September 20, 2019
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       Florida Senate - 2010                    CS for SB's 1196 & 1222
       
       
       
       By the Committee on Regulated Industries; and Senators Fasano,
       Ring, and Gaetz
       
       
       
       580-02454-10                                          20101196c1
    1                        A bill to be entitled                      
    2         An act relating to community associations; amending s.
    3         617.0721, F.S.; revising the limitations on the right
    4         of members to vote on corporate matters for certain
    5         corporations not for profit that are regulated under
    6         ch. 718 or ch. 719, F.S.; amending s. 617.0808, F.S.;
    7         excepting certain corporations not for profit that are
    8         an association as defined in s. 720.301, F.S., or a
    9         corporation regulated under ch. 718 or ch. 719, F.S.,
   10         from certain provisions relating to the removal of a
   11         director; amending s. 617.1606, F.S.; providing that
   12         certain statutory provisions providing for the
   13         inspection of corporate records do not apply to a
   14         corporation not for profit that is an association as
   15         defined in s. 720.301, or a corporation regulated
   16         under ch. 718 or ch. 719, F.S.; creating s. 627.714,
   17         F.S.; requiring that coverage under a unit owner’s
   18         policy for certain assessments include at least a
   19         minimum amount of loss assessment coverage; requiring
   20         that every property insurance policy to an individual
   21         unit owner contain a specified provision; amending s.
   22         633.0215, F.S.; exempting certain condominiums from a
   23         requirement to install a manual fire alarm system;
   24         amending s. 718.103, F.S.; redefining the term
   25         “developer”; amending s. 718.110, F.S.; allowing the
   26         condominium association to have the authority to
   27         restrict through an amendment to a declaration of
   28         condominium, rather than prohibit, the rental of
   29         condominium units; amending s. 718.111, F.S.; deleting
   30         a requirement for the board of a condominium to hold a
   31         meeting open to unit owners to establish the amount of
   32         an insurance deductible; revising the property to
   33         which a property insurance policy for a condominium
   34         association applies; revising the requirements for a
   35         condominium unit owner’s property insurance policy;
   36         limiting the circumstances under which a who person
   37         violates requirements to maintain association records
   38         may be personally liable for a civil penalty;
   39         providing that a condominium association is not
   40         responsible for the use of certain information
   41         provided to an association member under certain
   42         circumstances; specifying records of a condominium
   43         association that are exempt from a requirements for
   44         records to be available for inspection by an
   45         association member; increasing the amount of time
   46         within which a condominium association must provide
   47         unit owners with a copy of the association’s annual
   48         financial report; revising the requirements for rules
   49         relating to the financial report that must be adopted
   50         by the Division of Florida Condominiums, Timeshares,
   51         and Mobile Homes of the Department of Business and
   52         Professional Regulation; revising the requirements for
   53         a financial report based on the amount of a
   54         condominium’s revenues; amending s. 718.112, F.S.;
   55         revising provisions relating to the terms or
   56         appointment or election of condominium members to a
   57         board of administration; creating exceptions to such
   58         provisions for condominiums that contain timeshares;
   59         specifying a certification that a person who is
   60         appointed or elected to a board of administration must
   61         make or educational requirements such board member
   62         must satisfy; conforming cross-references to changes
   63         made by the act; expanding the monetary obligations
   64         that a director or officer must satisfy to avoid
   65         abandoning his or her office; amending s. 718.115,
   66         F.S.; specifying certain services provided in a
   67         declaration of condominium that are obtained pursuant
   68         to a bulk contract to be deemed a common expense;
   69         specifying provisions that must be contained in a bulk
   70         contract; specifying cancellation procedures for bulk
   71         contracts; amending s. 718.116, F.S.; limiting the
   72         amount of costs to collect a lien that may be charged
   73         to a unit owner under certain circumstances; requiring
   74         a tenant in a unit owned by a person who is delinquent
   75         in the payment of a monetary obligation to the
   76         condominium association to pay rent to the association
   77         under certain circumstances; authorizing the
   78         condominium association to sue such tenant who fails
   79         to pay rent for eviction under certain circumstances;
   80         providing that the tenant is immune from claims from
   81         the unit owner as the result of paying rent to the
   82         association under certain circumstances; amending s.
   83         718.117, F.S.; revising the circumstances under which
   84         a condominium association may be terminated do to
   85         economic waste or impossibility; revising provisions
   86         specifying the effect of a termination of condominium;
   87         amending s. 718.301, F.S.; revising conditions under
   88         which unit owners other than the developer may elect
   89         at least a majority of the members of the board of
   90         administration of an association; amending s. 718.303,
   91         F.S.; authorizing an association to suspend for a
   92         reasonable time the right of a unit owner or the
   93         unit’s occupant, licensee, or invitee to use certain
   94         common elements under certain circumstances;
   95         prohibiting a fine from being levied or a suspension
   96         from being imposed unless the association meets
   97         certain requirements for notice and an opportunity for
   98         a hearing; authorizing an association to suspend
   99         voting rights of a member due to nonpayment of
  100         assessments, fines, or other charges under certain
  101         circumstances; amending s. 718.501, F.S.; specifying
  102         the jurisdiction of the Florida Division of
  103         Condominiums, Timeshares, and Mobile Homes has
  104         jurisdiction with respect to include bulk assignees
  105         and bulk buyers; creating part VII of ch. 718, F.S.;
  106         creating the distressed condominium relief act;
  107         providing legislative findings and intent; defining
  108         the terms “bulk assignee” and “bulk buyer”; providing
  109         for the assignment of developer rights by a bulk
  110         assignee; specifying liabilities of bulk assignees and
  111         bulk buyers; providing exceptions; providing
  112         additional responsibilities of bulk assignees and bulk
  113         buyers; authorizing certain entities to assign
  114         developer rights to a bulk assignee; limiting the
  115         number of bulk assignees at any given time; providing
  116         for the transfer of control of a board of
  117         administration to unit owners; providing effects of
  118         such transfer on parcels acquired by a bulk assignee;
  119         providing obligations of a bulk assignee upon the
  120         transfer of control of a board of administration;
  121         requiring that a bulk assignee certify certain
  122         information in writing; providing for the resolution
  123         of a conflict between specified provisions of state
  124         law; providing that the failure of a bulk assignee or
  125         bulk buyer to comply with specified provisions of
  126         state law results in the loss of certain protections
  127         and exemptions; requiring that a bulk assignee or bulk
  128         buyer file certain information with the Division of
  129         Florida Condominiums, Timeshares, and Mobile Homes of
  130         the Department of Business and Professional Regulation
  131         before offering any units for sale or lease in excess
  132         of a specified term; requiring that a copy of such
  133         information be provided to a prospective purchaser or
  134         tenant; requiring that certain contracts and
  135         disclosure statements contain specified statements;
  136         requiring that a bulk assignee or bulk buyer comply
  137         with certain disclosure requirements; prohibiting a
  138         bulk assignee from authorizing certain actions on
  139         behalf of an association while the bulk assignee is in
  140         control of the board of administration of the
  141         association; requiring that a bulk assignee or bulk
  142         buyer comply with certain laws with respect to
  143         contracts entered into by the association while the
  144         bulk assignee or bulk buyer was in control of the
  145         board of administration; providing parcel owners with
  146         specified protections regarding certain contracts;
  147         requiring that a bulk buyer comply with certain
  148         requirements regarding the transfer of a parcel;
  149         prohibiting a person from being classified as a bulk
  150         assignee or bulk buyer unless condominium parcels were
  151         acquired before a specified date; providing that the
  152         assignment of developer rights to a bulk assignee does
  153         not release a developer from certain liabilities;
  154         amending s. 719.106, F.S.; proving for the filling of
  155         vacancies on the condominium board of administration;
  156         amending s. 719.108, F.S.; authorizing an association
  157         to recover charges incurred in connection with
  158         collecting a delinquent assessment up to a specified
  159         maximum amount; providing a prioritized list for
  160         disbursement of payments received by an association;
  161         providing for a lien by an association on a
  162         condominium unit for certain fees and costs; providing
  163         procedures and notice requirements for the filing of a
  164         lien by an association; requiring a tenant in a unit
  165         owned by a person who is delinquent in the payment of
  166         a monetary obligation to the condominium association
  167         to pay rent to the association under certain
  168         circumstances; amending s. 720.304, F.S.; providing
  169         that a flagpole and any flagpole display are subject
  170         to certain codes and regulations; amending s. 720.305,
  171         F.S.; authorizing the association to suspend rights to
  172         use common areas and facilities if the member is
  173         delinquent on the payment of a monetary obligation due
  174         for a certain period of time; providing procedures and
  175         notice requirements for levying a fine or imposing a
  176         suspension; amending s. 720.306, F.S.; providing
  177         procedures for filling a vacancy on the board of
  178         directors; amending s. 720.3085, F.S.; requiring a
  179         tenant in a property owned by a person who is
  180         delinquent in the payment of a monetary obligation to
  181         the condominium association to pay rent to the
  182         association under certain circumstances; amending s.
  183         720.31, F.S.; authorizing an association to enter into
  184         certain agreements to use lands or facilities;
  185         requiring that certain items be stated and fully
  186         described in the declaration; limiting an
  187         association’s power to enter into such agreements
  188         after a specified period following the recording of a
  189         declaration; requiring that certain agreements be
  190         approved by a specified percentage of voting interests
  191         of an association when the declaration is silent as to
  192         the authority of an association to enter into such
  193         agreement; authorizing an association to join with
  194         other associations or a master association under
  195         certain circumstances and for specified purposes;
  196         repealing s. 553.509(2), F.S., relating to public
  197         elevators and emergency operation plans in certain
  198         condominiums and multifamily dwellings; amending s.
  199         720.303, F.S.; revising provisions relating to
  200         homeowners’ association board meetings, inspection and
  201         copying of records, and reserve accounts of budgets;
  202         expanding list of association records that are not
  203         accessible to members and parcel owners; prohibiting
  204         certain association personnel from receiving a salary
  205         or compensation; providing exceptions; amending s.
  206         720.306, F.S.; providing requirements for secret
  207         ballots; providing for filling vacancies on the
  208         homeowners’ association board; creating s. 720.315,
  209         F.S.; prohibiting the board of directors of a
  210         homeowners’ association from levying a special
  211         assessment before turnover of the association by the
  212         developer unless certain conditions are met; providing
  213         an effective date.
  214  
  215  Be It Enacted by the Legislature of the State of Florida:
  216  
  217         Section 1. Subsection (7) of section 617.0721, Florida
  218  Statutes, is amended to read:
  219         617.0721 Voting by members.—
  220         (7) Subsections (1), (2), (5), and (6) do not apply to a
  221  corporation that is an association, as defined in s. 720.301, or
  222  a corporation regulated by chapter 718 or chapter 719.
  223         Section 2. Subsection (3) is added to section 617.0808,
  224  Florida Statutes, to read:
  225         617.0808 Removal of directors.—
  226         (3) This section does not apply to any corporation that is
  227  an association, as defined in s. 720.301, or a corporation
  228  regulated by chapter 718 or chapter 719.
  229         Section 3. Section 617.1606, Florida Statutes, is created
  230  to read:
  231         617.1606Access to records; homeowners’ associations;
  232  condominiums; cooperatives; timeshare estates.—Sections
  233  617.1601-617.1605 do not apply to any corporation that is an
  234  association, as defined in s. 720.301, or a corporation
  235  regulated by chapter 718 or chapter 719.
  236         Section 4. Section 627.714, Florida Statutes, is created to
  237  read:
  238         627.714Residential condominium unit owner coverage; loss
  239  assessment coverage required; excess coverage provision
  240  required.—For policies issued or renewed on or after July 1,
  241  2010, coverage under a unit owner’s residential property policy
  242  shall include property loss assessment coverage of at least
  243  $2,000 for all assessments made as a result of the same direct
  244  loss to the property, regardless of the number of assessments,
  245  owned by all members of the association collectively when such
  246  loss is of the type of loss covered by the unit owner’s
  247  residential property insurance policy, to which a deductible
  248  shall apply of no more than $250 per direct property loss. If a
  249  deductible was or will be applied to other property loss
  250  sustained by the unit owner resulting from the same direct loss
  251  to the property, no deductible shall apply to the loss
  252  assessment coverage. Every individual unit owner’s residential
  253  property policy must contain a provision stating that the
  254  coverage afforded by such policy is excess coverage over the
  255  amount recoverable under any other policy covering the same
  256  property.
  257         Section 5. Subsection (13) is added to section 633.0215,
  258  Florida Statutes, to read:
  259         633.0215 Florida Fire Prevention Code.—
  260         (13) A condominium that is one or two stories in height and
  261  has a corridor providing an exterior means of egress is exempt
  262  from the requirement to install a manual fire alarm system under
  263  s. 9.6 of the Life Safety Code adopted in the Florida Fire
  264  Prevention Code.
  265         Section 6. Subsection (16) of section 718.103, Florida
  266  Statutes, is amended to read:
  267         718.103 Definitions.—As used in this chapter, the term:
  268         (16) “Developer” means a person who creates a condominium
  269  or offers condominium parcels for sale or lease in the ordinary
  270  course of business, but does not include:
  271         (a) An owner or lessee of a condominium or cooperative unit
  272  who has acquired the unit for his or her own occupancy;, nor
  273  does it include
  274         (b) A cooperative association that which creates a
  275  condominium by conversion of an existing residential cooperative
  276  after control of the association has been transferred to the
  277  unit owners if, following the conversion, the unit owners will
  278  be the same persons who were unit owners of the cooperative and
  279  no units are offered for sale or lease to the public as part of
  280  the plan of conversion;.
  281         (c)A bulk assignee or bulk buyer as defined in s. 718.703;
  282  or
  283         (d) A state, county, or municipal entity is not a developer
  284  for any purposes under this act when it is acting as a lessor
  285  and not otherwise named as a developer in the declaration of
  286  condominium association.
  287         Section 7. Subsection (13) of section 718.110, Florida
  288  Statutes, is amended to read:
  289         718.110 Amendment of declaration; correction of error or
  290  omission in declaration by circuit court.—
  291         (13) Any amendment prohibiting restricting unit owners from
  292  renting their units or altering the duration of the rental term
  293  or specifying or limiting the number of times unit owners are
  294  entitled to rent their units during a specified period owners’
  295  rights relating to the rental of units applies only to unit
  296  owners who consent to the amendment and unit owners who acquire
  297  title to purchase their units after the effective date of that
  298  amendment.
  299         Section 8. Paragraphs (a), (b), (c), (d), (f), (g), (j),
  300  and (n) of subsection (11) and subsections (12) and (13) of
  301  section 718.111, Florida Statutes, are amended to read:
  302         718.111 The association.—
  303         (11) INSURANCE.—In order to protect the safety, health, and
  304  welfare of the people of the State of Florida and to ensure
  305  consistency in the provision of insurance coverage to
  306  condominiums and their unit owners, this subsection applies to
  307  every residential condominium in the state, regardless of the
  308  date of its declaration of condominium. It is the intent of the
  309  Legislature to encourage lower or stable insurance premiums for
  310  associations described in this subsection.
  311         (a) Adequate property hazard insurance, regardless of any
  312  requirement in the declaration of condominium for coverage by
  313  the association for full insurable value, replacement cost, or
  314  similar coverage, shall be based upon the replacement cost of
  315  the property to be insured as determined by an independent
  316  insurance appraisal or update of a prior appraisal. The
  317  replacement cost full insurable value shall be determined at
  318  least once every 36 months.
  319         1. An association or group of associations may provide
  320  adequate property hazard insurance through a self-insurance fund
  321  that complies with the requirements of ss. 624.460-624.488.
  322         2. The association may also provide adequate property
  323  hazard insurance coverage for a group of at least no fewer than
  324  three communities created and operating under this chapter,
  325  chapter 719, chapter 720, or chapter 721 by obtaining and
  326  maintaining for such communities insurance coverage sufficient
  327  to cover an amount equal to the probable maximum loss for the
  328  communities for a 250-year windstorm event. Such probable
  329  maximum loss must be determined through the use of a competent
  330  model that has been accepted by the Florida Commission on
  331  Hurricane Loss Projection Methodology. A No policy or program
  332  providing such coverage may not shall be issued or renewed after
  333  July 1, 2008, unless it has been reviewed and approved by the
  334  Office of Insurance Regulation. The review and approval shall
  335  include approval of the policy and related forms pursuant to ss.
  336  627.410 and 627.411, approval of the rates pursuant to s.
  337  627.062, a determination that the loss model approved by the
  338  commission was accurately and appropriately applied to the
  339  insured structures to determine the 250-year probable maximum
  340  loss, and a determination that complete and accurate disclosure
  341  of all material provisions is provided to condominium unit
  342  owners prior to execution of the agreement by a condominium
  343  association.
  344         3. When determining the adequate amount of property hazard
  345  insurance coverage, the association may consider deductibles as
  346  determined by this subsection.
  347         (b) If an association is a developer-controlled
  348  association, the association shall exercise its best efforts to
  349  obtain and maintain insurance as described in paragraph (a).
  350  Failure to obtain and maintain adequate property hazard
  351  insurance during any period of developer control constitutes a
  352  breach of fiduciary responsibility by the developer-appointed
  353  members of the board of directors of the association, unless the
  354  members can show that despite such failure, they have made their
  355  best efforts to maintain the required coverage.
  356         (c) Policies may include deductibles as determined by the
  357  board.
  358         1. The deductibles shall be consistent with industry
  359  standards and prevailing practice for communities of similar
  360  size and age, and having similar construction and facilities in
  361  the locale where the condominium property is situated.
  362         2. The deductibles may be based upon available funds,
  363  including reserve accounts, or predetermined assessment
  364  authority at the time the insurance is obtained.
  365         3. The board shall establish the amount of deductibles
  366  based upon the level of available funds and predetermined
  367  assessment authority at a meeting of the board. Such meeting
  368  shall be open to all unit owners in the manner set forth in s.
  369  718.112(2)(e). The notice of such meeting must state the
  370  proposed deductible and the available funds and the assessment
  371  authority relied upon by the board and estimate any potential
  372  assessment amount against each unit, if any. The meeting
  373  described in this paragraph may be held in conjunction with a
  374  meeting to consider the proposed budget or an amendment thereto.
  375         (d) An association controlled by unit owners operating as a
  376  residential condominium shall use its best efforts to obtain and
  377  maintain adequate property insurance to protect the association,
  378  the association property, the common elements, and the
  379  condominium property that is required to be insured by the
  380  association pursuant to this subsection.
  381         (f) Every property hazard insurance policy issued or
  382  renewed on or after January 1, 2009, for the purpose of
  383  protecting the condominium shall provide primary coverage for:
  384         1. All portions of the condominium property as originally
  385  installed or replacement of like kind and quality, in accordance
  386  with the original plans and specifications.
  387         2. All alterations or additions made to the condominium
  388  property or association property pursuant to s. 718.113(2).
  389         3. The coverage shall exclude all personal property within
  390  the unit or limited common elements, and floor, wall, and
  391  ceiling coverings, electrical fixtures, appliances, water
  392  heaters, water filters, built-in cabinets and countertops, and
  393  window treatments, including curtains, drapes, blinds, hardware,
  394  and similar window treatment components, or replacements of any
  395  of the foregoing which are located within the boundaries of the
  396  unit and serve only such unit. Such property and any insurance
  397  thereupon shall be the responsibility of the unit owner.
  398         (g) A condominium unit owner’s policy shall conform to the
  399  requirements of s. 627.714. Every hazard insurance policy issued
  400  or renewed on or after January 1, 2009, to an individual unit
  401  owner must contain a provision stating that the coverage
  402  afforded by such policy is excess coverage over the amount
  403  recoverable under any other policy covering the same property.
  404  Such policies must include special assessment coverage of no
  405  less than $2,000 per occurrence. An insurance policy issued to
  406  an individual unit owner providing such coverage does not
  407  provide rights of subrogation against the condominium
  408  association operating the condominium in which such individual’s
  409  unit is located.
  410         1. All improvements or additions to the condominium
  411  property that benefit fewer than all unit owners shall be
  412  insured by the unit owner or owners having the use thereof, or
  413  may be insured by the association at the cost and expense of the
  414  unit owners having the use thereof.
  415         2. The association shall require each owner to provide
  416  evidence of a currently effective policy of hazard and liability
  417  insurance upon request, but not more than once per year. Upon
  418  the failure of an owner to provide a certificate of insurance
  419  issued by an insurer approved to write such insurance in this
  420  state within 30 days after the date on which a written request
  421  is delivered, the association may purchase a policy of insurance
  422  on behalf of an owner. The cost of such a policy, together with
  423  reconstruction costs undertaken by the association but which are
  424  the responsibility of the unit owner, may be collected in the
  425  manner provided for the collection of assessments in s. 718.116.
  426         1.3. All reconstruction work after a property casualty loss
  427  must shall be undertaken by the association except as otherwise
  428  authorized in this section. A unit owner may undertake
  429  reconstruction work on portions of the unit with the prior
  430  written consent of the board of administration. However, such
  431  work may be conditioned upon the approval of the repair methods,
  432  the qualifications of the proposed contractor, or the contract
  433  that is used for that purpose. A unit owner shall obtain all
  434  required governmental permits and approvals prior to commencing
  435  reconstruction.
  436         2.4. Unit owners are responsible for the cost of
  437  reconstruction of any portions of the condominium property for
  438  which the unit owner is required to carry property casualty
  439  insurance, and any such reconstruction work undertaken by the
  440  association is shall be chargeable to the unit owner and
  441  enforceable as an assessment pursuant to s. 718.116. The
  442  association must be an additional named insured and loss payee
  443  on all casualty insurance policies issued to unit owners in the
  444  condominium operated by the association.
  445         3.5. A multicondominium association may elect, by a
  446  majority vote of the collective members of the condominiums
  447  operated by the association, to operate such condominiums as a
  448  single condominium for purposes of insurance matters, including,
  449  but not limited to, the purchase of the property hazard
  450  insurance required by this section and the apportionment of
  451  deductibles and damages in excess of coverage. The election to
  452  aggregate the treatment of insurance premiums, deductibles, and
  453  excess damages constitutes an amendment to the declaration of
  454  all condominiums operated by the association, and the costs of
  455  insurance shall be stated in the association budget. The
  456  amendments shall be recorded as required by s. 718.110.
  457         (j) Any portion of the condominium property required to be
  458  insured by the association against property casualty loss
  459  pursuant to paragraph (f) which is damaged by casualty shall be
  460  reconstructed, repaired, or replaced as necessary by the
  461  association as a common expense. All property hazard insurance
  462  deductibles, uninsured losses, and other damages in excess of
  463  property hazard insurance coverage under the property hazard
  464  insurance policies maintained by the association are a common
  465  expense of the condominium, except that:
  466         1. A unit owner is responsible for the costs of repair or
  467  replacement of any portion of the condominium property not paid
  468  by insurance proceeds, if such damage is caused by intentional
  469  conduct, negligence, or failure to comply with the terms of the
  470  declaration or the rules of the association by a unit owner, the
  471  members of his or her family, unit occupants, tenants, guests,
  472  or invitees, without compromise of the subrogation rights of any
  473  insurer as set forth in paragraph (g).
  474         2. The provisions of subparagraph 1. regarding the
  475  financial responsibility of a unit owner for the costs of
  476  repairing or replacing other portions of the condominium
  477  property also apply to the costs of repair or replacement of
  478  personal property of other unit owners or the association, as
  479  well as other property, whether real or personal, which the unit
  480  owners are required to insure under paragraph (g).
  481         3. To the extent the cost of repair or reconstruction for
  482  which the unit owner is responsible under this paragraph is
  483  reimbursed to the association by insurance proceeds, and, to the
  484  extent the association has collected the cost of such repair or
  485  reconstruction from the unit owner, the association shall
  486  reimburse the unit owner without the waiver of any rights of
  487  subrogation.
  488         4. The association is not obligated to pay for
  489  reconstruction or repairs of property casualty losses as a
  490  common expense if the property casualty losses were known or
  491  should have been known to a unit owner and were not reported to
  492  the association until after the insurance claim of the
  493  association for that property casualty was settled or resolved
  494  with finality, or denied on the basis that it was untimely
  495  filed.
  496         (n) The association is not obligated to pay for any
  497  reconstruction or repair expenses due to property casualty loss
  498  to any improvements installed by a current or former owner of
  499  the unit or by the developer if the improvement benefits only
  500  the unit for which it was installed and is not part of the
  501  standard improvements installed by the developer on all units as
  502  part of original construction, whether or not such improvement
  503  is located within the unit. This paragraph does not relieve any
  504  party of its obligations regarding recovery due under any
  505  insurance implemented specifically for any such improvements.
  506         (12) OFFICIAL RECORDS.—
  507         (a) From the inception of the association, the association
  508  shall maintain each of the following items, when applicable,
  509  which shall constitute the official records of the association:
  510         1. A copy of the plans, permits, warranties, and other
  511  items provided by the developer pursuant to s. 718.301(4).
  512         2. A photocopy of the recorded declaration of condominium
  513  of each condominium operated by the association and of each
  514  amendment to each declaration.
  515         3. A photocopy of the recorded bylaws of the association
  516  and of each amendment to the bylaws.
  517         4. A certified copy of the articles of incorporation of the
  518  association, or other documents creating the association, and of
  519  each amendment thereto.
  520         5. A copy of the current rules of the association.
  521         6. A book or books which contain the minutes of all
  522  meetings of the association, of the board of administration, and
  523  of unit owners, which minutes shall be retained for a period of
  524  not less than 7 years.
  525         7. A current roster of all unit owners and their mailing
  526  addresses, unit identifications, voting certifications, and, if
  527  known, telephone numbers. The association shall also maintain
  528  the electronic mailing addresses and the numbers designated by
  529  unit owners for receiving notice sent by electronic transmission
  530  of those unit owners consenting to receive notice by electronic
  531  transmission. The electronic mailing addresses and numbers
  532  provided by unit owners to receive notice by electronic
  533  transmission shall be removed from association records when
  534  consent to receive notice by electronic transmission is revoked.
  535  However, the association is not liable for an erroneous
  536  disclosure of the electronic mail address or the number for
  537  receiving electronic transmission of notices.
  538         8. All current insurance policies of the association and
  539  condominiums operated by the association.
  540         9. A current copy of any management agreement, lease, or
  541  other contract to which the association is a party or under
  542  which the association or the unit owners have an obligation or
  543  responsibility.
  544         10. Bills of sale or transfer for all property owned by the
  545  association.
  546         11. Accounting records for the association and separate
  547  accounting records for each condominium which the association
  548  operates. All accounting records shall be maintained for a
  549  period of at least not less than 7 years. Any person who
  550  knowingly or intentionally defaces or destroys accounting
  551  records required to be created and maintained by this chapter
  552  during the period for which such records are required to be
  553  maintained pursuant to this chapter, or who knowingly or
  554  intentionally fails to create or maintain accounting records
  555  required to be maintained by this chapter, with the intent of
  556  causing harm to the association or one or more of its members,
  557  is personally subject to a civil penalty pursuant to s.
  558  718.501(1)(d). The accounting records must shall include, but
  559  are not limited to:
  560         a. Accurate, itemized, and detailed records of all receipts
  561  and expenditures.
  562         b. A current account and a monthly, bimonthly, or quarterly
  563  statement of the account for each unit designating the name of
  564  the unit owner, the due date and amount of each assessment, the
  565  amount paid upon the account, and the balance due.
  566         c. All audits, reviews, accounting statements, and
  567  financial reports of the association or condominium.
  568         d. All contracts for work to be performed. Bids for work to
  569  be performed shall also be considered official records and shall
  570  be maintained by the association.
  571         12. Ballots, sign-in sheets, voting proxies, and all other
  572  papers relating to voting by unit owners, which shall be
  573  maintained for a period of 1 year from the date of the election,
  574  vote, or meeting to which the document relates, notwithstanding
  575  paragraph (b).
  576         13. All rental records, when the association is acting as
  577  agent for the rental of condominium units.
  578         14. A copy of the current question and answer sheet as
  579  described by s. 718.504.
  580         15. All other records of the association not specifically
  581  included in the foregoing which are related to the operation of
  582  the association.
  583         16. A copy of the inspection report as provided for in s.
  584  718.301(4)(p).
  585         (b) The official records of the association shall be
  586  maintained within the state for at least 7 years. The records of
  587  the association shall be made available to a unit owner within
  588  45 miles of the condominium property or within the county in
  589  which the condominium property is located within 5 working days
  590  after receipt of written request by the board or its designee.
  591  However, such distance requirement does not apply to an
  592  association governing a timeshare condominium. This paragraph
  593  may be complied with by having a copy of the official records of
  594  the association available for inspection or copying on the
  595  condominium property or association property, or the association
  596  may offer the option of making the records of the association
  597  available to a unit owner either electronically via the Internet
  598  or by allowing the records to be viewed in electronic format on
  599  a computer screen and printed upon request. The association is
  600  not responsible for the use or misuse of the information
  601  provided to an association member or his or her authorized
  602  representative pursuant to the compliance requirements of this
  603  chapter unless the association has an affirmative duty not to
  604  disclose such information pursuant to this chapter.
  605         (c) The official records of the association are open to
  606  inspection by any association member or the authorized
  607  representative of such member at all reasonable times. The right
  608  to inspect the records includes the right to make or obtain
  609  copies, at the reasonable expense, if any, of the association
  610  member. The association may adopt reasonable rules regarding the
  611  frequency, time, location, notice, and manner of record
  612  inspections and copying. The failure of an association to
  613  provide the records within 10 working days after receipt of a
  614  written request shall create a rebuttable presumption that the
  615  association willfully failed to comply with this paragraph. A
  616  unit owner who is denied access to official records is entitled
  617  to the actual damages or minimum damages for the association’s
  618  willful failure to comply with this paragraph. The minimum
  619  damages shall be $50 per calendar day up to 10 days, the
  620  calculation to begin on the 11th working day after receipt of
  621  the written request. The failure to permit inspection of the
  622  association records as provided herein entitles any person
  623  prevailing in an enforcement action to recover reasonable
  624  attorney’s fees from the person in control of the records who,
  625  directly or indirectly, knowingly denied access to the records
  626  for inspection. Any person who knowingly or intentionally
  627  defaces or destroys accounting records that are required by this
  628  chapter to be maintained during the period for which such
  629  records are required to be maintained pursuant to this chapter,
  630  or who knowingly or intentionally fails to create or maintain
  631  accounting records that are required to be created or maintained
  632  by this chapter, with the intent of causing harm to the
  633  association or one or more of its members, is personally subject
  634  to a civil penalty pursuant to s. 718.501(1)(d). The association
  635  shall maintain an adequate number of copies of the declaration,
  636  articles of incorporation, bylaws, and rules, and all amendments
  637  to each of the foregoing, as well as the question and answer
  638  sheet provided for in s. 718.504 and year-end financial
  639  information required in this section, on the condominium
  640  property to ensure their availability to unit owners and
  641  prospective purchasers, and may charge its actual costs for
  642  preparing and furnishing these documents to those requesting the
  643  documents same. Notwithstanding the provisions of this
  644  paragraph, the following records are shall not be accessible to
  645  unit owners:
  646         1. Any record protected by the lawyer-client privilege as
  647  described in s. 90.502; and any record protected by the work
  648  product privilege, including any record prepared by an
  649  association attorney or prepared at the attorney’s express
  650  direction; which reflects a mental impression, conclusion,
  651  litigation strategy, or legal theory of the attorney or the
  652  association, and which was prepared exclusively for civil or
  653  criminal litigation or for adversarial administrative
  654  proceedings, or which was prepared in anticipation of imminent
  655  civil or criminal litigation or imminent adversarial
  656  administrative proceedings until the conclusion of the
  657  litigation or adversarial administrative proceedings.
  658         2. Information obtained by an association in connection
  659  with the approval of the lease, sale, or other transfer of a
  660  unit.
  661         3.Personnel records of association employees, including,
  662  but not limited to, disciplinary, payroll, health, and insurance
  663  records.
  664         4.3. Medical records of unit owners.
  665         5.4. Social security numbers, driver’s license numbers,
  666  credit card numbers, e-mail addresses, telephone numbers,
  667  emergency contact information, any addresses of a unit owner
  668  other than as provided to fulfill the association’s notice
  669  requirements, and other personal identifying information of any
  670  person, excluding the person’s name, unit designation, mailing
  671  address, and property address.
  672         6.Any electronic security measure that is used by the
  673  association to safeguard data, including passwords.
  674         7.The software and operating system used by the
  675  association which allows manipulation of data, even if the owner
  676  owns a copy of the same software used by the association. The
  677  data is part of the official records of the association.
  678         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  679  the fiscal year, or annually on a date provided in the bylaws,
  680  the association shall prepare and complete, or contract for the
  681  preparation and completion of, a financial report for the
  682  preceding fiscal year. Within 21 days after the final financial
  683  report is completed by the association or received from the
  684  third party, but not later than 180 120 days after the end of
  685  the fiscal year or other date as provided in the bylaws, the
  686  association shall mail to each unit owner at the address last
  687  furnished to the association by the unit owner, or hand deliver
  688  to each unit owner, a copy of the financial report or a notice
  689  that a copy of the financial report will be mailed or hand
  690  delivered to the unit owner, without charge, upon receipt of a
  691  written request from the unit owner. The division shall adopt
  692  rules setting forth uniform accounting principles and standards
  693  to be used by all associations and shall adopt rules addressing
  694  financial reporting requirements for multicondominium
  695  associations. The rules shall include, but not be limited to,
  696  standards for presenting a summary of association reserves,
  697  including, but not limited to, a good faith estimate disclosing
  698  the annual amount of reserve funds that would be necessary for
  699  the association to fully fund reserves for each reserve item
  700  based on the straight-line accounting method. This disclosure is
  701  not applicable to reserves funded via the pooling method.
  702  uniform accounting principles and standards for stating the
  703  disclosure of at least a summary of the reserves, including
  704  information as to whether such reserves are being funded at a
  705  level sufficient to prevent the need for a special assessment
  706  and, if not, the amount of assessments necessary to bring the
  707  reserves up to the level necessary to avoid a special
  708  assessment. The person preparing the financial reports shall be
  709  entitled to rely on an inspection report prepared for or
  710  provided to the association to meet the fiscal and fiduciary
  711  standards of this chapter. In adopting such rules, the division
  712  shall consider the number of members and annual revenues of an
  713  association. Financial reports shall be prepared as follows:
  714         (a) An association that meets the criteria of this
  715  paragraph shall prepare or cause to be prepared a complete set
  716  of financial statements in accordance with generally accepted
  717  accounting principles. The financial statements shall be based
  718  upon the association’s total annual revenues, as follows:
  719         1. An association with total annual revenues of $400,000
  720  $100,000 or more, but less than $600,000 $200,000, shall prepare
  721  compiled financial statements.
  722         2. An association with total annual revenues of at least
  723  $600,000 $200,000, but less than $800,000 $400,000, shall
  724  prepare reviewed financial statements.
  725         3. An association with total annual revenues of $800,000
  726  $400,000 or more shall prepare audited financial statements.
  727         (b)1. An association with total annual revenues of less
  728  than $400,000 $100,000 shall prepare a report of cash receipts
  729  and expenditures.
  730         2. An association that which operates fewer less than 75 50
  731  units, regardless of the association’s annual revenues, shall
  732  prepare a report of cash receipts and expenditures in lieu of
  733  financial statements required by paragraph (a).
  734         3. A report of cash receipts and disbursements must
  735  disclose the amount of receipts by accounts and receipt
  736  classifications and the amount of expenses by accounts and
  737  expense classifications, including, but not limited to, the
  738  following, as applicable: costs for security, professional and
  739  management fees and expenses, taxes, costs for recreation
  740  facilities, expenses for refuse collection and utility services,
  741  expenses for lawn care, costs for building maintenance and
  742  repair, insurance costs, administration and salary expenses, and
  743  reserves accumulated and expended for capital expenditures,
  744  deferred maintenance, and any other category for which the
  745  association maintains reserves.
  746         (c) An association may prepare or cause to be prepared,
  747  without a meeting of or approval by the unit owners:
  748         1. Compiled, reviewed, or audited financial statements, if
  749  the association is required to prepare a report of cash receipts
  750  and expenditures;
  751         2. Reviewed or audited financial statements, if the
  752  association is required to prepare compiled financial
  753  statements; or
  754         3. Audited financial statements if the association is
  755  required to prepare reviewed financial statements.
  756         (d) If approved by a majority of the voting interests
  757  present at a properly called meeting of the association, an
  758  association may prepare or cause to be prepared:
  759         1. A report of cash receipts and expenditures in lieu of a
  760  compiled, reviewed, or audited financial statement;
  761         2. A report of cash receipts and expenditures or a compiled
  762  financial statement in lieu of a reviewed or audited financial
  763  statement; or
  764         3. A report of cash receipts and expenditures, a compiled
  765  financial statement, or a reviewed financial statement in lieu
  766  of an audited financial statement.
  767  
  768  Such meeting and approval must occur before prior to the end of
  769  the fiscal year and is effective only for the fiscal year in
  770  which the vote is taken, except that the approval also may be
  771  effective for the following fiscal year. With respect to an
  772  association to which the developer has not turned over control
  773  of the association, all unit owners, including the developer,
  774  may vote on issues related to the preparation of financial
  775  reports for the first 2 fiscal years of the association’s
  776  operation, beginning with the fiscal year in which the
  777  declaration is recorded. Thereafter, all unit owners except the
  778  developer may vote on such issues until control is turned over
  779  to the association by the developer. Any audit or review
  780  prepared under this section shall be paid for by the developer
  781  if done before prior to turnover of control of the association.
  782  An association may not waive the financial reporting
  783  requirements of this section for more than 3 consecutive years.
  784         Section 9. Paragraphs (d), (n), and (o) of subsection (2)
  785  of section 718.112, Florida Statutes, are amended to read:
  786         718.112 Bylaws.—
  787         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  788  following and, if they do not do so, shall be deemed to include
  789  the following:
  790         (d) Unit owner meetings.—
  791         1. There shall be an annual meeting of the unit owners held
  792  at the location provided in the association bylaws and, if the
  793  bylaws are silent as to the location, the meeting shall be held
  794  within 45 miles of the condominium property. However, such
  795  distance requirement does not apply to an association governing
  796  a timeshare condominium. Unless the bylaws provide otherwise, a
  797  vacancy on the board caused by the expiration of a director’s
  798  term shall be filled by electing a new board member, and the
  799  election shall be by secret ballot.; However, if the number of
  800  vacancies equals or exceeds the number of candidates, an no
  801  election is not required. Except in a timeshare condominium, the
  802  terms of all members of the board shall expire at the annual
  803  meeting and such board members may stand for reelection unless
  804  otherwise permitted by the bylaws. If In the event that the
  805  bylaws permit staggered terms of no more than 2 years and upon
  806  approval of a majority of the total voting interests, the
  807  association board members may serve 2-year staggered terms. If
  808  the number no person is interested in or demonstrates an
  809  intention to run for the position of a board members member
  810  whose terms have term has expired pursuant according to the
  811  provisions of this subparagraph exceeds the number of eligible
  812  members showing interest in or demonstrating an intention to run
  813  for the vacant positions, each such board member whose term has
  814  expired is eligible for reappointment shall be automatically
  815  reappointed to the board of administration and need not stand
  816  for reelection. In a condominium association of more than 10
  817  units or in a condominium association that does not include
  818  timeshare units or timeshare interests, coowners of a unit may
  819  not serve as members of the board of directors at the same time
  820  unless they own more than one unit or unless there are not
  821  enough eligible candidates to fill the vacancies on the board at
  822  the time of the vacancy. Any unit owner desiring to be a
  823  candidate for board membership must shall comply with sub
  824  subparagraph subparagraph 3.a. A person who has been suspended
  825  or removed by the division under this chapter, or who is
  826  delinquent in the payment of any fee, fine, or special or
  827  regular assessment as provided in paragraph (n), is not eligible
  828  for board membership. A person who has been convicted of any
  829  felony in this state or in a United States District or
  830  Territorial Court, or who has been convicted of any offense in
  831  another jurisdiction that would be considered a felony if
  832  committed in this state, is not eligible for board membership
  833  unless such felon’s civil rights have been restored for a period
  834  of at least no less than 5 years as of the date on which such
  835  person seeks election to the board. The validity of an action by
  836  the board is not affected if it is later determined that a
  837  member of the board is ineligible for board membership due to
  838  having been convicted of a felony.
  839         2. The bylaws shall provide the method of calling meetings
  840  of unit owners, including annual meetings. Written notice, which
  841  notice must include an agenda, shall be mailed, hand delivered,
  842  or electronically transmitted to each unit owner at least 14
  843  days prior to the annual meeting and shall be posted in a
  844  conspicuous place on the condominium property at least 14
  845  continuous days preceding the annual meeting. Upon notice to the
  846  unit owners, the board shall by duly adopted rule designate a
  847  specific location on the condominium property or association
  848  property upon which all notices of unit owner meetings shall be
  849  posted.; However, if there is no condominium property or
  850  association property upon which notices can be posted, this
  851  requirement does not apply. In lieu of or in addition to the
  852  physical posting of notice of any meeting of the unit owners on
  853  the condominium property, the association may, by reasonable
  854  rule, adopt a procedure for conspicuously posting and repeatedly
  855  broadcasting the notice and the agenda on a closed-circuit cable
  856  television system serving the condominium association. However,
  857  if broadcast notice is used in lieu of a notice posted
  858  physically on the condominium property, the notice and agenda
  859  must be broadcast at least four times every broadcast hour of
  860  each day that a posted notice is otherwise required under this
  861  section. When broadcast notice is provided, the notice and
  862  agenda must be broadcast in a manner and for a sufficient
  863  continuous length of time so as to allow an average reader to
  864  observe the notice and read and comprehend the entire content of
  865  the notice and the agenda. Unless a unit owner waives in writing
  866  the right to receive notice of the annual meeting, such notice
  867  must shall be hand delivered, mailed, or electronically
  868  transmitted to each unit owner. Notice for meetings and notice
  869  for all other purposes shall be mailed to each unit owner at the
  870  address last furnished to the association by the unit owner, or
  871  hand delivered to each unit owner. However, if a unit is owned
  872  by more than one person, the association shall provide notice,
  873  for meetings and all other purposes, to that one address which
  874  the developer initially identifies for that purpose and
  875  thereafter as one or more of the owners of the unit shall so
  876  advise the association in writing, or if no address is given or
  877  the owners of the unit do not agree, to the address provided on
  878  the deed of record. An officer of the association, or the
  879  manager or other person providing notice of the association
  880  meeting, shall provide an affidavit or United States Postal
  881  Service certificate of mailing, to be included in the official
  882  records of the association affirming that the notice was mailed
  883  or hand delivered, in accordance with this provision.
  884         3.a. The members of the board shall be elected by written
  885  ballot or voting machine. Proxies may not shall in no event be
  886  used in electing the board, either in general elections or
  887  elections to fill vacancies caused by recall, resignation, or
  888  otherwise, unless otherwise provided in this chapter. At least
  889  Not less than 60 days before a scheduled election, the
  890  association shall mail, deliver, or electronically transmit,
  891  whether by separate association mailing or included in another
  892  association mailing, delivery, or transmission, including
  893  regularly published newsletters, to each unit owner entitled to
  894  a vote, a first notice of the date of the election along with a
  895  certification form provided by the division attesting that he or
  896  she has read and understands, to the best of his or her ability,
  897  the governing documents of the association and the provisions of
  898  this chapter and any applicable rules. Any unit owner or other
  899  eligible person desiring to be a candidate for the board must
  900  give written notice of his or her intent to be a candidate to
  901  the association at least not less than 40 days before a
  902  scheduled election. Together with the written notice and agenda
  903  as set forth in subparagraph 2., the association shall mail,
  904  deliver, or electronically transmit a second notice of the
  905  election to all unit owners entitled to vote therein, together
  906  with a ballot which shall list all candidates. Upon request of a
  907  candidate, the association shall include an information sheet,
  908  no larger than 8 1/2 inches by 11 inches, which must be
  909  furnished by the candidate not less than 35 days before the
  910  election, shall along with the signed certification form
  911  provided for in this subparagraph, to be included with the
  912  mailing, delivery, or transmission of the ballot, with the costs
  913  of mailing, delivery, or electronic transmission and copying to
  914  be borne by the association. The association is not liable for
  915  the contents of the information sheets prepared by the
  916  candidates. In order to reduce costs, the association may print
  917  or duplicate the information sheets on both sides of the paper.
  918  The division shall by rule establish voting procedures
  919  consistent with the provisions contained herein, including rules
  920  establishing procedures for giving notice by electronic
  921  transmission and rules providing for the secrecy of ballots.
  922  Elections shall be decided by a plurality of those ballots cast.
  923  There shall be no quorum requirement; however, at least 20
  924  percent of the eligible voters must cast a ballot in order to
  925  have a valid election of members of the board. A No unit owner
  926  may not shall permit any other person to vote his or her ballot,
  927  and any such ballots improperly cast shall be deemed invalid,
  928  provided any unit owner who violates this provision may be fined
  929  by the association in accordance with s. 718.303. A unit owner
  930  who needs assistance in casting the ballot for the reasons
  931  stated in s. 101.051 may obtain assistance in casting the
  932  ballot. The regular election shall occur on the date of the
  933  annual meeting. The provisions of This sub-subparagraph does
  934  subparagraph shall not apply to timeshare condominium
  935  associations. Notwithstanding the provisions of this sub
  936  subparagraph subparagraph, an election is not required unless
  937  more candidates file notices of intent to run or are nominated
  938  than board vacancies exist.
  939         b.Within 90 days after being elected or appointed to the
  940  board, each newly elected or appointed director shall certify in
  941  writing to the secretary of the association that he or she has
  942  read the association’s declaration of condominium, articles of
  943  incorporation, bylaws, and current written policies; that he or
  944  she will work to uphold such documents and policies to the best
  945  of his or her ability; and that he or she will faithfully
  946  discharge his or her fiduciary responsibility to the
  947  association’s members. In lieu of this written certification,
  948  the newly elected or appointed director may submit a certificate
  949  of satisfactory completion of the educational curriculum
  950  administered by a division-approved condominium education
  951  provider. A director who fails to timely file the written
  952  certification or educational certificate is suspended from
  953  service on the board until he or she complies with this
  954  subparagraph. The board may temporarily fill the vacancy during
  955  the period of suspension. The secretary shall cause the
  956  association to retain a director’s written certification or
  957  educational certificate for inspection by the members for 5
  958  years after a director’s election. Failure to have such written
  959  certification or educational certificate on file does not affect
  960  the validity of any action.
  961         4. Any approval by unit owners called for by this chapter
  962  or the applicable declaration or bylaws, including, but not
  963  limited to, the approval requirement in s. 718.111(8), shall be
  964  made at a duly noticed meeting of unit owners and shall be
  965  subject to all requirements of this chapter or the applicable
  966  condominium documents relating to unit owner decisionmaking,
  967  except that unit owners may take action by written agreement,
  968  without meetings, on matters for which action by written
  969  agreement without meetings is expressly allowed by the
  970  applicable bylaws or declaration or any statute that provides
  971  for such action.
  972         5. Unit owners may waive notice of specific meetings if
  973  allowed by the applicable bylaws or declaration or any statute.
  974  If authorized by the bylaws, notice of meetings of the board of
  975  administration, unit owner meetings, except unit owner meetings
  976  called to recall board members under paragraph (j), and
  977  committee meetings may be given by electronic transmission to
  978  unit owners who consent to receive notice by electronic
  979  transmission.
  980         6. Unit owners shall have the right to participate in
  981  meetings of unit owners with reference to all designated agenda
  982  items. However, the association may adopt reasonable rules
  983  governing the frequency, duration, and manner of unit owner
  984  participation.
  985         7. Any unit owner may tape record or videotape a meeting of
  986  the unit owners subject to reasonable rules adopted by the
  987  division.
  988         8. Unless otherwise provided in the bylaws, any vacancy
  989  occurring on the board before the expiration of a term may be
  990  filled by the affirmative vote of the majority of the remaining
  991  directors, even if the remaining directors constitute less than
  992  a quorum, or by the sole remaining director. In the alternative,
  993  a board may hold an election to fill the vacancy, in which case
  994  the election procedures must conform to the requirements of sub
  995  subparagraph subparagraph 3.a. unless the association governs 10
  996  units or fewer less and has opted out of the statutory election
  997  process, in which case the bylaws of the association control.
  998  Unless otherwise provided in the bylaws, a board member
  999  appointed or elected under this section shall fill the vacancy
 1000  for the unexpired term of the seat being filled. Filling
 1001  vacancies created by recall is governed by paragraph (j) and
 1002  rules adopted by the division.
 1003  
 1004  Notwithstanding subparagraph subparagraphs (b)2. and sub
 1005  subparagraph (d)3.a., an association of 10 or fewer units may,
 1006  by the affirmative vote of a majority of the total voting
 1007  interests, provide for different voting and election procedures
 1008  in its bylaws, which vote may be by a proxy specifically
 1009  delineating the different voting and election procedures. The
 1010  different voting and election procedures may provide for
 1011  elections to be conducted by limited or general proxy.
 1012         (n) Director or officer delinquencies.—A director or
 1013  officer more than 90 days delinquent in the payment of any
 1014  monetary obligation due the association regular assessments
 1015  shall be deemed to have abandoned the office, creating a vacancy
 1016  in the office to be filled according to law.
 1017         (o) Director or officer offenses.—A director or officer
 1018  charged by information or indictment with a felony theft or
 1019  embezzlement offense involving the association’s funds or
 1020  property shall be removed from office, creating a vacancy in the
 1021  office to be filled according to law until the end of the period
 1022  of the suspension or the end of the director’s term of office,
 1023  whichever occurs first. While such director or officer has such
 1024  criminal charge pending, he or she may not be appointed or
 1025  elected to a position as a director or officer. However, should
 1026  the charges be resolved without a finding of guilt, the director
 1027  or officer shall be reinstated for the remainder of his or her
 1028  term of office, if any.
 1029         Section 10. Paragraph (d) of subsection (1) of section
 1030  718.115, Florida Statutes, is amended to read:
 1031         718.115 Common expenses and common surplus.—
 1032         (1)
 1033         (d) If so provided in the declaration, the cost of
 1034  communications services as defined in chapter 202, information
 1035  services, or Internet services a master antenna television
 1036  system or duly franchised cable television service obtained
 1037  pursuant to a bulk contract is shall be deemed a common expense.
 1038  If the declaration does not provide for the cost of
 1039  communications services as defined in chapter 202, information
 1040  services, or Internet services a master antenna television
 1041  system or duly franchised cable television service obtained
 1042  under a bulk contract as a common expense, the board may enter
 1043  into such a contract, and the cost of the service will be a
 1044  common expense. The cost for the services under a bulk-rate
 1045  contract may be but allocated on a per-unit basis rather than a
 1046  percentage basis if the declaration provides for other than an
 1047  equal sharing of common expenses, and any contract entered into
 1048  before July 1, 1998, in which the cost of the service is not
 1049  equally divided among all unit owners, may be changed by vote of
 1050  a majority of the voting interests present at a regular or
 1051  special meeting of the association, to allocate the cost equally
 1052  among all units. The contract shall be for a term of not less
 1053  than 2 years.
 1054         1. Any contract made by the board after the effective date
 1055  hereof for communications services as defined in chapter 202,
 1056  information services, or Internet services a community antenna
 1057  system or duly franchised cable television service may be
 1058  canceled by a majority of the voting interests present at the
 1059  next regular or special meeting of the association. Any member
 1060  may make a motion to cancel the said contract, but if no motion
 1061  is made or if such motion fails to obtain the required majority
 1062  at the next regular or special meeting, whichever occurs is
 1063  sooner, following the making of the contract, then such contract
 1064  shall be deemed ratified for the term therein expressed.
 1065         2. Any such contract shall provide, and shall be deemed to
 1066  provide if not expressly set forth, that any hearing-impaired or
 1067  legally blind unit owner who does not occupy the unit with a
 1068  non-hearing-impaired or sighted person, or any unit owner
 1069  receiving supplemental security income under Title XVI of the
 1070  Social Security Act or food stamps as administered by the
 1071  Department of Children and Family Services pursuant to s.
 1072  414.31, may discontinue the cable or video service without
 1073  incurring disconnect fees, penalties, or subsequent service
 1074  charges, and, as to such units, the owners shall not be required
 1075  to pay any common expenses charge related to such service. If
 1076  fewer less than all members of an association share the expenses
 1077  of cable or video service television, the expense shall be
 1078  shared equally by all participating unit owners. The association
 1079  may use the provisions of s. 718.116 to enforce payment of the
 1080  shares of such costs by the unit owners receiving cable or video
 1081  service television.
 1082         Section 11.  Paragraph (b) of subsection (5) of section
 1083  718.116, Florida Statutes, is amended, and subsection (11) is
 1084  added to that section, to read:
 1085         718.116 Assessments; liability; lien and priority;
 1086  interest; collection.—
 1087         (5)
 1088         (b) To be valid, a claim of lien must state the description
 1089  of the condominium parcel, the name of the record owner, the
 1090  name and address of the association, the amount due, and the due
 1091  dates. It must be executed and acknowledged by an officer or
 1092  authorized agent of the association. The No such lien is not
 1093  shall be effective longer than 1 year after the claim of lien
 1094  was recorded unless, within that time, an action to enforce the
 1095  lien is commenced. The 1-year period shall automatically be
 1096  extended for any length of time during which the association is
 1097  prevented from filing a foreclosure action by an automatic stay
 1098  resulting from a bankruptcy petition filed by the parcel owner
 1099  or any other person claiming an interest in the parcel. The
 1100  claim of lien shall secure all unpaid assessments which are due
 1101  and which may accrue subsequent to the recording of the claim of
 1102  lien and through prior to the entry of a final judgment
 1103  certificate of title, as well as interest and all reasonable
 1104  costs and attorney’s fees incurred by the association incident
 1105  to the collection process. Costs to the unit owner secured by
 1106  the association’s claim of lien with regard to delinquency
 1107  letters or any other collection efforts by licensed management
 1108  companies or licensed managers as to any delinquent installment
 1109  of an assessment may not exceed $75. Upon payment in full, the
 1110  person making the payment is entitled to a satisfaction of the
 1111  lien.
 1112  
 1113  After notice of contest of lien has been recorded, the clerk of
 1114  the circuit court shall mail a copy of the recorded notice to
 1115  the association by certified mail, return receipt requested, at
 1116  the address shown in the claim of lien or most recent amendment
 1117  to it and shall certify to the service on the face of the
 1118  notice. Service is complete upon mailing. After service, the
 1119  association has 90 days in which to file an action to enforce
 1120  the lien; and, if the action is not filed within the 90-day
 1121  period, the lien is void. However, the 90-day period shall be
 1122  extended for any length of time that the association is
 1123  prevented from filing its action because of an automatic stay
 1124  resulting from the filing of a bankruptcy petition by the unit
 1125  owner or by any other person claiming an interest in the parcel.
 1126         (11)If the unit is occupied by a tenant and the unit owner
 1127  is delinquent in the payment of any monetary obligation due to
 1128  the association, the association may make a written demand that
 1129  the tenant pay to the association the future monetary
 1130  obligations related to the condominium unit, and the tenant must
 1131  make such payment. The demand is continuing in nature, and upon
 1132  demand, the tenant must pay the monetary obligations to the
 1133  association until the association releases the tenant or the
 1134  tenant discontinues tenancy in the unit. If the tenant prepaid
 1135  rent to the unit owner before receiving the demand from the
 1136  association and provides to the association within 14 days after
 1137  receiving the demand written evidence of paying the rent, the
 1138  tenant must make any subsequent rental payments to the
 1139  association to be credited against the monetary obligations of
 1140  the unit owner to the association. A tenant who acts in good
 1141  faith in response to a written demand from an association is
 1142  immune from any claim from the unit owner. The association must
 1143  mail written notice to the unit owner of the association’s
 1144  demand that the tenant make payments to the association. The
 1145  tenant is not liable for increases in the amount of the monetary
 1146  obligations due unless the tenant was notified in writing of the
 1147  increase at least 10 days before the date the rent is due. The
 1148  liability of the tenant shall not exceed the amount due from the
 1149  tenant to the tenant’s landlord. The tenant’s landlord shall
 1150  provide the tenant a credit against rents due to the unit owner
 1151  in the amount of monies paid to the association under this
 1152  section. The association shall, upon request, provide the tenant
 1153  with written receipts for payments made. The association may
 1154  issue notices under s. 83.56 and may sue for eviction under ss.
 1155  83.59-83.625 as if the association were a landlord under part II
 1156  of chapter 83 if the tenant fails to pay a required payment to
 1157  the association. However, the association is not otherwise
 1158  considered a landlord under chapter 83 and specifically has no
 1159  duties under s. 83.51. The tenant does not, by virtue of payment
 1160  of monetary obligations to the association, have any of the
 1161  rights of a unit owner to vote in any election or to examine the
 1162  books and records of the association. A court may supersede the
 1163  effect of this subsection by appointing a receiver.
 1164         Section 12. Subsections (2) and (19) of section 718.117,
 1165  Florida Statutes, are amended to read:
 1166         718.117 Termination of condominium.—
 1167         (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR
 1168  IMPOSSIBILITY.—
 1169         (a) Notwithstanding any provision to the contrary in the
 1170  declaration, the condominium form of ownership of a property may
 1171  be terminated by a plan of termination approved by the lesser of
 1172  the lowest percentage of voting interests necessary to amend the
 1173  declaration or as otherwise provided in the declaration for
 1174  approval of termination when:
 1175         1. The total estimated cost of construction or repairs
 1176  necessary to construct the intended improvements or restore the
 1177  improvements to their former condition or bring them into
 1178  compliance with applicable laws or regulations exceeds the
 1179  combined fair market value of the all units in the condominium
 1180  after completion of the construction or repairs; or
 1181         2. It becomes impossible to operate or reconstruct a
 1182  condominium in its prior physical configuration because of land
 1183  use laws or regulations.
 1184         (b) Notwithstanding paragraph (a), a condominium in which
 1185  75 percent or more of the units are timeshare units may be
 1186  terminated only pursuant to a plan of termination approved by 80
 1187  percent of the total voting interests of the association and the
 1188  holders of 80 percent of the original principal amount of
 1189  outstanding recorded mortgage liens of timeshare estates in the
 1190  condominium, unless the declaration provides for a lower voting
 1191  percentage.
 1192         (19) CREATION OF ANOTHER CONDOMINIUM.—The termination of a
 1193  condominium does not bar the filing of a declaration of
 1194  condominium or an amended and restated declaration of
 1195  condominium creation by the termination trustee of another
 1196  condominium affecting any portion of the same property.
 1197         Section 13. Subsection (1) of section 718.301, Florida
 1198  Statutes, is amended to read:
 1199         718.301 Transfer of association control; claims of defect
 1200  by association.—
 1201         (1) When unit owners other than the developer own 15
 1202  percent or more of the units in a condominium that will be
 1203  operated ultimately by an association, the unit owners other
 1204  than the developer are shall be entitled to elect at least no
 1205  less than one-third of the members of the board of
 1206  administration of the association. Unit owners other than the
 1207  developer are entitled to elect at least not less than a
 1208  majority of the members of the board of administration of an
 1209  association:
 1210         (a) Three years after 50 percent of the units that will be
 1211  operated ultimately by the association have been conveyed to
 1212  purchasers;
 1213         (b) Three months after 90 percent of the units that will be
 1214  operated ultimately by the association have been conveyed to
 1215  purchasers;
 1216         (c) When all the units that will be operated ultimately by
 1217  the association have been completed, some of them have been
 1218  conveyed to purchasers, and none of the others are being offered
 1219  for sale by the developer in the ordinary course of business;
 1220         (d) When some of the units have been conveyed to purchasers
 1221  and none of the others are being constructed or offered for sale
 1222  by the developer in the ordinary course of business;
 1223         (e) When the developer files a petition seeking protection
 1224  in bankruptcy;
 1225         (f) When a receiver for the developer is appointed by a
 1226  circuit court and is not discharged within 30 days after such
 1227  appointment, unless the court determines within 30 days after
 1228  appointment of the receiver that transfer of control would be
 1229  detrimental to the association or its members; or
 1230         (g) Seven years after recordation of the declaration of
 1231  condominium; or, in the case of an association which may
 1232  ultimately operate more than one condominium, 7 years after
 1233  recordation of the declaration for the first condominium it
 1234  operates; or, in the case of an association operating a phase
 1235  condominium created pursuant to s. 718.403, 7 years after
 1236  recordation of the declaration creating the initial phase,
 1237  whichever occurs first. The developer is entitled to elect at
 1238  least one member of the board of administration of an
 1239  association as long as the developer holds for sale in the
 1240  ordinary course of business at least 5 percent, in condominiums
 1241  with fewer than 500 units, and 2 percent, in condominiums with
 1242  more than 500 units, of the units in a condominium operated by
 1243  the association. Following the time the developer relinquishes
 1244  control of the association, the developer may exercise the right
 1245  to vote any developer-owned units in the same manner as any
 1246  other unit owner except for purposes of reacquiring control of
 1247  the association or selecting the majority members of the board
 1248  of administration.
 1249         Section 14.  Section 718.303, Florida Statutes, is amended
 1250  to read:
 1251         718.303 Obligations of owners and occupants; waiver; levy
 1252  of fines, suspension of use or voting rights, and other
 1253  nonexclusive remedies in law or equity fine against unit by an
 1254  association.—
 1255         (1) Each unit owner, each tenant and other invitee, and
 1256  each association shall be governed by, and shall comply with the
 1257  provisions of, this chapter, the declaration, the documents
 1258  creating the association, and the association bylaws and the
 1259  provisions thereof shall be deemed expressly incorporated into
 1260  any lease of a unit. Actions for damages or for injunctive
 1261  relief, or both, for failure to comply with these provisions may
 1262  be brought by the association or by a unit owner against:
 1263         (a) The association.
 1264         (b) A unit owner.
 1265         (c) Directors designated by the developer, for actions
 1266  taken by them prior to the time control of the association is
 1267  assumed by unit owners other than the developer.
 1268         (d) Any director who willfully and knowingly fails to
 1269  comply with these provisions.
 1270         (e) Any tenant leasing a unit, and any other invitee
 1271  occupying a unit.
 1272  
 1273  The prevailing party in any such action or in any action in
 1274  which the purchaser claims a right of voidability based upon
 1275  contractual provisions as required in s. 718.503(1)(a) is
 1276  entitled to recover reasonable attorney’s fees. A unit owner
 1277  prevailing in an action between the association and the unit
 1278  owner under this section, in addition to recovering his or her
 1279  reasonable attorney’s fees, may recover additional amounts as
 1280  determined by the court to be necessary to reimburse the unit
 1281  owner for his or her share of assessments levied by the
 1282  association to fund its expenses of the litigation. This relief
 1283  does not exclude other remedies provided by law. Actions arising
 1284  under this subsection shall not be deemed to be actions for
 1285  specific performance.
 1286         (2) A provision of this chapter may not be waived if the
 1287  waiver would adversely affect the rights of a unit owner or the
 1288  purpose of the provision, except that unit owners or members of
 1289  a board of administration may waive notice of specific meetings
 1290  in writing if provided by the bylaws. Any instruction given in
 1291  writing by a unit owner or purchaser to an escrow agent may be
 1292  relied upon by an escrow agent, whether or not such instruction
 1293  and the payment of funds thereunder might constitute a waiver of
 1294  any provision of this chapter.
 1295         (3) If a unit owner is delinquent for more than 90 days in
 1296  the payment of a monetary obligation due to the association the
 1297  declaration or bylaws so provide, the association may suspend,
 1298  until such monetary obligation is paid, the right of a unit
 1299  owner or a unit’s occupant, licensee, or invitee to use common
 1300  elements, common facilities, or any other association property.
 1301  This subsection does not apply to limited common elements
 1302  intended to be used only by that unit, common elements that must
 1303  be used to access the unit, utility services provided to the
 1304  unit, parking spaces, or elevators. The association may also
 1305  levy reasonable fines against a unit for the failure of the
 1306  owner of the unit, or its occupant, licensee, or invitee, to
 1307  comply with any provision of the declaration, the association
 1308  bylaws, or reasonable rules of the association. A No fine does
 1309  not will become a lien against a unit. A No fine may not exceed
 1310  $100 per violation. However, a fine may be levied on the basis
 1311  of each day of a continuing violation, with a single notice and
 1312  opportunity for hearing. However, the provided that no such fine
 1313  may not shall in the aggregate exceed $1,000. A No fine may not
 1314  be levied and a suspension may not be imposed unless the
 1315  association first provides at least 14 days’ written except
 1316  after giving reasonable notice and an opportunity for a hearing
 1317  to the unit owner and, if applicable, its occupant, licensee, or
 1318  invitee. The hearing must be held before a committee of other
 1319  unit owners who are neither board members nor persons residing
 1320  in a board member’s household. If the committee does not agree
 1321  with the fine or suspension, the fine or suspension may not be
 1322  levied or imposed. The provisions of this subsection do not
 1323  apply to unoccupied units.
 1324         (4)The notice and hearing requirements of subsection (3)
 1325  do not apply to the imposition of suspensions or fines against a
 1326  unit owner or a unit’s occupant, licensee, or invitee because of
 1327  the failure to pay any amounts due the association. If such a
 1328  fine or suspension is imposed, the association must levy the
 1329  fine or impose a reasonable suspension at a properly noticed
 1330  board meeting, and after the imposition of such fine or
 1331  suspension, the association must notify the unit owner and, if
 1332  applicable, the unit’s occupant, licensee, or invitee by mail or
 1333  hand delivery.
 1334         (5)An association may also suspend the voting rights of a
 1335  member due to nonpayment of any monetary obligation due to the
 1336  association which is delinquent in excess of 90 days. The
 1337  suspension shall end upon full payment of all obligations
 1338  currently due or overdue the association.
 1339         Section 15.  Subsection (1) of section 718.501, Florida
 1340  Statutes, is amended to read:
 1341         718.501 Authority, responsibility, and duties of Division
 1342  of Florida Condominiums, Timeshares, and Mobile Homes.—
 1343         (1) The Division of Florida Condominiums, Timeshares, and
 1344  Mobile Homes of the Department of Business and Professional
 1345  Regulation, referred to as the “division” in this part, has the
 1346  power to enforce and ensure compliance with the provisions of
 1347  this chapter and rules relating to the development,
 1348  construction, sale, lease, ownership, operation, and management
 1349  of residential condominium units. In performing its duties, the
 1350  division has complete jurisdiction to investigate complaints and
 1351  enforce compliance with the provisions of this chapter with
 1352  respect to associations that are still under developer control
 1353  or the control of a bulk assignee or bulk buyer pursuant to part
 1354  VII of this chapter and complaints against developers, bulk
 1355  assignees, or bulk buyers involving improper turnover or failure
 1356  to turnover, pursuant to s. 718.301. However, after turnover has
 1357  occurred, the division has shall only have jurisdiction to
 1358  investigate complaints related only to financial issues,
 1359  elections, and unit owner access to association records pursuant
 1360  to s. 718.111(12).
 1361         (a)1. The division may make necessary public or private
 1362  investigations within or outside this state to determine whether
 1363  any person has violated this chapter or any rule or order
 1364  hereunder, to aid in the enforcement of this chapter, or to aid
 1365  in the adoption of rules or forms hereunder.
 1366         2. The division may submit any official written report,
 1367  worksheet, or other related paper, or a duly certified copy
 1368  thereof, compiled, prepared, drafted, or otherwise made by and
 1369  duly authenticated by a financial examiner or analyst to be
 1370  admitted as competent evidence in any hearing in which the
 1371  financial examiner or analyst is available for cross-examination
 1372  and attests under oath that such documents were prepared as a
 1373  result of an examination or inspection conducted pursuant to
 1374  this chapter.
 1375         (b) The division may require or permit any person to file a
 1376  statement in writing, under oath or otherwise, as the division
 1377  determines, as to the facts and circumstances concerning a
 1378  matter to be investigated.
 1379         (c) For the purpose of any investigation under this
 1380  chapter, the division director or any officer or employee
 1381  designated by the division director may administer oaths or
 1382  affirmations, subpoena witnesses and compel their attendance,
 1383  take evidence, and require the production of any matter which is
 1384  relevant to the investigation, including the existence,
 1385  description, nature, custody, condition, and location of any
 1386  books, documents, or other tangible things and the identity and
 1387  location of persons having knowledge of relevant facts or any
 1388  other matter reasonably calculated to lead to the discovery of
 1389  material evidence. Upon the failure by a person to obey a
 1390  subpoena or to answer questions propounded by the investigating
 1391  officer and upon reasonable notice to all persons affected
 1392  thereby, the division may apply to the circuit court for an
 1393  order compelling compliance.
 1394         (d) Notwithstanding any remedies available to unit owners
 1395  and associations, if the division has reasonable cause to
 1396  believe that a violation of any provision of this chapter or
 1397  related rule has occurred, the division may institute
 1398  enforcement proceedings in its own name against any developer,
 1399  bulk assignee, bulk buyer, association, officer, or member of
 1400  the board of administration, or its assignees or agents, as
 1401  follows:
 1402         1. The division may permit a person whose conduct or
 1403  actions may be under investigation to waive formal proceedings
 1404  and enter into a consent proceeding whereby orders, rules, or
 1405  letters of censure or warning, whether formal or informal, may
 1406  be entered against the person.
 1407         2. The division may issue an order requiring the developer,
 1408  bulk assignee, bulk buyer, association, developer-designated
 1409  officer, or developer-designated member of the board of
 1410  administration, developer-designated assignees or agents, bulk
 1411  assignee-designated assignees or agents, bulk buyer-designated
 1412  assignees or agents, community association manager, or community
 1413  association management firm to cease and desist from the
 1414  unlawful practice and take such affirmative action as in the
 1415  judgment of the division will carry out the purposes of this
 1416  chapter. If the division finds that a developer, bulk assignee,
 1417  bulk buyer, association, officer, or member of the board of
 1418  administration, or its assignees or agents, is violating or is
 1419  about to violate any provision of this chapter, any rule adopted
 1420  or order issued by the division, or any written agreement
 1421  entered into with the division, and presents an immediate danger
 1422  to the public requiring an immediate final order, it may issue
 1423  an emergency cease and desist order reciting with particularity
 1424  the facts underlying such findings. The emergency cease and
 1425  desist order is effective for 90 days. If the division begins
 1426  nonemergency cease and desist proceedings, the emergency cease
 1427  and desist order remains effective until the conclusion of the
 1428  proceedings under ss. 120.569 and 120.57.
 1429         3. If a developer, bulk assignee, or bulk buyer, fails to
 1430  pay any restitution determined by the division to be owed, plus
 1431  any accrued interest at the highest rate permitted by law,
 1432  within 30 days after expiration of any appellate time period of
 1433  a final order requiring payment of restitution or the conclusion
 1434  of any appeal thereof, whichever is later, the division must
 1435  shall bring an action in circuit or county court on behalf of
 1436  any association, class of unit owners, lessees, or purchasers
 1437  for restitution, declaratory relief, injunctive relief, or any
 1438  other available remedy. The division may also temporarily revoke
 1439  its acceptance of the filing for the developer to which the
 1440  restitution relates until payment of restitution is made.
 1441         4. The division may petition the court for the appointment
 1442  of a receiver or conservator. If appointed, the receiver or
 1443  conservator may take action to implement the court order to
 1444  ensure the performance of the order and to remedy any breach
 1445  thereof. In addition to all other means provided by law for the
 1446  enforcement of an injunction or temporary restraining order, the
 1447  circuit court may impound or sequester the property of a party
 1448  defendant, including books, papers, documents, and related
 1449  records, and allow the examination and use of the property by
 1450  the division and a court-appointed receiver or conservator.
 1451         5. The division may apply to the circuit court for an order
 1452  of restitution whereby the defendant in an action brought
 1453  pursuant to subparagraph 4. shall be ordered to make restitution
 1454  of those sums shown by the division to have been obtained by the
 1455  defendant in violation of this chapter. Such restitution shall,
 1456  at the option of the court, be payable to the conservator or
 1457  receiver appointed pursuant to subparagraph 4. or directly to
 1458  the persons whose funds or assets were obtained in violation of
 1459  this chapter.
 1460         6. The division may impose a civil penalty against a
 1461  developer, bulk assignee, or bulk buyer, or association, or its
 1462  assignee or agent, for any violation of this chapter or a rule
 1463  adopted under this chapter. The division may impose a civil
 1464  penalty individually against any officer or board member who
 1465  willfully and knowingly violates a provision of this chapter,
 1466  adopted rule, or a final order of the division; may order the
 1467  removal of such individual as an officer or from the board of
 1468  administration or as an officer of the association; and may
 1469  prohibit such individual from serving as an officer or on the
 1470  board of a community association for a period of time. The term
 1471  “willfully and knowingly” means that the division informed the
 1472  officer or board member that his or her action or intended
 1473  action violates this chapter, a rule adopted under this chapter,
 1474  or a final order of the division and that the officer or board
 1475  member refused to comply with the requirements of this chapter,
 1476  a rule adopted under this chapter, or a final order of the
 1477  division. The division, before prior to initiating formal agency
 1478  action under chapter 120, must shall afford the officer or board
 1479  member an opportunity to voluntarily comply with this chapter, a
 1480  rule adopted under this chapter, or a final order of the
 1481  division. An officer or board member who complies within 10 days
 1482  is not subject to a civil penalty. A penalty may be imposed on
 1483  the basis of each day of continuing violation, but in no event
 1484  shall the penalty for any offense may not exceed $5,000. By
 1485  January 1, 1998, the division shall adopt, by rule, penalty
 1486  guidelines applicable to possible violations or to categories of
 1487  violations of this chapter or rules adopted by the division. The
 1488  guidelines must specify a meaningful range of civil penalties
 1489  for each such violation of the statute and rules and must be
 1490  based upon the harm caused by the violation, the repetition of
 1491  the violation, and upon such other factors deemed relevant by
 1492  the division. For example, the division may consider whether the
 1493  violations were committed by a developer, bulk assignee, or bulk
 1494  buyer, or owner-controlled association, the size of the
 1495  association, and other factors. The guidelines must designate
 1496  the possible mitigating or aggravating circumstances that
 1497  justify a departure from the range of penalties provided by the
 1498  rules. It is the legislative intent that minor violations be
 1499  distinguished from those which endanger the health, safety, or
 1500  welfare of the condominium residents or other persons and that
 1501  such guidelines provide reasonable and meaningful notice to the
 1502  public of likely penalties that may be imposed for proscribed
 1503  conduct. This subsection does not limit the ability of the
 1504  division to informally dispose of administrative actions or
 1505  complaints by stipulation, agreed settlement, or consent order.
 1506  All amounts collected shall be deposited with the Chief
 1507  Financial Officer to the credit of the Division of Florida
 1508  Condominiums, Timeshares, and Mobile Homes Trust Fund. If a
 1509  developer, bulk assignee, or bulk buyer fails to pay the civil
 1510  penalty and the amount deemed to be owed to the association, the
 1511  division shall issue an order directing that such developer,
 1512  bulk assignee, or bulk buyer cease and desist from further
 1513  operation until such time as the civil penalty is paid or may
 1514  pursue enforcement of the penalty in a court of competent
 1515  jurisdiction. If an association fails to pay the civil penalty,
 1516  the division shall pursue enforcement in a court of competent
 1517  jurisdiction, and the order imposing the civil penalty or the
 1518  cease and desist order will not become effective until 20 days
 1519  after the date of such order. Any action commenced by the
 1520  division shall be brought in the county in which the division
 1521  has its executive offices or in the county where the violation
 1522  occurred.
 1523         7. If a unit owner presents the division with proof that
 1524  the unit owner has requested access to official records in
 1525  writing by certified mail, and that after 10 days the unit owner
 1526  again made the same request for access to official records in
 1527  writing by certified mail, and that more than 10 days has
 1528  elapsed since the second request and the association has still
 1529  failed or refused to provide access to official records as
 1530  required by this chapter, the division shall issue a subpoena
 1531  requiring production of the requested records where the records
 1532  are kept pursuant to s. 718.112.
 1533         8. In addition to subparagraph 6., the division may seek
 1534  the imposition of a civil penalty through the circuit court for
 1535  any violation for which the division may issue a notice to show
 1536  cause under paragraph (r). The civil penalty shall be at least
 1537  $500 but no more than $5,000 for each violation. The court may
 1538  also award to the prevailing party court costs and reasonable
 1539  attorney’s fees and, if the division prevails, may also award
 1540  reasonable costs of investigation.
 1541         (e) The division may prepare and disseminate a prospectus
 1542  and other information to assist prospective owners, purchasers,
 1543  lessees, and developers of residential condominiums in assessing
 1544  the rights, privileges, and duties pertaining thereto.
 1545         (f) The division has authority to adopt rules pursuant to
 1546  ss. 120.536(1) and 120.54 to implement and enforce the
 1547  provisions of this chapter.
 1548         (g) The division shall establish procedures for providing
 1549  notice to an association and the developer, bulk assignee, or
 1550  bulk buyer during the period in which where the developer, bulk
 1551  assignee, or bulk buyer controls the association if when the
 1552  division is considering the issuance of a declaratory statement
 1553  with respect to the declaration of condominium or any related
 1554  document governing in such condominium community.
 1555         (h) The division shall furnish each association which pays
 1556  the fees required by paragraph (2)(a) a copy of this act,
 1557  subsequent changes to this act on an annual basis, an amended
 1558  version of this act as it becomes available from the Secretary
 1559  of State’s office on a biennial basis, and the rules adopted
 1560  thereto on an annual basis.
 1561         (i) The division shall annually provide each association
 1562  with a summary of declaratory statements and formal legal
 1563  opinions relating to the operations of condominiums which were
 1564  rendered by the division during the previous year.
 1565         (j) The division shall provide training and educational
 1566  programs for condominium association board members and unit
 1567  owners. The training may, in the division’s discretion, include
 1568  web-based electronic media, and live training and seminars in
 1569  various locations throughout the state. The division may shall
 1570  have the authority to review and approve education and training
 1571  programs for board members and unit owners offered by providers
 1572  and shall maintain a current list of approved programs and
 1573  providers and shall make such list available to board members
 1574  and unit owners in a reasonable and cost-effective manner.
 1575         (k) The division shall maintain a toll-free telephone
 1576  number accessible to condominium unit owners.
 1577         (l) The division shall develop a program to certify both
 1578  volunteer and paid mediators to provide mediation of condominium
 1579  disputes. The division shall provide, upon request, a list of
 1580  such mediators to any association, unit owner, or other
 1581  participant in arbitration proceedings under s. 718.1255
 1582  requesting a copy of the list. The division shall include on the
 1583  list of volunteer mediators only the names of persons who have
 1584  received at least 20 hours of training in mediation techniques
 1585  or who have mediated at least 20 disputes. In order to become
 1586  initially certified by the division, paid mediators must be
 1587  certified by the Supreme Court to mediate court cases in county
 1588  or circuit courts. However, the division may adopt, by rule,
 1589  additional factors for the certification of paid mediators,
 1590  which factors must be related to experience, education, or
 1591  background. Any person initially certified as a paid mediator by
 1592  the division must, in order to continue to be certified, comply
 1593  with the factors or requirements imposed by rules adopted by the
 1594  division.
 1595         (m) When a complaint is made, the division must shall
 1596  conduct its inquiry with due regard to the interests of the
 1597  affected parties. Within 30 days after receipt of a complaint,
 1598  the division shall acknowledge the complaint in writing and
 1599  notify the complainant whether the complaint is within the
 1600  jurisdiction of the division and whether additional information
 1601  is needed by the division from the complainant. The division
 1602  shall conduct its investigation and shall, within 90 days after
 1603  receipt of the original complaint or of timely requested
 1604  additional information, take action upon the complaint. However,
 1605  the failure to complete the investigation within 90 days does
 1606  not prevent the division from continuing the investigation,
 1607  accepting or considering evidence obtained or received after 90
 1608  days, or taking administrative action if reasonable cause exists
 1609  to believe that a violation of this chapter or a rule of the
 1610  division has occurred. If an investigation is not completed
 1611  within the time limits established in this paragraph, the
 1612  division shall, on a monthly basis, notify the complainant in
 1613  writing of the status of the investigation. When reporting its
 1614  action to the complainant, the division shall inform the
 1615  complainant of any right to a hearing pursuant to ss. 120.569
 1616  and 120.57.
 1617         (n) Condominium association directors, officers, and
 1618  employees; condominium developers; condominium bulk assignees
 1619  and bulk buyers, community association managers; and community
 1620  association management firms have an ongoing duty to reasonably
 1621  cooperate with the division in any investigation pursuant to
 1622  this section. The division shall refer to local law enforcement
 1623  authorities any person whom the division believes has altered,
 1624  destroyed, concealed, or removed any record, document, or thing
 1625  required to be kept or maintained by this chapter with the
 1626  purpose to impair its verity or availability in the department’s
 1627  investigation.
 1628         (o) The division may:
 1629         1. Contract with agencies in this state or other
 1630  jurisdictions to perform investigative functions; or
 1631         2. Accept grants-in-aid from any source.
 1632         (p) The division shall cooperate with similar agencies in
 1633  other jurisdictions to establish uniform filing procedures and
 1634  forms, public offering statements, advertising standards, and
 1635  rules and common administrative practices.
 1636         (q) The division shall consider notice to a developer, bulk
 1637  assignee, or bulk buyer to be complete when it is delivered to
 1638  the developer’s address of the developer, bulk assignee, or bulk
 1639  buyer currently on file with the division.
 1640         (r) In addition to its enforcement authority, the division
 1641  may issue a notice to show cause, which shall provide for a
 1642  hearing, upon written request, in accordance with chapter 120.
 1643         (s) The division shall submit to the Governor, the
 1644  President of the Senate, the Speaker of the House of
 1645  Representatives, and the chairs of the legislative
 1646  appropriations committees an annual report that includes, but
 1647  need not be limited to, the number of training programs provided
 1648  for condominium association board members and unit owners, the
 1649  number of complaints received by type, the number and percent of
 1650  complaints acknowledged in writing within 30 days and the number
 1651  and percent of investigations acted upon within 90 days in
 1652  accordance with paragraph (m), and the number of investigations
 1653  exceeding the 90-day requirement. The annual report shall also
 1654  include an evaluation of the division’s core business processes
 1655  and make recommendations for improvements, including statutory
 1656  changes. The report shall be submitted by September 30 following
 1657  the end of the fiscal year.
 1658         Section 16.  Part VII of chapter 718, Florida Statutes,
 1659  consisting of sections 718.701, 718.702, 718.703, 718.704,
 1660  718.705, 718.706, 718.707, and 718.708, is created to read:
 1661         718.701Short title.—This part may be cited as the
 1662  “Distressed Condominium Relief Act.”
 1663         718.702Legislative intent.—
 1664         (1)The Legislature acknowledges the massive downturn in
 1665  the condominium market which has transpired throughout the state
 1666  and the impact of such downturn on developers, lenders, unit
 1667  owners, and condominium associations. Numerous condominium
 1668  projects have either failed or are in the process of failing,
 1669  whereby the condominium has a small percentage of third-party
 1670  unit owners as compared to the unsold inventory of units. As a
 1671  result of the inability to find purchasers for this inventory of
 1672  units, which results in part from the devaluing of real estate
 1673  in this state, developers are unable to satisfy the requirements
 1674  of their lenders, leading to defaults on mortgages.
 1675  Consequently, lenders are faced with the task of finding a
 1676  solution to the problem in order to be paid for their
 1677  investments.
 1678         (2)The Legislature recognizes that all of the factors
 1679  listed in this section lead to condominiums becoming distressed,
 1680  resulting in detriment to the unit owners and the condominium
 1681  association on account of the resulting shortage of assessment
 1682  moneys available to support the financial requirements for
 1683  proper maintenance of the condominium. Such shortage and the
 1684  resulting lack of proper maintenance further erodes property
 1685  values. The Legislature finds that individuals and entities
 1686  within this state and in other states have expressed interest in
 1687  purchasing unsold inventory in one or more condominium projects,
 1688  but are reticent to do so because of accompanying liabilities
 1689  inherited from the original developer, which are by definition
 1690  imputed to the successor purchaser, including a foreclosing
 1691  mortgagee. This results in the potential purchaser having
 1692  unknown and unquantifiable risks, and potential successor
 1693  purchasers are unwilling to accept such risks. The result is
 1694  that condominium projects stagnate, leaving all parties involved
 1695  at an impasse without the ability to find a solution.
 1696         (3)The Legislature finds and declares that it is the
 1697  public policy of this state to protect the interests of
 1698  developers, lenders, unit owners, and condominium associations
 1699  with regard to distressed condominiums, and that there is a need
 1700  for relief from certain provisions of the Florida Condominium
 1701  Act geared toward enabling economic opportunities within these
 1702  condominiums for successor purchasers, including foreclosing
 1703  mortgagees. Such relief would benefit existing unit owners and
 1704  condominium associations. The Legislature further finds and
 1705  declares that this situation cannot be open-ended without
 1706  potentially prejudicing the rights of unit owners and
 1707  condominium associations, and thereby declares that the
 1708  provisions of this part shall be used by purchasers of
 1709  condominium inventory for a specific and defined period.
 1710         718.703Definitions.—As used in this part, the term:
 1711         (1)“Bulk assignee” means a person who:
 1712         (a)Acquires more than seven condominium parcels as set
 1713  forth in s. 718.707; and
 1714         (b)Receives an assignment of some or all of the rights of
 1715  the developer as are set forth in the declaration of condominium
 1716  or in this chapter by a written instrument recorded as an
 1717  exhibit to the deed or as a separate instrument in the public
 1718  records of the county in which the condominium is located.
 1719         (2)“Bulk buyer” means a person who acquires more than
 1720  seven condominium parcels as set forth in s. 718.707 but who
 1721  does not receive an assignment of any developer rights other
 1722  than the right to conduct sales, leasing, and marketing
 1723  activities within the condominium; the right to be exempt from
 1724  the payment of working capital contributions to the condominium
 1725  association arising out of, or in connection with, the bulk
 1726  buyer’s acquisition of a bulk number of units; and the right to
 1727  be exempt from any rights of first refusal which may be held by
 1728  the condominium association and would otherwise be applicable to
 1729  subsequent transfers of title from the bulk buyer to any third
 1730  party purchaser concerning one or more units.
 1731         718.704Assignment and assumption of developer rights by
 1732  bulk assignee; bulk buyer.—
 1733         (1)A bulk assignee is deemed to have assumed and is liable
 1734  for all duties and responsibilities of the developer under the
 1735  declaration and this chapter, except:
 1736         (a)Warranties of the developer under s. 718.203(1) or s.
 1737  718.618, except for design, construction, development, or repair
 1738  work performed by or on behalf of such bulk assignee;
 1739         (b)The obligation to:
 1740         1.Fund converter reserves under s. 718.618 for a unit that
 1741  was not acquired by the bulk assignee; or
 1742         2.Provide converter warranties on any portion of the
 1743  condominium property except as may be expressly provided by the
 1744  bulk assignee in the contract for purchase and sale executed
 1745  with a purchaser and pertaining to any design, construction,
 1746  development, or repair work performed by or on behalf of the
 1747  bulk assignee;
 1748         (c)The requirement to provide the association with a
 1749  cumulative audit of the association’s finances from the date of
 1750  formation of the condominium association as required by s.
 1751  718.301(4)(c). However, the bulk assignee shall provide an audit
 1752  for the period for which the bulk assignee elects a majority of
 1753  the members of the board of administration;
 1754         (d)Any liability arising out of or in connection with
 1755  actions taken by the board of administration or the developer
 1756  appointed directors before the bulk assignee elects a majority
 1757  of the members of the board of administration; and
 1758         (e)Any liability for or arising out of the developer’s
 1759  failure to fund previous assessments or to resolve budgetary
 1760  deficits in relation to a developer’s right to guarantee
 1761  assessments, except as otherwise provided in subsection (2).
 1762  
 1763  Further, the bulk assignee is responsible for delivering
 1764  documents and materials in accordance with s. 718.705(3). A bulk
 1765  assignee may expressly assume some or all of the obligations of
 1766  the developer described in paragraphs (a)-(e).
 1767         (2)A bulk assignee receiving the assignment of the rights
 1768  of the developer to guarantee the level of assessments and fund
 1769  budgetary deficits pursuant to s. 718.116 is deemed to have
 1770  assumed and is liable for all obligations of the developer with
 1771  respect to such guarantee, including any applicable funding of
 1772  reserves to the extent required by law, for as long as the
 1773  guarantee remains in effect. A bulk assignee not receiving an
 1774  assignment of the right of the developer to guarantee the level
 1775  of assessments and fund budgetary deficits pursuant to s.
 1776  718.116 or a bulk buyer is not deemed to have assumed and is not
 1777  liable for the obligations of the developer with respect to such
 1778  guarantee, but is responsible for payment of assessments in the
 1779  same manner as all other owners of condominium parcels.
 1780         (3)A bulk buyer is liable for the duties and
 1781  responsibilities of the developer under the declaration and this
 1782  chapter only to the extent provided in this part, together with
 1783  any other duties or responsibilities of the developer expressly
 1784  assumed in writing by the bulk buyer.
 1785         (4)An acquirer of condominium parcels is not considered a
 1786  bulk assignee or a bulk buyer if the transfer to such acquirer
 1787  was made before the effective date of this part with the intent
 1788  to hinder, delay, or defraud any purchaser, unit owner, or the
 1789  association, or if the acquirer is a person who would constitute
 1790  an insider under s. 726.102(7).
 1791         (5)An assignment of developer rights to a bulk assignee
 1792  may be made by the developer, a previous bulk assignee, or a
 1793  court of competent jurisdiction acting on behalf of the
 1794  developer or the previous bulk assignee. At any particular time,
 1795  there may be no more than one bulk assignee within a
 1796  condominium, but there may be more than one bulk buyer. If more
 1797  than one acquirer of condominium parcels in the same condominium
 1798  receives an assignment of developer rights from the same person,
 1799  the bulk assignee is the acquirer whose instrument of assignment
 1800  is recorded first in applicable public records.
 1801         718.705Board of administration; transfer of control.—
 1802         (1)For purposes of determining the timing for transfer of
 1803  control of the board of administration of the association to
 1804  unit owners other than the developer under s. 718.301(1)(a) and
 1805  (b), if a bulk assignee is entitled to elect a majority of the
 1806  members of the board, a condominium parcel acquired by the bulk
 1807  assignee is not deemed to be conveyed to a purchaser, or to be
 1808  owned by an owner other than the developer, until such
 1809  condominium parcel is conveyed to an owner who is not a bulk
 1810  assignee.
 1811         (2)Unless control of the board of administration of the
 1812  association has already been relinquished pursuant to s.
 1813  718.301(1), the bulk assignee must relinquish control of the
 1814  association pursuant to s. 718.301 and this part, as if the bulk
 1815  assignee were the developer.
 1816         (3)When a bulk assignee relinquishes control of the board
 1817  of administration as set forth in s. 718.301, the bulk assignee
 1818  must deliver all of those items required by s. 718.301(4).
 1819  However, the bulk assignee is not required to deliver items and
 1820  documents not in the possession of the bulk assignee during the
 1821  period during which the bulk assignee was entitled to elect at
 1822  least a majority of the members of the board of administration.
 1823  In conjunction with acquisition of condominium parcels, a bulk
 1824  assignee shall undertake a good faith effort to obtain the
 1825  documents and materials required to be provided to the
 1826  association pursuant to s. 718.301(4). To the extent the bulk
 1827  assignee is not able to obtain all of such documents and
 1828  materials, the bulk assignee shall certify in writing to the
 1829  association the names or descriptions of the documents and
 1830  materials that were not obtainable by the bulk assignee.
 1831  Delivery of the certificate relieves the bulk assignee of
 1832  responsibility for the delivery of the documents and materials
 1833  referenced in the certificate as otherwise required under ss.
 1834  718.112 and 718.301 and this part. The responsibility of the
 1835  bulk assignee for the audit required by s. 718.301(4) commences
 1836  as of the date on which the bulk assignee elected a majority of
 1837  the members of the board of administration.
 1838         (4)If a conflict arises between the provisions or
 1839  application of this section and s. 718.301, this section
 1840  prevails.
 1841         (5)Failure of a bulk assignee or bulk buyer to
 1842  substantially comply with all the requirements contained in this
 1843  part shall result in the loss of any and all protections or
 1844  exemptions provided under this part.
 1845         718.706Specific provisions pertaining to offering of units
 1846  by a bulk assignee or bulk buyer.—
 1847         (1)Before offering any units for sale or for lease for a
 1848  term exceeding 5 years, a bulk assignee or a bulk buyer shall
 1849  file the following documents with the division and provide such
 1850  documents to a prospective purchaser or tenant:
 1851         (a)An updated prospectus or offering circular, or a
 1852  supplement to the prospectus or offering circular, filed by the
 1853  creating developer prepared in accordance with s. 718.504, which
 1854  must include the form of contract for sale and for lease in
 1855  compliance with s. 718.503(2);
 1856         (b)An updated Frequently Asked Questions and Answers
 1857  sheet;
 1858         (c)The executed escrow agreement if required under s.
 1859  718.202; and
 1860         (d)The financial information required by s. 718.111(13).
 1861  However, if a financial information report does not exist for
 1862  the fiscal year before acquisition of title by the bulk assignee
 1863  or bulk buyer, or accounting records cannot be obtained in good
 1864  faith by the bulk assignee or the bulk buyer which would permit
 1865  preparation of the required financial information report, the
 1866  bulk assignee or bulk buyer is excused from the requirement of
 1867  this paragraph. However, the bulk assignee or bulk buyer must
 1868  include in the purchase contract the following statement in
 1869  conspicuous type:
 1870  
 1871         THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
 1872         718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR
 1873         OF THE ASSOCIATION IS NOT AVAILABLE OR CANNOT BE
 1874         CREATED BY THE SELLER AS A RESULT OF INSUFFICIENT
 1875         ACCOUNTING RECORDS OF THE ASSOCIATION.
 1876         (2)Before offering any units for sale or for lease for a
 1877  term exceeding 5 years, a bulk assignee must file with the
 1878  division and provide to a prospective purchaser a disclosure
 1879  statement that must include, but is not limited to:
 1880         (a)A description of any rights of the developer which have
 1881  been assigned to the bulk assignee;
 1882         (b)The following statement in conspicuous type:
 1883  
 1884         THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
 1885         DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS
 1886         APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION,
 1887         DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
 1888         OF SELLER; and
 1889         (c)If the condominium is a conversion subject to part VI,
 1890  the following statement in conspicuous type:
 1891  
 1892         THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
 1893         RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
 1894         718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY
 1895         EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN
 1896         THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
 1897         SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO
 1898         ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK
 1899         PERFORMED BY OR ON BEHALF OF THE SELLER.
 1900         (3)A bulk assignee, while it is in control of the board of
 1901  administration of the association, may not authorize, on behalf
 1902  of the association:
 1903         (a)The waiver of reserves or the reduction of funding of
 1904  the reserves pursuant to s. 718.112(2)(f)2., unless approved by
 1905  a majority of the voting interests not controlled by the
 1906  developer, bulk assignee, and bulk buyer; or
 1907         (b)The use of reserve expenditures for other purposes
 1908  pursuant to s. 718.112(2)(f)3., unless approved by a majority of
 1909  the voting interests not controlled by the developer, bulk
 1910  assignee, and bulk buyer.
 1911         (4)A bulk assignee or a bulk buyer shall comply with all
 1912  the requirements of s. 718.302 regarding any contracts entered
 1913  into by the association during the period the bulk assignee or
 1914  bulk buyer maintains control of the board of administration.
 1915  Unit owners shall be afforded all the protections contained in
 1916  s. 718.302 regarding agreements entered into by the association
 1917  before unit owners other than the developer, bulk assignee, or
 1918  bulk buyer elected a majority of the board of administration.
 1919         (5)A bulk buyer shall comply with the requirements
 1920  contained in the declaration regarding any transfer of a unit,
 1921  including sales, leases, and subleases. A bulk buyer is not
 1922  entitled to any exemptions afforded a developer or successor
 1923  developer under this chapter regarding any transfer of a unit,
 1924  including sales, leases, or subleases.
 1925         718.707Time limitation for classification as bulk assignee
 1926  or bulk buyer.—A person acquiring condominium parcels may not be
 1927  classified as a bulk assignee or bulk buyer unless the
 1928  condominium parcels were acquired before July 1, 2012. The date
 1929  of such acquisition shall be determined by the date of recording
 1930  of a deed or other instrument of conveyance for such parcels in
 1931  the public records of the county in which the condominium is
 1932  located, or by the date of issuance of a certificate of title in
 1933  a foreclosure proceeding with respect to such condominium
 1934  parcels.
 1935         718.708Liability of developers and others.—An assignment
 1936  of developer rights to a bulk assignee or bulk buyer does not
 1937  release the creating developer from any liabilities under the
 1938  declaration or this chapter. This part does not limit the
 1939  liability of the creating developer for claims brought by unit
 1940  owners, bulk assignees, or bulk buyers for violations of this
 1941  chapter by the creating developer, unless specifically excluded
 1942  in this part. Nothing contained within this part waives,
 1943  releases, compromises, or limits the liability of contractors,
 1944  subcontractors, materialmen, manufacturers, architects,
 1945  engineers, or any participant in the design or construction of a
 1946  condominium for any claim brought by an association, unit
 1947  owners, bulk assignees, or bulk buyers arising from the design
 1948  of the condominium, construction defects, misrepresentations
 1949  associated with condominium property, or violations of this
 1950  chapter, unless specifically excluded in this part.
 1951         Section 17. Paragraph (d) of subsection (1) of section
 1952  719.106, Florida Statutes, is amended to read:
 1953         719.106 Bylaws; cooperative ownership.—
 1954         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1955  documents shall provide for the following, and if they do not,
 1956  they shall be deemed to include the following:
 1957         (d) Shareholder meetings.—There shall be an annual meeting
 1958  of the shareholders. All members of the board of administration
 1959  shall be elected at the annual meeting unless the bylaws provide
 1960  for staggered election terms or for their election at another
 1961  meeting. Any unit owner desiring to be a candidate for board
 1962  membership must shall comply with subparagraph 1. The bylaws
 1963  shall provide the method for calling meetings, including annual
 1964  meetings. Written notice, which notice shall incorporate an
 1965  identification of agenda items, shall be given to each unit
 1966  owner at least 14 days before prior to the annual meeting and
 1967  shall be posted in a conspicuous place on the cooperative
 1968  property at least 14 continuous days preceding the annual
 1969  meeting. Upon notice to the unit owners, the board must shall by
 1970  duly adopted rule designate a specific location on the
 1971  cooperative property upon which all notice of unit owner
 1972  meetings shall be posted. In lieu of or in addition to the
 1973  physical posting of notice of any meeting of the shareholders on
 1974  the cooperative property, the association may, by reasonable
 1975  rule, adopt a procedure for conspicuously posting and repeatedly
 1976  broadcasting the notice and the agenda on a closed-circuit cable
 1977  television system serving the cooperative association. However,
 1978  if broadcast notice is used in lieu of a notice posted
 1979  physically on the cooperative property, the notice and agenda
 1980  must be broadcast at least four times every broadcast hour of
 1981  each day that a posted notice is otherwise required under this
 1982  section. When broadcast notice is provided, the notice and
 1983  agenda must be broadcast in a manner and for a sufficient
 1984  continuous length of time so as to allow an average reader to
 1985  observe the notice and read and comprehend the entire content of
 1986  the notice and the agenda. Unless a unit owner waives in writing
 1987  the right to receive notice of the annual meeting, the notice of
 1988  the annual meeting shall be sent by mail, hand delivered, or
 1989  electronically transmitted to each unit owner. An officer of the
 1990  association shall provide an affidavit or United States Postal
 1991  Service certificate of mailing, to be included in the official
 1992  records of the association, affirming that notices of the
 1993  association meeting were mailed, hand delivered, or
 1994  electronically transmitted, in accordance with this provision,
 1995  to each unit owner at the address last furnished to the
 1996  association.
 1997         1. After January 1, 1992, The board of administration shall
 1998  be elected by written ballot or voting machine. A proxy may not
 1999  Proxies shall in no event be used in electing the board of
 2000  administration, either in general elections or elections to fill
 2001  vacancies caused by recall, resignation, or otherwise unless
 2002  otherwise provided in this chapter. At least Not less than 60
 2003  days before a scheduled election, the association shall mail,
 2004  deliver, or transmit, whether by separate association mailing,
 2005  delivery, or electronic transmission or included in another
 2006  association mailing, delivery, or electronic transmission,
 2007  including regularly published newsletters, to each unit owner
 2008  entitled to vote, a first notice of the date of the election.
 2009  Any unit owner or other eligible person desiring to be a
 2010  candidate for the board of administration shall give written
 2011  notice to the association at least not less than 40 days before
 2012  a scheduled election. Together with the written notice and
 2013  agenda as set forth in this section, the association shall mail,
 2014  deliver, or electronically transmit a second notice of election
 2015  to all unit owners entitled to vote therein, together with a
 2016  ballot which shall list all candidates. Upon request of a
 2017  candidate, the association shall include an information sheet,
 2018  no larger than 8 1/2 inches by 11 inches, which must be
 2019  furnished by the candidate not less than 35 days prior to the
 2020  election, to be included with the mailing, delivery, or
 2021  electronic transmission of the ballot, with the costs of
 2022  mailing, delivery, or transmission and copying to be borne by
 2023  the association. The association is not liable has no liability
 2024  for the contents of the information sheets provided by the
 2025  candidates. In order to reduce costs, the association may print
 2026  or duplicate the information sheets on both sides of the paper.
 2027  The division shall by rule establish voting procedures
 2028  consistent with the provisions contained herein, including rules
 2029  establishing procedures for giving notice by electronic
 2030  transmission and rules providing for the secrecy of ballots.
 2031  Elections shall be decided by a plurality of those ballots cast.
 2032  There shall be no quorum requirement. However, at least 20
 2033  percent of the eligible voters must cast a ballot in order to
 2034  have a valid election of members of the board of administration.
 2035  A No unit owner may not shall permit any other person to vote
 2036  his or her ballot, and any such ballots improperly cast shall be
 2037  deemed invalid. A unit owner who needs assistance in casting the
 2038  ballot for the reasons stated in s. 101.051 may obtain
 2039  assistance in casting the ballot. Any unit owner violating this
 2040  provision may be fined by the association in accordance with s.
 2041  719.303. The regular election shall occur on the date of the
 2042  annual meeting. The provisions of This subparagraph does shall
 2043  not apply to timeshare cooperatives. Notwithstanding the
 2044  provisions of this subparagraph, an election and balloting are
 2045  not required unless more candidates file a notice of intent to
 2046  run or are nominated than vacancies exist on the board.
 2047         2. Any approval by unit owners called for by this chapter,
 2048  or the applicable cooperative documents, shall be made at a duly
 2049  noticed meeting of unit owners and shall be subject to all
 2050  requirements of this chapter or the applicable cooperative
 2051  documents relating to unit owner decisionmaking, except that
 2052  unit owners may take action by written agreement, without
 2053  meetings, on matters for which action by written agreement
 2054  without meetings is expressly allowed by the applicable
 2055  cooperative documents or any Florida statute which provides for
 2056  the unit owner action.
 2057         3. Unit owners may waive notice of specific meetings if
 2058  allowed by the applicable cooperative documents or any Florida
 2059  statute. If authorized by the bylaws, notice of meetings of the
 2060  board of administration, shareholder meetings, except
 2061  shareholder meetings called to recall board members under
 2062  paragraph (f), and committee meetings may be given by electronic
 2063  transmission to unit owners who consent to receive notice by
 2064  electronic transmission.
 2065         4. Unit owners shall have the right to participate in
 2066  meetings of unit owners with reference to all designated agenda
 2067  items. However, the association may adopt reasonable rules
 2068  governing the frequency, duration, and manner of unit owner
 2069  participation.
 2070         5. Any unit owner may tape record or videotape meetings of
 2071  the unit owners subject to reasonable rules adopted by the
 2072  division.
 2073         6. Unless otherwise provided in the bylaws, any vacancy
 2074  occurring on the board before the expiration of a term may be
 2075  filled by the affirmative vote of the majority of the remaining
 2076  directors, even if the remaining directors constitute less than
 2077  a quorum, or by the sole remaining director. In the alternative,
 2078  a board may hold an election to fill the vacancy, in which case
 2079  the election procedures must conform to the requirements of
 2080  subparagraph 1. unless the association has opted out of the
 2081  statutory election process, in which case the bylaws of the
 2082  association control. Unless otherwise provided in the bylaws, a
 2083  board member appointed or elected under this section shall fill
 2084  the vacancy for the unexpired term of the seat being filled.
 2085  Filling vacancies created by recall is governed by paragraph (f)
 2086  and rules adopted by the division.
 2087  
 2088  Notwithstanding subparagraphs (b)2. and (d)1., an association
 2089  may, by the affirmative vote of a majority of the total voting
 2090  interests, provide for a different voting and election procedure
 2091  in its bylaws, which vote may be by a proxy specifically
 2092  delineating the different voting and election procedures. The
 2093  different voting and election procedures may provide for
 2094  elections to be conducted by limited or general proxy.
 2095         Section 18. Subsections (3) and (4) of section 719.108,
 2096  Florida Statutes, are amended, and subsection (10) is added to
 2097  that section, to read:
 2098         719.108 Rents and assessments; liability; lien and
 2099  priority; interest; collection; cooperative ownership.—
 2100         (3) Rents and assessments, and installments on them, not
 2101  paid when due bear interest at the rate provided in the
 2102  cooperative documents from the date due until paid. This rate
 2103  may not exceed the rate allowed by law, and, if a no rate is not
 2104  provided in the cooperative documents, then interest accrues
 2105  shall accrue at 18 percent per annum. Also, if the cooperative
 2106  documents or bylaws so provide, the association may charge an
 2107  administrative late fee in addition to such interest, in an
 2108  amount not to exceed the greater of $25 or 5 percent of each
 2109  installment of the assessment for each delinquent installment
 2110  that the payment is late. Costs to the unit owner secured by the
 2111  association’s claim of lien with regard to delinquency letters
 2112  or any other collection efforts by licensed management companies
 2113  or licensed managers as to any delinquent installment of an
 2114  assessment may not exceed $75. Any payment received by an
 2115  association shall be applied first to any interest accrued by
 2116  the association, then to any administrative late fee, then to
 2117  any costs and reasonable attorney’s fees incurred in collection,
 2118  then to any reasonable costs for collection services for which
 2119  the association has contracted, and then to the delinquent
 2120  assessment. The foregoing applies shall be applicable
 2121  notwithstanding any restrictive endorsement, designation, or
 2122  instruction placed on or accompanying a payment. A late fee is
 2123  not subject to chapter 687 or s. 719.303(3).
 2124         (4) The association has shall have a lien on each
 2125  cooperative parcel for any unpaid rents and assessments, plus
 2126  interest, any authorized administrative late fees, and any
 2127  reasonable costs for collection services for which the
 2128  association has contracted against the unit owner of the
 2129  cooperative parcel. If authorized by the cooperative documents,
 2130  the said lien shall also secures secure reasonable attorney’s
 2131  fees incurred by the association incident to the collection of
 2132  the rents and assessments or enforcement of such lien. The lien
 2133  is effective from and after the recording of a claim of lien in
 2134  the public records in the county in which the cooperative parcel
 2135  is located which states the description of the cooperative
 2136  parcel, the name of the unit owner, the amount due, and the due
 2137  dates. The lien expires shall expire if a claim of lien is not
 2138  filed within 1 year after the date the assessment was due, and
 2139  the no such lien does not shall continue for a longer period
 2140  than 1 year after the claim of lien has been recorded unless,
 2141  within that time, an action to enforce the lien is commenced in
 2142  a court of competent jurisdiction. Except as otherwise provided
 2143  in this chapter, a lien may not be filed by the association
 2144  against a cooperative parcel until 30 days after the date on
 2145  which a notice of intent to file a lien has been delivered to
 2146  the owner.
 2147         (a)The notice must be sent to the unit owner at the
 2148  address of the unit by first-class United States mail and:
 2149         1.If the most recent address of the unit owner on the
 2150  records of the association is the address of the unit, the
 2151  notice must be sent by registered or certified mail, return
 2152  receipt requested, to the unit owner at the address of the unit.
 2153         2.If the most recent address of the unit owner on the
 2154  records of the association is in the United States, but is not
 2155  the address of the unit, the notice must be sent by registered
 2156  or certified mail, return receipt requested, to the unit owner
 2157  at his or her most recent address.
 2158         3.If the most recent address of the unit owner on the
 2159  records of the association is not in the United States, the
 2160  notice must be sent by first-class United States mail to the
 2161  unit owner at his or her most recent address.
 2162         (b)A notice that is sent pursuant to this subsection is
 2163  deemed delivered upon mailing. No lien may be filed by the
 2164  association against a cooperative parcel until 30 days after the
 2165  date on which a notice of intent to file a lien has been served
 2166  on the unit owner of the cooperative parcel by certified mail or
 2167  by personal service in the manner authorized by chapter 48 and
 2168  the Florida Rules of Civil Procedure.
 2169         (10)If the unit is occupied by a tenant and the share
 2170  owner is delinquent in the payment of any monetary obligation
 2171  due to the association, the association may make a written
 2172  demand that the tenant pay to the association the future
 2173  monetary obligations related to the cooperative share and the
 2174  tenant must make such payment. The demand is continuing in
 2175  nature, and upon demand, the tenant must pay the monetary
 2176  obligations to the association until the association releases
 2177  the tenant or the tenant discontinues tenancy in the unit. If
 2178  the tenant prepaid rent to the unit owner before receiving the
 2179  demand from the association and provides to the association
 2180  within 14 days after receiving the demand written evidence of
 2181  paying the rent, the tenant must make any subsequent rental
 2182  payments to the association to be credited against the monetary
 2183  obligations of the unit owner to the association. A tenant who
 2184  acts in good faith in response to a written demand from an
 2185  association is immune from any claim from the unit owner. The
 2186  association shall mail written notice to the unit owner of the
 2187  association’s demand that the tenant make payments to the
 2188  association. The tenant is not liable for increases in the
 2189  amount of the regular monetary obligations due unless the tenant
 2190  was notified in writing of the increase at least 10 days before
 2191  the date on which the rent is due. The liability of the tenant
 2192  shall not exceed the amount due from the tenant to the tenants’
 2193  landlord. The tenant’s landlord shall provide the tenant a
 2194  credit against rents due to the unit owner in the amount of
 2195  monies paid to the association under this section. The
 2196  association shall, upon request, provide the tenant with written
 2197  receipts for payments made. The association may issue notices
 2198  under s. 83.56 and may sue for eviction under ss. 83.59-83.625
 2199  as if the association were a landlord under part II of chapter
 2200  83 if the tenant fails to pay a required payment. However, the
 2201  association is not otherwise considered a landlord under chapter
 2202  83 and specifically has no duties under s. 83.51. The tenant
 2203  does not, by virtue of payment of monetary obligations, have any
 2204  of the rights of a unit owner to vote in any election or to
 2205  examine the books and records of the association. A court may
 2206  supersede the effect of this subsection by appointing a
 2207  receiver.
 2208         Section 19. Paragraph (b) of subsection (2) of section
 2209  720.304, Florida Statutes, is amended to read:
 2210         720.304 Right of owners to peaceably assemble; display of
 2211  flag; SLAPP suits prohibited.—
 2212         (2)
 2213         (b) Any homeowner may erect a freestanding flagpole no more
 2214  than 20 feet high on any portion of the homeowner’s real
 2215  property, regardless of any covenants, restrictions, bylaws,
 2216  rules, or requirements of the association, if the flagpole does
 2217  not obstruct sightlines at intersections and is not erected
 2218  within or upon an easement. The homeowner may further display in
 2219  a respectful manner from that flagpole, regardless of any
 2220  covenants, restrictions, bylaws, rules, or requirements of the
 2221  association, one official United States flag, not larger than 4
 2222  1/2 feet by 6 feet, and may additionally display one official
 2223  flag of the State of Florida or the United States Army, Navy,
 2224  Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
 2225  additional flag must be equal in size to or smaller than the
 2226  United States flag. The flagpole and display are subject to all
 2227  building codes, zoning setbacks, and other applicable
 2228  governmental regulations, including, but not limited to, noise
 2229  and lighting ordinances in the county or municipality in which
 2230  the flagpole is erected and all setback and locational criteria
 2231  contained in the governing documents.
 2232         Section 20.  Subsection (2) of section 720.305, Florida
 2233  Statutes, is amended to read:
 2234         720.305 Obligations of members; remedies at law or in
 2235  equity; levy of fines and suspension of use rights.—
 2236         (2) If a member is delinquent for more than 90 days in the
 2237  payment of a monetary obligation due the association the
 2238  governing documents so provide, an association may suspend,
 2239  until such monetary obligation is paid for a reasonable period
 2240  of time, the rights of a member or a member’s tenants, guests,
 2241  or invitees, or both, to use common areas and facilities and may
 2242  levy reasonable fines of up to, not to exceed $100 per
 2243  violation, against any member or any tenant, guest, or invitee.
 2244  A fine may be levied on the basis of each day of a continuing
 2245  violation, with a single notice and opportunity for hearing,
 2246  except that a no such fine may not shall exceed $1,000 in the
 2247  aggregate unless otherwise provided in the governing documents.
 2248  A fine of less than $1,000 may shall not become a lien against a
 2249  parcel. In any action to recover a fine, the prevailing party is
 2250  entitled to collect its reasonable attorney’s fees and costs
 2251  from the nonprevailing party as determined by the court. The
 2252  provisions regarding the suspension-of-use rights do not apply
 2253  to the portion of common areas that must be used to provide
 2254  access to the parcel or utility services provided to the parcel.
 2255         (a) A fine or suspension may not be imposed without notice
 2256  of at least 14 days to the person sought to be fined or
 2257  suspended and an opportunity for a hearing before a committee of
 2258  at least three members appointed by the board who are not
 2259  officers, directors, or employees of the association, or the
 2260  spouse, parent, child, brother, or sister of an officer,
 2261  director, or employee. If the committee, by majority vote, does
 2262  not approve a proposed fine or suspension, it may not be
 2263  imposed. If the association imposes a fine or suspension, the
 2264  association must provide written notice of such fine or
 2265  suspension by mail or hand delivery to the parcel owner and, if
 2266  applicable, to any tenant, licensee, or invitee of the parcel
 2267  owner.
 2268         (b) The requirements of this subsection do not apply to the
 2269  imposition of suspensions or fines upon any member because of
 2270  the failure of the member to pay assessments or other charges
 2271  when due if such action is authorized by the governing
 2272  documents.
 2273         (b)(c) Suspension of common-area-use rights do shall not
 2274  impair the right of an owner or tenant of a parcel to have
 2275  vehicular and pedestrian ingress to and egress from the parcel,
 2276  including, but not limited to, the right to park.
 2277         Section 21. Subsections (7) and (9) of section 720.306,
 2278  Florida Statutes, are amended to read:
 2279         720.306 Meetings of members; voting and election
 2280  procedures; amendments.—
 2281         (7) ADJOURNMENT.—Unless the bylaws require otherwise,
 2282  adjournment of an annual or special meeting to a different date,
 2283  time, or place must be announced at that meeting before an
 2284  adjournment is taken, or notice must be given of the new date,
 2285  time, or place pursuant to s. 720.303(2). Any business that
 2286  might have been transacted on the original date of the meeting
 2287  may be transacted at the adjourned meeting. If a new record date
 2288  for the adjourned meeting is or must be fixed under s. 607.0707
 2289  s. 617.0707, notice of the adjourned meeting must be given to
 2290  persons who are entitled to vote and are members as of the new
 2291  record date but were not members as of the previous record date.
 2292         (9) ELECTIONS AND BOARD VACANCIES.—Elections of directors
 2293  must be conducted in accordance with the procedures set forth in
 2294  the governing documents of the association. All members of the
 2295  association are shall be eligible to serve on the board of
 2296  directors, and a member may nominate himself or herself as a
 2297  candidate for the board at a meeting where the election is to be
 2298  held. Except as otherwise provided in the governing documents,
 2299  boards of directors must be elected by a plurality of the votes
 2300  cast by eligible voters. Any election dispute between a member
 2301  and an association must be submitted to mandatory binding
 2302  arbitration with the division. Such proceedings must shall be
 2303  conducted in the manner provided by s. 718.1255 and the
 2304  procedural rules adopted by the division. Unless otherwise
 2305  provided in the bylaws, any vacancy occurring on the board
 2306  before the expiration of a term may be filled by the affirmative
 2307  vote of the majority of the remaining directors, even if the
 2308  remaining directors constitute less than a quorum, or by the
 2309  sole remaining director. In the alternative, a board may hold an
 2310  election to fill the vacancy, in which case the election
 2311  procedures must conform to the requirements of the governing
 2312  documents. Unless otherwise provided in the bylaws, a board
 2313  member appointed or elected under this section is appointed for
 2314  the unexpired term of the seat being filled. Filling vacancies
 2315  created by recall is governed by s. 720.303(10) and rules
 2316  adopted by the division.
 2317         Section 22.  Subsection (8) is added to section 720.3085,
 2318  Florida Statutes, to read:
 2319         720.3085 Payment for assessments; lien claims.—
 2320         (8)If the parcel is occupied by a tenant and the parcel
 2321  owner is delinquent in the payment of any monetary obligation
 2322  due to the association, the association may demand that the
 2323  tenant pay to the association the future monetary obligations
 2324  related to the parcel. The demand is continuing in nature, and
 2325  upon demand, the tenant shall continue to pay the monetary
 2326  obligations to the association until the association releases
 2327  the tenant or the tenant discontinues tenancy in the parcel. If
 2328  the tenant prepaid rent to the parcel owner before receiving the
 2329  demand from the association and provides to the association
 2330  within 14 days after receiving the demand written evidence of
 2331  paying the rent, the tenant must make any subsequent rental
 2332  payments to the association to be credited against the monetary
 2333  obligations of the parcel owner to the association. A tenant who
 2334  acts in good faith in response to a written demand from an
 2335  association is immune from any claim from the parcel owner. The
 2336  association shall mail written notice to the parcel owner of the
 2337  association’s demand that the tenant pay monetary obligations to
 2338  the association. The tenant is not liable for increases in the
 2339  amount of the monetary obligations due unless the tenant was
 2340  notified in writing of the increase not less than 10 days prior
 2341  to the date on which the rent is due. The tenant shall be given
 2342  a credit against rents due to the parcel owner in the amount of
 2343  assessments paid to the association. The association shall, upon
 2344  request, provide the tenant with written receipts for payments
 2345  made. The association may issue notices under s. 83.56 and may
 2346  sue for eviction under ss. 83.59-83.625 as if the association
 2347  were a landlord under part II of chapter 83 if the tenant fails
 2348  to pay a monetary obligation. However, the association is not
 2349  otherwise considered a landlord under chapter 83 and
 2350  specifically has no duties under s. 83.51. The tenant does not,
 2351  by virtue of payment of monetary obligations, have any of the
 2352  rights of a parcel owner to vote in any election or to examine
 2353  the books and records of the association. A court may supersede
 2354  the effect of this subsection by appointing a receiver.
 2355         Section 23.  Subsection (6) is added to section 720.31,
 2356  Florida Statutes, to read:
 2357         720.31 Recreational leaseholds; right to acquire;
 2358  escalation clauses.—
 2359         (6)An association may enter into agreements to acquire
 2360  leaseholds, memberships, and other possessory or use interests
 2361  in lands or facilities including, but not limited to, country
 2362  clubs, golf courses, marinas, submerged land, parking areas,
 2363  conservation areas, and other recreational facilities. An
 2364  association may enter into such agreements regardless of whether
 2365  the lands or facilities are contiguous to the lands of the
 2366  community or whether such lands or facilities are intended to
 2367  provide enjoyment, recreation, or other use or benefit to the
 2368  owners. All leaseholds, memberships, and other possessory or use
 2369  interests existing or created at the time of recording the
 2370  declaration must be stated and fully described in the
 2371  declaration. Subsequent to the recording of the declaration,
 2372  agreements acquiring leaseholds, memberships, or other
 2373  possessory or use interests not entered into within 12 months
 2374  after the recording of the declaration may be entered into only
 2375  if authorized by the declaration as a material alteration or
 2376  substantial addition to the common areas or association
 2377  property. If the declaration is silent, any such transaction
 2378  requires the approval of 75 percent of the total voting
 2379  interests of the association. The declaration may provide that
 2380  the rental, membership fees, operations, replacements, or other
 2381  expenses are common expenses; impose covenants and restrictions
 2382  concerning their use; and contain other provisions not
 2383  inconsistent with this subsection. An association exercising its
 2384  rights under this subsection may join with other associations
 2385  that are part of the same development or with a master
 2386  association responsible for the enforcement of shared covenants,
 2387  conditions, and restrictions in carrying out the intent of this
 2388  subsection. This subsection is intended to clarify law in
 2389  existence before July 1, 2010.
 2390         Section 24. Subsection (2) of section 553.509, Florida
 2391  Statutes, is repealed.
 2392         Section 25. Paragraph (b) of subsection (2), paragraphs (a)
 2393  and (c) of subsection (5), and paragraphs (b), (c), (d), (f),
 2394  and (g) of subsection (6) of section 720.303, Florida Statutes,
 2395  are amended, and subsection (12) is added to that section, to
 2396  read:
 2397         720.303 Association powers and duties; meetings of board;
 2398  official records; budgets; financial reporting; association
 2399  funds; recalls.—
 2400         (2) BOARD MEETINGS.—
 2401         (b) Members have the right to attend all meetings of the
 2402  board and to speak on any matter placed on the agenda by
 2403  petition of the voting interests for at least 3 minutes. The
 2404  association may adopt written reasonable rules expanding the
 2405  right of members to speak and governing the frequency, duration,
 2406  and other manner of member statements, which rules must be
 2407  consistent with this paragraph and may include a sign-up sheet
 2408  for members wishing to speak. Notwithstanding any other law, the
 2409  requirement that board meetings and committee meetings be open
 2410  to the members is inapplicable to meetings between the board or
 2411  a committee and the association’s attorney to discuss proposed
 2412  or pending litigation, or with respect to meetings of the board
 2413  held for the purpose of discussing personnel matters are not
 2414  required to be open to the members other than directors.
 2415         (5) INSPECTION AND COPYING OF RECORDS.—The official records
 2416  shall be maintained within the state and must be open to
 2417  inspection and available for photocopying by members or their
 2418  authorized agents at reasonable times and places within 10
 2419  business days after receipt of a written request for access.
 2420  This subsection may be complied with by having a copy of the
 2421  official records available for inspection or copying in the
 2422  community. If the association has a photocopy machine available
 2423  where the records are maintained, it must provide parcel owners
 2424  with copies on request during the inspection if the entire
 2425  request is limited to no more than 25 pages.
 2426         (a) The failure of an association to provide access to the
 2427  records within 10 business days after receipt of a written
 2428  request submitted by certified mail, return receipt requested,
 2429  creates a rebuttable presumption that the association willfully
 2430  failed to comply with this subsection.
 2431         (c) The association may adopt reasonable written rules
 2432  governing the frequency, time, location, notice, records to be
 2433  inspected, and manner of inspections, but may not require impose
 2434  a requirement that a parcel owner to demonstrate any proper
 2435  purpose for the inspection, state any reason for the inspection,
 2436  or limit a parcel owner’s right to inspect records to less than
 2437  one 8-hour business day per month. The association may impose
 2438  fees to cover the costs of providing copies of the official
 2439  records, including, without limitation, the costs of copying.
 2440  The association may charge up to 50 cents per page for copies
 2441  made on the association’s photocopier. If the association does
 2442  not have a photocopy machine available where the records are
 2443  kept, or if the records requested to be copied exceed 25 pages
 2444  in length, the association may have copies made by an outside
 2445  vendor or association management company personnel and may
 2446  charge the actual cost of copying, including any reasonable
 2447  costs involving personnel fees and charges at an hourly rate for
 2448  vendor or employee time to cover administrative costs to the
 2449  vendor or association. The association shall maintain an
 2450  adequate number of copies of the recorded governing documents,
 2451  to ensure their availability to members and prospective members.
 2452  Notwithstanding the provisions of this paragraph, the following
 2453  records are shall not be accessible to members or parcel owners:
 2454         1. Any record protected by the lawyer-client privilege as
 2455  described in s. 90.502 and any record protected by the work
 2456  product privilege, including, but not limited to, any record
 2457  prepared by an association attorney or prepared at the
 2458  attorney’s express direction which reflects a mental impression,
 2459  conclusion, litigation strategy, or legal theory of the attorney
 2460  or the association and which was prepared exclusively for civil
 2461  or criminal litigation or for adversarial administrative
 2462  proceedings or which was prepared in anticipation of imminent
 2463  civil or criminal litigation or imminent adversarial
 2464  administrative proceedings until the conclusion of the
 2465  litigation or adversarial administrative proceedings.
 2466         2. Information obtained by an association in connection
 2467  with the approval of the lease, sale, or other transfer of a
 2468  parcel.
 2469         3. Disciplinary, health, insurance, and Personnel records
 2470  of the association’s employees, including, but not limited to,
 2471  disciplinary, payroll, health, and insurance records.
 2472         4. Medical records of parcel owners or community residents.
 2473         5. Social security numbers, driver’s license numbers,
 2474  credit card numbers, electronic mailing addresses, telephone
 2475  numbers, emergency contact information, any addresses for a
 2476  parcel owner other than as provided for association notice
 2477  requirements, and other personal identifying information of any
 2478  person, excluding the person’s name, parcel designation, mailing
 2479  address, and property address.
 2480         6. Any electronic security measure that is used by the
 2481  association to safeguard data, including passwords.
 2482         7. The software and operating system used by the
 2483  association which allows the manipulation of data, even if the
 2484  owner owns a copy of the same software used by the association.
 2485  The data is part of the official records of the association.
 2486         (6) BUDGETS.—
 2487         (b) In addition to annual operating expenses, the budget
 2488  may include reserve accounts for capital expenditures and
 2489  deferred maintenance for which the association is responsible.
 2490  If reserve accounts are not established pursuant to paragraph
 2491  (d), funding of such reserves shall be limited to the extent
 2492  that the governing documents do not limit increases in
 2493  assessments, including reserves. If the budget of the
 2494  association includes reserve accounts established pursuant to
 2495  paragraph (d), such reserves shall be determined, maintained,
 2496  and waived in the manner provided in this subsection. Once an
 2497  association provides for reserve accounts pursuant to paragraph
 2498  (d) in the budget, the association shall thereafter determine,
 2499  maintain, and waive reserves in compliance with this subsection.
 2500  The provisions of this section do not preclude the termination
 2501  of a reserve account established pursuant to this paragraph upon
 2502  approval of a majority of the total voting interests of the
 2503  association. Upon such approval, the terminating reserve account
 2504  shall be removed from the budget.
 2505         (c)1. If the budget of the association does not provide for
 2506  reserve accounts pursuant to paragraph (d) governed by this
 2507  subsection and the association is responsible for the repair and
 2508  maintenance of capital improvements that may result in a special
 2509  assessment if reserves are not provided, each financial report
 2510  for the preceding fiscal year required by subsection (7) shall
 2511  contain the following statement in conspicuous type:
 2512  
 2513         THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR
 2514         RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED
 2515         MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
 2516         OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS
 2517         PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
 2518         FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT
 2519         LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF
 2520         THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR
 2521         BY WRITTEN CONSENT.
 2522         2.If the budget of the association does provide for
 2523  funding accounts for deferred expenditures, including, but not
 2524  limited to, funds for capital expenditures and deferred
 2525  maintenance, but such accounts are not created or established
 2526  pursuant to paragraph (d), each financial report for the
 2527  preceding fiscal year required under subsection (7) must also
 2528  contain the following statement in conspicuous type:
 2529  
 2530         THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED
 2531         VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING
 2532         CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT
 2533         TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING
 2534         DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
 2535         PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION
 2536         720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
 2537         SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET
 2538         FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN
 2539         ACCORDANCE WITH THAT STATUTE.
 2540         (d) An association is shall be deemed to have provided for
 2541  reserve accounts if when reserve accounts have been initially
 2542  established by the developer or if when the membership of the
 2543  association affirmatively elects to provide for reserves. If
 2544  reserve accounts are not initially provided for by the
 2545  developer, the membership of the association may elect to do so
 2546  upon the affirmative approval of not less than a majority of the
 2547  total voting interests of the association. Such approval may be
 2548  obtained attained by vote of the members at a duly called
 2549  meeting of the membership or by the upon a written consent of
 2550  executed by not less than a majority of the total voting
 2551  interests of the association in the community. The approval
 2552  action of the membership shall state that reserve accounts shall
 2553  be provided for in the budget and shall designate the components
 2554  for which the reserve accounts are to be established. Upon
 2555  approval by the membership, the board of directors shall include
 2556  provide for the required reserve accounts for inclusion in the
 2557  budget in the next fiscal year following the approval and in
 2558  each year thereafter. Once established as provided in this
 2559  subsection, the reserve accounts shall be funded or maintained
 2560  or shall have their funding waived in the manner provided in
 2561  paragraph (f).
 2562         (f) After one or more Once a reserve account or reserve
 2563  accounts are established, the membership of the association,
 2564  upon a majority vote at a meeting at which a quorum is present,
 2565  may provide for no reserves or less reserves than required by
 2566  this section. If a meeting of the unit owners has been called to
 2567  determine whether to waive or reduce the funding of reserves and
 2568  no such result is achieved or a quorum is not present, the
 2569  reserves as included in the budget shall go into effect. After
 2570  the turnover, the developer may vote its voting interest to
 2571  waive or reduce the funding of reserves. Any vote taken pursuant
 2572  to this subsection to waive or reduce reserves is shall be
 2573  applicable only to one budget year.
 2574         (g) Funding formulas for reserves authorized by this
 2575  section shall be based on either a separate analysis of each of
 2576  the required assets or a pooled analysis of two or more of the
 2577  required assets.
 2578         1. If the association maintains separate reserve accounts
 2579  for each of the required assets, the amount of the contribution
 2580  to each reserve account is shall be the sum of the following two
 2581  calculations:
 2582         a. The total amount necessary, if any, to bring a negative
 2583  component balance to zero.
 2584         b. The total estimated deferred maintenance expense or
 2585  estimated replacement cost of the reserve component less the
 2586  estimated balance of the reserve component as of the beginning
 2587  of the period for which the budget will be in effect. The
 2588  remainder, if greater than zero, shall be divided by the
 2589  estimated remaining useful life of the component.
 2590  
 2591  The formula may be adjusted each year for changes in estimates
 2592  and deferred maintenance performed during the year and may
 2593  include factors such as inflation and earnings on invested
 2594  funds.
 2595         2. If the association maintains a pooled account of two or
 2596  more of the required reserve assets, the amount of the
 2597  contribution to the pooled reserve account as disclosed on the
 2598  proposed budget may shall not be less than that required to
 2599  ensure that the balance on hand at the beginning of the period
 2600  for which the budget will go into effect plus the projected
 2601  annual cash inflows over the remaining estimated useful life of
 2602  all of the assets that make up the reserve pool are equal to or
 2603  greater than the projected annual cash outflows over the
 2604  remaining estimated useful lives of all of the assets that make
 2605  up the reserve pool, based on the current reserve analysis. The
 2606  projected annual cash inflows may include estimated earnings
 2607  from investment of principal and accounts receivable minus the
 2608  allowance for doubtful accounts. The reserve funding formula may
 2609  shall not include any type of balloon payments.
 2610         (12)COMPENSATION PROHIBITED.—A director, officer, or
 2611  committee member of the association may not directly receive any
 2612  salary or compensation from the association for the performance
 2613  of duties as a director, officer, or committee member and may
 2614  not in any other way benefit financially from service to the
 2615  association. This subsection does not preclude:
 2616         (a)Participation by such person in a financial benefit
 2617  accruing to all or a significant number of members as a result
 2618  of actions lawfully taken by the board or a committee of which
 2619  he or she is a member, including, but not limited to, routine
 2620  maintenance, repair, or replacement of community assets.
 2621         (b)Reimbursement for out-of-pocket expenses incurred by
 2622  such person on behalf of the association, subject to approval in
 2623  accordance with procedures established by the association’s
 2624  governing documents or, in the absence of such procedures, in
 2625  accordance with an approval process established by the board.
 2626         (c)Any recovery of insurance proceeds derived from a
 2627  policy of insurance maintained by the association for the
 2628  benefit of its members.
 2629         (d)Any fee or compensation authorized in the governing
 2630  documents.
 2631         (e)Any fee or compensation authorized in advance by a vote
 2632  of a majority of the voting interests voting in person or by
 2633  proxy at a meeting of the members.
 2634         (f)A developer or its representative from serving as a
 2635  director, officer, or committee member of the association and
 2636  benefitting financially from service to the association.
 2637         Section 26.  Subsections (8) and (9) of section 720.306,
 2638  Florida Statutes, are amended to read:
 2639         720.306 Meetings of members; voting and election
 2640  procedures; amendments.—
 2641         (8) PROXY VOTING.—The members have the right, unless
 2642  otherwise provided in this subsection or in the governing
 2643  documents, to vote in person or by proxy.
 2644         (a) To be valid, a proxy must be dated, must state the
 2645  date, time, and place of the meeting for which it was given, and
 2646  must be signed by the authorized person who executed the proxy.
 2647  A proxy is effective only for the specific meeting for which it
 2648  was originally given, as the meeting may lawfully be adjourned
 2649  and reconvened from time to time, and automatically expires 90
 2650  days after the date of the meeting for which it was originally
 2651  given. A proxy is revocable at any time at the pleasure of the
 2652  person who executes it. If the proxy form expressly so provides,
 2653  any proxy holder may appoint, in writing, a substitute to act in
 2654  his or her place.
 2655         (b)If the governing documents permit voting by secret
 2656  ballot by members who are not in attendance at a meeting of the
 2657  members for the election of directors, such ballots shall be
 2658  placed in an inner envelope with no identifying markings and
 2659  mailed or delivered to the association in an outer envelope
 2660  bearing identifying information reflecting the name of the
 2661  member, the lot or parcel for which the vote is being cast, and
 2662  the signature of the lot or parcel owner casting that ballot. If
 2663  the eligibility of the member to vote is confirmed and no other
 2664  ballot has been submitted for that lot or parcel, the inner
 2665  envelope shall be removed from the outer envelope bearing the
 2666  identification information, placed with the ballots which were
 2667  personally cast, and opened when the ballots are counted. If
 2668  more than one ballot is submitted for a lot or parcel, the
 2669  ballots for that lot or parcel shall be disqualified. Any vote
 2670  by ballot received after the closing of the balloting may not be
 2671  considered.
 2672         (9) ELECTIONS.—Elections of directors must be conducted in
 2673  accordance with the procedures set forth in the governing
 2674  documents of the association. All members of the association are
 2675  shall be eligible to serve on the board of directors, and a
 2676  member may nominate himself or herself as a candidate for the
 2677  board at a meeting where the election is to be held or, if the
 2678  election process allows voting by absentee ballot, in advance of
 2679  the balloting. Except as otherwise provided in the governing
 2680  documents, boards of directors must be elected by a plurality of
 2681  the votes cast by eligible voters. Any election dispute between
 2682  a member and an association must be submitted to mandatory
 2683  binding arbitration with the division. Such proceedings shall be
 2684  conducted in the manner provided by s. 718.1255 and the
 2685  procedural rules adopted by the division.
 2686         Section 27. Section 720.315, Florida Statutes, is created
 2687  to read:
 2688         720.315Passage of special assessments before turnover by
 2689  developer.—Before turnover, the board of directors controlled by
 2690  the developer may not levy a special assessment unless a
 2691  majority of the parcel owners other than the developer have
 2692  approved the special assessment by a majority vote at a duly
 2693  called special meeting of the membership at which a quorum is
 2694  present.
 2695         Section 28. This act shall take effect July 1, 2010.

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