition to subparagraph 6., the division may seek
 1233  the imposition of a civil penalty through the circuit court for
 1234  any violation for which the division may issue a notice to show
 1235  cause under paragraph (r). The civil penalty shall be at least
 1236  $500 but no more than $5,000 for each violation. The court may
 1237  also award to the prevailing party court costs and reasonable
 1238  attorney’s fees and, if the division prevails, may also award
 1239  reasonable costs of investigation.
 1240         9. Notwithstanding subparagraph 6., when the division finds
 1241  that an officer or director has intentionally falsified
 1242  association records with the intent to conceal material facts
 1243  from the division, the board, or unit owners, the division shall
 1244  prohibit the officer or director from acting as an officer or
 1245  director of any condominium or cooperative association for at
 1246  least 1 year.
 1247         10. When the division finds that any person has derived an
 1248  improper personal benefit from a condominium association, the
 1249  division shall order the person to pay restitution to the
 1250  association and shall order the person to pay to the division
 1251  the costs of investigation and prosecution.
 1252         (e) The division may prepare and disseminate a prospectus
 1253  and other information to assist prospective owners, purchasers,
 1254  lessees, and developers of residential condominiums in assessing
 1255  the rights, privileges, and duties pertaining thereto.
 1256         (f) The division has authority to adopt rules pursuant to
 1257  ss. 120.536(1) and 120.54 to implement and enforce the
 1258  provisions of this chapter.
 1259         (g) The division shall establish procedures for providing
 1260  notice to an association and the developer during the period
 1261  where the developer controls the association when the division
 1262  is considering the issuance of a declaratory statement with
 1263  respect to the declaration of condominium or any related
 1264  document governing in such condominium community.
 1265         (h) The division shall furnish each association which pays
 1266  the fees required by paragraph (2)(a) a copy of this act,
 1267  subsequent changes to this act on an annual basis, an amended
 1268  version of this act as it becomes available from the Secretary
 1269  of State’s office on a biennial basis, and the rules adopted
 1270  thereto on an annual basis.
 1271         (i) The division shall annually provide each association
 1272  with a summary of declaratory statements and formal legal
 1273  opinions relating to the operations of condominiums which were
 1274  rendered by the division during the previous year.
 1275         (j) The division shall provide training and educational
 1276  programs for condominium association board members and unit
 1277  owners. The training may, in the division’s discretion, include
 1278  web-based electronic media, and live training and seminars in
 1279  various locations throughout the state. The division shall have
 1280  the authority to review and approve education and training
 1281  programs for board members and unit owners offered by providers
 1282  and shall maintain a current list of approved programs and
 1283  providers and shall make such list available to board members
 1284  and unit owners in a reasonable and cost-effective manner.
 1285         (k) The division shall maintain a toll-free telephone
 1286  number accessible to condominium unit owners.
 1287         (l) The division shall develop a program to certify both
 1288  volunteer and paid mediators to provide mediation of condominium
 1289  disputes. The division shall provide, upon request, a list of
 1290  such mediators to any association, unit owner, or other
 1291  participant in arbitration proceedings under s. 718.1255
 1292  requesting a copy of the list. The division shall include on the
 1293  list of volunteer mediators only the names of persons who have
 1294  received at least 20 hours of training in mediation techniques
 1295  or who have mediated at least 20 disputes. In order to become
 1296  initially certified by the division, paid mediators must be
 1297  certified by the Supreme Court to mediate court cases in county
 1298  or circuit courts. However, the division may adopt, by rule,
 1299  additional factors for the certification of paid mediators,
 1300  which factors must be related to experience, education, or
 1301  background. Any person initially certified as a paid mediator by
 1302  the division must, in order to continue to be certified, comply
 1303  with the factors or requirements imposed by rules adopted by the
 1304  division.
 1305         (m) When a complaint is made, the division shall conduct
 1306  its inquiry with due regard to the interests of the affected
 1307  parties. Within 30 days after receipt of a complaint, the
 1308  division shall acknowledge the complaint in writing and notify
 1309  the complainant whether the complaint is within the jurisdiction
 1310  of the division and whether additional information is needed by
 1311  the division from the complainant. The division shall conduct
 1312  its investigation and shall, within 90 days after receipt of the
 1313  original complaint or of timely requested additional
 1314  information, take action upon the complaint. However, the
 1315  failure to complete the investigation within 90 days does not
 1316  prevent the division from continuing the investigation,
 1317  accepting or considering evidence obtained or received after 90
 1318  days, or taking administrative action if reasonable cause exists
 1319  to believe that a violation of this chapter or a rule of the
 1320  division has occurred. If an investigation is not completed
 1321  within the time limits established in this paragraph, the
 1322  division shall, on a monthly basis, notify the complainant in
 1323  writing of the status of the investigation. When reporting its
 1324  action to the complainant, the division shall inform the
 1325  complainant of any right to a hearing pursuant to ss. 120.569
 1326  and 120.57.
 1327         (n) Condominium association directors, officers, and
 1328  employees; condominium developers; community association
 1329  managers; and community association management firms have an
 1330  ongoing duty to reasonably cooperate with the division in any
 1331  investigation pursuant to this section. The division shall refer
 1332  to local law enforcement authorities any person whom the
 1333  division believes has altered, destroyed, concealed, or removed
 1334  any record, document, or thing required to be kept or maintained
 1335  by this chapter with the purpose to impair its verity or
 1336  availability in the department’s investigation.
 1337         (o) The division may:
 1338         1. Contract with agencies in this state or other
 1339  jurisdictions to perform investigative functions; or
 1340         2. Accept grants-in-aid from any source.
 1341         (p) The division shall cooperate with similar agencies in
 1342  other jurisdictions to establish uniform filing procedures and
 1343  forms, public offering statements, advertising standards, and
 1344  rules and common administrative practices.
 1345         (q) The division shall consider notice to a developer to be
 1346  complete when it is delivered to the developer’s address
 1347  currently on file with the division.
 1348         (r) In addition to its enforcement authority, the division
 1349  may issue a notice to show cause, which shall provide for a
 1350  hearing, upon written request, in accordance with chapter 120.
 1351         (s) The division shall submit to the Governor, the
 1352  President of the Senate, the Speaker of the House of
 1353  Representatives, and the chairs of the legislative
 1354  appropriations committees an annual report that includes, but
 1355  need not be limited to, the number of training programs provided
 1356  for condominium association board members and unit owners, the
 1357  number of complaints received by type, the number and percent of
 1358  complaints acknowledged in writing within 30 days and the number
 1359  and percent of investigations acted upon within 90 days in
 1360  accordance with paragraph (m), and the number of investigations
 1361  exceeding the 90-day requirement. The annual report shall also
 1362  include an evaluation of the division’s core business processes
 1363  and make recommendations for improvements, including statutory
 1364  changes. The report shall be submitted by September 30 following
 1365  the end of the fiscal year.
 1366         (3) The division shall create a booklet of the laws that a
 1367  director must read as required by s. 718.112(2)(p)5. The booklet
 1368  shall be available for free download from the division’s
 1369  website. The division may provide a printed version to directors
 1370  for free or for a cost not to exceed the division’s actual cost
 1371  of production and mailing.
 1372         Section 12. Subsection (9) of section 718.5012, Florida
 1373  Statutes, is amended to read:
 1374         718.5012 Ombudsman; powers and duties.—The ombudsman shall
 1375  have the powers that are necessary to carry out the duties of
 1376  his or her office, including the following specific powers:
 1377         (9) To assist with the resolution of disputes between unit
 1378  owners and the association or between unit owners when the
 1379  dispute is not within the jurisdiction of the division to
 1380  resolve or the division has declined to resolve a dispute.
 1381         Section 13. Section 718.50151, Florida Statutes, is amended
 1382  to read:
 1383         718.50151 Community Association Living Study Council;
 1384  membership functions.—
 1385         (1) There is created the Community Association Living Study
 1386  Council. The council shall consist of seven appointed members.
 1387  Two members shall be appointed by the President of the Senate,
 1388  two members shall be appointed by the Speaker of the House of
 1389  Representatives, and three members shall be appointed by the
 1390  Governor. One member that is appointed by the Governor may
 1391  represent timeshare condominiums. The council shall be created
 1392  as of October 1 every 5 years, commencing October 1, 2008, and
 1393  shall exist for a 6-month term. The director of the division
 1394  shall appoint an ex officio nonvoting member. The Legislature
 1395  intends that the persons appointed represent a cross-section of
 1396  persons experienced interested in community association issues.
 1397  The council shall be located within the division for
 1398  administrative purposes. Members of the council shall serve
 1399  without compensation but are entitled to receive per diem and
 1400  travel expenses pursuant to s. 112.061 while on official
 1401  business.
 1402         (2) The functions of the council shall be to:
 1403         (a) Receive, from the public, input regarding issues of
 1404  concern with respect to community association living, including
 1405  living in condominiums, cooperatives, and homeowners’
 1406  associations. The council shall make recommendations for changes
 1407  in the law related to community association living. The issues
 1408  that the council shall consider include, but are not limited to,
 1409  the rights and responsibilities of the unit owners in relation
 1410  to the rights and responsibilities of the association.
 1411         (b) Review, evaluate, and advise the division concerning
 1412  revisions and adoption of rules affecting condominiums and
 1413  cooperatives.
 1414         (c) Recommend improvements, if needed, in the education
 1415  programs offered by the division.
 1416         (d) Review, evaluate, and advise the Legislature concerning
 1417  revisions and improvements to the laws relating to condominiums,
 1418  cooperatives, and homeowners’ associations.
 1419         (3) The council may elect a chair and vice chair and such
 1420  other officers as it may deem advisable. The council shall meet
 1421  at the call of its chair, at the request of a majority of its
 1422  membership, at the request of the division, or at such times as
 1423  it may prescribe. A majority of the members of the council shall
 1424  constitute a quorum. Council action may be taken by vote of a
 1425  majority of the voting members who are present at a meeting
 1426  where there is a quorum.
 1427         Section 14. Subsections (11) and (26) of section 719.103,
 1428  Florida Statutes, are amended to read:
 1429         719.103 Definitions.—As used in this chapter:
 1430         (11) “Conspicuous type” means bold type in capital letters
 1431  no smaller than the largest type, exclusive of headings, on the
 1432  page on which it appears and, in all cases, at least 10-point
 1433  type. When conspicuous type is required, it must be separated on
 1434  all sides from other type and print. Conspicuous type may be
 1435  used in a contract for purchase and sale of a unit, a lease of a
 1436  unit for more than 5 years, or a prospectus or offering circular
 1437  only when required by law.
 1438         (26) “Unit owner,or “owner of a unit,or “shareholder”
 1439  means the person holding a share in the cooperative association
 1440  and a lease or other muniment of title or possession of a unit
 1441  that is granted by the association as the owner of the
 1442  cooperative property.
 1443         Section 15. Section 719.104, Florida Statutes, is amended
 1444  to read:
 1445         719.104 The association Cooperatives; access to units;
 1446  records; financial reports; assessments; purchase of leases.—
 1447         (1) RIGHT OF ACCESS TO UNITS.—The association has the
 1448  irrevocable right of access to each unit from time to time
 1449  during reasonable hours when necessary for the maintenance,
 1450  repair, or replacement of any structural components of the
 1451  building or of any mechanical, electrical, or plumbing elements
 1452  necessary to prevent damage to the building or to another unit.
 1453  Except in cases of emergency, the association must give the
 1454  shareholder advance written notice of not less than 24 hours of
 1455  its intent to access the unit and such access must be by two
 1456  persons, one of whom must be a member of the board of
 1457  administration or a manager or employee of the association and
 1458  one of whom must be an authorized representative of the
 1459  association. The identity of the authorized representative
 1460  seeking access to the unit must be provided to the unit owner
 1461  prior to entering the unit.
 1462         (2) OFFICIAL RECORDS.—
 1463         (a) From the inception of the association, the association
 1464  shall maintain a copy of each of the following, where
 1465  applicable, which shall constitute the official records of the
 1466  association:
 1467         1. The plans, permits, warranties, and other items provided
 1468  by the developer pursuant to s. 719.301(4).
 1469         2. A photocopy of the cooperative documents.
 1470         3. A copy of the current rules of the association.
 1471         4. A book or books containing the minutes of all meetings
 1472  of the association, of the board of directors, and of the
 1473  shareholders unit owners, which minutes shall be retained for a
 1474  period of not less than 7 years.
 1475         5. A current roster of all shareholders unit owners and
 1476  their mailing addresses, unit identifications, voting
 1477  certifications, and, if known, telephone numbers. The
 1478  association shall also maintain the electronic mailing addresses
 1479  and the numbers designated by shareholders unit owners for
 1480  receiving notice sent by electronic transmission of those
 1481  shareholders unit owners consenting to receive notice by
 1482  electronic transmission. The electronic mailing addresses and
 1483  numbers provided by shareholders unit owners to receive notice
 1484  by electronic transmission shall be removed from association
 1485  records when consent to receive notice by electronic
 1486  transmission is revoked. However, the association is not liable
 1487  for an erroneous disclosure of the electronic mail address or
 1488  the number for receiving electronic transmission of notices.
 1489         6. All current insurance policies of the association.
 1490         7. A current copy of any management agreement, lease, or
 1491  other contract to which the association is a party or under
 1492  which the association or the shareholders unit owners have an
 1493  obligation or responsibility.
 1494         8. Bills of sale or transfer for all property owned by the
 1495  association.
 1496         9. Accounting records for the association and separate
 1497  accounting records for each unit it operates, according to good
 1498  accounting practices. Any person who knowingly or intentionally
 1499  defaces or destroys accounting records required to be maintained
 1500  by this chapter, or who knowingly or intentionally fails to
 1501  create or maintain accounting records required to be maintained
 1502  by this chapter, is personally subject to a civil penalty
 1503  pursuant to s. 719.501(1)(d). All accounting records shall be
 1504  maintained for a period of not less than 7 years. The accounting
 1505  records shall include, but not be limited to:
 1506         a. Accurate, itemized, and detailed records of all receipts
 1507  and expenditures.
 1508         b. A current account and a monthly, bimonthly, or quarterly
 1509  statement of the account for each unit designating the name of
 1510  the shareholder unit owner, the due date and amount of each
 1511  assessment, the amount paid upon the account, and the balance
 1512  due.
 1513         c. All audits, reviews, accounting statements, and
 1514  financial reports of the association.
 1515         d. All contracts for work to be performed. Bids for work to
 1516  be performed shall also be considered official records and shall
 1517  be maintained for a period of 1 year.
 1518         10. Ballots, sign-in sheets, voting proxies, and all other
 1519  papers relating to voting by shareholders unit owners, which
 1520  shall be maintained for a period of 1 year after the date of the
 1521  election, vote, or meeting to which the document relates.
 1522         11. All rental records where the association is acting as
 1523  agent for the rental of units.
 1524         12. A copy of the current question and answer sheet as
 1525  described in s. 719.504.
 1526         13. All other records of the association not specifically
 1527  included in the foregoing which are related to the operation of
 1528  the association.
 1529         (b) The official records of the association shall be
 1530  maintained within the state for at least 7 years. The records of
 1531  the association shall be made available to a shareholder unit
 1532  owner within 5 working days after receipt of written request by
 1533  the board or its designee. This paragraph may be complied with
 1534  by having a copy of the official records available for
 1535  inspection or copying on the cooperative property.
 1536         (c) The official records of the association shall be open
 1537  to inspection by any association member or the authorized
 1538  representative of such member at all reasonable times. Failure
 1539  to permit inspection of the association records as provided
 1540  herein entitles any person prevailing in an enforcement action
 1541  to recover reasonable attorney’s fees from the person in control
 1542  of the records who, directly or indirectly, knowingly denies
 1543  access to the records for inspection. The right to inspect the
 1544  records includes the right to make or obtain copies, at the
 1545  reasonable expense, if any, of the association member. The
 1546  association may adopt reasonable rules regarding the frequency,
 1547  time, location, notice, and manner of record inspections and
 1548  copying. The failure of an association to provide the records
 1549  within 10 working days after receipt of a written request
 1550  creates a rebuttable presumption that the association willfully
 1551  failed to comply with this paragraph. A shareholder unit owner
 1552  who is denied access to official records is entitled to the
 1553  actual damages or minimum damages for the association’s willful
 1554  failure to comply with this paragraph. The minimum damages shall
 1555  be $50 per calendar day up to 10 days, the calculation to begin
 1556  on the 11th day after receipt of the written request. Any person
 1557  who knowingly or intentionally defaces or destroys records that
 1558  are required by this chapter, or knowingly or intentionally
 1559  fails to create or maintain records that are required by this
 1560  chapter, is personally subject to a civil penalty pursuant to s.
 1561  719.501(1)(d). The association shall maintain an adequate number
 1562  of copies of the cooperative documents declaration, articles of
 1563  incorporation, bylaws, and rules, and all amendments to each of
 1564  the foregoing, as well as the question and answer sheet provided
 1565  for in s. 719.504, on the cooperative property to ensure their
 1566  availability to shareholders unit owners and prospective
 1567  purchasers, and may charge its actual costs for preparing and
 1568  furnishing these documents to those requesting the same.
 1569  Notwithstanding the provisions of this paragraph, the following
 1570  records shall not be accessible to shareholders unit owners:
 1571         1. A record that was prepared by an association attorney or
 1572  prepared at the attorney’s express direction; that reflects a
 1573  mental impression, conclusion, litigation strategy, or legal
 1574  theory of the attorney or the association; or that was prepared
 1575  exclusively for civil or criminal litigation or for adversarial
 1576  administrative proceedings or in anticipation of imminent civil
 1577  or criminal litigation or imminent adversarial administrative
 1578  proceedings, until the conclusion of the litigation or
 1579  adversarial administrative proceedings.
 1580         2. Information obtained by an association in connection
 1581  with the approval of the lease, sale, or other transfer of a
 1582  unit.
 1583         3. Medical records of shareholders unit owners.
 1584         4. Social security numbers, driver’s license numbers,
 1585  credit card numbers, and other personal identifying information
 1586  of any person.
 1587         (d) The association or its authorized agent shall not be
 1588  required to provide a prospective purchaser or lienholder with
 1589  information about the cooperative or association other than the
 1590  information or documents required by this chapter to be made
 1591  available or disclosed. The association or its authorized agent
 1592  shall be entitled to charge a reasonable fee to the prospective
 1593  purchaser, lienholder, or the current shareholder unit owner for
 1594  its time in providing good faith responses to requests for
 1595  information by or on behalf of a prospective purchaser or
 1596  lienholder, other than that required by law, provided that such
 1597  fee shall not exceed $150 plus the reasonable cost of
 1598  photocopying and any attorney’s fees incurred by the association
 1599  in connection with the association’s response. An association
 1600  and its authorized agent are not liable for providing such
 1601  information in good faith pursuant to a written request if the
 1602  person providing the information includes a written statement in
 1603  substantially the following form: “The responses herein are made
 1604  in good faith and to the best of my ability as to their
 1605  accuracy.”
 1606         (3) INSURANCE.—The association shall use its best efforts
 1607  to obtain and maintain adequate insurance to protect the
 1608  association property. The association may also obtain and
 1609  maintain liability insurance for directors and officers,
 1610  insurance for the benefit of association employees, and flood
 1611  insurance. A copy of each policy of insurance in effect shall be
 1612  made available for inspection by unit owners at reasonable
 1613  times.
 1614         (a) Windstorm insurance coverage for a group of no fewer
 1615  than three communities created and operating under chapter 718,
 1616  this chapter, chapter 720, or chapter 721 may be obtained and
 1617  maintained for the communities if the insurance coverage is
 1618  sufficient to cover an amount equal to the probable maximum loss
 1619  for the communities for a 250-year windstorm event. Such
 1620  probable maximum loss must be determined through the use of a
 1621  competent model that has been accepted by the Florida Commission
 1622  on Hurricane Loss Projection Methodology. Such insurance
 1623  coverage is deemed adequate windstorm insurance for the purposes
 1624  of this section.
 1625         (b) An association or group of associations may self-insure
 1626  against claims against the association, the association
 1627  property, and the cooperative property required to be insured by
 1628  an association, upon compliance with the applicable provisions
 1629  of ss. 624.460-624.488, which shall be considered adequate
 1630  insurance for purposes of this section.
 1631         (4) FINANCIAL REPORTING REPORT.—Within 90 days after the
 1632  end of the fiscal year, or annually by a date provided in the
 1633  bylaws, the association shall prepare and complete, or by
 1634  contract have prepared and completed, a financial report for the
 1635  preceding fiscal year. Within 21 days after the final financial
 1636  report is completed by the association or received from the
 1637  third party, but not later than 120 days after the end of the
 1638  fiscal year or other date as provided in the bylaws, the
 1639  association shall mail to each shareholder at the address last
 1640  furnished to the association by the shareholder, or hand deliver
 1641  to each shareholder, a copy of the financial report or a notice
 1642  that a copy of the financial report will be mailed or hand
 1643  delivered to the shareholder, without charge, upon receipt of a
 1644  written request from the shareholder. The division shall adopt
 1645  rules setting forth uniform accounting principles and standards
 1646  to be used by all associations. The rules shall include, but not
 1647  be limited to, uniform accounting principles and standards for
 1648  stating the disclosure of at least a summary of the reserves,
 1649  including information as to whether such reserves are being
 1650  funded at a level sufficient to prevent the need for a special
 1651  assessment and, if not, the amount of assessments necessary to
 1652  bring the reserves up to the level necessary to avoid a special
 1653  assessment. The person preparing the financial reports shall be
 1654  entitled to rely on an inspection report prepared for or
 1655  provided to the association to meet the fiscal and fiduciary
 1656  standards of this chapter. In adopting such rules, the division
 1657  shall consider the number of members and annual revenues of an
 1658  association. Financial reports shall be prepared as follows:
 1659         (a) An association that meets the criteria of this
 1660  paragraph shall prepare or cause to be prepared a complete set
 1661  of financial statements in accordance with generally accepted
 1662  accounting principles. The financial statements shall be based
 1663  upon the association’s total annual revenues, as follows:
 1664         1. An association with total annual revenues of $100,000 or
 1665  more, but less than $200,000, shall prepare compiled financial
 1666  statements.
 1667         2. An association with total annual revenues of at least
 1668  $200,000, but less than $400,000, shall prepare reviewed
 1669  financial statements.
 1670         3. An association with total annual revenues of $400,000 or
 1671  more shall prepare audited financial statements.
 1672         (b)1. An association with total annual revenues of less
 1673  than $100,000 shall prepare a report of cash receipts and
 1674  expenditures.
 1675         2. An association that operates fewer than 50 units,
 1676  regardless of the association’s annual revenues, shall prepare a
 1677  report of cash receipts and expenditures in lieu of financial
 1678  statements required by paragraph (a).
 1679         3. A report of cash receipts and disbursements must
 1680  disclose the amount of receipts by accounts and receipt
 1681  classifications and the amount of expenses by accounts and
 1682  expense classifications, including, but not limited to, the
 1683  following, as applicable: costs for security, professional and
 1684  management fees and expenses, taxes, costs for recreation
 1685  facilities, expenses for refuse collection and utility services,
 1686  expenses for lawn care, costs for building maintenance and
 1687  repair, insurance costs, administration and salary expenses, and
 1688  reserves accumulated and expended for capital expenditures,
 1689  deferred maintenance, and any other category for which the
 1690  association maintains reserves.
 1691         (c) An association may prepare or cause to be prepared,
 1692  without a meeting of or approval by the shareholders:
 1693         1. Compiled, reviewed, or audited financial statements, if
 1694  the association is required to prepare a report of cash receipts
 1695  and expenditures;
 1696         2. Reviewed or audited financial statements, if the
 1697  association is required to prepare compiled financial
 1698  statements; or
 1699         3. Audited financial statements, if the association is
 1700  required to prepare reviewed financial statements.
 1701         (d) If approved by a majority of the voting interests
 1702  present at a properly called meeting of the association, an
 1703  association may prepare or cause to be prepared:
 1704         1. A report of cash receipts and expenditures in lieu of a
 1705  compiled, reviewed, or audited financial statement;
 1706         2. A report of cash receipts and expenditures or a compiled
 1707  financial statement in lieu of a reviewed or audited financial
 1708  statement; or
 1709         3. A report of cash receipts and expenditures, a compiled
 1710  financial statement, or a reviewed financial statement in lieu
 1711  of an audited financial statement.
 1712  
 1713  Such meeting and approval must occur prior to the end of the
 1714  fiscal year and is effective only for the fiscal year in which
 1715  the vote is taken, except that the approval also may be
 1716  effective for the following fiscal year. With respect to an
 1717  association to which the developer has not turned over control
 1718  of the association, all shareholders, including the developer,
 1719  may vote on issues related to the preparation of financial
 1720  reports for the first 2 fiscal years of the association’s
 1721  operation, beginning with the fiscal year in which the
 1722  cooperative documents are recorded. Thereafter, all shareholders
 1723  except the developer may vote on such issues until control is
 1724  turned over to the association by the developer. Any audit or
 1725  review prepared under this section shall be paid for by the
 1726  developer if done prior to turnover of control of the
 1727  association. An association may not waive the financial
 1728  reporting requirements of this subsection for more than 3
 1729  consecutive years.
 1730         (a) Within 60 days following the end of the fiscal or
 1731  calendar year or annually on such date as is otherwise provided
 1732  in the bylaws of the association, the board of administration of
 1733  the association shall mail or furnish by personal delivery to
 1734  each unit owner a complete financial report of actual receipts
 1735  and expenditures for the previous 12 months, or a complete set
 1736  of financial statements for the preceding fiscal year prepared
 1737  in accordance with generally accepted accounting procedures. The
 1738  report shall show the amounts of receipts by accounts and
 1739  receipt classifications and shall show the amounts of expenses
 1740  by accounts and expense classifications including, if
 1741  applicable, but not limited to, the following:
 1742         1. Costs for security;
 1743         2. Professional and management fees and expenses;
 1744         3. Taxes;
 1745         4. Costs for recreation facilities;
 1746         5. Expenses for refuse collection and utility services;
 1747         6. Expenses for lawn care;
 1748         7. Costs for building maintenance and repair;
 1749         8. Insurance costs;
 1750         9. Administrative and salary expenses; and
 1751         10. Reserves for capital expenditures, deferred
 1752  maintenance, and any other category for which the association
 1753  maintains a reserve account or accounts.
 1754         (b) The division shall adopt rules that may require that
 1755  the association deliver to the unit owners, in lieu of the
 1756  financial report required by this section, a complete set of
 1757  financial statements for the preceding fiscal year. The
 1758  financial statements shall be delivered within 90 days following
 1759  the end of the previous fiscal year or annually on such other
 1760  date as provided in the bylaws. The rules of the division may
 1761  require that the financial statements be compiled, reviewed, or
 1762  audited, and the rules shall take into consideration the
 1763  criteria set forth in s. 719.501(1)(j). The requirement to have
 1764  the financial statements compiled, reviewed, or audited does not
 1765  apply to associations if a majority of the voting interests of
 1766  the association present at a duly called meeting of the
 1767  association have determined for a fiscal year to waive this
 1768  requirement. In an association in which turnover of control by
 1769  the developer has not occurred, the developer may vote to waive
 1770  the audit requirement for the first 2 years of the operation of
 1771  the association, after which time waiver of an applicable audit
 1772  requirement shall be by a majority of voting interests other
 1773  than the developer. The meeting shall be held prior to the end
 1774  of the fiscal year, and the waiver shall be effective for only
 1775  one fiscal year. This subsection does not apply to a cooperative
 1776  that consists of 50 or fewer units.
 1777         (5) ASSESSMENTS.—The association has the power to make and
 1778  collect assessments and to lease, maintain, repair, and replace
 1779  the common areas. However, the association may not charge a use
 1780  fee against a shareholder the unit owner for the use of common
 1781  areas unless otherwise provided for in the cooperative documents
 1782  or by a majority vote of the association or unless the charges
 1783  relate to expenses incurred by a shareholder an owner having
 1784  exclusive use of common areas.
 1785         (6) PURCHASE OF LEASES.—The association has the power to
 1786  purchase any land or recreation lease upon the approval of such
 1787  voting interest as is required by the cooperative documents. If
 1788  the cooperative documents make no provision for acquisition of
 1789  the land or recreational lease, the vote required is that
 1790  required to amend the cooperative documents to permit the
 1791  acquisition.
 1792         (7) COMMINGLING.—All funds shall be maintained separately
 1793  in the association’s name. Reserve and operating funds of the
 1794  association shall not be commingled unless combined for
 1795  investment purposes. This subsection is not meant to prohibit
 1796  prudent investment of association funds even if combined with
 1797  operating or other reserve funds of the same association, but
 1798  such funds must be accounted for separately, and the combined
 1799  account balance may not, at any time, be less than the amount
 1800  identified as reserve funds in the combined account. No manager
 1801  or business entity required to be licensed or registered under
 1802  s. 468.432, or an agent, employee, officer, or director of a
 1803  cooperative association may commingle any association funds with
 1804  his or her own funds or with the funds of any other cooperative
 1805  association or community association as defined in s. 468.431.
 1806         (8) CORPORATE ENTITY.—
 1807         (a) The operation of the cooperative shall be by the
 1808  association, which must be a Florida corporation not for profit.
 1809  The shareholders shall be members of the association. The
 1810  officers and directors of the association have a fiduciary
 1811  relationship to the shareholders unit owners. It is the intent
 1812  of the Legislature that nothing in this paragraph shall be
 1813  construed as providing for or removing a requirement of a
 1814  fiduciary relationship between any manager employed by the
 1815  association and the shareholders. An officer, director, or
 1816  manager may not solicit, offer to accept, or accept any thing or
 1817  service of value for which consideration has not been provided
 1818  for his or her own benefit or that of his or her immediate
 1819  family, from any person providing or proposing to provide goods
 1820  or services to the association. Any such officer, director, or
 1821  manager who knowingly solicits, offers to accept, or accepts any
 1822  thing or service of value is subject to a civil penalty pursuant
 1823  to s. 719.501(1)(d). However, this paragraph does not prohibit
 1824  an officer, director, or manager from accepting services or
 1825  items received in connection with trade fairs or education
 1826  programs.
 1827         (b) A director of the association who is present at a
 1828  meeting of its board at which action on any corporate matter is
 1829  taken is presumed to have assented to the action taken unless
 1830  the director votes against such action or abstains from voting
 1831  in respect thereto because of an asserted conflict of interest.
 1832  A director of the association who abstains from voting on any
 1833  action taken on any corporate matter shall be presumed to have
 1834  taken no position with regard to the action. Directors may not
 1835  vote by proxy or by secret ballot at board meetings, except that
 1836  officers may be elected by secret ballot. A vote or abstention
 1837  for each member present shall be recorded in the minutes.
 1838         (c) A shareholder unit owner does not have any authority to
 1839  act for the association by reason of being a shareholder unit
 1840  owner.
 1841         (d) As required by s. 617.0830, an officer, director, or
 1842  agent shall discharge his or her duties in good faith, with the
 1843  care an ordinarily prudent person in a like position would
 1844  exercise under similar circumstances, and in a manner he or she
 1845  reasonably believes to be in the interests of the association.
 1846  An officer, director, or agent shall be liable for monetary
 1847  damages as provided in s. 617.0834 if the officer, director, or
 1848  agent breached or failed to perform his or her duties and the
 1849  breach of, or failure to perform, those duties constitutes a
 1850  violation of criminal law as provided in s. 617.0834;
 1851  constitutes a transaction from which the officer or director
 1852  derived an improper personal benefit, either directly or
 1853  indirectly; or constitutes recklessness or an act or omission
 1854  that was in bad faith, with malicious purpose, or in a manner
 1855  exhibiting wanton and willful disregard of human rights, safety,
 1856  or property.
 1857         (9) EASEMENTS.—Unless prohibited by the cooperative
 1858  documents, the board of administration has the authority,
 1859  without the joinder of any shareholder unit owner, to grant,
 1860  modify, or move any easement, if the easement constitutes part
 1861  of or crosses the common areas or association property. This
 1862  subsection does not authorize the board of administration to
 1863  modify, move, or vacate any easement created in whole or in part
 1864  for the use or benefit of anyone other than the shareholders
 1865  unit owners, or crossing the property of anyone other than the
 1866  shareholders unit owners, without the consent or approval of
 1867  those other persons having the use or benefit of the easement,
 1868  as required by law or by the instrument creating the easement.
 1869         (10) POWERS AND DUTIES.—The powers and duties of the
 1870  association include those set forth in this section and, except
 1871  as expressly limited or restricted in this chapter, those set
 1872  forth in the articles of incorporation and bylaws and chapters
 1873  607 and 617, as applicable.
 1874         (11) NOTIFICATION OF DIVISION.—When the board of directors
 1875  intends to dissolve or merge the cooperative association, the
 1876  board shall so notify the division before taking any action to
 1877  dissolve or merge the cooperative association.
 1878         (12) POWER TO MANAGE COOPERATIVE PROPERTY AND TO CONTRACT,
 1879  SUE, BE SUED, AND BORROW MONEY.—
 1880         (a) The association may contract, sue, or be sued with
 1881  respect to the exercise or nonexercise of its powers. For these
 1882  purposes, the powers of the association include, but are not
 1883  limited to, the maintenance, management, and operation of the
 1884  cooperative property.
 1885         (b) After control of the association is obtained by
 1886  shareholders other than the developer, the association may
 1887  institute, maintain, settle, or appeal actions or hearings in
 1888  its name on behalf of all shareholders concerning matters of
 1889  common interest to most or all shareholders, including, but not
 1890  limited to, the common areas; the roof and structural components
 1891  of a building or other improvements; mechanical, electrical, and
 1892  plumbing elements serving an improvement or a building;
 1893  representations of the developer pertaining to any existing or
 1894  proposed commonly used facilities; and protests of ad valorem
 1895  taxes on commonly used facilities and units; and the association
 1896  may defend actions in eminent domain or bring inverse
 1897  condemnation actions.
 1898         (c) If the association has the authority to maintain a
 1899  class action, the association may be joined in an action as
 1900  representative of that class with reference to litigation and
 1901  disputes involving the matters for which the association could
 1902  bring a class action. Nothing in this paragraph limits any
 1903  statutory or common-law right of any individual shareholder or
 1904  class of shareholders to bring any action without participation
 1905  by the association which may otherwise be available.
 1906         (13) TITLE TO PROPERTY.—
 1907         (a) The association has the power to acquire title to
 1908  property or otherwise hold, convey, lease, and mortgage
 1909  association property for the use and benefit of its
 1910  shareholders. The power to acquire personal property shall be
 1911  exercised by the board of directors. Except as otherwise
 1912  provided in subsections (6) and (14), an association may not
 1913  acquire, convey, lease, or mortgage association real property
 1914  except in the manner provided in the cooperative documents, and
 1915  if the cooperative documents do not specify the procedure, then
 1916  approval of 75 percent of the total voting interests shall be
 1917  required.
 1918         (b) Subject to the provisions of s. 719.106(1)(m), the
 1919  association, through its board, has the limited power to convey
 1920  a portion of the common areas to a condemning authority for the
 1921  purposes of providing utility easements, right-of-way expansion,
 1922  or other public purposes, whether negotiated or as a result of
 1923  eminent domain proceedings.
 1924         (14) PURCHASE OF UNITS.—The association has the power,
 1925  unless prohibited by the cooperative documents, to purchase
 1926  units in the cooperative and to acquire and hold, lease,
 1927  mortgage, and convey the units. There shall be no limitation on
 1928  the association’s right to purchase a unit at a foreclosure sale
 1929  resulting from the association’s foreclosure of its lien for
 1930  unpaid assessments or to take title by deed in lieu of
 1931  foreclosure.
 1932         (15) MEETINGS.—Regular meetings of the board of directors
 1933  shall be held at such time and place as provided in the bylaws
 1934  until the first regular meeting of the board held on or after
 1935  October 1, 2010. Thereafter, the location and time for regular
 1936  meetings of the board shall be determined by a majority vote of
 1937  the shareholders at the next regular meeting held on or after
 1938  October 1, 2010. Once the time and place for regular meetings of
 1939  the board have been selected, neither may be changed unless
 1940  approved by a majority vote of the shareholders. Regular
 1941  meetings of the board of directors held on weekdays may be held
 1942  no earlier than 6 p.m. local time.
 1943         (16) LIMIT ON EXPENDITURES AND CONTRIBUTIONS.—It shall be
 1944  unlawful for an association to make any expenditure of
 1945  association funds or to make any in-kind contribution of
 1946  association assets which does not relate to the purposes for
 1947  which the association is organized.
 1948         (a) The association shall not make any contribution to a
 1949  campaign or committee of continuous existence governed by
 1950  chapter 105 or chapter 106.
 1951         (b) The association shall not make any contribution to a
 1952  charitable organization if the association does not receive a
 1953  direct benefit from the organization.
 1954         (c) Members of the board of administration shall be jointly
 1955  and severely liable to reimburse the association for any
 1956  contribution, expenditure, or in-kind contribution made in
 1957  violation of this subsection.
 1958         Section 16. Section 719.106, Florida Statutes, is amended
 1959  to read:
 1960         719.106 Bylaws; cooperative ownership.—
 1961         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1962  documents shall provide for the following, and if they do not,
 1963  they shall be deemed to include the following:
 1964         (a) Administration.—
 1965         1. The form of administration of the association shall be
 1966  described, indicating the titles of the officers and board of
 1967  administration and specifying the powers, duties, manner of
 1968  selection and removal, and compensation, if any, of officers and
 1969  board members. In the absence of such a provision, the board of
 1970  administration shall be composed of five members, except in the
 1971  case of cooperatives having five or fewer units, in which case
 1972  in not-for-profit corporations, the board shall consist of not
 1973  fewer than three members. In the absence of provisions to the
 1974  contrary, the board of administration shall have a president, a
 1975  secretary, and a treasurer, who shall perform the duties of
 1976  those offices customarily performed by officers of corporations.
 1977  Unless prohibited in the bylaws, the board of administration may
 1978  appoint other officers and grant them those duties it deems
 1979  appropriate. Unless otherwise provided in the bylaws, the
 1980  officers shall serve without compensation and at the pleasure of
 1981  the board. Unless otherwise provided in the bylaws, the members
 1982  of the board shall serve without compensation.
 1983         2. When a shareholder unit owner files a written inquiry by
 1984  certified mail with the board of administration, the board shall
 1985  respond in writing to the shareholder unit owner within 30 days
 1986  of receipt of the inquiry. The board’s response shall either
 1987  give a substantive response to the inquirer, notify the inquirer
 1988  that a legal opinion has been requested, or notify the inquirer
 1989  that advice has been requested from the division. If the board
 1990  requests advice from the division, the board shall, within 10
 1991  days of its receipt of the advice, provide in writing a
 1992  substantive response to the inquirer. If a legal opinion is
 1993  requested, the board shall, within 60 days after the receipt of
 1994  the inquiry, provide in writing a substantive response to the
 1995  inquirer. The failure to provide a substantive response to the
 1996  inquirer as provided herein precludes the board from recovering
 1997  attorney’s fees and costs in any subsequent litigation,
 1998  administrative proceeding, or arbitration arising out of the
 1999  inquiry. The association may, through its board of
 2000  administration, adopt reasonable rules and regulations regarding
 2001  the frequency and manner of responding to the shareholders’ unit
 2002  owners’ inquiries, one of which may be that the association is
 2003  obligated to respond to only one written inquiry per unit in any
 2004  given 30-day period. In such case, any additional inquiry or
 2005  inquiries must be responded to in the subsequent 30-day period,
 2006  or periods, as applicable.
 2007         (b) Quorum; voting requirements; proxies.—
 2008         1. Unless otherwise provided in the bylaws, the percentage
 2009  of voting interests required to constitute a quorum at a meeting
 2010  of the members shall be a majority of voting interests, and
 2011  decisions shall be made by owners of a majority of the voting
 2012  interests. Unless otherwise provided in this chapter, or in the
 2013  articles of incorporation, bylaws, or other cooperative
 2014  documents, and except as provided in subparagraph (d)1.,
 2015  decisions shall be made by owners of a majority of the voting
 2016  interests represented at a meeting at which a quorum is present.
 2017         2. Except as specifically otherwise provided herein, after
 2018  January 1, 1992, shareholders unit owners may not vote by
 2019  general proxy, but may vote by limited proxies substantially
 2020  conforming to a limited proxy form adopted by the division.
 2021  Limited proxies and general proxies may be used to establish a
 2022  quorum. Limited proxies shall be used for votes taken to waive
 2023  or reduce reserves in accordance with subparagraph (j)2., for
 2024  votes taken to waive the financial reporting requirements of s.
 2025  719.104(4)(b), for votes taken to amend the articles of
 2026  incorporation or bylaws pursuant to this section, and for any
 2027  other matter for which this chapter requires or permits a vote
 2028  of the shareholders unit owners. Except as provided in paragraph
 2029  (d), after January 1, 1992, no proxy, limited or general, shall
 2030  be used in the election of board members. General proxies may be
 2031  used for other matters for which limited proxies are not
 2032  required, and may also be used in voting for nonsubstantive
 2033  changes to items for which a limited proxy is required and
 2034  given. Notwithstanding the provisions of this section,
 2035  shareholders unit owners may vote in person at shareholder unit
 2036  owner meetings. Nothing contained herein shall limit the use of
 2037  general proxies or require the use of limited proxies or require
 2038  the use of limited proxies for any agenda item or election at
 2039  any meeting of a timeshare cooperative.
 2040         3. Any proxy given shall be effective only for the specific
 2041  meeting for which originally given and any lawfully adjourned
 2042  meetings thereof. In no event shall any proxy be valid for a
 2043  period longer than 90 days after the date of the first meeting
 2044  for which it was given. Every proxy shall be revocable at any
 2045  time at the pleasure of the shareholder unit owner executing it.
 2046         4. A member of the board of administration or a committee
 2047  may submit in writing his or her agreement or disagreement with
 2048  any action taken at a meeting that the member did not attend.
 2049  This agreement or disagreement may not be used as a vote for or
 2050  against the action taken and may not be used for the purposes of
 2051  creating a quorum.
 2052         5. When some or all of the board or committee members meet
 2053  by telephone conference, those board or committee members
 2054  attending by telephone conference may be counted toward
 2055  obtaining a quorum and may vote by telephone. A telephone
 2056  speaker shall be utilized so that the conversation of those
 2057  board or committee members attending by telephone may be heard
 2058  by the board or committee members attending in person, as well
 2059  as by shareholders unit owners present at a meeting.
 2060         (c) Board of administration meetings.—Meetings of the board
 2061  of administration at which a quorum of the members is present
 2062  shall be open to all shareholders unit owners. Any shareholder
 2063  unit owner may tape record or videotape meetings of the board of
 2064  administration. The right to attend such meetings includes the
 2065  right to speak at such meetings with reference to all designated
 2066  agenda items. The division shall adopt reasonable rules
 2067  governing the tape recording and videotaping of the meeting. The
 2068  association may adopt reasonable written rules governing the
 2069  frequency, duration, and manner of shareholder unit owner
 2070  statements. Adequate notice of all meetings shall be posted in a
 2071  conspicuous place upon the cooperative property at least 48
 2072  continuous hours preceding the meeting, except in an emergency.
 2073  If 20 percent of the voting interests petition the board to
 2074  address an item of business, the board shall at its next regular
 2075  board meeting or at a special meeting of the board, but not
 2076  later than 60 days after the receipt of the petition, place the
 2077  item on the agenda. Any item not included on the notice may be
 2078  taken up on an emergency basis by at least a majority plus one
 2079  of the members of the board. Such emergency action shall be
 2080  noticed and ratified at the next regular meeting of the board.
 2081  However, written notice of any meeting at which nonemergency
 2082  special assessments, or at which amendment to rules regarding
 2083  unit use, will be considered shall be mailed, delivered, or
 2084  electronically transmitted to the shareholders unit owners and
 2085  posted conspicuously on the cooperative property not less than
 2086  14 days prior to the meeting. Evidence of compliance with this
 2087  14-day notice shall be made by an affidavit executed by the
 2088  person providing the notice and filed among the official records
 2089  of the association. Upon notice to the shareholders unit owners,
 2090  the board shall by duly adopted rule designate a specific
 2091  location on the cooperative property upon which all notices of
 2092  board meetings shall be posted. In lieu of or in addition to the
 2093  physical posting of notice of any meeting of the board of
 2094  administration on the cooperative property, the association may,
 2095  by reasonable rule, adopt a procedure for conspicuously posting
 2096  and repeatedly broadcasting the notice and the agenda on a
 2097  closed-circuit cable television system serving the cooperative
 2098  association. However, if broadcast notice is used in lieu of a
 2099  notice posted physically on the cooperative property, the notice
 2100  and agenda must be broadcast at least four times every broadcast
 2101  hour of each day that a posted notice is otherwise required
 2102  under this section. When broadcast notice is provided, the
 2103  notice and agenda must be broadcast in a manner and for a
 2104  sufficient continuous length of time so as to allow an average
 2105  reader to observe the notice and read and comprehend the entire
 2106  content of the notice and the agenda. Notice of any meeting in
 2107  which regular or special assessments against shareholders unit
 2108  owners are to be considered for any reason shall specifically
 2109  state contain a statement that assessments will be considered
 2110  and the nature of, the actual cost of, and a description of the
 2111  purposes for any such assessments. Meetings of a committee to
 2112  take final action on behalf of the board or to make
 2113  recommendations to the board regarding the association budget
 2114  are subject to the provisions of this paragraph. Meetings of a
 2115  committee that does not take final action on behalf of the board
 2116  or make recommendations to the board regarding the association
 2117  budget are subject to the provisions of this section, unless
 2118  those meetings are exempted from this section by the bylaws of
 2119  the association. Notwithstanding any other law to the contrary,
 2120  the requirement that board meetings and committee meetings be
 2121  open to the shareholders unit owners is inapplicable to meetings
 2122  between the board or a committee and the association’s attorney,
 2123  with respect to proposed or pending litigation, when the meeting
 2124  is held for the purpose of seeking or rendering legal advice.
 2125         (d) Shareholder meetings.—There shall be an annual meeting
 2126  of the shareholders held at the location provided in the
 2127  association bylaws and, if the bylaws are silent as to the
 2128  location, the meeting shall be held within 45 miles of the
 2129  cooperative property. However, such distance requirement does
 2130  not apply to an association governing a timeshare cooperative.
 2131  All members of the board of administration shall be elected at
 2132  the first annual meeting after July 1, 2010, and annually
 2133  thereafter, except that if unless the bylaws provide for
 2134  staggered election terms of no more than 2 years, the
 2135  association board members may serve 2-year staggered terms. If
 2136  no person is interested in or demonstrates an intention to run
 2137  for the position of a board member whose term has expired, the
 2138  board member whose term has expired shall be automatically
 2139  reappointed to the board of administration and need not stand
 2140  for reelection or for their election at another meeting. Any
 2141  shareholder unit owner desiring to be a candidate for board
 2142  membership must shall comply with subparagraph 1. The bylaws
 2143  shall provide the method for calling meetings, including annual
 2144  meetings. Written notice, which notice shall incorporate an
 2145  identification of agenda items, shall be given to each
 2146  shareholder unit owner at least 14 days prior to the annual
 2147  meeting and shall be posted in a conspicuous place on the
 2148  cooperative property at least 14 continuous days preceding the
 2149  annual meeting. Upon notice to the shareholders unit owners, the
 2150  board shall by duly adopted rule designate a specific location
 2151  on the cooperative property upon which all notice of shareholder
 2152  unit owner meetings shall be posted. In lieu of or in addition
 2153  to the physical posting of notice of any meeting of the
 2154  shareholders on the cooperative property, the association may,
 2155  by reasonable rule, adopt a procedure for conspicuously posting
 2156  and repeatedly broadcasting the notice and the agenda on a
 2157  closed-circuit cable television system serving the cooperative
 2158  association. However, if broadcast notice is used in lieu of a
 2159  notice posted physically on the cooperative property, the notice
 2160  and agenda must be broadcast at least four times every broadcast
 2161  hour of each day that a posted notice is otherwise required
 2162  under this section. When broadcast notice is provided, the
 2163  notice and agenda must be broadcast in a manner and for a
 2164  sufficient continuous length of time so as to allow an average
 2165  reader to observe the notice and read and comprehend the entire
 2166  content of the notice and the agenda. Unless a shareholder unit
 2167  owner waives in writing the right to receive notice of the
 2168  annual meeting, the notice of the annual meeting shall be sent
 2169  by mail, hand delivered, or electronically transmitted to each
 2170  shareholder unit owner. An officer of the association shall
 2171  provide an affidavit or United States Postal Service certificate
 2172  of mailing, to be included in the official records of the
 2173  association, affirming that notices of the association meeting
 2174  were mailed, hand delivered, or electronically transmitted, in
 2175  accordance with this provision, to each shareholder unit owner
 2176  at the address last furnished to the association.
 2177         1. After January 1, 1992, the board of administration shall
 2178  be elected by written ballot or voting machine. Proxies shall in
 2179  no event be used in electing the board of administration, either
 2180  in general elections or elections to fill vacancies caused by
 2181  recall, resignation, or otherwise unless otherwise provided in
 2182  this chapter. Not less than 60 days before a scheduled election,
 2183  the association shall mail, deliver, or transmit, whether by
 2184  separate association mailing, delivery, or electronic
 2185  transmission or included in another association mailing,
 2186  delivery, or electronic transmission, including regularly
 2187  published newsletters, to each shareholder unit owner entitled
 2188  to vote, a first notice of the date of the election. Any
 2189  shareholder unit owner or other eligible person desiring to be a
 2190  candidate for the board of administration shall give written
 2191  notice to the association not less than 40 days before a
 2192  scheduled election. Together with the written notice and agenda
 2193  as set forth in this section, the association shall mail,
 2194  deliver, or electronically transmit a second notice of election
 2195  to all shareholders unit owners entitled to vote therein,
 2196  together with a ballot which shall list all candidates. Upon
 2197  request of a candidate, the association shall include an
 2198  information sheet, no larger than 8 1/2 inches by 11 inches,
 2199  which must be furnished by the candidate not less than 35 days
 2200  prior to the election, to be included with the mailing,
 2201  delivery, or electronic transmission of the ballot, with the
 2202  costs of mailing, delivery, or transmission and copying to be
 2203  borne by the association. The association has no liability for
 2204  the contents of the information sheets provided by the
 2205  candidates. In order to reduce costs, the association may print
 2206  or duplicate the information sheets on both sides of the paper.
 2207  The division shall by rule establish voting procedures
 2208  consistent with the provisions contained herein, including rules
 2209  establishing procedures for giving notice by electronic
 2210  transmission and rules providing for the secrecy of ballots.
 2211  Elections shall be decided by a plurality of those ballots cast.
 2212  There shall be no quorum requirement. However, at least 20
 2213  percent of the eligible voters must cast a ballot in order to
 2214  have a valid election of members of the board of administration.
 2215  No shareholder unit owner shall permit any other person to vote
 2216  his or her ballot, and any such ballots improperly cast shall be
 2217  deemed invalid. A shareholder unit owner who needs assistance in
 2218  casting the ballot for the reasons stated in s. 101.051 may
 2219  obtain assistance in casting the ballot. Any shareholder unit
 2220  owner violating this provision may be fined by the association
 2221  in accordance with s. 719.303. The regular election shall occur
 2222  on the date of the annual meeting. The provisions of this
 2223  subparagraph shall not apply to timeshare cooperatives.
 2224  Notwithstanding the provisions of this subparagraph, an election
 2225  and balloting are not required unless more candidates file a
 2226  notice of intent to run or are nominated than vacancies exist on
 2227  the board.
 2228         2. Any approval by shareholders unit owners called for by
 2229  this chapter, or the applicable cooperative documents, shall be
 2230  made at a duly noticed meeting of shareholders unit owners and
 2231  shall be subject to all requirements of this chapter or the
 2232  applicable cooperative documents relating to shareholder unit
 2233  owner decisionmaking, except that shareholders unit owners may
 2234  take action by written agreement, without meetings, on matters
 2235  for which action by written agreement without meetings is
 2236  expressly allowed by the applicable cooperative documents or any
 2237  Florida statute which provides for the shareholder unit owner
 2238  action.
 2239         3. Shareholders Unit owners may waive notice of specific
 2240  meetings if allowed by the applicable cooperative documents or
 2241  any Florida statute. If authorized by the bylaws, notice of
 2242  meetings of the board of administration, shareholder meetings,
 2243  except shareholder meetings called to recall board members under
 2244  paragraph (f), and committee meetings may be given by electronic
 2245  transmission to shareholders unit owners who consent to receive
 2246  notice by electronic transmission.
 2247         4. Shareholders Unit owners shall have the right to
 2248  participate in meetings of shareholders unit owners with
 2249  reference to all designated agenda items. However, the
 2250  association may adopt reasonable rules governing the frequency,
 2251  duration, and manner of shareholder unit owner participation.
 2252         5. Any shareholder unit owner may tape record or videotape
 2253  meetings of the shareholders unit owners subject to reasonable
 2254  rules adopted by the division.
 2255  
 2256  Notwithstanding subparagraphs (b)2. and (d)1., an association of
 2257  10 or fewer units may, by the affirmative vote of a majority of
 2258  the total voting interests, provide for a different voting and
 2259  election procedure in its bylaws, which vote may be by a proxy
 2260  specifically delineating the different voting and election
 2261  procedures. The different voting and election procedures may
 2262  provide for elections to be conducted by limited or general
 2263  proxy.
 2264         (e) Budget procedures.—
 2265         1. The board of administration shall mail, hand deliver, or
 2266  electronically transmit to each shareholder unit owner at the
 2267  address last furnished to the association, a meeting notice and
 2268  copies of the proposed annual budget of common expenses to the
 2269  shareholders unit owners not less than 14 days prior to the
 2270  meeting at which the budget will be considered. Evidence of
 2271  compliance with this 14-day notice must be made by an affidavit
 2272  executed by an officer of the association or the manager or
 2273  other person providing notice of the meeting and filed among the
 2274  official records of the association. The meeting must be open to
 2275  the shareholders unit owners.
 2276         2. If an adopted budget requires assessment against the
 2277  shareholders unit owners in any fiscal or calendar year which
 2278  exceeds 115 percent of the assessments for the preceding year,
 2279  the board upon written application of 10 percent of the voting
 2280  interests to the board, shall call a special meeting of the
 2281  shareholders unit owners within 30 days, upon not less than 10
 2282  days’ written notice to each shareholder unit owner. At the
 2283  special meeting, shareholders unit owners shall consider and
 2284  enact a budget. Unless the bylaws require a larger vote, the
 2285  adoption of the budget requires a vote of not less than a
 2286  majority of all the voting interests.
 2287         3. The board of administration may, in any event, propose a
 2288  budget to the shareholders unit owners at a meeting of members
 2289  or by writing, and if the budget or proposed budget is approved
 2290  by the shareholders unit owners at the meeting or by a majority
 2291  of all voting interests in writing, the budget is adopted. If a
 2292  meeting of the shareholders unit owners has been called and a
 2293  quorum is not attained or a substitute budget is not adopted by
 2294  the shareholders unit owners, the budget adopted by the board of
 2295  directors goes into effect as scheduled.
 2296         4. In determining whether assessments exceed 115 percent of
 2297  similar assessments for prior years, any authorized provisions
 2298  for reasonable reserves for repair or replacement of cooperative
 2299  property, anticipated expenses by the association which are not
 2300  anticipated to be incurred on a regular or annual basis, or
 2301  assessments for betterments to the cooperative property must be
 2302  excluded from computation. However, as long as the developer is
 2303  in control of the board of administration, the board may not
 2304  impose an assessment for any year greater than 115 percent of
 2305  the prior fiscal or calendar year’s assessment without approval
 2306  of a majority of all voting interests.
 2307         (f) Recall of board members.—Subject to the provisions of
 2308  s. 719.301, any member of the board of administration may be
 2309  recalled and removed from office with or without cause by the
 2310  vote or agreement in writing by a majority of all the voting
 2311  interests. A special meeting of the voting interests to recall
 2312  any member of the board of administration may be called by 10
 2313  percent of the shareholders unit owners giving notice of the
 2314  meeting as required for a meeting of shareholders unit owners,
 2315  and the notice shall state the purpose of the meeting.
 2316  Electronic transmission may not be used as a method of giving
 2317  notice of a meeting called in whole or in part for this purpose.
 2318         1. If the recall is approved by a majority of all voting
 2319  interests by a vote at a meeting, the recall shall be effective
 2320  as provided herein. The board shall duly notice and hold a board
 2321  meeting within 5 full business days of the adjournment of the
 2322  shareholder unit owner meeting to recall one or more board
 2323  members. At the meeting, the board shall either certify the
 2324  recall, in which case such member or members shall be recalled
 2325  effective immediately and shall turn over to the board within 5
 2326  full business days any and all records and property of the
 2327  association in their possession, or shall proceed as set forth
 2328  in subparagraph 3.
 2329         2. If the proposed recall is by an agreement in writing by
 2330  a majority of all voting interests, the agreement in writing or
 2331  a copy thereof shall be served on the association by certified
 2332  mail or by personal service in the manner authorized by chapter
 2333  48 and the Florida Rules of Civil Procedure. The board of
 2334  administration shall duly notice and hold a meeting of the board
 2335  within 5 full business days after receipt of the agreement in
 2336  writing. At the meeting, the board shall either certify the
 2337  written agreement to recall members of the board, in which case
 2338  such members shall be recalled effective immediately and shall
 2339  turn over to the board, within 5 full business days, any and all
 2340  records and property of the association in their possession, or
 2341  proceed as described in subparagraph 3.
 2342         3. If the board determines not to certify the written
 2343  agreement to recall members of the board, or does not certify
 2344  the recall by a vote at a meeting, the board shall, within 5
 2345  full business days after the board meeting, file with the
 2346  division a petition for binding arbitration pursuant to the
 2347  procedures of s. 719.1255. For purposes of this paragraph, the
 2348  shareholders unit owners who voted at the meeting or who
 2349  executed the agreement in writing shall constitute one party
 2350  under the petition for arbitration. If the arbitrator certifies
 2351  the recall as to any member of the board, the recall shall be
 2352  effective upon mailing of the final order of arbitration to the
 2353  association. If the association fails to comply with the order
 2354  of the arbitrator, the division may take action pursuant to s.
 2355  719.501. Any member so recalled shall deliver to the board any
 2356  and all records and property of the association in the member’s
 2357  possession within 5 full business days of the effective date of
 2358  the recall.
 2359         4. If the board fails to duly notice and hold a board
 2360  meeting within 5 full business days of service of an agreement
 2361  in writing or within 5 full business days of the adjournment of
 2362  the shareholder unit owner recall meeting, the recall shall be
 2363  deemed effective and the board members so recalled shall
 2364  immediately turn over to the board any and all records and
 2365  property of the association.
 2366         5. If a vacancy occurs on the board as a result of a recall
 2367  or removal and less than a majority of the board members are
 2368  removed, the vacancy may be filled by the affirmative vote of a
 2369  majority of the remaining directors, notwithstanding any
 2370  provision to the contrary contained in this chapter. If
 2371  vacancies occur on the board as a result of a recall and a
 2372  majority or more of the board members are removed, the vacancies
 2373  shall be filled in accordance with procedural rules to be
 2374  adopted by the division, which rules need not be consistent with
 2375  this chapter. The rules must provide procedures governing the
 2376  conduct of the recall election as well as the operation of the
 2377  association during the period after a recall but prior to the
 2378  recall election.
 2379         (g) Common expenses.—The manner of collecting from the
 2380  shareholders unit owners their shares of the common expenses
 2381  shall be stated. Assessments shall be made against shareholders
 2382  unit owners not less frequently than quarterly, in an amount no
 2383  less than is required to provide funds in advance for payment of
 2384  all of the anticipated current operating expense and for all of
 2385  the unpaid operating expense previously incurred. Nothing in
 2386  this paragraph shall preclude the right of an association to
 2387  accelerate assessments of a shareholder an owner delinquent in
 2388  payment of common expenses in actions taken pursuant to s.
 2389  719.104(5)(4).
 2390         (h) Amendment of bylaws.—
 2391         1. The method by which the bylaws may be amended consistent
 2392  with the provisions of this chapter shall be stated. If the
 2393  bylaws fail to provide a method of amendment, the bylaws may be
 2394  amended if the amendment is approved by shareholders owners of
 2395  not less than two-thirds of the voting interests.
 2396         2. No bylaw shall be revised or amended by reference to its
 2397  title or number only. Proposals to amend existing bylaws shall
 2398  contain the full text of the bylaws to be amended; new words
 2399  shall be inserted in the text underlined, and words to be
 2400  deleted shall be lined through with hyphens. However, if the
 2401  proposed change is so extensive that this procedure would
 2402  hinder, rather than assist, the understanding of the proposed
 2403  amendment, it is not necessary to use underlining and hyphens as
 2404  indicators of words added or deleted, but, instead, a notation
 2405  must be inserted immediately preceding the proposed amendment in
 2406  substantially the following language: “Substantial rewording of
 2407  bylaw. See bylaw .... for present text.”
 2408         3. Nonmaterial errors or omissions in the bylaw process
 2409  shall not invalidate an otherwise properly promulgated
 2410  amendment.
 2411         4. If the bylaws provide for amendment by the board of
 2412  directors, no bylaw may be amended unless it is heard and
 2413  noticed at two consecutive meetings of the board of directors
 2414  which are at least 1 week apart.
 2415         (i) Transfer fees.—No charge may be made by the association
 2416  or any body thereof in connection with the sale, mortgage,
 2417  lease, sublease, or other transfer of a unit unless the
 2418  association is required to approve such transfer and a fee for
 2419  such approval is provided for in the cooperative documents. Any
 2420  such fee may be preset, but in no event shall it exceed $100 per
 2421  applicant other than husband/wife or parent/dependent child,
 2422  which are considered one applicant. However, if the lease or
 2423  sublease is a renewal of a lease or sublease with the same
 2424  lessee or sublessee, no charge shall be made. Nothing in this
 2425  paragraph shall be construed to prohibit an association from
 2426  requiring as a condition to permitting the letting or renting of
 2427  a unit, when the association has such authority in the
 2428  documents, the depositing into an escrow account maintained by
 2429  the association a security deposit in an amount not to exceed
 2430  the equivalent of 1 month’s rent. The security deposit shall
 2431  protect against damages to the common areas or cooperative
 2432  property. Within 15 days after a tenant vacates the premises,
 2433  the association shall refund the full security deposit or give
 2434  written notice to the tenant of any claim made against the
 2435  security. Disputes under this paragraph shall be handled in the
 2436  same fashion as disputes concerning security deposits under s.
 2437  83.49.
 2438         (j) Annual budget.—
 2439         1. The proposed annual budget of estimated revenues and
 2440  common expenses shall be detailed and shall show the amounts
 2441  budgeted by accounts and expense classifications, including, if
 2442  applicable, but not limited to, those expenses listed in s.
 2443  719.504(20).
 2444         2. In addition to annual operating expenses, the budget
 2445  shall include reserve accounts for capital expenditures and
 2446  deferred maintenance. These accounts shall include, but not be
 2447  limited to, roof replacement, building painting, and pavement
 2448  resurfacing, regardless of the amount of deferred maintenance
 2449  expense or replacement cost, and for any other items for which
 2450  the deferred maintenance expense or replacement cost exceeds
 2451  $10,000. The amount to be reserved shall be computed by means of
 2452  a formula which is based upon estimated remaining useful life
 2453  and estimated replacement cost or deferred maintenance expense
 2454  of each reserve item. The association may adjust replacement
 2455  reserve assessments annually to take into account any changes in
 2456  estimates or extension of the useful life of a reserve item
 2457  caused by deferred maintenance. This paragraph shall not apply
 2458  to any budget in which the members of an association have, at a
 2459  duly called meeting of the association, determined for a fiscal
 2460  year to provide no reserves or reserves less adequate than
 2461  required by this subsection. However, prior to turnover of
 2462  control of an association by a developer to shareholders unit
 2463  owners other than a developer pursuant to s. 719.301, the
 2464  developer may vote to waive the reserves or reduce the funding
 2465  of reserves for the first 2 years of the operation of the
 2466  association after which time reserves may only be waived or
 2467  reduced upon the vote of a majority of all nondeveloper voting
 2468  interests voting in person or by limited proxy at a duly called
 2469  meeting of the association. If a meeting of the shareholders
 2470  unit owners has been called to determine to provide no reserves,
 2471  or reserves less adequate than required, and such result is not
 2472  attained or a quorum is not attained, the reserves as included
 2473  in the budget shall go into effect.
 2474         3. Reserve funds and any interest accruing thereon shall
 2475  remain in the reserve account or accounts, and shall be used
 2476  only for authorized reserve expenditures unless their use for
 2477  other purposes is approved in advance by a vote of the majority
 2478  of the voting interests, voting in person or by limited proxy at
 2479  a duly called meeting of the association. Prior to turnover of
 2480  control of an association by a developer to shareholders unit
 2481  owners other than the developer under s. 719.301, the developer
 2482  may not vote to use reserves for purposes other than that for
 2483  which they were intended without the approval of a majority of
 2484  all nondeveloper voting interests, voting in person or by
 2485  limited proxy at a duly called meeting of the association.
 2486         4. The only voting interests that are eligible to vote on
 2487  questions that involve waiving or reducing the funding of
 2488  reserves, or using existing reserve funds for purposes other
 2489  than purposes for which the reserves were intended, are the
 2490  voting interests of the units subject to assessment to fund the
 2491  reserves in question. Proxy questions relating to waiving or
 2492  reducing the funding of reserves or using existing reserve funds
 2493  for purposes other than purposes for which the reserves were
 2494  intended shall contain the following statement in capitalized,
 2495  bold letters in a font size larger than any other used on the
 2496  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
 2497  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
 2498  RESULT IN SHAREHOLDER LIABILITY FOR PAYMENT OF UNANTICIPATED
 2499  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 2500         (k) Insurance or fidelity bonds.—The association shall
 2501  obtain and maintain adequate insurance or fidelity bonding of
 2502  all persons who control or disburse funds of the association.
 2503  The insurance policy or fidelity bond must cover the maximum
 2504  funds that will be in the custody of the association or its
 2505  management agent at any one time. As used in this paragraph, the
 2506  term “persons who control or disburse funds of the association”
 2507  includes, but is not limited to, those individuals authorized to
 2508  sign checks, and the president, secretary, and treasurer of the
 2509  association. The association shall bear the cost of bonding and
 2510  insurance.
 2511         (l) Arbitration.—There shall be a provision for mandatory
 2512  nonbinding arbitration of internal disputes arising from the
 2513  operation of the cooperative in accordance with s. 719.1255.
 2514         (m) Common areas; limited power to convey.
 2515         1. The bylaws shall include a provision granting the
 2516  association a limited power to convey a portion of the common
 2517  areas to a condemning authority for the purpose of providing
 2518  utility easements, right-of-way expansion, or other public
 2519  purposes, whether negotiated or as a result of eminent domain
 2520  proceedings.
 2521         2. In any case in which the bylaws are silent as to the
 2522  association’s power to convey common areas as described in
 2523  subparagraph 1., the bylaws shall be deemed to include the
 2524  provision described in subparagraph 1.
 2525         (n) Director or officer delinquencies.—A director or
 2526  officer more than 90 days delinquent in the payment of regular
 2527  assessments shall be deemed to have abandoned his or her office,
 2528  creating a vacancy in the office to be filled according to law.
 2529         (o) Director or officer offenses.—A director or officer
 2530  charged by information or indictment with a felony theft or
 2531  embezzlement offense involving the association’s funds or
 2532  property shall be removed from office, creating a vacancy in the
 2533  office to be filled according to law. While such director or
 2534  officer has such criminal charge pending in the state or federal
 2535  court system, he or she may not be appointed or elected to a
 2536  position as a director or officer. However, should the charges
 2537  be resolved without a finding of guilt, the director or officer
 2538  shall be reinstated for the remainder of his or her term of
 2539  office, if any.
 2540         (p) Qualifications of directors.—In addition to any other
 2541  requirement for office in statute, a person running for, seeking
 2542  appointment to, or serving as a director of the board must meet
 2543  the following qualifications:
 2544         1. In a cooperative association of 10 or more units, only
 2545  one individual coowner of a unit may serve on the board of
 2546  administration.
 2547         2. No person may serve as a director of any cooperative
 2548  association in the state if restricted from serving by action of
 2549  the division pursuant to s. 719.501.
 2550         3. A person who has been convicted of any felony in this
 2551  state or in a United States District or Territorial Court, or
 2552  who has been convicted of any offense in another jurisdiction
 2553  which would be considered a felony if committed in this state,
 2554  is not eligible for board membership unless such felon’s civil
 2555  rights have been restored for a period of no less than 5 years
 2556  as of the date on which such person seeks election to the board.
 2557         4. A director more than 90 days delinquent in the payment
 2558  of regular assessments shall be deemed to have abandoned his or
 2559  her office.
 2560         5. Within 30 days after being elected or appointed to the
 2561  board of directors, a director shall certify in writing to the
 2562  secretary of the association that he or she has read this part
 2563  and part III and the association’s cooperative documents,
 2564  bylaws, and current written policies. The director shall further
 2565  certify that he or she will work to uphold such documents and
 2566  policies to the best of his or her ability and that he or she
 2567  will faithfully discharge his or her fiduciary responsibility to
 2568  the association’s members. If the division finds that a director
 2569  has falsely certified that he or she has read the required
 2570  statutes and documents, the division shall order the director
 2571  removed from the board and shall order the director to reimburse
 2572  the division for the cost of prosecution and hearing.
 2573         6. After turnover of the association pursuant to s.
 2574  719.301(4), a director must:
 2575         a. If the unit is owned by an individual or individuals, be
 2576  one of those individuals.
 2577         b. If the unit is owned by a trust, be an individual
 2578  qualified pursuant to s. 617.0802.
 2579  
 2580  These qualifications shall operate on a continuing basis, and
 2581  upon the failure of a director at any time to meet a
 2582  qualification, the director shall be removed from office and
 2583  that office shall be deemed vacant.
 2584         (q) Borrowing.—The borrowing of funds or committing to a
 2585  line of credit by the board of administration shall be
 2586  considered a special assessment, and any meeting of the board of
 2587  administration to discuss such matters must be noticed as
 2588  provided in paragraph (c). The board may not borrow funds or
 2589  enter into a line of credit or borrow funds for any purpose
 2590  unless the specific use of the funds from the loan or line of
 2591  credit is set forth in the notice of meeting with the same
 2592  specificity as required for a special assessment or unless the
 2593  borrowing or line of credit has received the prior approval of
 2594  at least two-thirds of the voting interests of the association.
 2595         (2) OPTIONAL PROVISIONS.—The bylaws may provide for the
 2596  following:
 2597         (a) Administrative rules.—A method of adopting and of
 2598  amending administrative rules and regulations governing the
 2599  details of the operation and use of the common areas.
 2600         (b) Use and maintenance restrictions.—Restrictions on, and
 2601  requirements for, the use, maintenance, and appearance of the
 2602  units and the use of the common areas, not inconsistent with the
 2603  cooperative documents, designed to prevent unreasonable
 2604  interference with the use of the units and common areas.
 2605         (c) Notice of meetings.—Provisions for giving notice by
 2606  electronic transmissions in a manner authorized by law of
 2607  meetings of the board of directors and committees and of annual
 2608  and special meetings of the members.
 2609         (d) Other matters.—Other provisions not inconsistent with
 2610  this chapter or with the cooperative documents as may be
 2611  desired.
 2612         Section 17. Section 719.1064, Florida Statutes, is
 2613  repealed.
 2614         Section 18. Paragraphs (b) and (c) of subsection (1) and
 2615  subsection (2) of section 719.107, Florida Statutes, are
 2616  amended, and subsection (3) is added to that section, to read:
 2617         719.107 Common expenses; assessment.—
 2618         (1)
 2619         (b) If so provided in the bylaws, the cost of a master
 2620  antenna television system or duly franchised cable television
 2621  service obtained pursuant to a bulk contract shall be deemed a
 2622  common expense, and if not obtained pursuant to a bulk contract,
 2623  such cost shall be considered common expense if it is designated
 2624  as such in a written contract between the board of
 2625  administration and the company providing the master television
 2626  antenna system or the cable television service. The contract
 2627  shall be for a term of not less than 2 years.
 2628         1. Any contract made by the board after April 2, 1992, for
 2629  a community antenna system or duly franchised cable television
 2630  service may be canceled by a majority of the voting interests
 2631  present at the next regular or special meeting of the
 2632  association. Any member may make a motion to cancel the
 2633  contract, but if no motion is made or if such motion fails to
 2634  obtain the required majority at the next regular or special
 2635  meeting, whichever is sooner, following the making of the
 2636  contract, then such contract shall be deemed ratified for the
 2637  term therein expressed.
 2638         2. Any such contract shall provide, and shall be deemed to
 2639  provide if not expressly set forth, that any hearing impaired or
 2640  legally blind shareholder unit owner who does not occupy the
 2641  unit with a nonhearing impaired or sighted person may
 2642  discontinue the service without incurring disconnect fees,
 2643  penalties, or subsequent service charges, and as to such units,
 2644  the shareholders owners shall not be required to pay any common
 2645  expenses charge related to such service. If less than all
 2646  members of an association share the expenses of cable
 2647  television, the expense shall be shared equally by all
 2648  participating shareholders unit owners. The association may use
 2649  the provisions of s. 719.108 to enforce payment of the shares of
 2650  such costs by the shareholders unit owners receiving cable
 2651  television.
 2652         (c) If any unpaid share of common expenses or assessments
 2653  is extinguished by foreclosure of a superior lien or by a deed
 2654  in lieu of foreclosure thereof, the unpaid share of common
 2655  expenses or assessments are common expenses collectible from all
 2656  the shareholders unit owners in the cooperative in which the
 2657  unit is located.
 2658         (2) Funds for the payment of common expenses shall be
 2659  collected by assessments against shareholders unit owners in the
 2660  proportions or percentages of sharing common expenses provided
 2661  in the cooperative documents.
 2662         (3) The expense of installation, replacement, operation,
 2663  repair, and maintenance of hurricane shutters or other hurricane
 2664  protection by the board pursuant to s. 719.113(5) shall
 2665  constitute a common expense as defined in this section and shall
 2666  be collected as provided in this section if the association is
 2667  responsible for the maintenance, repair, and replacement of the
 2668  hurricane shutters or other hurricane protection pursuant to the
 2669  cooperative documents. However, if the maintenance, repair, and
 2670  replacement of the hurricane shutters or other hurricane
 2671  protection is the responsibility of the shareholders pursuant to
 2672  the cooperative documents, the cost of the installation of the
 2673  hurricane shutters or other hurricane protection shall not be a
 2674  common expense, but shall be charged individually to the
 2675  shareholders based on the cost of installation of the hurricane
 2676  shutters or other hurricane protection appurtenant to the unit.
 2677  Notwithstanding the provisions of s. 719.108(8), and regardless
 2678  of whether or not the cooperative documents require the
 2679  association or shareholders to maintain, repair, or replace
 2680  hurricane shutters or other hurricane protection, a shareholder
 2681  who has previously installed hurricane shutters in accordance
 2682  with s. 719.113(5), other hurricane protection, or laminated
 2683  glass architecturally designed to function as hurricane
 2684  protection, which hurricane shutters or other hurricane
 2685  protection or laminated glass complies with the current
 2686  applicable building code, shall receive a credit equal to the
 2687  pro rata portion of the assessed installation cost assigned to
 2688  each unit. However, such shareholder shall remain responsible
 2689  for the pro rata share of expenses for hurricane shutters or
 2690  other hurricane protection installed on common areas by the
 2691  board pursuant to s. 719.113(5) and shall remain responsible for
 2692  a pro rata share of the expense of the replacement, operation,
 2693  repair, and maintenance of such shutters or other hurricane
 2694  protection.
 2695         Section 19. Section 719.108, Florida Statutes, is amended
 2696  to read:
 2697         719.108 Rents and assessments; liability; lien and
 2698  priority; interest; collection; cooperative ownership.—
 2699         (1) A shareholder unit owner, regardless of how title is
 2700  acquired, including, without limitation, a purchaser at a
 2701  judicial sale, shall be liable for all rents and assessments
 2702  coming due while the shareholder unit owner is in exclusive
 2703  possession of a unit. In a voluntary transfer, The shareholder
 2704  unit owner in exclusive possession shall be jointly and
 2705  severally liable with the previous shareholder unit owner for
 2706  all unpaid rents and assessments against the previous
 2707  shareholder unit owner for his or her share of the common
 2708  expenses up to the time of the transfer, without prejudice to
 2709  the rights of the shareholder unit owner in exclusive possession
 2710  to recover from a the previous shareholder unit owner the
 2711  amounts paid by the shareholder unit owner in exclusive
 2712  possession therefor.
 2713         (2) The liability for rents and assessments may not be
 2714  avoided by waiver of the use or enjoyment of any common areas or
 2715  by abandonment of the unit for which the rents and assessments
 2716  are made.
 2717         (3) Rents and assessments, and installments on them, not
 2718  paid when due bear interest at the rate provided in the
 2719  cooperative documents from the date due until paid. This rate
 2720  may not exceed the rate allowed by law, and, if no rate is
 2721  provided in the cooperative documents, then interest shall
 2722  accrue at 18 percent per annum. Also, if the cooperative
 2723  documents or bylaws so provide, the association may charge an
 2724  administrative late fee in addition to such interest, in an
 2725  amount not to exceed the greater of $25 or 5 percent of each
 2726  installment of the assessment for each delinquent installment
 2727  that the payment is late. Any payment received by an association
 2728  shall be applied first to any interest accrued by the
 2729  association, then to any administrative late fee, then to any
 2730  costs and reasonable attorney’s fees incurred in collection, and
 2731  then to the delinquent assessment. The foregoing shall be
 2732  applicable notwithstanding any restrictive endorsement,
 2733  designation, or instruction placed on or accompanying a payment.
 2734  A late fee is not subject to chapter 687 or s. 719.303(3).
 2735         (4) If the association is authorized by the cooperative
 2736  documents or bylaws to approve or disapprove a proposed lease of
 2737  a unit, the grounds for disapproval may include, but are not
 2738  limited to, a shareholder being delinquent in the payment of an
 2739  assessment at the time approval is sought.
 2740         (5)(a)(4) The association has shall have a lien on each
 2741  cooperative parcel to secure the payment of for any unpaid rents
 2742  and assessments, plus interest, against the shareholder who owns
 2743  unit owner of the cooperative parcel. If authorized by the
 2744  cooperative documents, the said lien shall also secure
 2745  reasonable attorney’s fees incurred by the association incident
 2746  to the collection of the rents and assessments or enforcement of
 2747  such lien. The lien is effective from and shall relate back to
 2748  and after the recording of the cooperative documents a claim of
 2749  lien in the public records in the county in which the
 2750  cooperative parcel is located which states the description of
 2751  the cooperative parcel, the name of the unit owner, the amount
 2752  due, and the due dates.
 2753         (b) To be valid, a claim of lien must state the description
 2754  of the cooperative parcel, the name of the record owner, the
 2755  name and address of the association, the amount due, and the due
 2756  dates. The claim of lien must be executed and acknowledged by an
 2757  officer or authorized agent of the association. The lien shall
 2758  expire if a claim of lien is not filed within 1 year after the
 2759  date the assessment was due, and no such lien shall continue for
 2760  a longer period than 1 year after the claim of lien has been
 2761  recorded unless, within that time, an action to enforce the lien
 2762  is commenced in a court of competent jurisdiction. The 1-year
 2763  period shall automatically be extended for any length of time
 2764  during which the association is prevented from filing a
 2765  foreclosure action by an automatic stay resulting from a
 2766  bankruptcy petition filed by the shareholder or any other person
 2767  claiming an interest in the parcel. The claim of lien shall
 2768  secure all unpaid assessments that are due and that may accrue
 2769  subsequent to the recording of the claim of lien and prior to
 2770  the entry of a certificate of title, as well as interest and all
 2771  reasonable costs and attorney’s fees incurred by the association
 2772  incident to the collection process. A notice of delinquency sent
 2773  to a shareholder shall provide an overall total of assessments
 2774  claimed by the association and shall specify for each assessment
 2775  or charge the date of the assessment or charge, the principal
 2776  balance owed for the assessment or charge, and affiliated late
 2777  fees or collection charges. Costs to a shareholder secured by
 2778  the association’s claim of lien with regard to collection
 2779  efforts by management companies or licensed managers as to any
 2780  delinquent installment of an assessment may not exceed $50.
 2781  However, there shall be no charge for the first notice of a
 2782  delinquency to the shareholder. Upon payment in full, the person
 2783  making the payment is entitled to a satisfaction of the lien. No
 2784  lien may be filed by the association against a cooperative
 2785  parcel until 30 days after the date on which a notice of intent
 2786  to file a lien has been served on the unit owner of the
 2787  cooperative parcel by certified mail or by personal service in
 2788  the manner authorized by chapter 48 and the Florida Rules of
 2789  Civil Procedure.
 2790         (c) By recording a notice in substantially the following
 2791  form, a shareholder or the shareholder’s agent or attorney may
 2792  require the association to enforce a recorded claim of lien
 2793  against his or her cooperative parcel:
 2794  
 2795                      NOTICE OF CONTEST OF LIEN                    
 2796  
 2797         TO:  (Name and address of association)  You are notified
 2798  that the undersigned contests the claim of lien filed by you on
 2799  _____,  (year) , and recorded in Official Records Book _____ at
 2800  Page _____, of the public records of _____ County, Florida, and
 2801  that the time within which you may file suit to enforce your
 2802  lien is limited to 90 days after the date of service of this
 2803  notice. Executed this _____ day of _____,  (year) .
 2804  
 2805  Signed:  (Shareholder or Attorney)
 2806  
 2807  After notice of contest of lien has been recorded, the clerk of
 2808  the circuit court shall mail a copy of the recorded notice to
 2809  the association by certified mail, return receipt requested, at
 2810  the address shown in the claim of lien or most recent amendment
 2811  to the claim of lien and shall certify to the service on the
 2812  face of the notice. Service is complete upon mailing. After
 2813  service, the association has 90 days in which to file an action
 2814  to enforce the lien; and, if the action is not filed within the
 2815  90-day period, the lien is void. However, the 90-day period
 2816  shall be extended for any length of time that the association is
 2817  prevented from filing its action because of an automatic stay
 2818  resulting from the filing of a bankruptcy petition by the
 2819  shareholder or by any other person claiming an interest in the
 2820  parcel.
 2821         (6)(a)(5) Liens for rents and assessments may be foreclosed
 2822  by suit brought in the name of the association, in like manner
 2823  as a foreclosure of a mortgage on real property. In any
 2824  foreclosure, the shareholder unit owner shall pay a reasonable
 2825  rental for the cooperative parcel, if so provided in the
 2826  cooperative documents, and the plaintiff in the foreclosure is
 2827  entitled to the appointment of a receiver to collect the rent.
 2828  The association has the power, unless prohibited by the
 2829  cooperative documents, to bid on the cooperative parcel at the
 2830  foreclosure sale and to acquire and hold, lease, mortgage, or
 2831  convey it. Suit to recover a money judgment for unpaid rents and
 2832  assessments may be maintained without waiving the lien securing
 2833  them.
 2834         (b) A foreclosure judgment may not be entered until at
 2835  least 30 days after the association gives written notice to the
 2836  shareholder of its intention to foreclose its lien to collect
 2837  the unpaid rents and assessments. If this notice is not given at
 2838  least 30 days before the foreclosure action is filed and if the
 2839  unpaid rents and assessments, including those coming due after
 2840  the claim of lien is recorded, are paid before the entry of a
 2841  final judgment of foreclosure, the association may not recover
 2842  attorney’s fees or costs. The notice must be given by delivery
 2843  of a copy of it to the shareholder or by certified or registered
 2844  mail, return receipt requested, addressed to the shareholder at
 2845  his or her last known address; and, upon such mailing, the
 2846  notice shall be deemed to have been given, and the court shall
 2847  proceed with the foreclosure action and may award attorney’s
 2848  fees and costs as permitted by law. The notice requirements of
 2849  this paragraph are satisfied if the shareholder records a notice
 2850  of contest of lien as provided in subsection (5). The notice
 2851  requirements of this paragraph do not apply if an action to
 2852  foreclose a mortgage on the cooperative unit is pending before
 2853  any court; if the rights of the association would be affected by
 2854  such foreclosure; and if actual, constructive, or substitute
 2855  service of process has been made on the shareholder.
 2856         (c) If the shareholder remains in possession of the unit
 2857  after a foreclosure judgment has been entered, the court, in its
 2858  discretion, may require the shareholder to pay a reasonable
 2859  rental for the unit. If the unit is rented or leased during the
 2860  pendency of the foreclosure action, the association is entitled
 2861  to the appointment of a receiver to collect the rent. The
 2862  expenses of the receiver shall be paid by the party that does
 2863  not prevail in the foreclosure action.
 2864         (d) The association has the power to purchase the
 2865  cooperative unit at the foreclosure sale and to hold, lease,
 2866  mortgage, or convey it.
 2867         (7) Within 15 days after receiving a written request
 2868  therefor from a shareholder or his or her designee, or a unit
 2869  mortgagee or his or her designee, the association shall provide
 2870  a certificate signed by an officer or agent of the association
 2871  stating all assessments and other moneys owed to the association
 2872  by the shareholder with respect to the cooperative parcel.
 2873         (a) Any person other than the shareholder who relies upon
 2874  such certificate shall be protected thereby.
 2875         (b) A summary proceeding pursuant to s. 51.011 may be
 2876  brought to compel compliance with this subsection, and in any
 2877  such action the prevailing party is entitled to recover
 2878  reasonable attorney’s fees.
 2879         (c) Notwithstanding any limitation on transfer fees
 2880  contained in s. 719.106(1)(i), the association or its authorized
 2881  agent may charge a reasonable fee for the preparation of the
 2882  certificate. The amount of the fee must be included on the
 2883  certificate.
 2884         (d) The authority to charge a fee for the certificate shall
 2885  be established by a written resolution adopted by the board or
 2886  provided by a written management, bookkeeping, or maintenance
 2887  contract and is payable upon the preparation of the certificate.
 2888  If the certificate is requested in conjunction with the sale or
 2889  mortgage of a unit but the closing does not occur and no later
 2890  than 30 days after the closing date for which the certificate
 2891  was sought the preparer receives a written request, accompanied
 2892  by reasonable documentation, that the sale did not occur from a
 2893  payor that is not the shareholder, the fee shall be refunded to
 2894  that payor within 30 days after receipt of the request. The
 2895  refund is the obligation of the shareholder, and the association
 2896  may collect the refund from that shareholder in the same manner
 2897  as an assessment as provided in this section.
 2898         (6) Within 15 days after request by a unit owner or
 2899  mortgagee, the association shall provide a certificate stating
 2900  all assessments and other moneys owed to the association by the
 2901  unit owner with respect to the cooperative parcel. Any person
 2902  other than the unit owner who relies upon such certificate shall
 2903  be protected thereby. Notwithstanding any limitation on transfer
 2904  fees contained in s. 719.106(1)(i), the association or its
 2905  authorized agent may charge a reasonable fee for the preparation
 2906  of the certificate.
 2907         (7) The remedies provided in this section do not exclude
 2908  other remedies provided by the cooperative documents and
 2909  permitted by law.
 2910         (8)(a) No shareholder unit owner may be excused from the
 2911  payment of his or her share of the rents or assessments of a
 2912  cooperative unless all shareholders unit owners are likewise
 2913  proportionately excused from payment, except as provided in
 2914  subsection (6) and in the following cases:
 2915         1. If the cooperative documents so provide, a developer or
 2916  other person owning cooperative units offered for sale may be
 2917  excused from the payment of the share of the common expenses,
 2918  assessments, and rents related to those units for a stated
 2919  period of time. The period must terminate no later than the
 2920  first day of the fourth calendar month following the month in
 2921  which the right of exclusive possession is first granted to a
 2922  shareholder unit owner. However, the developer must pay the
 2923  portion of common expenses incurred during that period which
 2924  exceed the amount assessed against other shareholders unit
 2925  owners.
 2926         2. A developer, or other person with an ownership interest
 2927  in cooperative units or having an obligation to pay common
 2928  expenses, may be excused from the payment of his or her share of
 2929  the common expenses which would have been assessed against those
 2930  units during the period of time that he or she shall have
 2931  guaranteed to each purchaser in the purchase contract or in the
 2932  cooperative documents, or by agreement between the developer and
 2933  a majority of the shareholders unit owners other than the
 2934  developer, that the assessment for common expenses of the
 2935  cooperative imposed upon the shareholders unit owners would not
 2936  increase over a stated dollar amount and shall have obligated
 2937  himself or herself to pay any amount of common expenses incurred
 2938  during that period and not produced by the assessments at the
 2939  guaranteed level receivable from other shareholders unit owners.
 2940         (b) If the purchase contract, cooperative documents, or
 2941  agreement between the developer and a majority of shareholders
 2942  unit owners other than the developer provides for the developer
 2943  or another person to be excused from the payment of assessments
 2944  pursuant to paragraph (a), no funds receivable from shareholders
 2945  unit owners payable to the association or collected by the
 2946  developer on behalf of the association, other than regular
 2947  periodic assessments for common expenses as provided in the
 2948  cooperative documents and disclosed in the estimated operating
 2949  budget pursuant to s. 719.503(1)(b)6. or s. 719.504(20)(b), may
 2950  be used for payment of common expenses prior to the expiration
 2951  of the period during which the developer or other person is so
 2952  excused. This restriction applies to funds including, but not
 2953  limited to, capital contributions or startup funds collected
 2954  from shareholders unit purchasers at closing.
 2955         (9) The specific purposes of any special assessment,
 2956  including any contingent special assessment levied in
 2957  conjunction with the purchase of an insurance policy authorized
 2958  by s. 719.104(3), approved in accordance with the cooperative
 2959  documents shall be set forth in a written notice of such
 2960  assessment sent or delivered to each shareholder unit owner. The
 2961  funds collected pursuant to a special assessment shall be used
 2962  only for the specific purpose or purposes set forth in such
 2963  notice or returned to the shareholders unit owners. However,
 2964  upon completion of such specific purposes, any excess funds
 2965  shall be considered common surplus and may, at the discretion of
 2966  the board, either be returned to the shareholders unit owners or
 2967  applied as a credit toward future assessments.
 2968         (10) During the pendency of any foreclosure action of a
 2969  cooperative unit, if the unit is occupied by a tenant and the
 2970  shareholder is delinquent in the payment of regular assessments,
 2971  the association may demand that the tenant pay to the
 2972  association the future regular assessments related to the
 2973  cooperative unit. The demand shall be continuing in nature, and
 2974  upon demand the tenant shall continue to pay the regular
 2975  assessments to the association until the association releases
 2976  the tenant or the tenant discontinues tenancy in the unit. The
 2977  association shall mail written notice to the shareholder of the
 2978  association’s demand that the tenant pay regular assessments to
 2979  the association. The tenant shall not be liable for increases in
 2980  the amount of the regular assessment due unless the tenant was
 2981  reasonably notified of the increase prior to the day that the
 2982  rent is due. The tenant shall be given a credit against rents
 2983  due to the shareholder in the amount of assessments paid to the
 2984  association. The association shall, upon request, provide the
 2985  tenant with written receipts for payments made. The association
 2986  may issue notices under s. 83.56 and may sue for eviction under
 2987  ss. 83.59-83.625 as if the association were a landlord under
 2988  part II of chapter 83 should the tenant fail to pay an
 2989  assessment. However, the association shall not otherwise be
 2990  considered a landlord under chapter 83 and shall specifically
 2991  not have any duty under s. 83.51. The tenant shall not, by
 2992  virtue of payment of assessments, have any of the rights of a
 2993  shareholder to vote in any election or to examine the books and
 2994  records of the association. A court may supersede the effect of
 2995  this subsection by appointing a receiver.
 2996         Section 20. Section 719.113, Florida Statutes, is created
 2997  to read:
 2998         719.113 Maintenance; limitation upon improvement; display
 2999  of flag; hurricane shutters; display of religious decorations.—
 3000         (1) Maintenance of the common areas is the responsibility
 3001  of the association. The cooperative documents may provide that
 3002  certain limited common areas shall be maintained by those
 3003  entitled to use the limited common areas or that the association
 3004  shall provide the maintenance, either as a common expense or
 3005  with the cost shared only by those entitled to use the limited
 3006  common areas. If the maintenance is to be provided by the
 3007  association at the expense of only those entitled to use the
 3008  limited common areas, the cooperative documents shall describe
 3009  in detail the method of apportioning such costs among those
 3010  entitled to use the limited common areas. The association may
 3011  use the provisions of s. 719.108 to enforce payment of the
 3012  shares of such costs by the shareholders entitled to use the
 3013  limited common areas.
 3014         (2) Except as otherwise provided in this section, there
 3015  shall be no material alteration or substantial additions to the
 3016  common areas, except in a manner provided in the cooperative
 3017  documents as originally recorded or as amended under the
 3018  procedures provided therein. If the cooperative documents as
 3019  originally recorded or as amended under the procedures provided
 3020  therein do not specify the procedure for approval of material
 3021  alterations or substantial additions, 75 percent of the total
 3022  voting interests of the association must approve the alterations
 3023  or additions. This subsection is intended to clarify existing
 3024  law and applies to associations existing on July 1, 2010.
 3025         (3) A shareholder shall not do anything within his or her
 3026  unit or on the common areas which would adversely affect the
 3027  safety or soundness of the common areas or any portion of the
 3028  association property or cooperative property which is to be
 3029  maintained by the association.
 3030         (4) Any shareholder may display within the boundaries of
 3031  the shareholder’s unit one portable, removable United States
 3032  flag in a respectful way and, on Armed Forces Day, Memorial Day,
 3033  Flag Day, Independence Day, and Veterans’ Day, may display in a
 3034  respectful way portable, removable official flags, not larger
 3035  than 4 1/2 feet by 6 feet, which represent the United States
 3036  Army, Navy, Air Force, Marine Corps, or Coast Guard, regardless
 3037  of any rule or requirement in the cooperative documents dealing
 3038  with flags or decorations.
 3039         (5) Each board of directors shall adopt hurricane shutter
 3040  specifications for each building within each cooperative which
 3041  shall include color, style, and other factors deemed relevant by
 3042  the board. All specifications adopted by the board shall comply
 3043  with the applicable building code.
 3044         (a) The board may, subject to the provisions of s. 719.3026
 3045  and the approval of a majority of voting interests of the
 3046  cooperative, install hurricane shutters or hurricane protection
 3047  that complies with or exceeds the applicable building code, or
 3048  both, except that a vote of the shareholders is not required if
 3049  the maintenance, repair, and replacement of hurricane shutters
 3050  or other forms of hurricane protection are the responsibility of
 3051  the association pursuant to the cooperative documents. However,
 3052  when hurricane protection or laminated glass or window film
 3053  architecturally designed to function as hurricane protection
 3054  which complies with or exceeds the current applicable building
 3055  code has been previously installed, the board may not install
 3056  hurricane shutters or other hurricane protection. Code-compliant
 3057  impact glass may be installed by the association as hurricane
 3058  protection if the area in which the glass is to be installed is
 3059  an area that is the responsibility of the association.
 3060  Notwithstanding s. 719.107(3), if a shareholder installed code
 3061  compliant impact glass prior to the association voting to
 3062  install such glass, and such glass and the frame thereof comply
 3063  with the current applicable building codes and are otherwise in
 3064  good repair, the shareholder shall not be required to pay the
 3065  shareholder’s pro rata share of the cost of installing code
 3066  compliant impact glass in the cooperative association.
 3067         (b) The association shall be responsible for the
 3068  maintenance, repair, and replacement of the hurricane shutters
 3069  or other hurricane protection authorized by this subsection if
 3070  such hurricane shutters or other hurricane protection is the
 3071  responsibility of the association pursuant to the cooperative
 3072  documents. If the hurricane shutters or other hurricane
 3073  protection authorized by this subsection are the responsibility
 3074  of the shareholders pursuant to the cooperative documents, the
 3075  responsibility for the maintenance, repair, and replacement of
 3076  such items shall be the responsibility of the shareholder.
 3077         (c) The board may operate hurricane shutters installed
 3078  pursuant to this subsection without permission of the
 3079  shareholders only when such operation is necessary to preserve
 3080  and protect the cooperative property and association property.
 3081  The installation, replacement, operation, repair, and
 3082  maintenance of such shutters in accordance with the procedures
 3083  set forth in this subsection shall not be deemed a material
 3084  alteration to the common elements or association property within
 3085  the meaning of this section.
 3086         (d) Notwithstanding any provision to the contrary in the
 3087  cooperative documents, if approval is required by the documents,
 3088  a board may not refuse to approve the installation or
 3089  replacement of hurricane shutters by a shareholder conforming to
 3090  the specifications adopted by the board.
 3091         (6) As to any cooperative building greater than three
 3092  stories in height, at least every 5 years, and within 5 years if
 3093  not available for inspection on July 1, 2010, the board shall
 3094  have the cooperative building inspected to provide a report
 3095  under seal of an architect or engineer authorized to practice in
 3096  this state attesting to required maintenance, useful life, and
 3097  replacement costs of the common areas. However, if approved by a
 3098  majority of the voting interests present at a properly called
 3099  meeting of the association, an association may waive this
 3100  requirement. Such meeting and approval must occur prior to the
 3101  end of the 5-year period and is effective only for that 5-year
 3102  period.
 3103         (7) An association may not refuse the request of a
 3104  shareholder for a reasonable accommodation for the attachment on
 3105  the mantel or frame of the door of the shareholder of a
 3106  religious object not to exceed 3 inches wide, 6 inches high, and
 3107  1.5 inches deep.
 3108         (8) Notwithstanding the provisions of this section or the
 3109  governing documents of a cooperative association, the board of
 3110  directors may, without any requirement for approval of the
 3111  shareholders, install upon or within the common areas or
 3112  association property solar collectors, clotheslines, or other
 3113  energy-efficient devices based on renewable resources for the
 3114  benefit of the shareholders.
 3115         Section 21. Section 719.117, Florida Statutes, is created
 3116  to read:
 3117         719.117 Termination of cooperative.—
 3118         (1) LEGISLATIVE FINDINGS.—The Legislature finds that
 3119  cooperatives are created as authorized by statute. In
 3120  circumstances that may create economic waste, areas of
 3121  disrepair, or obsolescence of a cooperative property for its
 3122  intended use and thereby lower property tax values, the
 3123  Legislature further finds that it is the public policy of this
 3124  state to provide by statute a method to preserve the value of
 3125  the property interests and the rights of alienation thereof that
 3126  shareholders have in the cooperative property before and after
 3127  termination. The Legislature further finds that it is contrary
 3128  to the public policy of this state to require the continued
 3129  operation of a cooperative when to do so constitutes economic
 3130  waste or when the ability to do so is made impossible by law or
 3131  regulation. This section applies to all cooperatives in this
 3132  state in existence on or after July 1, 2010.
 3133         (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR
 3134  IMPOSSIBILITY.—
 3135         (a) Notwithstanding any provision to the contrary in the
 3136  cooperative documents, the cooperative form of ownership of a
 3137  property may be terminated by a plan of termination approved by
 3138  the lesser of the lowest percentage of voting interests
 3139  necessary to amend the articles of incorporation when:
 3140         1. The total estimated cost of repairs necessary to restore
 3141  the improvements to their former condition or bring them into
 3142  compliance with applicable laws or regulations exceeds the
 3143  combined fair market value of all units in the cooperative after
 3144  completion of the repairs; or
 3145         2. It becomes impossible to operate or reconstruct a
 3146  cooperative in its prior physical configuration because of land
 3147  use laws or regulations.
 3148         (b) Notwithstanding paragraph (a), a cooperative in which
 3149  75 percent or more of the units are timeshare units may be
 3150  terminated only pursuant to a plan of termination approved by 80
 3151  percent of the total voting interests of the association and the
 3152  holders of 80 percent of the original principal amount of
 3153  outstanding recorded mortgage liens of timeshare estates in the
 3154  cooperative, unless the cooperative documents provide for a
 3155  lower voting percentage.
 3156         (3) OPTIONAL TERMINATION.—Except as provided in subsection
 3157  (2) or unless the cooperative documents provide for a lower
 3158  percentage, the cooperative form of ownership of the property
 3159  may be terminated pursuant to a plan of termination approved by
 3160  at least 80 percent of the total voting interests of the
 3161  cooperative if not more than 10 percent of the total voting
 3162  interests of the cooperative have rejected the plan of
 3163  termination by negative vote or by providing written objections
 3164  thereto. This subsection does not apply to cooperatives in which
 3165  75 percent or more of the units are timeshare units.
 3166         (4) EXEMPTION.—A plan of termination is not an amendment
 3167  subject to s. 719.1055(1).
 3168         (5) MORTGAGE LIENHOLDERS.—Notwithstanding any provision to
 3169  the contrary in the cooperative documents or this chapter,
 3170  approval of a plan of termination by the holder of a recorded
 3171  mortgage lien affecting a cooperative parcel in which fewer than
 3172  75 percent of the units are timeshare units is not required
 3173  unless the plan of termination will result in less than the full
 3174  satisfaction of the mortgage lien affecting the cooperative
 3175  parcel. If such approval is required and not given, a holder of
 3176  a recorded mortgage lien who objects to the plan of termination
 3177  may contest the plan as provided in subsection (16). At the time
 3178  of sale, the lien shall be transferred to the proportionate
 3179  share of the proceeds assigned to the cooperative parcel in the
 3180  plan of termination or as subsequently modified by the court.
 3181         (6) POWERS IN CONNECTION WITH TERMINATION.—The approval of
 3182  the plan of termination does not terminate the association. The
 3183  association shall continue in existence following approval of
 3184  the plan of termination with all powers and duties it had before
 3185  approval of the plan. Notwithstanding any provision to the
 3186  contrary in the cooperative documents or bylaws, after approval
 3187  of the plan the board shall:
 3188         (a) Employ directors, agents, attorneys, and other
 3189  professionals to liquidate or conclude its affairs.
 3190         (b) Conduct the affairs of the association as necessary for
 3191  the liquidation or termination.
 3192         (c) Carry out contracts and collect, pay, and settle debts
 3193  and claims for and against the association.
 3194         (d) Defend suits brought against the association.
 3195         (e) Sue in the name of the association for all sums due or
 3196  owed to the association or to recover any of its property.
 3197         (f) Perform any act necessary to maintain, repair, or
 3198  demolish unsafe or uninhabitable improvements or other
 3199  cooperative property in compliance with applicable codes.
 3200         (g) Sell at public or private sale or exchange, convey, or
 3201  otherwise dispose of assets of the association for an amount
 3202  deemed to be in the best interests of the association, and
 3203  execute bills of sale and deeds of conveyance in the name of the
 3204  association.
 3205         (h) Collect and receive rents, profits, accounts
 3206  receivable, income, maintenance fees, special assessments, or
 3207  insurance proceeds for the association.
 3208         (i) Contract and do anything in the name of the association
 3209  which is proper or convenient to terminate the affairs of the
 3210  association.
 3211         (7) NATURAL DISASTERS.—
 3212         (a) If, after a natural disaster, the identity of the
 3213  directors or their right to hold office is in doubt, if they are
 3214  deceased or unable to act, if they fail or refuse to act, or if
 3215  they cannot be located, any interested person may petition the
 3216  circuit court to determine the identity of the directors or, if
 3217  found to be in the best interests of the shareholders, to
 3218  appoint a receiver to conclude the affairs of the association
 3219  after a hearing following notice to such persons as the court
 3220  directs. Lienholders shall be given notice of the petition and
 3221  have the right to propose persons for the consideration by the
 3222  court as receiver. If a receiver is appointed, the court shall
 3223  direct the receiver to provide to all shareholders written
 3224  notice of his or her appointment as receiver. Such notice shall
 3225  be mailed or delivered within 10 days after the appointment.
 3226  Notice by mail to a shareholder shall be sent to the address
 3227  used by the county property appraiser for notice to the
 3228  shareholder.
 3229         (b) The receiver shall have all powers given to the board
 3230  pursuant to the cooperative documents, bylaws, and subsection
 3231  (6) and any other powers that are necessary to conclude the
 3232  affairs of the association and are set forth in the order of
 3233  appointment. The appointment of the receiver is subject to the
 3234  bonding requirements of such order. The order shall also provide
 3235  for the payment of a reasonable fee to the receiver from the
 3236  sources identified in the order, which may include rents,
 3237  profits, incomes, maintenance fees, or special assessments
 3238  collected from the cooperative property.
 3239         (8) REPORTS AND REPLACEMENT OF RECEIVER.—
 3240         (a) The association, receiver, or termination trustee shall
 3241  prepare reports each quarter following the approval of the plan
 3242  of termination setting forth the status and progress of the
 3243  termination, the costs and fees incurred, the date the
 3244  termination is expected to be completed, and the current
 3245  financial condition of the association, receivership, or
 3246  trusteeship and provide copies of the report by regular mail to
 3247  the shareholders and lienors at the mailing address provided to
 3248  the association by the shareholders and the lienors.
 3249         (b) The shareholders of an association in termination may
 3250  recall or remove members of the board of administration with or
 3251  without cause at any time as provided in s. 718.106(1)(f).
 3252         (c) The lienors of an association in termination
 3253  representing at least 50 percent of the outstanding amount of
 3254  liens may petition the court for the appointment of a
 3255  termination trustee, which shall be granted upon good cause
 3256  shown.
 3257         (9) PLAN OF TERMINATION.—The plan of termination must be a
 3258  written document executed in the same manner as a deed by
 3259  shareholders having the requisite percentage of voting interests
 3260  to approve the plan and by the termination trustee. A copy of
 3261  the proposed plan of termination shall be given to all
 3262  shareholders, in the same manner as provided for notice of an
 3263  annual meeting, at least 14 days prior to the meeting at which
 3264  the plan of termination is to be voted upon or prior to or
 3265  simultaneously with the distribution of the solicitation seeking
 3266  execution of the plan of termination or written consent to or
 3267  joinder in the plan. A shareholder may document assent to the
 3268  plan by executing the plan or by consent to or joinder in the
 3269  plan in the manner of a deed. A plan of termination and the
 3270  consents or joinders of shareholders and, if required, consents
 3271  or joinders of mortgagees must be recorded in the public records
 3272  of each county in which any portion of the cooperative is
 3273  located. The plan is effective only upon recordation or at a
 3274  later date specified in the plan.
 3275         (10) PLAN OF TERMINATION; REQUIRED PROVISIONS.—The plan of
 3276  termination must specify:
 3277         (a) The name, address, and powers of the termination
 3278  trustee.
 3279         (b) A date after which the plan of termination is void if
 3280  it has not been recorded.
 3281         (c) The interests of the respective shareholders in the
 3282  association property, common surplus, and other assets of the
 3283  association, which shall be the same as the respective interests
 3284  of the shareholders in the common areas immediately before the
 3285  termination, unless otherwise provided in the cooperative
 3286  documents.
 3287         (d) The interests of the respective shareholders in any
 3288  proceeds from the sale of the cooperative property. The plan of
 3289  termination may apportion those proceeds pursuant to any method
 3290  prescribed in subsection (12). If, pursuant to the plan of
 3291  termination, cooperative property or real property owned by the
 3292  association is to be sold following termination, the plan must
 3293  provide for the sale and may establish any minimum sale terms.
 3294         (e) Any interests of the respective shareholders in
 3295  insurance proceeds or condemnation proceeds that are not used
 3296  for repair or reconstruction at the time of termination. Unless
 3297  the cooperative documents expressly address the distribution of
 3298  insurance proceeds or condemnation proceeds, the plan of
 3299  termination may apportion those proceeds pursuant to any method
 3300  prescribed in subsection (12).
 3301         (11) PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL
 3302  TERMINATION.—
 3303         (a) The plan of termination may provide that each
 3304  shareholder retains the exclusive right of possession to the
 3305  portion of the real estate that formerly constituted the unit,
 3306  in which case the plan must specify the conditions of
 3307  possession.
 3308         (b) In a conditional termination, the plan must specify the
 3309  conditions for termination. A conditional plan does not vest
 3310  title in the termination trustee until the plan and a
 3311  certificate executed by the association with the formalities of
 3312  a deed, confirming that the conditions in the conditional plan
 3313  have been satisfied or waived by the requisite percentage of the
 3314  voting interests, have been recorded.
 3315         (12) ALLOCATION OF PROCEEDS OF SALE OF COOPERATIVE
 3316  PROPERTY.—
 3317         (a) Unless the cooperative documents expressly provide for
 3318  the allocation of the proceeds of sale of cooperative property,
 3319  the plan of termination must first apportion the proceeds
 3320  between the aggregate value of all units and the value of the
 3321  common areas, based on their respective fair market values
 3322  immediately before the termination, as determined by one or more
 3323  independent appraisers selected by the association or
 3324  termination trustee.
 3325         (b) The portion of proceeds allocated to the units shall be
 3326  further apportioned among the individual units. The
 3327  apportionment is deemed fair and reasonable if it is so
 3328  determined by the shareholders, who may approve the plan of
 3329  termination by any of the following methods:
 3330         1. The respective values of the units based on the fair
 3331  market values of the units immediately before the termination,
 3332  as determined by one or more independent appraisers selected by
 3333  the association or termination trustee;
 3334         2. The respective values of the units based on the most
 3335  recent market value of the units before the termination, as
 3336  provided in the county property appraiser’s records; or
 3337         3. The respective interests of the units in the common
 3338  elements specified in the cooperative documents immediately
 3339  before the termination.
 3340         (c) The methods of apportionment in paragraph (b) do not
 3341  prohibit any other method of apportioning the proceeds of sale
 3342  allocated to the units agreed upon in the plan of termination.
 3343  The portion of the proceeds allocated to the common elements
 3344  shall be apportioned among the units based upon their respective
 3345  interests in the common areas as provided in the cooperative
 3346  documents.
 3347         (d) Liens that encumber a unit shall be transferred to the
 3348  proceeds of sale of the cooperative property and the proceeds of
 3349  sale or other distribution of association property, common
 3350  surplus, or other association assets attributable to such unit
 3351  in their same priority. The proceeds of any sale of cooperative
 3352  property pursuant to a plan of termination may not be deemed to
 3353  be common surplus or association property.
 3354         (13) TERMINATION TRUSTEE.—The association shall serve as
 3355  termination trustee unless another person is appointed in the
 3356  plan of termination. If the association is unable or unwilling
 3357  or fails to act as trustee, any shareholder may petition the
 3358  court to appoint a trustee. Upon the date of the recording or at
 3359  a later date specified in the plan, title to the cooperative
 3360  property vests in the trustee. Unless prohibited by the plan,
 3361  the termination trustee shall be vested with the powers given to
 3362  the board pursuant to the cooperative documents, bylaws, and
 3363  subsection (6). If the association is not the termination
 3364  trustee, the trustee’s powers shall be coextensive with those of
 3365  the association to the extent not prohibited in the plan of
 3366  termination or the order of appointment. If the association is
 3367  not the termination trustee, the association shall transfer any
 3368  association property to the trustee. If the association is
 3369  dissolved, the trustee shall also have such other powers
 3370  necessary to conclude the affairs of the association.
 3371         (14) TITLE VESTED IN TERMINATION TRUSTEE.—If termination is
 3372  pursuant to a plan of termination under subsection (2) or
 3373  subsection (3), the shareholders’ rights and title as tenants in
 3374  common in undivided interests in the cooperative property vest
 3375  in the termination trustee when the plan is recorded or at a
 3376  later date specified in the plan. The shareholders thereafter
 3377  become the beneficiaries of the proceeds realized from the plan
 3378  of termination. The termination trustee may deal with the
 3379  cooperative property or any interest therein if the plan confers
 3380  on the trustee the authority to protect, conserve, manage, sell,
 3381  or dispose of the cooperative property. The trustee, on behalf
 3382  of the shareholders, may contract for the sale of real property,
 3383  but the contract is not binding on the shareholders until the
 3384  plan is approved pursuant to subsection (2) or subsection (3).
 3385         (15) NOTICE.—
 3386         (a) Within 30 days after a plan of termination has been
 3387  recorded, the termination trustee shall deliver by certified
 3388  mail, return receipt requested, notice to all shareholders,
 3389  lienors of the cooperative property, and lienors of all units at
 3390  their last known addresses that a plan of termination has been
 3391  recorded. The notice must include the book and page number of
 3392  the public records in which the plan was recorded, notice that a
 3393  copy of the plan shall be furnished upon written request, and
 3394  notice that the shareholder or lienor has the right to contest
 3395  the fairness of the plan.
 3396         (b) The trustee, within 90 days after the effective date of
 3397  the plan, shall provide to the division a certified copy of the
 3398  recorded plan, the date the plan was recorded, and the county,
 3399  book, and page number of the public records in which the plan is
 3400  recorded.
 3401         (16) RIGHT TO CONTEST.—A shareholder or lienor may contest
 3402  a plan of termination by initiating a summary procedure pursuant
 3403  to s. 51.011 within 90 days after the date the plan is recorded.
 3404  A shareholder or lienor who does not contest the plan within the
 3405  90-day period is barred from asserting or prosecuting a claim
 3406  against the association, the termination trustee, any
 3407  shareholder, or any successor in interest to the cooperative
 3408  property. In an action contesting a plan of termination, the
 3409  person contesting the plan has the burden of pleading and
 3410  proving that the apportionment of the proceeds from the sale
 3411  among the shareholders was not fair and reasonable. The
 3412  apportionment of sale proceeds is presumed fair and reasonable
 3413  if it was determined pursuant to the methods prescribed in
 3414  subsection (12). The court shall determine the rights and
 3415  interests of the parties and order the plan of termination to be
 3416  implemented if it is fair and reasonable. If the court
 3417  determines that the plan of termination is not fair and
 3418  reasonable, the court may void the plan or may modify the plan
 3419  to apportion the proceeds in a fair and reasonable manner
 3420  pursuant to this section based upon the proceedings and order
 3421  the modified plan of termination to be implemented. In such
 3422  action, the prevailing party shall recover reasonable attorney’s
 3423  fees and costs.
 3424         (17) DISTRIBUTION.—
 3425         (a) Following termination of the cooperative, the
 3426  cooperative property, association property, common surplus, and
 3427  other assets of the association shall be held by the termination
 3428  trustee, as trustee for shareholders and holders of liens on the
 3429  units, in their order of priority.
 3430         (b) Not less than 30 days before the first distribution,
 3431  the termination trustee shall deliver by certified mail, return
 3432  receipt requested, a notice of the estimated distribution to all
 3433  shareholders, lienors of the cooperative property, and lienors
 3434  of each unit at their last known addresses stating a good faith
 3435  estimate of the amount of the distributions to each class and
 3436  the procedures and deadline for notifying the termination
 3437  trustee of any objections to the amount. The deadline must be at
 3438  least 15 days after the date the notice was mailed. The notice
 3439  may be sent with or after the notice required by subsection
 3440  (15). If a shareholder or lienor files a timely objection with
 3441  the termination trustee, the trustee need not distribute the
 3442  funds and property allocated to the respective shareholder or
 3443  lienor until the trustee has had a reasonable time to determine
 3444  the validity of the adverse claim. In the alternative, the
 3445  trustee may interplead the shareholder, the lienor, and any
 3446  other person claiming an interest in the unit and deposit the
 3447  funds allocated to the unit in the court registry, at which time
 3448  the cooperative property, association property, common surplus,
 3449  and other assets of the association are free of all claims and
 3450  liens of the parties to the suit. In an interpleader action, the
 3451  trustee and prevailing party may recover reasonable attorney’s
 3452  fees and costs.
 3453         (c) The proceeds from any sale of cooperative property or
 3454  association property and any remaining cooperative property or
 3455  association property, common surplus, and other assets shall be
 3456  distributed in the following priority:
 3457         1. To pay the reasonable termination trustee’s fees and
 3458  costs and accounting fees and costs.
 3459         2. To lienholders of liens recorded prior to the recording
 3460  of the cooperative documents.
 3461         3. To purchase-money lienholders on units to the extent
 3462  necessary to satisfy their liens; however, the distribution may
 3463  not exceed a shareholder’s share of the proceeds.
 3464         4. To creditors of the association, as their interests
 3465  appear.
 3466         5. To shareholders, the proceeds of any sale of cooperative
 3467  property subject to satisfaction of liens on each unit in their
 3468  order of priority, in shares specified in the plan of
 3469  termination, unless objected to by a shareholder or lienor as
 3470  provided in paragraph (b).
 3471         6. To shareholders, the remaining cooperative property,
 3472  subject to satisfaction of liens on each unit in their order of
 3473  priority, in shares specified in the plan of termination, unless
 3474  objected to by a shareholder or lienor as provided in paragraph
 3475  (b).
 3476         7. To shareholders, the proceeds of any sale of association
 3477  property, the remaining association property, common surplus,
 3478  and other assets of the association, subject to satisfaction of
 3479  liens on each unit in their order of priority, in shares
 3480  specified in the plan of termination, unless objected to by a
 3481  shareholder or lienor as provided in paragraph (b).
 3482         (d) After determining that all known debts and liabilities
 3483  of an association in the process of termination have been paid
 3484  or adequately provided for, the termination trustee shall
 3485  distribute the remaining assets pursuant to the plan of
 3486  termination. If the termination is by court proceeding or
 3487  subject to court supervision, the distribution may not be made
 3488  until any period for the presentation of claims ordered by the
 3489  court has elapsed.
 3490         (e) Assets held by an association upon a valid condition
 3491  requiring return, transfer, or conveyance, which condition has
 3492  occurred or will occur, shall be returned, transferred, or
 3493  conveyed in accordance with the condition. The remaining
 3494  association assets shall be distributed pursuant to paragraph
 3495  (c).
 3496         (f) Distribution may be made in money, property, or
 3497  securities and in installments or as a lump sum, if it can be
 3498  done fairly and ratably and in conformity with the plan of
 3499  termination. Distribution shall be made as soon as is reasonably
 3500  consistent with the beneficial liquidation of the assets.
 3501         (18) ASSOCIATION STATUS.—The termination of a cooperative
 3502  does not change the corporate status of the association that
 3503  operated the cooperative property. The association continues to
 3504  exist to conclude its affairs, prosecute and defend actions by
 3505  or against it, collect and discharge obligations, dispose of and
 3506  convey its property, and collect and divide its assets, but not
 3507  to act except as necessary to conclude its affairs.
 3508         (19) CREATION OF ANOTHER COOPERATIVE.—The termination of a
 3509  cooperative does not bar the creation by the termination trustee
 3510  of another cooperative affecting any portion of the same
 3511  property.
 3512         Section 22. Section 719.1224, Florida Statutes, is created
 3513  to read:
 3514         719.1224 Prohibition against SLAPP suits.—
 3515         (1) It is the intent of the Legislature to protect the
 3516  right of cooperative shareholders to exercise their rights to
 3517  instruct their representatives and petition for redress of
 3518  grievances before the various governmental entities of this
 3519  state as protected by the First Amendment to the United States
 3520  Constitution and s. 5, Art. I of the State Constitution. The
 3521  Legislature recognizes that strategic lawsuits against public
 3522  participation, or “SLAPP suits,” as they are typically referred
 3523  to, have occurred when association members are sued by
 3524  individuals, business entities, or governmental entities arising
 3525  out of a cooperative shareholder’s appearance and presentation
 3526  before a governmental entity on matters related to the
 3527  cooperative association. However, it is the public policy of
 3528  this state that governmental entities, business organizations,
 3529  and individuals not engage in SLAPP suits because such actions
 3530  are inconsistent with the right of cooperative shareholders to
 3531  participate in the state’s institutions of government.
 3532  Therefore, the Legislature finds and declares that prohibiting
 3533  such lawsuits by governmental entities, business entities, and
 3534  individuals against cooperative shareholders who address matters
 3535  concerning their cooperative association will preserve this
 3536  fundamental state policy, preserve the constitutional rights of
 3537  cooperative shareholders, and ensure the continuation of
 3538  representative government in this state. It is the intent of the
 3539  Legislature that such lawsuits be expeditiously disposed of by
 3540  the courts. As used in this subsection, the term “governmental
 3541  entity” means the state, including the executive, legislative,
 3542  and judicial branches of government; the independent
 3543  establishments of the state, counties, municipalities,
 3544  districts, authorities, boards, or commissions; or any agencies
 3545  of these branches that are subject to chapter 286.
 3546         (2) A governmental entity, business organization, or
 3547  individual in this state may not file or cause to be filed
 3548  through its employees or agents any lawsuit, cause of action,
 3549  claim, cross-claim, or counterclaim against a cooperative
 3550  shareholder without merit and solely because such cooperative
 3551  shareholder has exercised the right to instruct his or her
 3552  representatives or the right to petition for redress of
 3553  grievances before the various governmental entities of this
 3554  state, as protected by the First Amendment to the United States
 3555  Constitution and s. 5, Art. I of the State Constitution.
 3556         (3) A cooperative shareholder sued by a governmental
 3557  entity, business organization, or individual in violation of
 3558  this section has a right to an expeditious resolution of a claim
 3559  that the suit is in violation of this section. A cooperative
 3560  shareholder may petition the court for an order dismissing the
 3561  action or granting final judgment in favor of that cooperative
 3562  shareholder. The petitioner may file a motion for summary
 3563  judgment, together with supplemental affidavits, seeking a
 3564  determination that the lawsuit brought by the governmental
 3565  entity, business organization, or individual is in violation of
 3566  this section. The governmental entity, business organization, or
 3567  individual shall thereafter file a response and any supplemental
 3568  affidavits. As soon as practicable, the court shall set a
 3569  hearing on the petitioner’s motion, which shall be held at the
 3570  earliest possible time after the filing of the response of the
 3571  governmental entity, business organization, or individual. The
 3572  court may award the cooperative shareholder sued by the
 3573  governmental entity, business organization, or individual actual
 3574  damages arising from the violation of this section by the
 3575  governmental entity, individual, or business organization. A
 3576  court may treble the damages awarded to a prevailing cooperative
 3577  shareholder and shall state the basis for the treble damages
 3578  award in its judgment. The court shall award the prevailing
 3579  party reasonable attorney’s fees and costs incurred in
 3580  connection with a claim that an action was filed in violation of
 3581  this section.
 3582         (4) Cooperative associations may not expend association
 3583  funds in prosecuting a SLAPP suit against a cooperative
 3584  shareholder.
 3585         Section 23. Section 719.1255, Florida Statutes, is amended
 3586  to read:
 3587         719.1255 Alternative resolution of disputes.—The Division
 3588  of Florida Condominiums, Timeshares, and Mobile Homes of the
 3589  Department of Business and Professional Regulation shall provide
 3590  for alternative dispute resolution of matters related to
 3591  cooperative associations and shareholders in a manner like that
 3592  provided to condominium associations and unit owners in
 3593  accordance with s. 718.1255.
 3594         Section 24. Section 719.1265, Florida Statutes, is created
 3595  to read:
 3596         719.1265 Association emergency powers.—
 3597         (1) To the extent allowed by law and unless specifically
 3598  prohibited by the cooperative documents or the bylaws of an
 3599  association, and consistent with the provisions of s. 617.0830,
 3600  the board of directors, in response to damage caused by an event
 3601  for which a state of emergency is declared pursuant to s. 252.36
 3602  in the locale in which the cooperative is located, may, but is
 3603  not required to, exercise the following powers:
 3604         (a) Conduct board meetings and shareholder meetings with
 3605  notice given as is practicable. Such notice may be given in any
 3606  practicable manner, including publication, radio, United States
 3607  mail, the Internet, public service announcements, and
 3608  conspicuous posting on the cooperative property or any other
 3609  means the board deems reasonable under the circumstances. Notice
 3610  of board decisions may be communicated as provided in this
 3611  paragraph.
 3612         (b) Cancel and reschedule any association meeting.
 3613         (c) Name as assistant officers persons who are not
 3614  directors, which assistant officers shall have the same
 3615  authority as the executive officers for whom they are named as
 3616  assistants during the state of emergency to accommodate the
 3617  incapacity or unavailability of any officer of the association.
 3618         (d) Relocate the association’s principal office or
 3619  designate alternative principal offices.
 3620         (e) Enter into agreements with local counties and
 3621  municipalities to assist those counties and municipalities with
 3622  debris removal.
 3623         (f) Implement a disaster plan before or immediately
 3624  following the event for which a state of emergency is declared,
 3625  which may include, but is not limited to, shutting down or off
 3626  elevators; electricity; water, sewer, or security systems; or
 3627  air conditioners.
 3628         (g) Based upon the advice of emergency management officials
 3629  or licensed professionals retained by the board, determine any
 3630  portion of the cooperative property unavailable for entry or
 3631  occupancy by shareholders, family members, tenants, guests,
 3632  agents, or invitees to protect the health, safety, or welfare of
 3633  such persons.
 3634         (h) Require the evacuation of the cooperative property in
 3635  the event of a mandatory evacuation order in the locale in which
 3636  the cooperative is located. Should any shareholder or other
 3637  occupant of a cooperative fail or refuse to evacuate the
 3638  cooperative property when the board has required evacuation, the
 3639  association shall be immune from liability or injury to persons
 3640  or property arising from such failure or refusal.
 3641         (i) Based upon the advice of emergency management officials
 3642  or licensed professionals retained by the board, determine
 3643  whether the cooperative property can be safely inhabited or
 3644  occupied. However, such determination is not conclusive as to
 3645  any determination of habitability pursuant to the cooperative
 3646  documents.
 3647         (j) Mitigate further damage, including taking action to
 3648  contract for the removal of debris and to prevent or mitigate
 3649  the spread of fungus, including, but not limited to, mold or
 3650  mildew, by removing and disposing of wet drywall, insulation,
 3651  carpet, cabinetry, or other fixtures on or within the
 3652  cooperative property, even if the shareholder is obligated by
 3653  the cooperative documents or law to insure or replace those
 3654  fixtures and to remove personal property from a unit.
 3655         (k) Contract, on behalf of any shareholder or shareholders,
 3656  for items or services for which the shareholder or shareholders
 3657  are otherwise individually responsible, but which are necessary
 3658  to prevent further damage to the cooperative property. In such
 3659  event, the shareholder or shareholders on whose behalf the board
 3660  has contracted are responsible for reimbursing the association
 3661  for the actual costs of the items or services, and the
 3662  association may use its lien authority provided by s. 719.108 to
 3663  enforce collection of the charges. Without limitation, such
 3664  items or services may include the drying of units, the boarding
 3665  of broken windows or doors, and the replacement of damaged air
 3666  conditioners or air handlers to provide climate control in the
 3667  units or other portions of the property.
 3668         (l) Regardless of any provision to the contrary and even if
 3669  such authority does not specifically appear in the cooperative
 3670  documents or bylaws of the association, levy special assessments
 3671  without a vote of the shareholders.
 3672         (m) Without shareholders’ approval, borrow money and pledge
 3673  association assets as collateral to fund emergency repairs and
 3674  carry out the duties of the association when operating funds are
 3675  insufficient. This paragraph does not limit the general
 3676  authority of the association to borrow money, subject to such
 3677  restrictions as are contained in the cooperative documents or
 3678  bylaws of the association.
 3679         (2) The special powers authorized under subsection (1)
 3680  shall be limited to the time reasonably necessary to protect the
 3681  health, safety, and welfare of the association and the
 3682  shareholders and the shareholders’ family members, tenants,
 3683  guests, agents, or invitees and the time reasonably necessary to
 3684  mitigate further damage and make emergency repairs.
 3685  Additionally, unless 20 percent or more of the units are made
 3686  uninhabitable by the emergency, the special powers authorized
 3687  under subsection (1) may only be exercised during the term of
 3688  the Governor’s executive order or proclamation declaring the
 3689  state of emergency in the locale in which the cooperative
 3690  property is located.
 3691         Section 25. Subsections (1) and (4) of section 719.301,
 3692  Florida Statutes, are amended to read:
 3693         719.301 Transfer of association control.—
 3694         (1) When shareholders unit owners other than the developer
 3695  own 15 percent or more of the units in a cooperative that will
 3696  be operated ultimately by an association, the shareholders unit
 3697  owners other than the developer shall be entitled to elect not
 3698  less than one-third of the members of the board of
 3699  administration of the association. Shareholders Unit owners
 3700  other than the developer are entitled to elect not less than a
 3701  majority of the members of the board of administration of an
 3702  association:
 3703         (a) Three years after 50 percent of the units that will be
 3704  operated ultimately by the association have been conveyed to
 3705  purchasers;
 3706         (b) Three months after 90 percent of the units that will be
 3707  operated ultimately by the association have been conveyed to
 3708  purchasers;
 3709         (c) When all the units that will be operated ultimately by
 3710  the association have been completed, some have been conveyed to
 3711  purchasers, and none of the others are being offered for sale by
 3712  the developer in the ordinary course of business;
 3713         (d) When some of the units have been conveyed to purchasers
 3714  and none of the others are being constructed or offered for sale
 3715  by the developer in the ordinary course of business; or
 3716         (e) When the developer files a petition seeking protection
 3717  in bankruptcy;
 3718         (f) When a receiver for the developer is appointed by a
 3719  circuit court and is not discharged within 30 days after such
 3720  appointment; or
 3721         (g)(e) Seven years after creation of the cooperative
 3722  association,
 3723  
 3724  whichever occurs first. The developer is entitled to elect at
 3725  least one member of the board of administration of an
 3726  association as long as the developer holds for sale in the
 3727  ordinary course of business at least 5 percent in cooperatives
 3728  with fewer than 500 units and 2 percent in cooperatives with 500
 3729  or more units in a cooperative operated by the association.
 3730  After the developer relinquishes control of the association, the
 3731  developer may exercise the right to vote any developer-owned
 3732  units in the same manner as any other shareholder unit owner
 3733  except for purposes of reacquiring control of the association or
 3734  selecting the majority of the members of the board.
 3735         (4) When shareholders unit owners other than the developer
 3736  elect a majority of the members of the board of administration
 3737  of an association, the developer shall relinquish control of the
 3738  association, and the shareholders unit owners shall accept
 3739  control. Simultaneously, or for the purpose of paragraph (c) not
 3740  more than 90 days thereafter, the developer shall deliver to the
 3741  association, at the developer’s expense, all property of the
 3742  shareholders unit owners and of the association held or
 3743  controlled by the developer, including, but not limited to, the
 3744  following items, if applicable, as to each cooperative operated
 3745  by the association:
 3746         (a)1. The original or a photocopy of the recorded
 3747  cooperative documents and all amendments thereto. If a photocopy
 3748  is provided, it shall be certified by affidavit of the
 3749  developer, or an officer or agent of the developer, as being a
 3750  complete copy of the actual recorded cooperative documents.
 3751         2. A certified copy of the association’s articles of
 3752  incorporation, or if it is not incorporated, then copies of the
 3753  documents creating the association.
 3754         3. A copy of the bylaws.
 3755         4. The minute books, including all minutes, and other books
 3756  and records of the association, if any.
 3757         5. Any house rules and regulations which have been
 3758  promulgated.
 3759         (b) Resignations of officers and members of the board of
 3760  administration who are required to resign because the developer
 3761  is required to relinquish control of the association.
 3762         (c) The financial records, including financial statements
 3763  of the association, and source documents since the incorporation
 3764  of the association through the date of turnover. The records
 3765  shall be audited for the period of the incorporation of the
 3766  association or for the period covered by the last audit, if an
 3767  audit has been performed for each fiscal year since
 3768  incorporation, by an independent certified public accountant.
 3769  All financial statements shall be prepared in accordance with
 3770  generally accepted accounting standards and shall be audited in
 3771  accordance with generally accepted auditing standards as
 3772  prescribed by the Board of Accountancy. The accountant
 3773  performing the review shall examine to the extent necessary
 3774  supporting documents and records, including the cash
 3775  disbursements and related paid invoices to determine if
 3776  expenditures were for association purposes and the billings,
 3777  cash receipts, and related records to determine that the
 3778  developer was charged and paid the proper amounts of
 3779  assessments.
 3780         (d) Association funds or control thereof.
 3781         (e) All tangible personal property that is property of the
 3782  association, represented by the developer to be part of the
 3783  common areas or ostensibly part of the common areas, and an
 3784  inventory of that property.
 3785         (f) A copy of the plans and specifications utilized in the
 3786  construction or remodeling of improvements and the supplying of
 3787  equipment to the cooperative and in the construction and
 3788  installation of all mechanical components serving the
 3789  improvements and the site, with a certificate in affidavit form
 3790  of the developer, the developer’s agent, or an architect or
 3791  engineer authorized to practice in this state that such plans
 3792  and specifications represent, to the best of their knowledge and
 3793  belief, the actual plans and specifications utilized in the
 3794  construction and improvement of the cooperative property and for
 3795  the construction and installation of the mechanical components
 3796  serving the improvements. If the cooperative property has been
 3797  organized as a cooperative more than 3 years after the
 3798  completion of construction or remodeling of the improvements,
 3799  the requirements of this paragraph shall not apply.
 3800         (g) A list of the names and addresses, of which the
 3801  developer had knowledge at any time in the development of the
 3802  cooperative, of all contractors, subcontractors, and suppliers
 3803  utilized in the construction or remodeling of the improvements
 3804  and in the landscaping.
 3805         (h) Insurance policies.
 3806         (i) Copies of any certificates of occupancy which may have
 3807  been issued for the cooperative property.
 3808         (j) Any other permits issued by governmental bodies
 3809  applicable to the cooperative property in force or issued within
 3810  1 year prior to the date the shareholders unit owners other than
 3811  the developer take control of the association.
 3812         (k) All written warranties of the contractor,
 3813  subcontractors, suppliers, and manufacturers, if any, that are
 3814  still effective.
 3815         (l) A roster of shareholders unit owners and their
 3816  addresses and telephone numbers, if known, as shown on the
 3817  developer’s records.
 3818         (m) Leases of the common areas and other leases to which
 3819  the association is a party.
 3820         (n) Employment contracts or service contracts in which the
 3821  association is one of the contracting parties or service
 3822  contracts in which the association or the shareholders unit
 3823  owners have an obligation or responsibility, directly or
 3824  indirectly, to pay some or all of the fee or charge of the
 3825  person or persons performing the service.
 3826         (o) All other contracts to which the association is a
 3827  party.
 3828         (p) A turnover inspection report included in the official
 3829  records, under seal of an architect or engineer authorized to
 3830  practice in this state, attesting to required maintenance,
 3831  useful life, and replacement costs of the following applicable
 3832  common areas:
 3833         1. Roof.
 3834         2. Structure.
 3835         3. Fireproofing and fire protection systems.
 3836         4. Elevators.
 3837         5. Heating and cooling systems.
 3838         6. Plumbing.
 3839         7. Electrical systems.
 3840         8. Swimming pool or spa and equipment.
 3841         9. Seawalls.
 3842         10. Pavement and parking areas.
 3843         11. Drainage systems.
 3844         12. Painting.
 3845         13. Irrigation systems.
 3846         Section 26. Section 719.3025, Florida Statutes, is created
 3847  to read:
 3848         719.3025 Agreements for operation, maintenance, or
 3849  management of cooperatives; specific requirements.—
 3850         (1) A written contract between a party contracting to
 3851  provide maintenance or management services and an association
 3852  which contract provides for operation, maintenance, or
 3853  management of a cooperative association or property serving the
 3854  shareholders of a cooperative is not valid or enforceable unless
 3855  the contract:
 3856         (a) Specifies the services, obligations, and
 3857  responsibilities of the party contracting to provide maintenance
 3858  or management services to the shareholders.
 3859         (b) Specifies those costs incurred in the performance of
 3860  those services, obligations, or responsibilities which are to be
 3861  reimbursed by the association to the party contracting to
 3862  provide maintenance or management services.
 3863         (c) Provides an indication of how often each service,
 3864  obligation, or responsibility is to be performed, whether stated
 3865  for each service, obligation, or responsibility or in categories
 3866  thereof.
 3867         (d) Specifies a minimum number of personnel to be employed
 3868  by the party contracting to provide maintenance or management
 3869  services for the purpose of providing service to the
 3870  association.
 3871         (e) Discloses any financial or ownership interest which the
 3872  developer, if the developer is in control of the association,
 3873  holds with regard to the party contracting to provide
 3874  maintenance or management services.
 3875         (f) Discloses any financial or ownership interest a board
 3876  member or any party providing maintenance or management services
 3877  to the association holds with the contracting party.
 3878         (2) In any case in which the party contracting to provide
 3879  maintenance or management services fails to provide such
 3880  services in accordance with the contract, the association is
 3881  authorized to procure such services from some other party and is
 3882  entitled to collect any fees or charges paid for services
 3883  performed by another party from the party contracting to provide
 3884  maintenance or management services.
 3885         (3) Any services or obligations not stated on the face of
 3886  the contract are unenforceable.
 3887         (4) Notwithstanding the fact that certain vendors contract
 3888  with associations to maintain equipment or property which is
 3889  made available to serve shareholders, it is the intent of the
 3890  Legislature that this section applies to contracts for
 3891  maintenance or management services for which the association
 3892  pays compensation. This section does not apply to contracts for
 3893  services or property made available for the convenience of
 3894  shareholders by lessees or licensees of the association, such as
 3895  coin-operated laundry, food, soft drink, or telephone vendors;
 3896  cable television operators; retail store operators; businesses;
 3897  restaurants; or similar vendors.
 3898         Section 27. Section 719.3026, Florida Statutes, is amended
 3899  to read:
 3900         719.3026 Contracts for products and services; in writing;
 3901  bids; exceptions.—Associations with 10 or fewer less than 100
 3902  units may opt out of the provisions of this section if two
 3903  thirds of the shareholders unit owners vote to do so, which opt
 3904  out may be accomplished by a proxy specifically setting forth
 3905  the exception from this section.
 3906         (1) All contracts as further described herein or any
 3907  contract that is not to be fully performed within 1 year after
 3908  the making thereof, for the purchase, lease, or renting of
 3909  materials or equipment to be used by the association in
 3910  accomplishing its purposes under this chapter, and all contracts
 3911  for the provision of services, shall be in writing. If a
 3912  contract for the purchase, lease, or renting of materials or
 3913  equipment, or for the provision of services, requires payment by
 3914  the association in an amount which in the aggregate exceeds 5
 3915  percent of the association’s budget, including reserves, the
 3916  association shall obtain competitive bids for the materials,
 3917  equipment, or services. Nothing contained herein shall be
 3918  construed to require the association to accept the lowest bid.
 3919         (2)(a)1. Notwithstanding the foregoing, contracts with
 3920  employees of the association, and contracts for attorney,
 3921  accountant, architect, community association manager, timeshare
 3922  management firm, engineering, and landscape architect services
 3923  shall not be subject to the provisions of this section.
 3924         2. A contract executed before January 1, 1992, and any
 3925  renewal thereof, is not subject to the competitive bid
 3926  requirements of this section. If a contract was awarded under
 3927  the competitive bid procedures of this section, any renewal of
 3928  that contract is not subject to such competitive bid
 3929  requirements if the contract contains a provision that allows
 3930  the board to cancel the contract on 30 days’ notice. Materials,
 3931  equipment, or services provided to a cooperative pursuant to a
 3932  local government franchise agreement by a franchise holder are
 3933  not subject to the competitive bid requirement. A contract with
 3934  a manager, if made by a competitive bid, may be made for up to 3
 3935  years. A condominium whose declaration or bylaws provides for
 3936  competitive bidding for services may operate under the
 3937  provisions of that declaration or bylaws in lieu of this section
 3938  if those provisions are not less stringent than the requirements
 3939  of this section.
 3940         (b) This section does not limit the ability of an
 3941  association to obtain needed products and services in an
 3942  emergency.
 3943         (c) This section does not apply if the business entity with
 3944  which the association desires to enter into a contract is the
 3945  only source of supply within the county serving the association.
 3946         (d) This section does not excuse a party contracting to
 3947  provide maintenance or management services from compliance with
 3948  s. 719.3025.
 3949         (3) As to any contract or other transaction between an
 3950  association and one or more of its directors or any other
 3951  corporation, firm, association, or entity in which one or more
 3952  of its directors are directors or officers or are financially
 3953  interested:
 3954         (a) The association shall comply with the requirements of
 3955  s. 617.0832.
 3956         (b) The disclosures required by s. 617.0832 shall be
 3957  entered into the written minutes of the meeting.
 3958         (c) Approval of the contract or other transaction shall
 3959  require an affirmative vote of two-thirds of the directors
 3960  present.
 3961         (d) At the next regular or special meeting of the
 3962  shareholders, the existence of the contract or other transaction
 3963  shall be disclosed to the shareholders. Upon motion of any
 3964  shareholder, the contract or transaction shall be brought up for
 3965  a vote and may be canceled by a majority vote of the
 3966  shareholders present. Should the shareholders cancel the
 3967  contract, the association shall only be liable for the
 3968  reasonable value of goods and services provided up to the time
 3969  of cancellation and shall not be liable for any termination fee,
 3970  liquidated damages, or other form of penalty for such
 3971  cancellation.
 3972         Section 28. Section 719.303, Florida Statutes, is amended
 3973  to read:
 3974         719.303 Obligations of shareholders owners.—
 3975         (1) Each shareholder unit owner, each tenant and other
 3976  invitee, and each association shall be governed by, and shall
 3977  comply with the provisions of, this chapter, the cooperative
 3978  documents, the documents creating the association, and the
 3979  association bylaws, and the provisions thereof shall be deemed
 3980  expressly incorporated into any lease of a unit. Actions for
 3981  damages or for injunctive relief, or both, for failure to comply
 3982  with these provisions may be brought by the association or by a
 3983  shareholder unit owner against:
 3984         (a) The association.
 3985         (b) A shareholder unit owner.
 3986         (c) Directors designated by the developer, for actions
 3987  taken by them prior to the time control of the association is
 3988  assumed by shareholders unit owners other than the developer.
 3989         (d) Any director who willfully and knowingly fails to
 3990  comply with these provisions.
 3991         (e) Any tenant leasing a unit, and any other invitee
 3992  occupying a unit.
 3993  
 3994  The prevailing party in any such action or in any action in
 3995  which the purchaser claims a right of voidability based upon
 3996  contractual provisions as required in s. 719.503(1)(a) is
 3997  entitled to recover reasonable attorney’s fees. A shareholder
 3998  unit owner prevailing in an action between the association and
 3999  the shareholder unit owner under this section, in addition to
 4000  recovering his or her reasonable attorney’s fees, may recover
 4001  additional amounts as determined by the court to be necessary to
 4002  reimburse the shareholder unit owner for his or her share of
 4003  assessments levied by the association to fund its expenses of
 4004  the litigation. This relief does not exclude other remedies
 4005  provided by law. Actions arising under this subsection shall not
 4006  be deemed to be actions for specific performance.
 4007         (2) A provision of this chapter may not be waived if the
 4008  waiver would adversely affect the rights of a shareholder unit
 4009  owner or the purpose of the provision, except that shareholders
 4010  unit owners or members of a board of administration may waive
 4011  notice of specific meetings in writing if provided by the
 4012  bylaws. Any instrument given in writing by the shareholder unit
 4013  owner or purchaser to an escrow agent may be relied upon by an
 4014  escrow agent, whether or not such instruction and the payment of
 4015  funds thereunder might constitute a waiver of any provision of
 4016  this chapter.
 4017         (3) If a shareholder is delinquent for more than 90 days in
 4018  the payment of a regular or special assessment or if the
 4019  cooperative documents so provide, the association may suspend,
 4020  for a reasonable time, the right of a shareholder or a
 4021  shareholder’s occupant, licensee, or invitee to use the common
 4022  areas, common facilities, or any other association property.
 4023  This subsection does not apply to limited common areas intended
 4024  to be used by that unit, common areas that must be used to
 4025  access the unit, utility services provided to the unit, parking
 4026  areas, or elevators. The association may also levy reasonable
 4027  fines against a shareholder unit owner for failure of the
 4028  shareholder unit owner or his or her licensee or invitee or the
 4029  unit’s occupant to comply with any provision of the cooperative
 4030  documents or reasonable rules of the association. No fine shall
 4031  become a lien against a unit. No fine shall exceed $100 per
 4032  violation. However, a fine may be levied on the basis of each
 4033  day of a continuing violation, with a single notice and
 4034  opportunity for hearing, provided that no such fine shall in the
 4035  aggregate exceed $1,000. No fine may be levied except after
 4036  giving reasonable notice and opportunity for a hearing to the
 4037  shareholder unit owner and, if applicable, his or her licensee
 4038  or invitee. The hearing shall be held before a committee of
 4039  other shareholders who are neither board members nor persons
 4040  residing in a board member’s household unit owners. If the
 4041  committee does not agree with the fine, it shall not be levied.
 4042  This subsection does not apply to unoccupied units.
 4043         (4) The notice and hearing requirements of subsection (3)
 4044  do not apply to the imposition of suspensions and fines against
 4045  a shareholder or a shareholder’s occupant, licensee, or invitee
 4046  because of the failure to pay any amounts due the association.
 4047  If such a fine or suspension is imposed, the association may
 4048  levy the fine or impose a reasonable suspension at a properly
 4049  noticed board meeting, and after the imposition of such fine or
 4050  suspension, the association must notify the shareholder and, if
 4051  applicable, the shareholder’s occupant, licensee, or invitee by
 4052  mail or hand delivery.
 4053         Section 29. Section 719.501, Florida Statutes, is amended
 4054  to read:
 4055         719.501 Authority, responsibilities, Powers and duties of
 4056  Division of Florida Condominiums, Timeshares, and Mobile Homes.—
 4057         (1) The Division of Florida Condominiums, Timeshares, and
 4058  Mobile Homes of the Department of Business and Professional
 4059  Regulation, referred to as the “division” in this part, in
 4060  addition to other powers and duties prescribed by chapter 718,
 4061  has the power to enforce and ensure compliance with this chapter
 4062  and adopted rules relating to the development, construction,
 4063  sale, lease, ownership, operation, and management of residential
 4064  cooperative units. In performing its duties, the division shall
 4065  have the following powers and duties:
 4066         (a) The division may make necessary public or private
 4067  investigations within or outside this state to determine whether
 4068  any person has violated this chapter or any rule or order
 4069  hereunder, to aid in the enforcement of this chapter, or to aid
 4070  in the adoption of rules or forms hereunder.
 4071         (b) The division may require or permit any person to file a
 4072  statement in writing, under oath or otherwise, as the division
 4073  determines, as to the facts and circumstances concerning a
 4074  matter to be investigated.
 4075         (c) For the purpose of any investigation under this
 4076  chapter, the division director or any officer or employee
 4077  designated by the division director may administer oaths or
 4078  affirmations, subpoena witnesses and compel their attendance,
 4079  take evidence, and require the production of any matter which is
 4080  relevant to the investigation, including the existence,
 4081  description, nature, custody, condition, and location of any
 4082  books, documents, or other tangible things and the identity and
 4083  location of persons having knowledge of relevant facts or any
 4084  other matter reasonably calculated to lead to the discovery of
 4085  material evidence. Upon failure by a person to obey a subpoena
 4086  or to answer questions propounded by the investigating officer
 4087  and upon reasonable notice to all persons affected thereby, the
 4088  division may apply to the circuit court for an order compelling
 4089  compliance.
 4090         (d) Notwithstanding any remedies available to shareholders
 4091  unit owners and associations, if the division has reasonable
 4092  cause to believe that a violation of any provision of this
 4093  chapter or related rule has occurred, the division may institute
 4094  enforcement proceedings in its own name against a developer,
 4095  association, officer, or member of the board, or its assignees
 4096  or agents, as follows:
 4097         1. The division may permit a person whose conduct or
 4098  actions may be under investigation to waive formal proceedings
 4099  and enter into a consent proceeding whereby orders, rules, or
 4100  letters of censure or warning, whether formal or informal, may
 4101  be entered against the person.
 4102         2. The division may issue an order requiring the developer,
 4103  association, officer, or member of the board, or its assignees
 4104  or agents, or any community association manager or community
 4105  association management firm to cease and desist from the
 4106  unlawful practice and take such affirmative action as in the
 4107  judgment of the division will carry out the purposes of this
 4108  chapter. If the division finds that a developer, association,
 4109  officer, or member of the board of directors, or its assignees
 4110  or agents, or any community association manager or community
 4111  association management firm is violating or is about to violate
 4112  any provision of this chapter, any rule adopted or order issued
 4113  by the division, or any written agreement entered into with the
 4114  division, and presents an immediate danger to the public
 4115  requiring an immediate final order, it may issue an emergency
 4116  cease and desist order reciting with particularity the facts
 4117  underlying such findings. The emergency cease and desist order
 4118  is effective for 90 days. If the division begins nonemergency
 4119  cease and desist proceedings, the emergency cease and desist
 4120  order remains effective until the conclusion of the proceedings
 4121  under ss. 120.569 and 120.57. Such affirmative action may
 4122  include, but is not limited to, an order requiring a developer
 4123  to pay moneys determined to be owed to a condominium
 4124  association.
 4125         3. If a developer fails to pay any restitution determined
 4126  by the division to be owed, plus any accrued interest at the
 4127  highest rate permitted by law, within 30 days after expiration
 4128  of any appellate time period of a final order requiring payment
 4129  of restitution or the conclusion of any appeal thereof,
 4130  whichever is later, the division shall bring an action in
 4131  circuit or county court on behalf of any association, class of
 4132  shareholders, lessees, or purchasers for restitution,
 4133  declaratory relief, injunctive relief, or any other available
 4134  remedy. The division may also temporarily revoke its acceptance
 4135  of the filing for the developer to which the restitution relates
 4136  until payment of restitution is made. The division may bring an
 4137  action in circuit court on behalf of a class of unit owners,
 4138  lessees, or purchasers for declaratory relief, injunctive
 4139  relief, or restitution.
 4140         4. The division may petition the court for the appointment
 4141  of a receiver or conservator. If appointed, the receiver or
 4142  conservator may take action to implement the court order to
 4143  ensure the performance of the order and to remedy any breach
 4144  thereof. In addition to all other means provided by law for the
 4145  enforcement of an injunction or temporary restraining order, the
 4146  circuit court may impound or sequester the property of a party
 4147  defendant, including books, papers, documents, and related
 4148  records, and allow the examination and use of the property by
 4149  the division and a court-appointed receiver or conservator.
 4150         5. The division may apply to the circuit court for an order
 4151  of restitution in which the defendant in an action brought
 4152  pursuant to subparagraph 4. shall be ordered to make restitution
 4153  of those sums shown by the division to have been obtained by the
 4154  defendant in violation of this chapter. Such restitution shall,
 4155  at the option of the court, be payable to the conservator or
 4156  receiver appointed pursuant to subparagraph 4. or directly to
 4157  the persons whose funds or assets were obtained in violation of
 4158  this chapter.
 4159         6.4. The division may impose a civil penalty against a
 4160  developer or association, or its assignees or agents, for any
 4161  violation of this chapter or related rule adopted under this
 4162  chapter. The division may impose a civil penalty individually
 4163  against any officer or board member who willfully and knowingly
 4164  violates a provision of this chapter, a rule adopted pursuant to
 4165  this chapter, or a final order of the division; may order the
 4166  removal of such individual as an officer or from the board of
 4167  directors or as an officer of the association; and may prohibit
 4168  such individual from serving as an officer or on the board of a
 4169  community association for a stated period of time. The term
 4170  “willfully and knowingly” means that the division informed the
 4171  officer or board member that his or her action or intended
 4172  action violates this chapter, a rule adopted under this chapter,
 4173  or a final order of the division, and that the officer or board
 4174  member refused to comply with the requirements of this chapter,
 4175  a rule adopted under this chapter, or a final order of the
 4176  division. The division, prior to initiating formal agency action
 4177  under chapter 120, shall afford the officer or board member an
 4178  opportunity to voluntarily comply with this chapter, a rule
 4179  adopted under this chapter, or a final order of the division. An
 4180  officer or board member who complies within 10 days is not
 4181  subject to a civil penalty. A penalty may be imposed on the
 4182  basis of each day of continuing violation, but in no event shall
 4183  the penalty for any offense exceed $5,000. By January 1, 1998,
 4184  the division shall adopt, by rule, penalty guidelines applicable
 4185  to possible violations or to categories of violations of this
 4186  chapter or rules adopted by the division. The guidelines must
 4187  specify a meaningful range of civil penalties for each such
 4188  violation of the statute and rules and must be based upon the
 4189  harm caused by the violation, the repetition of the violation,
 4190  and upon such other factors deemed relevant by the division. For
 4191  example, the division may consider whether the violations were
 4192  committed by a developer or shareholder-controlled owner
 4193  controlled association, the size of the association, and other
 4194  factors. The guidelines must designate the possible mitigating
 4195  or aggravating circumstances that justify a departure from the
 4196  range of penalties provided by the rules. It is the legislative
 4197  intent that minor violations be distinguished from those which
 4198  endanger the health, safety, or welfare of the cooperative
 4199  residents or other persons and that such guidelines provide
 4200  reasonable and meaningful notice to the public of likely
 4201  penalties that may be imposed for proscribed conduct. This
 4202  subsection does not limit the ability of the division to
 4203  informally dispose of administrative actions or complaints by
 4204  stipulation, agreed settlement, or consent order. All amounts
 4205  collected shall be deposited with the Chief Financial Officer to
 4206  the credit of the Division of Florida Condominiums, Timeshares,
 4207  and Mobile Homes Trust Fund. If a developer fails to pay the
 4208  civil penalty and the amount deemed to be owed to the
 4209  association, the division shall thereupon issue an order
 4210  directing that such developer cease and desist from further
 4211  operation until such time as the civil penalty is paid or may
 4212  pursue enforcement of the penalty in a court of competent
 4213  jurisdiction. If an association fails to pay the civil penalty,
 4214  the division shall thereupon pursue enforcement in a court of
 4215  competent jurisdiction, and the order imposing the civil penalty
 4216  or the cease and desist order shall not become effective until
 4217  20 days after the date of such order. Any action commenced by
 4218  the division shall be brought in the county in which the
 4219  division has its executive offices or in the county where the
 4220  violation occurred.
 4221         7. If a shareholder presents the division with proof that
 4222  the shareholder has requested access to official records in
 4223  writing by certified mail, and that after 10 days the
 4224  shareholder again made the same request for access to official
 4225  records in writing by certified mail, and that more than 10 days
 4226  has elapsed since the second request and the association has
 4227  still failed or refused to provide access to official records as
 4228  required by this chapter, the division shall issue a subpoena
 4229  requiring production of the requested records where the records
 4230  are kept pursuant to s. 719.104.
 4231         8. In addition to subparagraph 6., the division may seek
 4232  the imposition of a civil penalty through the circuit court for
 4233  any violation for which the division may issue a notice to show
 4234  cause under paragraph (r). The civil penalty shall be at least
 4235  $500 but no more than $5,000 for each violation. The court may
 4236  also award to the prevailing party court costs and reasonable
 4237  attorney’s fees and, if the division prevails, may also award
 4238  reasonable costs of investigation.
 4239         9. When the division finds that any person has derived an
 4240  improper personal benefit from a cooperative association, the
 4241  division shall order the person to pay restitution to the
 4242  association and shall order the person to pay to the division
 4243  the costs of investigation and prosecution.
 4244         (e) The division may prepare and disseminate a prospectus
 4245  and other information to assist prospective shareholders owners,
 4246  purchasers, lessees, and developers of residential cooperatives
 4247  in assessing the rights, privileges, and duties pertaining
 4248  thereto.
 4249         (f) The division has authority to adopt rules pursuant to
 4250  ss. 120.536(1) and 120.54 to implement and enforce the
 4251  provisions of this chapter.
 4252         (g) The division shall establish procedures for providing
 4253  notice to an association, and to the developer during the period
 4254  when the developer controls the association, when the division
 4255  is considering the issuance of a declaratory statement with
 4256  respect to the cooperative documents governing such cooperative
 4257  community.
 4258         (h) The division shall furnish each association which pays
 4259  the fees required by paragraph (2)(a) a copy of this chapter
 4260  act, subsequent changes to this act on an annual basis, as an
 4261  amended version of this act as it becomes available from the
 4262  Secretary of State’s office on a biennial basis, and the rules
 4263  adopted thereto on an annual basis.
 4264         (i) The division shall annually provide each association
 4265  with a summary of declaratory statements and formal legal
 4266  opinions relating to the operations of cooperatives which were
 4267  rendered by the division during the previous year.
 4268         (j) The division shall adopt uniform accounting principles,
 4269  policies, and standards to be used by all associations in the
 4270  preparation and presentation of all financial statements
 4271  required by this chapter. The principles, policies, and
 4272  standards shall take into consideration the size of the
 4273  association and the total revenue collected by the association.
 4274         (j)(k) The division shall provide training and educational
 4275  programs for cooperative association board members and
 4276  shareholders unit owners. The training may, in the division’s
 4277  discretion, include web-based electronic media and live training
 4278  and seminars in various locations throughout the state. The
 4279  division may review and approve educational and training
 4280  programs for board members and shareholders offered by providers
 4281  and shall maintain a current list of approved programs and
 4282  providers and make such list available to board members and
 4283  shareholders in a reasonable and cost-effective manner.
 4284         (k)(l) The division shall maintain a toll-free telephone
 4285  number accessible to cooperative shareholders unit owners.
 4286         (l) The division shall develop a program to certify both
 4287  volunteer and paid mediators to provide mediation of cooperative
 4288  disputes. The division shall provide, upon request, a list of
 4289  such mediators to any association, shareholder, or other
 4290  participant in arbitration proceedings under s. 719.1255
 4291  requesting a copy of the list. The division shall include on the
 4292  list of volunteer mediators only the names of persons who have
 4293  received at least 20 hours of training in mediation techniques
 4294  or who have mediated at least 20 disputes. In order to become
 4295  initially certified by the division, paid mediators must be
 4296  certified by the Supreme Court to mediate court cases in county
 4297  or circuit courts. However, the division may adopt, by rule,
 4298  additional factors for the certification of paid mediators,
 4299  which factors must be related to experience, education, or
 4300  background. Any person initially certified as a paid mediator by
 4301  the division must, in order to continue to be certified, comply
 4302  with the factors or requirements imposed by rules adopted by the
 4303  division.
 4304         (m) When a complaint is made to the division, the division
 4305  shall conduct its inquiry with reasonable dispatch and with due
 4306  regard to the interests of the affected parties. Within 30 days
 4307  after receipt of a complaint, the division shall acknowledge the
 4308  complaint in writing and notify the complainant whether the
 4309  complaint is within the jurisdiction of the division and whether
 4310  additional information is needed by the division from the
 4311  complainant. The division shall conduct its investigation and
 4312  shall, within 90 days after receipt of the original complaint or
 4313  timely requested additional information, take action upon the
 4314  complaint. However, the failure to complete the investigation
 4315  within 90 days does not prevent the division from continuing the
 4316  investigation, accepting or considering evidence obtained or
 4317  received after 90 days, or taking administrative action if
 4318  reasonable cause exists to believe that a violation of this
 4319  chapter or a rule of the division has occurred. If an
 4320  investigation is not completed within the time limits
 4321  established in this paragraph, the division shall, on a monthly
 4322  basis, notify the complainant in writing of the status of the
 4323  investigation. When reporting its action to the complainant, the
 4324  division shall inform the complainant of any right to a hearing
 4325  pursuant to ss. 120.569 and 120.57.
 4326         (n) Cooperative association directors, officers, and
 4327  employees, cooperative developers, community association
 4328  managers, and community association management firms have an
 4329  ongoing duty to reasonably cooperate with the division in any
 4330  investigation pursuant to this section. The division shall refer
 4331  to local law enforcement authorities any person who the division
 4332  believes has altered, destroyed, concealed, or removed any
 4333  record, document, or thing required to be kept or maintained by
 4334  this chapter with the purpose to impair its verity or
 4335  availability in the department’s investigation.
 4336         (o) The division may:
 4337         1. Contract with agencies in this state or other
 4338  jurisdictions to perform investigative functions; or
 4339         2. Accept grants-in-aid from any source.
 4340         (p) The division shall cooperate with similar agencies in
 4341  other jurisdictions to establish uniform filing procedures and
 4342  forms, public offering statements, advertising standards, and
 4343  rules and common administrative practices.
 4344         (q) The division shall consider notice to a developer to be
 4345  complete when it is delivered to the developer’s address
 4346  currently on file with the division.
 4347         (r) In addition to its enforcement authority, the division
 4348  may issue a notice to show cause, which shall provide for a
 4349  hearing, upon written request, in accordance with chapter 120.
 4350         (s) In the annual report required by s. 718.501(1)(s), the
 4351  division shall also report the same information for cooperative
 4352  associations. The division may combine figures and issues into
 4353  one report covering both condominiums and cooperatives.
 4354         (n) The division shall develop a program to certify both
 4355  volunteer and paid mediators to provide mediation of cooperative
 4356  disputes. The division shall provide, upon request, a list of
 4357  such mediators to any association, unit owner, or other
 4358  participant in arbitration proceedings under s. 718.1255
 4359  requesting a copy of the list. The division shall include on the
 4360  list of voluntary mediators only persons who have received at
 4361  least 20 hours of training in mediation techniques or have
 4362  mediated at least 20 disputes. In order to become initially
 4363  certified by the division, paid mediators must be certified by
 4364  the Supreme Court to mediate court cases in county or circuit
 4365  courts. However, the division may adopt, by rule, additional
 4366  factors for the certification of paid mediators, which factors
 4367  must be related to experience, education, or background. Any
 4368  person initially certified as a paid mediator by the division
 4369  must, in order to continue to be certified, comply with the
 4370  factors or requirements imposed by rules adopted by the
 4371  division.
 4372         (2)(a) Each cooperative association shall pay to the
 4373  division, on or before January 1 of each year, an annual fee in
 4374  the amount of $4 for each residential unit in cooperatives
 4375  operated by the association. If the fee is not paid by March 1,
 4376  then the association shall be assessed a penalty of 10 percent
 4377  of the amount due, and the association shall not have the
 4378  standing to maintain or defend any action in the courts of this
 4379  state until the amount due, plus any penalty, is paid.
 4380         (b) All fees shall be deposited in the Division of Florida
 4381  Condominiums, Timeshares, and Mobile Homes Trust Fund as
 4382  provided by law.
 4383         Section 30. Paragraph (b) of subsection (1) and paragraph
 4384  (a) of subsection (2) of section 719.503, Florida Statutes, are
 4385  amended to read:
 4386         719.503 Disclosure prior to sale.—
 4387         (1) DEVELOPER DISCLOSURE.—
 4388         (b) Copies of documents to be furnished to prospective
 4389  buyer or lessee.—Until such time as the developer has furnished
 4390  the documents listed below to a person who has entered into a
 4391  contract to purchase a unit or lease it for more than 5 years,
 4392  the contract may be voided by that person, entitling the person
 4393  to a refund of any deposit together with interest thereon as
 4394  provided in s. 719.202. The contract may be terminated by
 4395  written notice from the proposed buyer or lessee delivered to
 4396  the developer within 15 days after the buyer or lessee receives
 4397  all of the documents required by this section. The developer
 4398  shall not close for 15 days following the execution of the
 4399  agreement and delivery of the documents to the buyer as
 4400  evidenced by a receipt for documents signed by the buyer unless
 4401  the buyer is informed in the 15-day voidability period and
 4402  agrees to close prior to the expiration of the 15 days. The
 4403  developer shall retain in his or her records a separate signed
 4404  agreement as proof of the buyer’s agreement to close prior to
 4405  the expiration of such said voidability period. Such Said proof
 4406  shall be retained for a period of 5 years after the date of the
 4407  closing transaction. The documents to be delivered to the
 4408  prospective buyer are the prospectus or disclosure statement
 4409  with all exhibits, if the development is subject to the
 4410  provisions of s. 719.504, or, if not, then copies of the
 4411  following which are applicable:
 4412         1. The question and answer sheet described in s. 719.504,
 4413  and cooperative documents, or the proposed cooperative documents
 4414  if the documents have not been recorded, which shall include the
 4415  certificate of a surveyor approximately representing the
 4416  locations required by s. 719.504 719.104.
 4417         2. The documents creating the association.
 4418         3. The bylaws.
 4419         4. The ground lease or other underlying lease of the
 4420  cooperative.
 4421         5. The management contract, maintenance contract, and other
 4422  contracts for management of the association and operation of the
 4423  cooperative and facilities used by the shareholders unit owners
 4424  having a service term in excess of 1 year, and any management
 4425  contracts that are renewable.
 4426         6. The estimated operating budget for the cooperative and a
 4427  schedule of expenses for each type of unit, including fees
 4428  assessed to a shareholder who has exclusive use of limited
 4429  common areas, where such costs are shared only by those entitled
 4430  to use such limited common areas.
 4431         7. The lease of recreational and other facilities that will
 4432  be used only by shareholders unit owners of the subject
 4433  cooperative.
 4434         8. The lease of recreational and other common areas that
 4435  will be used by shareholders unit owners in common with
 4436  shareholders unit owners of other cooperatives.
 4437         9. The form of unit lease if the offer is of a leasehold.
 4438         10. Any declaration of servitude of properties serving the
 4439  cooperative but not owned by shareholders unit owners or leased
 4440  to them or the association.
 4441         11. If the development is to be built in phases or if the
 4442  association is to manage more than one cooperative, a
 4443  description of the plan of phase development or the arrangements
 4444  for the association to manage two or more cooperatives.
 4445         12. If the cooperative is a conversion of existing
 4446  improvements, the statements and disclosure required by s.
 4447  719.616.
 4448         13. The form of agreement for sale or lease of units.
 4449         14. A copy of the floor plan of the unit and the plot plan
 4450  showing the location of the residential buildings and the
 4451  recreation and other common areas.
 4452         15. A copy of all covenants and restrictions which will
 4453  affect the use of the property and which are not contained in
 4454  the foregoing.
 4455         16. If the developer is required by state or local
 4456  authorities to obtain acceptance or approval of any dock or
 4457  marina facilities intended to serve the cooperative, a copy of
 4458  any such acceptance or approval acquired by the time of filing
 4459  with the division pursuant to s. 719.502(1) or a statement that
 4460  such acceptance or approval has not been acquired or received.
 4461         17. Evidence demonstrating that the developer has an
 4462  ownership, leasehold, or contractual interest in the land upon
 4463  which the cooperative is to be developed.
 4464         (2) NONDEVELOPER DISCLOSURE.—
 4465         (a) Each shareholder unit owner who is not a developer as
 4466  defined by this chapter must comply with the provisions of this
 4467  subsection prior to the sale of his or her interest in the
 4468  association. Each prospective purchaser who has entered into a
 4469  contract for the purchase of an interest in a cooperative is
 4470  entitled, at the seller’s expense, to a current copy of the
 4471  articles of incorporation of the association, the bylaws, and
 4472  rules of the association, as well as a copy of the question and
 4473  answer sheet as provided in s. 719.504. On and after July 1,
 4474  2010, the prospective purchaser shall also be entitled to
 4475  receive from the seller a copy of a governance form. Such form
 4476  shall be provided by the division summarizing governance of
 4477  cooperative associations. In addition to such other information
 4478  as the division considers helpful to a prospective purchaser in
 4479  understanding association governance, the governance form shall
 4480  address the following subjects:
 4481         1. The role of the board in conducting the day-to-day
 4482  affairs of the association on behalf of, and in the best
 4483  interests of, the shareholders.
 4484         2. The board’s responsibility to provide advance notice of
 4485  board and shareholder meetings.
 4486         3. The rights of shareholders to attend and speak at board
 4487  and shareholder meetings.
 4488         4. The responsibility of the board and shareholders with
 4489  respect to maintenance of the cooperative property.
 4490         5. The responsibility of the board and shareholders to
 4491  abide by the cooperative documents, this chapter, rules adopted
 4492  by the division, and reasonable rules adopted by the board.
 4493         6. Shareholders’ rights to inspect and copy association
 4494  records and the limitations on such rights.
 4495         7. Remedies available to shareholders with respect to
 4496  actions by the board which may be abusive or beyond the board’s
 4497  power and authority.
 4498         8. The right of the board to hire a property management
 4499  firm, subject to its own primary responsibility for such
 4500  management.
 4501         9. The responsibility of shareholders with regard to
 4502  payment of regular or special assessments necessary for the
 4503  operation of the property and the potential consequences of
 4504  failure to pay such assessments.
 4505         10. The voting rights of shareholders.
 4506         11. Rights and obligations of the board in enforcement of
 4507  rules in the cooperative documents and rules adopted by the
 4508  board.
 4509  
 4510  The governance form shall also include the following statement
 4511  in conspicuous type: THIS PUBLICATION IS INTENDED AS AN INFORMAL
 4512  EDUCATIONAL OVERVIEW OF COOPERATIVE GOVERNANCE. IN THE EVENT OF
 4513  A CONFLICT, THE PROVISIONS OF CHAPTER 719, FLORIDA STATUTES,
 4514  RULES ADOPTED BY THE DIVISION OF FLORIDA CONDOMINIUMS,
 4515  TIMESHARES, AND MOBILE HOMES OF THE DEPARTMENT OF BUSINESS AND
 4516  PROFESSIONAL REGULATION, THE PROVISIONS OF THE COOPERATIVE
 4517  DOCUMENTS, AND REASONABLE RULES ADOPTED BY THE COOPERATIVE
 4518  ASSOCIATION’S BOARD OF DIRECTORS PREVAIL OVER THE CONTENTS OF
 4519  THIS PUBLICATION.
 4520         Section 31. Paragraph (c) of subsection (2) of section
 4521  720.303, Florida Statutes, is amended, and subsections (12),
 4522  (13), and (14) are added to that section, to read:
 4523         720.303 Association powers and duties; meetings of board;
 4524  official records; budgets; financial reporting; association
 4525  funds; recalls; borrowing; transfer fees.—
 4526         (2) BOARD MEETINGS.—
 4527         (c) The bylaws shall provide for giving notice to parcel
 4528  owners and members of all board meetings and, if they do not do
 4529  so, shall be deemed to provide the following:
 4530         1. Notices of all board meetings must be posted in a
 4531  conspicuous place in the community at least 48 hours in advance
 4532  of a meeting, except in an emergency. In the alternative, if
 4533  notice is not posted in a conspicuous place in the community,
 4534  notice of each board meeting must be mailed or delivered to each
 4535  member at least 7 days before the meeting, except in an
 4536  emergency. Notwithstanding this general notice requirement, for
 4537  communities with more than 100 members, the bylaws may provide
 4538  for a reasonable alternative to posting or mailing of notice for
 4539  each board meeting, including publication of notice, provision
 4540  of a schedule of board meetings, or the conspicuous posting and
 4541  repeated broadcasting of the notice on a closed-circuit cable
 4542  television system serving the homeowners’ association. However,
 4543  if broadcast notice is used in lieu of a notice posted
 4544  physically in the community, the notice must be broadcast at
 4545  least four times every broadcast hour of each day that a posted
 4546  notice is otherwise required. When broadcast notice is provided,
 4547  the notice and agenda must be broadcast in a manner and for a
 4548  sufficient continuous length of time so as to allow an average
 4549  reader to observe the notice and read and comprehend the entire
 4550  content of the notice and the agenda. The bylaws or amended
 4551  bylaws may provide for giving notice by electronic transmission
 4552  in a manner authorized by law for meetings of the board of
 4553  directors, committee meetings requiring notice under this
 4554  section, and annual and special meetings of the members;
 4555  however, a member must consent in writing to receiving notice by
 4556  electronic transmission.
 4557         2. An assessment may not be levied at a board meeting
 4558  unless the notice of the meeting includes a statement that
 4559  assessments will be considered and the nature of, the actual
 4560  cost of, and a description of the purposes for such the
 4561  assessments. Written notice of any meeting at which special
 4562  assessments will be considered or at which amendments to rules
 4563  regarding parcel use will be considered must be mailed,
 4564  delivered, or electronically transmitted to the members and
 4565  parcel owners and posted conspicuously on the property or
 4566  broadcast on closed-circuit cable television not less than 14
 4567  days before the meeting.
 4568         3. Directors may not vote by proxy or by secret ballot at
 4569  board meetings, except that secret ballots may be used in the
 4570  election of officers. This subsection also applies to the
 4571  meetings of any committee or other similar body, when a final
 4572  decision will be made regarding the expenditure of association
 4573  funds, and to any body vested with the power to approve or
 4574  disapprove architectural decisions with respect to a specific
 4575  parcel of residential property owned by a member of the
 4576  community.
 4577         (12) BORROWING.—The borrowing of funds or committing to a
 4578  line of credit by the board shall be considered a special
 4579  assessment, and any meeting of the board to discuss such matters
 4580  must be noticed as provided in paragraph (2)(c). The board may
 4581  not borrow funds or enter into a line of credit for any purpose
 4582  unless the specific use of the funds from the loan or line of
 4583  credit is set forth in the notice of meeting with the same
 4584  specificity as required for a special assessment or unless the
 4585  borrowing or line of credit has received the prior approval of
 4586  at least two-thirds of the voting interests of the association.
 4587         (13) TRANSFER FEES.—No charge may be made by the
 4588  association or anyone on its behalf in connection with the sale,
 4589  mortgage, lease, sublease, or other transfer of a parcel.
 4590  Nothing in this subsection may be construed to prohibit an
 4591  association from requiring as a condition to permitting the
 4592  letting or renting of a parcel, when the association has such
 4593  authority in the documents, the depositing into an escrow
 4594  account maintained by the association of a security deposit in
 4595  an amount not to exceed the equivalent of 1 month’s rent. The
 4596  security deposit shall protect against damages to the common
 4597  areas or association property. Within 15 days after a tenant
 4598  vacates the premises, the association shall refund the full
 4599  security deposit or give written notice to the tenant of any
 4600  claim made against the security. Disputes under this subsection
 4601  shall be handled in the same fashion as disputes concerning
 4602  security deposits under s. 83.49.
 4603         (14) LIMIT ON EXPENDITURES AND CONTRIBUTIONS.—It shall be
 4604  unlawful for an association to make any expenditure of
 4605  association funds or to make any in-kind contribution of
 4606  association assets that does not relate to the purposes for
 4607  which the association is organized.
 4608         (a) The association shall not make any contribution to a
 4609  campaign or committee of continuous existence governed by
 4610  chapter 105 or chapter 106.
 4611         (b) The association shall not make any contribution to a
 4612  charitable organization if the association does not receive a
 4613  direct benefit from the organization.
 4614         (c) Members of the board shall be jointly and severely
 4615  liable to reimburse the association for any contribution,
 4616  expenditure, or in-kind contribution made in violation of this
 4617  subsection.
 4618         Section 32. Paragraph (a) of subsection (2) of section
 4619  720.304, Florida Statutes, is amended to read:
 4620         720.304 Right of owners to peaceably assemble; display of
 4621  flag; SLAPP suits prohibited.—
 4622         (2)(a) Any homeowner may display within the boundaries of
 4623  the homeowner’s parcel one portable, removable United States
 4624  flag or official flag of the State of Florida in a respectful
 4625  manner, and one portable, removable official flag, in a
 4626  respectful way and, on Armed Forces Day, Memorial Day, Flag Day,
 4627  Independence Day, and Veterans’ Day, may display in a respectful
 4628  way portable, removable official flags manner, not larger than 4
 4629  1/2 feet by 6 feet, which represent represents the United States
 4630  Army, Navy, Air Force, Marine Corps, or Coast Guard, or a POW
 4631  MIA flag, regardless of any declaration covenants, restrictions,
 4632  bylaws, rules, or requirements dealing with flags or decorations
 4633  of the association.
 4634         Section 33. Subsection (1) of section 720.306, Florida
 4635  Statutes, is amended to read:
 4636         720.306 Meetings of members; voting and election
 4637  procedures; amendments.—
 4638         (1) QUORUM; AMENDMENTS.—
 4639         (a) Unless a lower number is provided in the bylaws, the
 4640  percentage of voting interests required to constitute a quorum
 4641  at a meeting of the members shall be 30 percent of the total
 4642  voting interests. Unless otherwise provided in this chapter or
 4643  in the articles of incorporation or bylaws, decisions that
 4644  require a vote of the members must be made by the concurrence of
 4645  at least a majority of the voting interests present, in person
 4646  or by proxy, at a meeting at which a quorum has been attained.
 4647         (b) Unless otherwise provided in the governing documents or
 4648  required by law, and other than those matters set forth in
 4649  paragraphs paragraph (c) and (d), any governing document of an
 4650  association may be amended by the affirmative vote of two-thirds
 4651  of the voting interests of the association.
 4652         (c) Unless otherwise provided in the governing documents as
 4653  originally recorded or permitted by this chapter or chapter 617,
 4654  an amendment may not materially and adversely alter the
 4655  proportionate voting interest appurtenant to a parcel or
 4656  increase the proportion or percentage by which a parcel shares
 4657  in the common expenses of the association unless the record
 4658  parcel owner and all record owners of liens on the parcels join
 4659  in the execution of the amendment. For purposes of this section,
 4660  a change in quorum requirements is not an alteration of voting
 4661  interests. The merger or consolidation of one or more
 4662  associations under a plan of merger or consolidation under
 4663  chapter 607 or chapter 617 shall not be considered a material or
 4664  adverse alteration of the proportionate voting interest
 4665  appurtenant to a parcel.
 4666         (d) The method by which the bylaws may be amended
 4667  consistent with the provisions of this chapter shall be stated.
 4668  No bylaw shall be revised or amended by reference to its title
 4669  or number only. Proposals to amend existing bylaws shall contain
 4670  the full text of the bylaws to be amended. New words shall be
 4671  inserted in the text underlined, and words to be deleted shall
 4672  be lined through with hyphens. However, if the proposed change
 4673  is so extensive that this procedure would hinder, rather than
 4674  assist, the understanding of the proposed amendment, it is not
 4675  necessary to use underlining and hyphens as indicators of words
 4676  added or deleted, but, instead, a notation must be inserted
 4677  immediately preceding the proposed amendment in substantially
 4678  the following language: “Substantial rewording of bylaw. See
 4679  bylaw _____ for present text.” Nonmaterial errors or omissions
 4680  in the bylaw process will not invalidate an otherwise properly
 4681  adopted amendment.
 4682         Section 34. Section 720.3065, Florida Statutes, is created
 4683  to read:
 4684         720.3065 Qualifications of directors and officers.—
 4685         (1) DIRECTOR OR OFFICER OFFENSES.—A director or officer
 4686  charged by information or indictment with a felony theft or
 4687  embezzlement offense involving the association’s funds or
 4688  property shall be removed from office, creating a vacancy in the
 4689  office to be filled according to law. While such director or
 4690  officer has such criminal charge pending in the state or federal
 4691  court system, he or she may not be appointed or elected to a
 4692  position as a director or officer. However, should the charges
 4693  be resolved without a finding of guilt, the director or officer
 4694  shall be reinstated for the remainder of his or her term of
 4695  office, if any.
 4696         (2) QUALIFICATION OF DIRECTORS.—In addition to any other
 4697  requirement for office in statute, a person running for, seeking
 4698  appointment to, or serving as a director of the board must meet
 4699  the following qualifications:
 4700         (a) In a homeowners’ association of 10 or more units, only
 4701  one individual coowner of a unit may serve on the board.
 4702         (b) No person may serve as a director of any homeowners’
 4703  association in the state if restricted from serving as director
 4704  of a condominium or cooperative association by action of the
 4705  division pursuant to s. 718.501(1)(d)6.
 4706         (c) A person who has been convicted of any felony in this
 4707  state or in a United States District or Territorial Court, or
 4708  who has been convicted of any offense in another jurisdiction
 4709  that would be considered a felony if committed in this state, is
 4710  not eligible for board membership unless such felon’s civil
 4711  rights have been restored for a period of no less than 5 years
 4712  as of the date on which such person seeks election to the board.
 4713         (d) A director more than 90 days delinquent in the payment
 4714  of regular assessments shall be deemed to have abandoned his or
 4715  her office.
 4716         (e) Within 30 days after being elected or appointed to the
 4717  board, a director must certify in writing to the secretary of
 4718  the association that he or she has read this chapter and the
 4719  association’s covenants, articles of incorporation, bylaws, and
 4720  current written policies. The director shall further certify
 4721  that he or she will work to uphold such documents and policies
 4722  to the best of his or her ability and that he or she will
 4723  faithfully discharge his or her fiduciary responsibility to the
 4724  association’s members. If a court finds that a director has
 4725  falsely certified that he or she has read the required statutes
 4726  and documents, the court shall order the director removed from
 4727  the board and shall order the director to reimburse the opposing
 4728  party in the litigation for all reasonable costs and attorney’s
 4729  fees.
 4730         (f) After turnover of the association pursuant to s.
 4731  720.307(1), a director must:
 4732         1. If the parcel is owned by an individual or individuals,
 4733  be one of those individuals.
 4734         2. If the parcel is owned by a trust, be an individual
 4735  qualified pursuant to s. 617.0802.
 4736  
 4737  These qualifications shall operate on a continuing basis, and,
 4738  upon the failure of a director at any time to meet a
 4739  qualification, the director shall be removed from office and
 4740  that office shall be deemed vacant.
 4741         Section 35. Section 720.3068, Florida Statutes, is created
 4742  to read:
 4743         720.3068 Meetings.—Regular meetings of the board shall be
 4744  held at such time and place as provided in the bylaws until the
 4745  first regular meeting held on or after July 1, 2010. Thereafter,
 4746  the location and time for regular board meetings shall be
 4747  determined by a majority vote of the parcel owners at the next
 4748  regular meeting held on or after July 1, 2010. Once the time and
 4749  place for regular board meetings have been selected, neither may
 4750  be changed unless approved by a majority vote of the parcel
 4751  owners. Regular meetings of the board held on weekdays may be
 4752  held no earlier than 6 p.m. local time.
 4753         Section 36. Subsection (1) of section 720.3085, Florida
 4754  Statutes, is amended, and subsection (8) is added to that
 4755  section, to read:
 4756         720.3085 Payment for assessments; lien claims.—
 4757         (1) When authorized by the governing documents, the
 4758  association has a lien on each parcel to secure the payment of
 4759  assessments and other amounts provided for by this section.
 4760  Except as otherwise set forth in this section, the lien is
 4761  effective from and shall relate back to the date on which the
 4762  original declaration of the community was recorded. However, as
 4763  to first mortgages of record, the lien is effective from and
 4764  after recording of a claim of lien in the public records of the
 4765  county in which the parcel is located. This subsection does not
 4766  bestow upon any lien, mortgage, or certified judgment of record
 4767  on July 1, 2008, including the lien for unpaid assessments
 4768  created in this section, a priority that, by law, the lien,
 4769  mortgage, or judgment did not have before July 1, 2008.
 4770         (a) To be valid, a claim of lien must state the description
 4771  of the parcel, the name of the record owner, the name and
 4772  address of the association, the assessment amount due, and the
 4773  due date. The claim of lien shall secure all unpaid assessments
 4774  that are due and that may accrue subsequent to the recording of
 4775  the claim of lien and before entry of a certificate of title, as
 4776  well as interest, late charges, and reasonable costs and
 4777  attorney’s fees incurred by the association incident to the
 4778  collection process. A notice of delinquency sent to a parcel
 4779  owner shall provide an overall total of assessments claimed by
 4780  the association and shall specify for each assessment or charge
 4781  the date of the assessment or charge, the principal balance owed
 4782  for the assessment or charge, and affiliated late fees or
 4783  collection charges. Costs to a parcel owner secured by the
 4784  association’s claim of lien with regard to collection efforts by
 4785  management companies or licensed managers as to any delinquent
 4786  installment of an assessment may not exceed $50. However, there
 4787  shall be no charge for the first notice of a delinquency to the
 4788  parcel owner. The person making the payment is entitled to a
 4789  satisfaction of the lien upon payment in full.
 4790         (b) By recording a notice in substantially the following
 4791  form, a parcel owner or the parcel owner’s agent or attorney may
 4792  require the association to enforce a recorded claim of lien
 4793  against his or her parcel:
 4794                      NOTICE OF CONTEST OF LIEN                    
 4795  
 4796  TO: ...(Name and address of association)...
 4797  You are notified that the undersigned contests the claim of lien
 4798  filed by you on ...., ...(year)..., and recorded in Official
 4799  Records Book .... at page ...., of the public records of ....
 4800  County, Florida, and that the time within which you may file
 4801  suit to enforce your lien is limited to 90 days following the
 4802  date of service of this notice. Executed this .... day of ....,
 4803  ...(year)....
 4804  Signed: ...(Owner or Attorney)...
 4805  After the notice of a contest of lien has been recorded, the
 4806  clerk of the circuit court shall mail a copy of the recorded
 4807  notice to the association by certified mail, return receipt
 4808  requested, at the address shown in the claim of lien or the most
 4809  recent amendment to it and shall certify to the service on the
 4810  face of the notice. Service is complete upon mailing. After
 4811  service, the association has 90 days in which to file an action
 4812  to enforce the lien and, if the action is not filed within the
 4813  90-day period, the lien is void. However, the 90-day period
 4814  shall be extended for any length of time that the association is
 4815  prevented from filing its action because of an automatic stay
 4816  resulting from the filing of a bankruptcy petition by the parcel
 4817  owner or by any other person claiming an interest in the parcel.
 4818         (c) The association may bring an action in its name to
 4819  foreclose a lien for assessments in the same manner in which a
 4820  mortgage of real property is foreclosed and may also bring an
 4821  action to recover a money judgment for the unpaid assessments
 4822  without waiving any claim of lien. The association is entitled
 4823  to recover its reasonable attorney’s fees incurred in an action
 4824  to foreclose a lien or an action to recover a money judgment for
 4825  unpaid assessments.
 4826         (d) If the parcel owner remains in possession of the parcel
 4827  after a foreclosure judgment has been entered, the court may
 4828  require the parcel owner to pay a reasonable rent for the
 4829  parcel. If the parcel is rented or leased during the pendency of
 4830  the foreclosure action, the association is entitled to the
 4831  appointment of a receiver to collect the rent. The expenses of
 4832  the receiver must be paid by the party who does not prevail in
 4833  the foreclosure action.
 4834         (e) The association may purchase the parcel at the
 4835  foreclosure sale and hold, lease, mortgage, or convey the
 4836  parcel.
 4837         (8) During the pendency of any foreclosure action of a
 4838  parcel in a homeowners’ association, if the parcel is occupied
 4839  by a tenant and the parcel owner is delinquent in the payment of
 4840  regular assessments, the association may demand that the tenant
 4841  pay to the association the future regular assessments related to
 4842  the parcel. The demand shall be continuing in nature, and upon
 4843  demand the tenant shall continue to pay the regular assessments
 4844  to the association until the association releases the tenant or
 4845  the tenant discontinues tenancy in the unit. The association
 4846  shall mail written notice to the unit owner of the association’s
 4847  demand that the tenant pay regular assessments to the
 4848  association. The tenant shall not be liable for increases in the
 4849  amount of the regular assessments due unless the tenant was
 4850  reasonably notified of the increase prior to the day that the
 4851  rent is due. The tenant shall be given a credit against rents
 4852  due to the parcel owner in the amount of assessments paid to the
 4853  association. The association shall, upon request, provide the
 4854  tenant with written receipts for payments made. The association
 4855  may issue notices under s. 83.56 and may sue for eviction under
 4856  ss. 83.59-83.625 as if the association were a landlord under
 4857  part II of chapter 83 should the tenant fail to pay an
 4858  assessment. However, the association shall not otherwise be
 4859  considered a landlord under chapter 83 and shall specifically
 4860  not have any duty under s. 83.51. The tenant shall not, by
 4861  virtue of payment of assessments, have any of the rights of a
 4862  parcel owner to vote in any election or to examine the books and
 4863  records of the association. A court may supersede the effect of
 4864  this subsection when appointing a receiver at the request of a
 4865  mortgagee.
 4866         Section 37. Section 720.314, Florida Statutes, is created
 4867  to read:
 4868         720.314 Parcel owner informational complaint.—
 4869         (1) Any parcel owner may file an informational complaint to
 4870  report alleged failures by the homeowners’ association or
 4871  officers or directors of the association to comply with the
 4872  provisions of this chapter. The informational complaint shall be
 4873  in writing and signed by the complainant, and the accuracy of
 4874  the facts alleged shall be sworn to before a notary public.
 4875  Properly filed informational complaints shall be used for
 4876  analysis and recommendations to the Legislature for changes to
 4877  this chapter.
 4878         (2) The informational complaint shall be in the format
 4879  provided in subsection (3) and shall be filed with the Office of
 4880  Program Policy Analysis and Government Accountability. If the
 4881  form does not comply with the requirements provided in
 4882  subsection (3), it shall be returned to the complainant as not
 4883  in compliance with the requirements of this section and may not
 4884  be considered by the Office of Program Policy Analysis and
 4885  Government Accountability for any purpose.
 4886         (3) The informational complaint shall be in substantially
 4887  the following form:
 4888  
 4889                       PARCEL OWNER COMPLAINT                      
 4890  
 4891  Name of complainant: 
 4892  Address of complainant: 
 4893  Name of association: 
 4894  Address of association: 
 4895  Statute not complied with: 
 4896  Name of officer: 
 4897  Name of director: 
 4898  Facts supporting violation (50 words or less): 
 4899  
 4900  ________________________
 4901  Signature of Complainant
 4902  
 4903  Sworn to and subscribed to this _____ day of ______, (year)
 4904  
 4905  _____________
 4906  Notary Public
 4907         Section 38. Subsection (3) of section 721.16, Florida
 4908  Statutes, is amended to read:
 4909         721.16 Liens for overdue assessments; liens for labor
 4910  performed on, or materials furnished to, a timeshare unit.—
 4911         (3) The lien is effective from the date of recording a
 4912  claim of lien in the public records of the county or counties in
 4913  which the accommodations and facilities constituting the
 4914  timeshare plan are located. The claim of lien shall state the
 4915  name of the timeshare plan and identify the timeshare interest
 4916  for which the lien is effective, state the name of the
 4917  purchaser, state the assessment amount due, and state the due
 4918  dates. Notwithstanding any provision of s. 718.116(5)(a) or s.
 4919  719.108(5)(4) to the contrary, the lien is effective until
 4920  satisfied or until 5 years have expired after the date the claim
 4921  of lien is recorded unless, within that time, an action to
 4922  enforce the lien is commenced pursuant to subsection (2). A
 4923  claim of lien for assessments may include only assessments which
 4924  are due when the claim is recorded. A claim of lien shall be
 4925  signed and acknowledged by an officer or agent of the managing
 4926  entity. Upon full payment, the person making the payment is
 4927  entitled to receive a satisfaction of the lien.
 4928         Section 39. This act shall take effect July 1, 2010.

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