November 19, 2019
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       Florida Senate - 2010             CS for CS for SB's 1196 & 1222
       
       
       
       By the Committees on Military Affairs and Domestic Security; and
       Regulated Industries; and Senators Fasano, Ring, and Gaetz
       
       
       
       583-03052A-10                                         20101196c2
    1                        A bill to be entitled                      
    2         An act relating to community associations; amending s.
    3         399.02, F.S.; exempting certain elevators from
    4         specific code update requirements; providing a phase
    5         in period for such elevators; amending s. 617.0721,
    6         F.S.; revising the limitations on the right of members
    7         to vote on corporate matters for certain corporations
    8         not for profit that are regulated under ch. 718 or ch.
    9         719, F.S.; amending s. 617.0808, F.S.; excepting
   10         certain corporations not for profit that are an
   11         association as defined in s. 720.301, F.S., or a
   12         corporation regulated under ch. 718 or ch. 719, F.S.,
   13         from certain provisions relating to the removal of a
   14         director; amending s. 617.1606, F.S.; providing that
   15         certain statutory provisions providing for the
   16         inspection of corporate records do not apply to a
   17         corporation not for profit that is an association as
   18         defined in s. 720.301, or a corporation regulated
   19         under ch. 718 or ch. 719, F.S.; creating s. 627.714,
   20         F.S.; requiring that coverage under a unit owner’s
   21         policy for certain assessments include at least a
   22         minimum amount of loss assessment coverage; requiring
   23         that every property insurance policy to an individual
   24         unit owner contain a specified provision; amending s.
   25         633.0215, F.S.; exempting certain residential
   26         buildings from a requirement to install a manual fire
   27         alarm system; amending s. 718.103, F.S.; redefining
   28         the term “developer”; amending s. 718.110, F.S.;
   29         allowing the condominium association to have the
   30         authority to restrict through an amendment to a
   31         declaration of condominium, rather than prohibit, the
   32         rental of condominium units; amending s. 718.111,
   33         F.S.; deleting a requirement for the board of a
   34         condominium to hold a meeting open to unit owners to
   35         establish the amount of an insurance deductible;
   36         revising the property to which a property insurance
   37         policy for a condominium association applies; revising
   38         the requirements for a condominium unit owner’s
   39         property insurance policy; limiting the circumstances
   40         under which a person who violates requirements to
   41         maintain association records may be personally liable
   42         for a civil penalty; providing that a condominium
   43         association is not responsible for the use of certain
   44         information provided to an association member under
   45         certain circumstances; specifying records of a
   46         condominium association that are exempt from a
   47         requirement for records to be available for inspection
   48         by an association member; increasing the amount of
   49         time within which a condominium association must
   50         provide unit owners with a copy of the association’s
   51         annual financial report; revising the requirements for
   52         rules relating to the financial report that must be
   53         adopted by the Division of Florida Condominiums,
   54         Timeshares, and Mobile Homes of the Department of
   55         Business and Professional Regulation; revising the
   56         requirements for a financial report based on the
   57         amount of a condominium’s revenues; amending s.
   58         718.112, F.S.; revising provisions relating to the
   59         terms or appointment or election of condominium
   60         members to a board of administration; creating
   61         exceptions to such provisions for condominiums that
   62         contain timeshares; specifying a certification that a
   63         person who is appointed or elected to a board of
   64         administration must make or educational requirements
   65         such board member must satisfy; conforming cross
   66         references to changes made by the act; deleting a
   67         provision prohibiting an association from foregoing
   68         the retrofitting with a fire sprinkler system of
   69         common areas in a high-rise building; prohibiting
   70         local authorities having jurisdiction from requiring
   71         retrofitting with a sprinkler system or other
   72         engineered lifesafety system before a specified date;
   73         authorizing an association to forgo retrofitting under
   74         certain circumstances; providing requirements for a
   75         special meeting of unit owners which may be called
   76         every 3 years in order to vote to forgo retrofitting
   77         of the sprinkler system or other engineered lifesafety
   78         systems; providing meeting notice requirements;
   79         expanding the monetary obligations that a director or
   80         officer must satisfy to avoid abandoning his or her
   81         office; amending s. 718.115, F.S.; specifying certain
   82         services provided in a declaration of condominium
   83         which are obtained pursuant to a bulk contract to be
   84         deemed a common expense; specifying provisions that
   85         must be contained in a bulk contract; specifying
   86         cancellation procedures for bulk contracts; amending
   87         s. 718.116, F.S.; specifying the types of costs that
   88         may be charged against assessment payments made by a
   89         unit owner; requiring a tenant in a unit owned by a
   90         person who is delinquent in the payment of a monetary
   91         obligation to the condominium association to pay rent
   92         to the association under certain circumstances;
   93         authorizing the condominium association to sue such
   94         tenant who fails to pay rent for eviction under
   95         certain circumstances; providing that the tenant is
   96         immune from claims from the unit owner as the result
   97         of paying rent to the association under certain
   98         circumstances; amending s. 718.117, F.S.; revising the
   99         circumstances under which a condominium association
  100         may be terminated due to economic waste or
  101         impossibility; revising provisions specifying the
  102         effect of a termination of condominium; amending s.
  103         718.301, F.S.; revising conditions under which unit
  104         owners other than the developer may elect at least a
  105         majority of the members of the board of administration
  106         of an association; amending s. 718.303, F.S.;
  107         authorizing an association to suspend for a reasonable
  108         time the right of a unit owner or the unit’s occupant,
  109         licensee, or invitee to use certain common elements
  110         under certain circumstances; prohibiting a fine from
  111         being levied or a suspension from being imposed unless
  112         the association meets certain requirements for notice
  113         and provides an opportunity for a hearing; authorizing
  114         an association to suspend voting rights of a member
  115         due to nonpayment of assessments, fines, or other
  116         charges under certain circumstances; amending s.
  117         718.501, F.S.; specifying that the jurisdiction of the
  118         Division of Florida Condominiums, Timeshares, and
  119         Mobile Homes includes bulk assignees and bulk buyers;
  120         creating part VII of ch. 718, F.S.; creating the
  121         “Distressed Condominium Relief Act”; providing
  122         legislative findings and intent; defining the terms
  123         “bulk assignee” and “bulk buyer”; providing for the
  124         assignment of developer rights by a bulk assignee;
  125         specifying liabilities of bulk assignees and bulk
  126         buyers; providing exceptions; providing additional
  127         responsibilities of bulk assignees and bulk buyers;
  128         authorizing certain entities to assign developer
  129         rights to a bulk assignee; limiting the number of bulk
  130         assignees at any given time; providing for the
  131         transfer of control of a board of administration to
  132         unit owners; providing effects of such transfer on
  133         parcels acquired by a bulk assignee; providing
  134         obligations of a bulk assignee upon the transfer of
  135         control of a board of administration; requiring that a
  136         bulk assignee certify certain information in writing;
  137         providing for the resolution of a conflict between
  138         specified provisions of state law; providing that the
  139         failure of a bulk assignee or bulk buyer to comply
  140         with specified provisions of state law results in the
  141         loss of certain protections and exemptions; requiring
  142         that a bulk assignee or bulk buyer file certain
  143         information with the Division of Florida Condominiums,
  144         Timeshares, and Mobile Homes of the Department of
  145         Business and Professional Regulation before offering
  146         any units for sale or lease in excess of a specified
  147         term; requiring that a copy of such information be
  148         provided to a prospective purchaser or tenant;
  149         requiring that certain contracts and disclosure
  150         statements contain specified statements; requiring
  151         that a bulk assignee or bulk buyer comply with certain
  152         disclosure requirements; prohibiting a bulk assignee
  153         from authorizing certain actions on behalf of an
  154         association while the bulk assignee is in control of
  155         the board of administration of the association;
  156         requiring that a bulk assignee or bulk buyer comply
  157         with certain laws with respect to contracts entered
  158         into by the association while the bulk assignee or
  159         bulk buyer was in control of the board of
  160         administration; providing parcel owners with specified
  161         protections regarding certain contracts; requiring
  162         that a bulk buyer comply with certain requirements
  163         regarding the transfer of a parcel; prohibiting a
  164         person from being classified as a bulk assignee or
  165         bulk buyer unless condominium parcels were acquired
  166         before a specified date; providing that the assignment
  167         of developer rights to a bulk assignee does not
  168         release a developer from certain liabilities; amending
  169         s. 719.106, F.S.; providing for the filling of
  170         vacancies on the condominium board of administration;
  171         amending s. 719.1055, F.S.; providing an additional
  172         required provision in cooperative bylaws; deleting a
  173         provision prohibiting an association from foregoing
  174         the retrofitting with a fire sprinkler system of
  175         common areas in a high-rise building; prohibiting
  176         local authorities having jurisdiction from requiring
  177         retrofitting with a sprinkler system or other
  178         engineered lifesafety system before a specified date;
  179         providing requirements for a special meeting of unit
  180         owners which may be called every 3 years in order to
  181         vote to require retrofitting of the sprinkler system
  182         or other engineered lifesafety system; providing
  183         meeting notice requirements; amending s. 719.108,
  184         F.S.; specifying the types of costs that may be
  185         charged against assessment payments made by a unit
  186         owner; providing a prioritized list for disbursement
  187         of payments received by an association; providing for
  188         a lien by an association on a condominium unit for
  189         certain fees and costs; providing procedures and
  190         notice requirements for the filing of a lien by an
  191         association; requiring a tenant in a unit owned by a
  192         person who is delinquent in the payment of a monetary
  193         obligation to the condominium association to pay rent
  194         to the association under certain circumstances;
  195         amending s. 720.304, F.S.; providing that a flagpole
  196         and any flagpole display are subject to certain codes
  197         and regulations; amending s. 720.305, F.S.;
  198         authorizing the association to suspend rights to use
  199         common areas and facilities if the member is
  200         delinquent on the payment of a monetary obligation due
  201         for a certain period of time; providing procedures and
  202         notice requirements for levying a fine or imposing a
  203         suspension; amending s. 720.306, F.S.; providing
  204         procedures for filling a vacancy on the board of
  205         directors; amending s. 720.3085, F.S.; requiring a
  206         tenant in a property owned by a person who is
  207         delinquent in the payment of a monetary obligation to
  208         the condominium association to pay rent to the
  209         association under certain circumstances; amending s.
  210         720.31, F.S.; authorizing an association to enter into
  211         certain agreements to use lands or facilities;
  212         requiring that certain items be stated and fully
  213         described in the declaration; limiting an
  214         association’s power to enter into such agreements
  215         after a specified period following the recording of a
  216         declaration; requiring that certain agreements be
  217         approved by a specified percentage of voting interests
  218         of an association when the declaration is silent as to
  219         the authority of an association to enter into such
  220         agreement; authorizing an association to join with
  221         other associations or a master association under
  222         certain circumstances and for specified purposes;
  223         amending s. 720.303, F.S.; revising provisions
  224         relating to homeowners’ association board meetings,
  225         inspection and copying of records, and reserve
  226         accounts of budgets; expanding the list of association
  227         records that are not accessible to members and parcel
  228         owners; prohibiting certain association personnel from
  229         receiving a salary or compensation; providing
  230         exceptions; amending s. 720.306, F.S.; providing
  231         requirements for secret ballots; providing for filling
  232         vacancies on the homeowners’ association board;
  233         amending s. 720.3085, F.S.; specifying the types of
  234         costs that may be charged against assessment payments
  235         made by a unit owner; creating s. 720.315, F.S.;
  236         prohibiting the board of directors of a homeowners’
  237         association from levying a special assessment before
  238         turnover of the association by the developer unless
  239         certain conditions are met; providing an effective
  240         date.
  241  
  242  Be It Enacted by the Legislature of the State of Florida:
  243  
  244         Section 1. Subsection (8) is added to section 399.02,
  245  Florida Statutes, to read:
  246         399.02 General requirements.—
  247         (8) Updates to the code requiring modifications for Phase
  248  II Firefighters’ Service on existing elevators, as amended into
  249  the Safety Code for Existing Elevators and Escalators, ASME
  250  A17.1 and A17.3, may not be enforced on elevators in
  251  condominiums or cooperatives issued a certificate of occupancy
  252  by the local building authority as of July 1, 2008, for 5 years
  253  or until the elevator is replaced or requires major
  254  modification, whichever occurs first. This exception does not
  255  apply to a building for which a certificate of occupancy was
  256  issued after July 1, 2008. This exception does not prevent an
  257  elevator owner from requesting a variance from the applicable
  258  codes before or after the expiration of the 5-year term. This
  259  subsection does not prohibit the division from granting
  260  variances pursuant to s. 120.542. The division shall adopt rules
  261  to administer this subsection.
  262         Section 2. Subsection (7) of section 617.0721, Florida
  263  Statutes, is amended to read:
  264         617.0721 Voting by members.—
  265         (7) Subsections (1), (2), (5), and (6) do not apply to a
  266  corporation that is an association, as defined in s. 720.301, or
  267  a corporation regulated by chapter 718 or chapter 719.
  268         Section 3. Subsection (3) is added to section 617.0808,
  269  Florida Statutes, to read:
  270         617.0808 Removal of directors.—
  271         (3) This section does not apply to any corporation that is
  272  an association, as defined in s. 720.301, or a corporation
  273  regulated under chapter 718 or chapter 719.
  274         Section 4. Section 617.1606, Florida Statutes, is created
  275  to read:
  276         617.1606Access to records.—Sections 617.1601-617.1605 do
  277  not apply to a corporation that is an association, as defined in
  278  s. 720.301, or a corporation regulated under chapter 718 or
  279  chapter 719.
  280         Section 5. Section 627.714, Florida Statutes, is created to
  281  read:
  282         627.714Residential condominium unit owner coverage; loss
  283  assessment coverage required.—For policies issued or renewed on
  284  or after July 1, 2010, coverage under a unit owner’s residential
  285  property policy must include at least $2,000 in property loss
  286  assessment coverage for all assessments made as a result of the
  287  same direct loss to the property, regardless of the number of
  288  assessments, owned by all members of the association
  289  collectively if such loss is of the type of loss covered by the
  290  unit owner’s residential property insurance policy, to which a
  291  deductible of no more than $250 per direct property loss
  292  applies. If a deductible was or will be applied to other
  293  property loss sustained by the unit owner resulting from the
  294  same direct loss to the property, no deductible applies to the
  295  loss assessment coverage. Every individual unit owner’s
  296  residential property policy must contain a provision stating
  297  that the coverage afforded by such policy is excess coverage
  298  over the amount recoverable under any other policy covering the
  299  same property.
  300         Section 6. Subsection (13) is added to section 633.0215,
  301  Florida Statutes, to read:
  302         633.0215 Florida Fire Prevention Code.—
  303         (13) A condominium, cooperative, or multifamily residential
  304  building that is less than four stories in height and has a
  305  corridor providing an exterior means of egress is exempt from
  306  the requirement to install a manual fire alarm system under s.
  307  9.6 of the Life Safety Code adopted in the Florida Fire
  308  Prevention Code.
  309         Section 7. Subsection (16) of section 718.103, Florida
  310  Statutes, is amended to read:
  311         718.103 Definitions.—As used in this chapter, the term:
  312         (16) “Developer” means a person who creates a condominium
  313  or offers condominium parcels for sale or lease in the ordinary
  314  course of business, but does not include:
  315         (a) An owner or lessee of a condominium or cooperative unit
  316  who has acquired the unit for his or her own occupancy;, nor
  317  does it include
  318         (b) A cooperative association that which creates a
  319  condominium by conversion of an existing residential cooperative
  320  after control of the association has been transferred to the
  321  unit owners if, following the conversion, the unit owners are
  322  will be the same persons who were unit owners of the cooperative
  323  and no units are offered for sale or lease to the public as part
  324  of the plan of conversion;.
  325         (c)A bulk assignee or bulk buyer as defined in s. 718.703;
  326  or
  327         (d) A state, county, or municipal entity is not a developer
  328  for any purposes under this act when it is acting as a lessor
  329  and not otherwise named as a developer in the declaration of
  330  condominium association.
  331         Section 8. Subsection (13) of section 718.110, Florida
  332  Statutes, is amended to read:
  333         718.110 Amendment of declaration; correction of error or
  334  omission in declaration by circuit court.—
  335         (13) An Any amendment prohibiting restricting unit owners
  336  from renting their units or altering the duration of the rental
  337  term or specifying or limiting the number of times unit owners
  338  are entitled to rent their units during a specified period
  339  owners’ rights relating to the rental of units applies only to
  340  unit owners who consent to the amendment and unit owners who
  341  acquire title to purchase their units after the effective date
  342  of that amendment.
  343         Section 9. Paragraphs (a), (b), (c), (d), (f), (g), (j),
  344  and (n) of subsection (11) and subsections (12) and (13) of
  345  section 718.111, Florida Statutes, are amended to read:
  346         718.111 The association.—
  347         (11) INSURANCE.—In order to protect the safety, health, and
  348  welfare of the people of the State of Florida and to ensure
  349  consistency in the provision of insurance coverage to
  350  condominiums and their unit owners, this subsection applies to
  351  every residential condominium in the state, regardless of the
  352  date of its declaration of condominium. It is the intent of the
  353  Legislature to encourage lower or stable insurance premiums for
  354  associations described in this subsection.
  355         (a) Adequate property hazard insurance, regardless of any
  356  requirement in the declaration of condominium for coverage by
  357  the association for full insurable value, replacement cost, or
  358  similar coverage, must shall be based on upon the replacement
  359  cost of the property to be insured as determined by an
  360  independent insurance appraisal or update of a prior appraisal.
  361  The replacement cost must full insurable value shall be
  362  determined at least once every 36 months.
  363         1. An association or group of associations may provide
  364  adequate property hazard insurance through a self-insurance fund
  365  that complies with the requirements of ss. 624.460-624.488.
  366         2. The association may also provide adequate property
  367  hazard insurance coverage for a group of at least no fewer than
  368  three communities created and operating under this chapter,
  369  chapter 719, chapter 720, or chapter 721 by obtaining and
  370  maintaining for such communities insurance coverage sufficient
  371  to cover an amount equal to the probable maximum loss for the
  372  communities for a 250-year windstorm event. Such probable
  373  maximum loss must be determined through the use of a competent
  374  model that has been accepted by the Florida Commission on
  375  Hurricane Loss Projection Methodology. A No policy or program
  376  providing such coverage may not shall be issued or renewed after
  377  July 1, 2008, unless it has been reviewed and approved by the
  378  Office of Insurance Regulation. The review and approval must
  379  shall include approval of the policy and related forms pursuant
  380  to ss. 627.410 and 627.411, approval of the rates pursuant to s.
  381  627.062, a determination that the loss model approved by the
  382  commission was accurately and appropriately applied to the
  383  insured structures to determine the 250-year probable maximum
  384  loss, and a determination that complete and accurate disclosure
  385  of all material provisions is provided to condominium unit
  386  owners before prior to execution of the agreement by a
  387  condominium association.
  388         3. When determining the adequate amount of property hazard
  389  insurance coverage, the association may consider deductibles as
  390  determined by this subsection.
  391         (b) If an association is a developer-controlled
  392  association, the association shall exercise its best efforts to
  393  obtain and maintain insurance as described in paragraph (a).
  394  Failure to obtain and maintain adequate property hazard
  395  insurance during any period of developer control constitutes a
  396  breach of fiduciary responsibility by the developer-appointed
  397  members of the board of directors of the association, unless the
  398  members can show that despite such failure, they have made their
  399  best efforts to maintain the required coverage.
  400         (c) Policies may include deductibles as determined by the
  401  board.
  402         1. The deductibles must shall be consistent with industry
  403  standards and prevailing practice for communities of similar
  404  size and age, and having similar construction and facilities in
  405  the locale where the condominium property is situated.
  406         2. The deductibles may be based upon available funds,
  407  including reserve accounts, or predetermined assessment
  408  authority at the time the insurance is obtained.
  409         3. The board shall establish the amount of deductibles
  410  based upon the level of available funds and predetermined
  411  assessment authority at a meeting of the board. Such meeting
  412  shall be open to all unit owners in the manner set forth in s.
  413  718.112(2)(e). The notice of such meeting must state the
  414  proposed deductible and the available funds and the assessment
  415  authority relied upon by the board and estimate any potential
  416  assessment amount against each unit, if any. The meeting
  417  described in this paragraph may be held in conjunction with a
  418  meeting to consider the proposed budget or an amendment thereto.
  419         (d) An association controlled by unit owners operating as a
  420  residential condominium shall use its best efforts to obtain and
  421  maintain adequate property insurance to protect the association,
  422  the association property, the common elements, and the
  423  condominium property that must is required to be insured by the
  424  association pursuant to this subsection.
  425         (f) Every property hazard insurance policy issued or
  426  renewed on or after January 1, 2009, for the purpose of
  427  protecting the condominium must shall provide primary coverage
  428  for:
  429         1. All portions of the condominium property as originally
  430  installed or replacement of like kind and quality, in accordance
  431  with the original plans and specifications.
  432         2. All alterations or additions made to the condominium
  433  property or association property pursuant to s. 718.113(2).
  434         3. The coverage must shall exclude all personal property
  435  within the unit or limited common elements, and floor, wall, and
  436  ceiling coverings, electrical fixtures, appliances, water
  437  heaters, water filters, built-in cabinets and countertops, and
  438  window treatments, including curtains, drapes, blinds, hardware,
  439  and similar window treatment components, or replacements of any
  440  of the foregoing which are located within the boundaries of the
  441  unit and serve only such unit. Such property and any insurance
  442  thereupon is the responsibility of the unit owner.
  443         (g) A condominium unit owner’s policy must conform to the
  444  requirements of s. 627.714. Every hazard insurance policy issued
  445  or renewed on or after January 1, 2009, to an individual unit
  446  owner must contain a provision stating that the coverage
  447  afforded by such policy is excess coverage over the amount
  448  recoverable under any other policy covering the same property.
  449  Such policies must include special assessment coverage of no
  450  less than $2,000 per occurrence. An insurance policy issued to
  451  an individual unit owner providing such coverage does not
  452  provide rights of subrogation against the condominium
  453  association operating the condominium in which such individual’s
  454  unit is located.
  455         1. All improvements or additions to the condominium
  456  property that benefit fewer than all unit owners shall be
  457  insured by the unit owner or owners having the use thereof, or
  458  may be insured by the association at the cost and expense of the
  459  unit owners having the use thereof.
  460         2. The association shall require each owner to provide
  461  evidence of a currently effective policy of hazard and liability
  462  insurance upon request, but not more than once per year. Upon
  463  the failure of an owner to provide a certificate of insurance
  464  issued by an insurer approved to write such insurance in this
  465  state within 30 days after the date on which a written request
  466  is delivered, the association may purchase a policy of insurance
  467  on behalf of an owner. The cost of such a policy, together with
  468  reconstruction costs undertaken by the association but which are
  469  the responsibility of the unit owner, may be collected in the
  470  manner provided for the collection of assessments in s. 718.116.
  471         1.3. All reconstruction work after a property casualty loss
  472  must shall be undertaken by the association except as otherwise
  473  authorized in this section. A unit owner may undertake
  474  reconstruction work on portions of the unit with the prior
  475  written consent of the board of administration. However, such
  476  work may be conditioned upon the approval of the repair methods,
  477  the qualifications of the proposed contractor, or the contract
  478  that is used for that purpose. A unit owner must shall obtain
  479  all required governmental permits and approvals before prior to
  480  commencing reconstruction.
  481         2.4. Unit owners are responsible for the cost of
  482  reconstruction of any portions of the condominium property for
  483  which the unit owner is required to carry property casualty
  484  insurance, and any such reconstruction work undertaken by the
  485  association is shall be chargeable to the unit owner and
  486  enforceable as an assessment pursuant to s. 718.116. The
  487  association must be an additional named insured and loss payee
  488  on all casualty insurance policies issued to unit owners in the
  489  condominium operated by the association.
  490         3.5. A multicondominium association may elect, by a
  491  majority vote of the collective members of the condominiums
  492  operated by the association, to operate the such condominiums as
  493  a single condominium for purposes of insurance matters,
  494  including, but not limited to, the purchase of the property
  495  hazard insurance required by this section and the apportionment
  496  of deductibles and damages in excess of coverage. The election
  497  to aggregate the treatment of insurance premiums, deductibles,
  498  and excess damages constitutes an amendment to the declaration
  499  of all condominiums operated by the association, and the costs
  500  of insurance must shall be stated in the association budget. The
  501  amendments must shall be recorded as required by s. 718.110.
  502         (j) Any portion of the condominium property that must
  503  required to be insured by the association against property
  504  casualty loss pursuant to paragraph (f) which is damaged by
  505  casualty shall be reconstructed, repaired, or replaced as
  506  necessary by the association as a common expense. All property
  507  hazard insurance deductibles, uninsured losses, and other
  508  damages in excess of property hazard insurance coverage under
  509  the property hazard insurance policies maintained by the
  510  association are a common expense of the condominium, except
  511  that:
  512         1. A unit owner is responsible for the costs of repair or
  513  replacement of any portion of the condominium property not paid
  514  by insurance proceeds, if such damage is caused by intentional
  515  conduct, negligence, or failure to comply with the terms of the
  516  declaration or the rules of the association by a unit owner, the
  517  members of his or her family, unit occupants, tenants, guests,
  518  or invitees, without compromise of the subrogation rights of the
  519  any insurer as set forth in paragraph (g).
  520         2. The provisions of subparagraph 1. regarding the
  521  financial responsibility of a unit owner for the costs of
  522  repairing or replacing other portions of the condominium
  523  property also apply to the costs of repair or replacement of
  524  personal property of other unit owners or the association, as
  525  well as other property, whether real or personal, which the unit
  526  owners are required to insure under paragraph (g).
  527         3. To the extent the cost of repair or reconstruction for
  528  which the unit owner is responsible under this paragraph is
  529  reimbursed to the association by insurance proceeds, and, to the
  530  extent the association has collected the cost of such repair or
  531  reconstruction from the unit owner, the association shall
  532  reimburse the unit owner without the waiver of any rights of
  533  subrogation.
  534         4. The association is not obligated to pay for
  535  reconstruction or repairs of property casualty losses as a
  536  common expense if the property casualty losses were known or
  537  should have been known to a unit owner and were not reported to
  538  the association until after the insurance claim of the
  539  association for that property casualty was settled or resolved
  540  with finality, or denied because on the basis that it was
  541  untimely filed.
  542         (n) The association is not obligated to pay for any
  543  reconstruction or repair expenses due to property casualty loss
  544  to any improvements installed by a current or former owner of
  545  the unit or by the developer if the improvement benefits only
  546  the unit for which it was installed and is not part of the
  547  standard improvements installed by the developer on all units as
  548  part of original construction, whether or not such improvement
  549  is located within the unit. This paragraph does not relieve any
  550  party of its obligations regarding recovery due under any
  551  insurance implemented specifically for any such improvements.
  552         (12) OFFICIAL RECORDS.—
  553         (a) From the inception of the association, the association
  554  shall maintain each of the following items, if when applicable,
  555  which shall constitute the official records of the association:
  556         1. A copy of the plans, permits, warranties, and other
  557  items provided by the developer pursuant to s. 718.301(4).
  558         2. A photocopy of the recorded declaration of condominium
  559  of each condominium operated by the association and of each
  560  amendment to each declaration.
  561         3. A photocopy of the recorded bylaws of the association
  562  and of each amendment to the bylaws.
  563         4. A certified copy of the articles of incorporation of the
  564  association, or other documents creating the association, and of
  565  each amendment thereto.
  566         5. A copy of the current rules of the association.
  567         6. A book or books which contain the minutes of all
  568  meetings of the association, of the board of administration, and
  569  of unit owners, which minutes must shall be retained for at
  570  least a period of not less than 7 years.
  571         7. A current roster of all unit owners and their mailing
  572  addresses, unit identifications, voting certifications, and, if
  573  known, telephone numbers. The association shall also maintain
  574  the electronic mailing addresses and the numbers designated by
  575  unit owners for receiving notice sent by electronic transmission
  576  of those unit owners consenting to receive notice by electronic
  577  transmission. The electronic mailing addresses and numbers must
  578  provided by unit owners to receive notice by electronic
  579  transmission shall be removed from association records if when
  580  consent to receive notice by electronic transmission is revoked.
  581  However, the association is not liable for an erroneous
  582  disclosure of the electronic mail address or the number for
  583  receiving electronic transmission of notices.
  584         8. All current insurance policies of the association and
  585  condominiums operated by the association.
  586         9. A current copy of any management agreement, lease, or
  587  other contract to which the association is a party or under
  588  which the association or the unit owners have an obligation or
  589  responsibility.
  590         10. Bills of sale or transfer for all property owned by the
  591  association.
  592         11. Accounting records for the association and separate
  593  accounting records for each condominium which the association
  594  operates. All accounting records shall be maintained for at
  595  least a period of not less than 7 years. Any person who
  596  knowingly or intentionally defaces or destroys accounting
  597  records required to be created and maintained by this chapter
  598  during the period for which such records are required to be
  599  maintained, or who knowingly or intentionally fails to create or
  600  maintain such accounting records required to be maintained by
  601  this chapter, with the intent of causing harm to the association
  602  or one or more of its members, is personally subject to a civil
  603  penalty pursuant to s. 718.501(1)(d). The accounting records
  604  must shall include, but are not limited to:
  605         a. Accurate, itemized, and detailed records of all receipts
  606  and expenditures.
  607         b. A current account and a monthly, bimonthly, or quarterly
  608  statement of the account for each unit designating the name of
  609  the unit owner, the due date and amount of each assessment, the
  610  amount paid upon the account, and the balance due.
  611         c. All audits, reviews, accounting statements, and
  612  financial reports of the association or condominium.
  613         d. All contracts for work to be performed. Bids for work to
  614  be performed are shall also be considered official records and
  615  must shall be maintained by the association.
  616         12. Ballots, sign-in sheets, voting proxies, and all other
  617  papers relating to voting by unit owners, which must shall be
  618  maintained for a period of 1 year from the date of the election,
  619  vote, or meeting to which the document relates, notwithstanding
  620  paragraph (b).
  621         13. All rental records if, when the association is acting
  622  as agent for the rental of condominium units.
  623         14. A copy of the current question and answer sheet as
  624  described in by s. 718.504.
  625         15. All other records of the association not specifically
  626  included in the foregoing which are related to the operation of
  627  the association.
  628         16. A copy of the inspection report as provided for in s.
  629  718.301(4)(p).
  630         (b) The official records of the association must shall be
  631  maintained within the state for at least 7 years. The records of
  632  the association shall be made available to a unit owner within
  633  45 miles of the condominium property or within the county in
  634  which the condominium property is located within 5 working days
  635  after receipt of a written request by the board or its designee.
  636  However, such distance requirement does not apply to an
  637  association governing a timeshare condominium. This paragraph
  638  may be complied with by having a copy of the official records of
  639  the association available for inspection or copying on the
  640  condominium property or association property, or the association
  641  may offer the option of making the records of the association
  642  available to a unit owner either electronically via the Internet
  643  or by allowing the records to be viewed in electronic format on
  644  a computer screen and printed upon request. The association is
  645  not responsible for the use or misuse of the information
  646  provided to an association member or his or her authorized
  647  representative pursuant to the compliance requirements of this
  648  chapter unless the association has an affirmative duty not to
  649  disclose such information pursuant to this chapter.
  650         (c) The official records of the association are open to
  651  inspection by any association member or the authorized
  652  representative of such member at all reasonable times. The right
  653  to inspect the records includes the right to make or obtain
  654  copies, at the reasonable expense, if any, of the association
  655  member. The association may adopt reasonable rules regarding the
  656  frequency, time, location, notice, and manner of record
  657  inspections and copying. The failure of an association to
  658  provide the records within 10 working days after receipt of a
  659  written request creates shall create a rebuttable presumption
  660  that the association willfully failed to comply with this
  661  paragraph. A unit owner who is denied access to official records
  662  is entitled to the actual damages or minimum damages for the
  663  association’s willful failure to comply with this paragraph. The
  664  Minimum damages shall be $50 per calendar day up to 10 days, the
  665  calculation to begin on the 11th working day after receipt of
  666  the written request. The failure to permit inspection of the
  667  association records as provided herein entitles any person
  668  prevailing in an enforcement action to recover reasonable
  669  attorney’s fees from the person in control of the records who,
  670  directly or indirectly, knowingly denied access to the records
  671  for inspection. Any person who knowingly or intentionally
  672  defaces or destroys accounting records that are required by this
  673  chapter to be maintained during the period for which such
  674  records are required to be maintained, or who knowingly or
  675  intentionally fails to create or maintain accounting records
  676  that are required to be created or maintained by this chapter,
  677  with the intent of causing harm to the association or one or
  678  more of its members, is personally subject to a civil penalty
  679  pursuant to s. 718.501(1)(d). The association shall maintain an
  680  adequate number of copies of the declaration, articles of
  681  incorporation, bylaws, and rules, and all amendments to each of
  682  the foregoing, as well as the question and answer sheet provided
  683  for in s. 718.504 and year-end financial information required in
  684  this section, on the condominium property to ensure their
  685  availability to unit owners and prospective purchasers, and may
  686  charge its actual costs for preparing and furnishing these
  687  documents to those requesting the documents same.
  688  Notwithstanding the provisions of this paragraph, the following
  689  records are shall not be accessible to unit owners:
  690         1. Any record protected by the lawyer-client privilege as
  691  described in s. 90.502; and any record protected by the work
  692  product privilege, including any record prepared by an
  693  association attorney or prepared at the attorney’s express
  694  direction; which reflects a mental impression, conclusion,
  695  litigation strategy, or legal theory of the attorney or the
  696  association, and which was prepared exclusively for civil or
  697  criminal litigation or for adversarial administrative
  698  proceedings, or which was prepared in anticipation of imminent
  699  civil or criminal litigation or imminent adversarial
  700  administrative proceedings until the conclusion of the
  701  litigation or adversarial administrative proceedings.
  702         2. Information obtained by an association in connection
  703  with the approval of the lease, sale, or other transfer of a
  704  unit.
  705         3.Personnel records of association employees, including,
  706  but not limited to, disciplinary, payroll, health, and insurance
  707  records.
  708         4.3. Medical records of unit owners.
  709         5.4. Social security numbers, driver’s license numbers,
  710  credit card numbers, e-mail addresses, telephone numbers,
  711  emergency contact information, any addresses of a unit owner
  712  other than as provided to fulfill the association’s notice
  713  requirements, and other personal identifying information of any
  714  person, excluding the person’s name, unit designation, mailing
  715  address, and property address.
  716         6.Any electronic security measure that is used by the
  717  association to safeguard data, including passwords.
  718         7.The software and operating system used by the
  719  association which allows manipulation of data, even if the owner
  720  owns a copy of the same software used by the association. The
  721  data is part of the official records of the association.
  722         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  723  the fiscal year, or annually on a date provided in the bylaws,
  724  the association shall prepare and complete, or contract for the
  725  preparation and completion of, a financial report for the
  726  preceding fiscal year. Within 21 days after the final financial
  727  report is completed by the association or received from the
  728  third party, but not later than 120 days after the end of the
  729  fiscal year or other date as provided in the bylaws, the
  730  association shall mail to each unit owner at the address last
  731  furnished to the association by the unit owner, or hand deliver
  732  to each unit owner, a copy of the financial report or a notice
  733  that a copy of the financial report will be mailed or hand
  734  delivered to the unit owner, without charge, upon receipt of a
  735  written request from the unit owner. The division shall adopt
  736  rules setting forth uniform accounting principles and standards
  737  to be used by all associations and shall adopt rules addressing
  738  the financial reporting requirements for multicondominium
  739  associations. The rules must shall include, but not be limited
  740  to, standards for presenting a summary of association reserves,
  741  including a good faith estimate disclosing the annual amount of
  742  reserve funds that would be necessary for the association to
  743  fully fund reserves for each reserve item based on the straight
  744  line accounting method. This disclosure is not applicable to
  745  reserves funded via the pooling method. uniform accounting
  746  principles and standards for stating the disclosure of at least
  747  a summary of the reserves, including information as to whether
  748  such reserves are being funded at a level sufficient to prevent
  749  the need for a special assessment and, if not, the amount of
  750  assessments necessary to bring the reserves up to the level
  751  necessary to avoid a special assessment. The person preparing
  752  the financial reports shall be entitled to rely on an inspection
  753  report prepared for or provided to the association to meet the
  754  fiscal and fiduciary standards of this chapter. In adopting such
  755  rules, the division shall consider the number of members and
  756  annual revenues of an association. Financial reports shall be
  757  prepared as follows:
  758         (a) An association that meets the criteria of this
  759  paragraph shall prepare or cause to be prepared a complete set
  760  of financial statements in accordance with generally accepted
  761  accounting principles. The financial statements must shall be
  762  based upon the association’s total annual revenues, as follows:
  763         1. An association with total annual revenues of $100,000 or
  764  more, but less than $200,000, shall prepare compiled financial
  765  statements.
  766         2. An association with total annual revenues of at least
  767  $200,000, but less than $400,000, shall prepare reviewed
  768  financial statements.
  769         3. An association with total annual revenues of $400,000 or
  770  more shall prepare audited financial statements.
  771         (b)1. An association with total annual revenues of less
  772  than $100,000 shall prepare a report of cash receipts and
  773  expenditures.
  774         2. An association that which operates fewer less than 75 50
  775  units, regardless of the association’s annual revenues, shall
  776  prepare a report of cash receipts and expenditures in lieu of
  777  financial statements required by paragraph (a).
  778         3. A report of cash receipts and disbursements must
  779  disclose the amount of receipts by accounts and receipt
  780  classifications and the amount of expenses by accounts and
  781  expense classifications, including, but not limited to, the
  782  following, as applicable: costs for security, professional and
  783  management fees and expenses, taxes, costs for recreation
  784  facilities, expenses for refuse collection and utility services,
  785  expenses for lawn care, costs for building maintenance and
  786  repair, insurance costs, administration and salary expenses, and
  787  reserves accumulated and expended for capital expenditures,
  788  deferred maintenance, and any other category for which the
  789  association maintains reserves.
  790         (c) An association may prepare or cause to be prepared,
  791  without a meeting of or approval by the unit owners:
  792         1. Compiled, reviewed, or audited financial statements, if
  793  the association is required to prepare a report of cash receipts
  794  and expenditures;
  795         2. Reviewed or audited financial statements, if the
  796  association is required to prepare compiled financial
  797  statements; or
  798         3. Audited financial statements if the association is
  799  required to prepare reviewed financial statements.
  800         (d) If approved by a majority of the voting interests
  801  present at a properly called meeting of the association, an
  802  association may prepare or cause to be prepared:
  803         1. A report of cash receipts and expenditures in lieu of a
  804  compiled, reviewed, or audited financial statement;
  805         2. A report of cash receipts and expenditures or a compiled
  806  financial statement in lieu of a reviewed or audited financial
  807  statement; or
  808         3. A report of cash receipts and expenditures, a compiled
  809  financial statement, or a reviewed financial statement in lieu
  810  of an audited financial statement.
  811  
  812  Such meeting and approval must occur before prior to the end of
  813  the fiscal year and is effective only for the fiscal year in
  814  which the vote is taken, except that the approval may also may
  815  be effective for the following fiscal year. With respect to an
  816  association to which the developer has not turned over control
  817  of the association, all unit owners, including the developer,
  818  may vote on issues related to the preparation of financial
  819  reports for the first 2 fiscal years of the association’s
  820  operation, beginning with the fiscal year in which the
  821  declaration is recorded. Thereafter, all unit owners except the
  822  developer may vote on such issues until control is turned over
  823  to the association by the developer. Any audit or review
  824  prepared under this section shall be paid for by the developer
  825  if done before prior to turnover of control of the association.
  826  An association may not waive the financial reporting
  827  requirements of this section for more than 3 consecutive years.
  828         Section 10. Paragraphs (d), (l), (n), and (o) of subsection
  829  (2) of section 718.112, Florida Statutes, are amended to read:
  830         718.112 Bylaws.—
  831         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  832  following and, if they do not do so, shall be deemed to include
  833  the following:
  834         (d) Unit owner meetings.—
  835         1. There shall be An annual meeting of the unit owners
  836  shall be held at the location provided in the association bylaws
  837  and, if the bylaws are silent as to the location, the meeting
  838  shall be held within 45 miles of the condominium property.
  839  However, such distance requirement does not apply to an
  840  association governing a timeshare condominium. Unless the bylaws
  841  provide otherwise, a vacancy on the board caused by the
  842  expiration of a director’s term shall be filled by electing a
  843  new board member, and the election must shall be by secret
  844  ballot.; However, if the number of vacancies equals or exceeds
  845  the number of candidates, an no election is not required. Except
  846  in a timeshare condominium, the terms of all members of the
  847  board shall expire at the annual meeting and such board members
  848  may stand for reelection unless otherwise permitted by the
  849  bylaws. If In the event that the bylaws permit staggered terms
  850  of no more than 2 years and upon approval of a majority of the
  851  total voting interests, the association board members may serve
  852  2-year staggered terms. If the number of board members whose
  853  terms have expired exceeds the number of eligible members
  854  showing interest in or demonstrating an intention to run for the
  855  vacant positions no person is interested in or demonstrates an
  856  intention to run for the position of a board member whose term
  857  has expired according to the provisions of this subparagraph,
  858  each such board member whose term has expired is eligible for
  859  reappointment shall be automatically reappointed to the board of
  860  administration and need not stand for reelection. In a
  861  condominium association of more than 10 units or in a
  862  condominium association that does not include timeshare units or
  863  timeshare interests, coowners of a unit may not serve as members
  864  of the board of directors at the same time unless they own more
  865  than one unit or unless there are not enough eligible candidates
  866  to fill the vacancies on the board at the time of the vacancy.
  867  Any unit owner desiring to be a candidate for board membership
  868  must shall comply with sub-subparagraph subparagraph 3.a. A
  869  person who has been suspended or removed by the division under
  870  this chapter, or who is delinquent in the payment of any fee,
  871  fine, or special or regular assessment as provided in paragraph
  872  (n), is not eligible for board membership. A person who has been
  873  convicted of any felony in this state or in a United States
  874  District or Territorial Court, or who has been convicted of any
  875  offense in another jurisdiction that would be considered a
  876  felony if committed in this state, is not eligible for board
  877  membership unless such felon’s civil rights have been restored
  878  for at least a period of no less than 5 years as of the date on
  879  which such person seeks election to the board. The validity of
  880  an action by the board is not affected if it is later determined
  881  that a member of the board is ineligible for board membership
  882  due to having been convicted of a felony.
  883         2. The bylaws must shall provide the method of calling
  884  meetings of unit owners, including annual meetings. Written
  885  notice, which notice must include an agenda, shall be mailed,
  886  hand delivered, or electronically transmitted to each unit owner
  887  at least 14 days before prior to the annual meeting and must
  888  shall be posted in a conspicuous place on the condominium
  889  property at least 14 continuous days preceding the annual
  890  meeting. Upon notice to the unit owners, the board shall, by
  891  duly adopted rule, designate a specific location on the
  892  condominium property or association property upon which all
  893  notices of unit owner meetings shall be posted.; However, if
  894  there is no condominium property or association property upon
  895  which notices can be posted, this requirement does not apply. In
  896  lieu of or in addition to the physical posting of meeting
  897  notices notice of any meeting of the unit owners on the
  898  condominium property, the association may, by reasonable rule,
  899  adopt a procedure for conspicuously posting and repeatedly
  900  broadcasting the notice and the agenda on a closed-circuit cable
  901  television system serving the condominium association. However,
  902  if broadcast notice is used in lieu of a notice posted
  903  physically on the condominium property, the notice and agenda
  904  must be broadcast at least four times every broadcast hour of
  905  each day that a posted notice is otherwise required under this
  906  section. If When broadcast notice is provided, the notice and
  907  agenda must be broadcast in a manner and for a sufficient
  908  continuous length of time so as to allow an average reader to
  909  observe the notice and read and comprehend the entire content of
  910  the notice and the agenda. Unless a unit owner waives in writing
  911  the right to receive notice of the annual meeting, such notice
  912  must shall be hand delivered, mailed, or electronically
  913  transmitted to each unit owner. Notice for meetings and notice
  914  for all other purposes must shall be mailed to each unit owner
  915  at the address last furnished to the association by the unit
  916  owner, or hand delivered to each unit owner. However, if a unit
  917  is owned by more than one person, the association shall provide
  918  notice, for meetings and all other purposes, to that one address
  919  which the developer initially identifies for that purpose and
  920  thereafter as one or more of the owners of the unit shall so
  921  advise the association in writing, or if no address is given or
  922  the owners of the unit do not agree, to the address provided on
  923  the deed of record. An officer of the association, or the
  924  manager or other person providing notice of the association
  925  meeting, shall provide an affidavit or United States Postal
  926  Service certificate of mailing, to be included in the official
  927  records of the association affirming that the notice was mailed
  928  or hand delivered, in accordance with this provision.
  929         3. The members of the board shall be elected by written
  930  ballot or voting machine. Proxies may not shall in no event be
  931  used in electing the board, either in general elections or
  932  elections to fill vacancies caused by recall, resignation, or
  933  otherwise, unless otherwise provided in this chapter.
  934         a. At least Not less than 60 days before a scheduled
  935  election, the association shall mail, deliver, or electronically
  936  transmit, whether by separate association mailing or included in
  937  another association mailing, delivery, or transmission,
  938  including regularly published newsletters, to each unit owner
  939  entitled to a vote, a first notice of the date of the election
  940  along with a certification form provided by the division
  941  attesting that he or she has read and understands, to the best
  942  of his or her ability, the governing documents of the
  943  association and the provisions of this chapter and any
  944  applicable rules. Any unit owner or other eligible person
  945  desiring to be a candidate for the board must give written
  946  notice of his or her intent to be a candidate to the association
  947  at least not less than 40 days before a scheduled election.
  948  Together with the written notice and agenda as set forth in
  949  subparagraph 2., the association shall mail, deliver, or
  950  electronically transmit a second notice of the election to all
  951  unit owners entitled to vote therein, together with a ballot
  952  that lists which shall list all candidates. Upon request of a
  953  candidate, the association shall include an information sheet,
  954  no larger than 8 1/2 inches by 11 inches, which must be
  955  furnished by the candidate at least not less than 35 days before
  956  the election, must along with the signed certification form
  957  provided for in this subparagraph, to be included with the
  958  mailing, delivery, or transmission of the ballot, with the costs
  959  of mailing, delivery, or electronic transmission and copying to
  960  be borne by the association. The association is not liable for
  961  the contents of the information sheets prepared by the
  962  candidates. In order to reduce costs, the association may print
  963  or duplicate the information sheets on both sides of the paper.
  964  The division shall by rule establish voting procedures
  965  consistent with this sub-subparagraph the provisions contained
  966  herein, including rules establishing procedures for giving
  967  notice by electronic transmission and rules providing for the
  968  secrecy of ballots. Elections shall be decided by a plurality of
  969  those ballots cast. There is shall be no quorum requirement;
  970  however, at least 20 percent of the eligible voters must cast a
  971  ballot in order to have a valid election of members of the
  972  board. A No unit owner may not shall permit any other person to
  973  vote his or her ballot, and any such ballots improperly cast are
  974  shall be deemed invalid, provided any unit owner who violates
  975  this provision may be fined by the association in accordance
  976  with s. 718.303. A unit owner who needs assistance in casting
  977  the ballot for the reasons stated in s. 101.051 may obtain such
  978  assistance in casting the ballot. The regular election must
  979  shall occur on the date of the annual meeting. The provisions of
  980  This sub-subparagraph does subparagraph shall not apply to
  981  timeshare condominium associations. Notwithstanding the
  982  provisions of this sub-subparagraph subparagraph, an election is
  983  not required unless more candidates file notices of intent to
  984  run or are nominated than board vacancies exist.
  985         b.Within 90 days after being elected or appointed to the
  986  board, each newly elected or appointed director shall certify in
  987  writing to the secretary of the association that he or she has
  988  read the association’s declaration of condominium, articles of
  989  incorporation, bylaws, and current written policies; that he or
  990  she will work to uphold such documents and policies to the best
  991  of his or her ability; and that he or she will faithfully
  992  discharge his or her fiduciary responsibility to the
  993  association’s members. In lieu of this written certification,
  994  the newly elected or appointed director may submit a certificate
  995  of satisfactory completion of the educational curriculum
  996  administered by a division-approved condominium education
  997  provider. A director who fails to timely file the written
  998  certification or educational certificate is suspended from
  999  service on the board until he or she complies with this sub
 1000  subparagraph. The board may temporarily fill the vacancy during
 1001  the period of suspension. The secretary shall cause the
 1002  association to retain a director’s written certification or
 1003  educational certificate for inspection by the members for 5
 1004  years after a director’s election. Failure to have such written
 1005  certification or educational certificate on file does not affect
 1006  the validity of any action.
 1007         4. Any approval by unit owners called for by this chapter
 1008  or the applicable declaration or bylaws, including, but not
 1009  limited to, the approval requirement in s. 718.111(8), shall be
 1010  made at a duly noticed meeting of unit owners and is shall be
 1011  subject to all requirements of this chapter or the applicable
 1012  condominium documents relating to unit owner decisionmaking,
 1013  except that unit owners may take action by written agreement,
 1014  without meetings, on matters for which action by written
 1015  agreement without meetings is expressly allowed by the
 1016  applicable bylaws or declaration or any statute that provides
 1017  for such action.
 1018         5. Unit owners may waive notice of specific meetings if
 1019  allowed by the applicable bylaws or declaration or any statute.
 1020  If authorized by the bylaws, notice of meetings of the board of
 1021  administration, unit owner meetings, except unit owner meetings
 1022  called to recall board members under paragraph (j), and
 1023  committee meetings may be given by electronic transmission to
 1024  unit owners who consent to receive notice by electronic
 1025  transmission.
 1026         6. Unit owners shall have the right to participate in
 1027  meetings of unit owners with reference to all designated agenda
 1028  items. However, the association may adopt reasonable rules
 1029  governing the frequency, duration, and manner of unit owner
 1030  participation.
 1031         7. Any unit owner may tape record or videotape a meeting of
 1032  the unit owners subject to reasonable rules adopted by the
 1033  division.
 1034         8. Unless otherwise provided in the bylaws, any vacancy
 1035  occurring on the board before the expiration of a term may be
 1036  filled by the affirmative vote of the majority of the remaining
 1037  directors, even if the remaining directors constitute less than
 1038  a quorum, or by the sole remaining director. In the alternative,
 1039  a board may hold an election to fill the vacancy, in which case
 1040  the election procedures must conform to the requirements of sub
 1041  subparagraph subparagraph 3.a. unless the association governs 10
 1042  units or fewer less and has opted out of the statutory election
 1043  process, in which case the bylaws of the association control.
 1044  Unless otherwise provided in the bylaws, a board member
 1045  appointed or elected under this section shall fill the vacancy
 1046  for the unexpired term of the seat being filled. Filling
 1047  vacancies created by recall is governed by paragraph (j) and
 1048  rules adopted by the division.
 1049  
 1050  Notwithstanding subparagraph subparagraphs (b)2. and sub
 1051  subparagraph (d)3.a., an association of 10 or fewer units may,
 1052  by the affirmative vote of a majority of the total voting
 1053  interests, provide for different voting and election procedures
 1054  in its bylaws, which vote may be by a proxy specifically
 1055  delineating the different voting and election procedures. The
 1056  different voting and election procedures may provide for
 1057  elections to be conducted by limited or general proxy.
 1058         (l) Certificate of compliance.There shall be A provision
 1059  that a certificate of compliance from a licensed electrical
 1060  contractor or electrician may be accepted by the association’s
 1061  board as evidence of compliance of the condominium units with
 1062  the applicable fire and life safety code must be included.
 1063  Notwithstanding the provisions of chapter 633 or of any other
 1064  code, statute, ordinance, administrative rule, or regulation, or
 1065  any interpretation of the foregoing, an association,
 1066  condominium, or unit owner is not obligated to retrofit the
 1067  common elements, common areas, association property, or units of
 1068  a residential condominium with a fire sprinkler system or any
 1069  other form of engineered lifesafety system in a building that
 1070  has been certified for occupancy by the applicable governmental
 1071  entity, if the unit owners have voted to forego such
 1072  retrofitting and engineered lifesafety system by the affirmative
 1073  vote of two-thirds of all voting interests in the affected
 1074  condominium. However, a condominium association may not vote to
 1075  forego the retrofitting with a fire sprinkler system of common
 1076  areas in a high-rise building. For purposes of this subsection,
 1077  the term “high-rise building” means a building that is greater
 1078  than 75 feet in height where the building height is measured
 1079  from the lowest level of fire department access to the floor of
 1080  the highest occupiable story. For purposes of this subsection,
 1081  the term “common areas” means any enclosed hallway, corridor,
 1082  lobby, stairwell, or entryway. In no event shall The local
 1083  authority having jurisdiction may not require completion of
 1084  retrofitting of common areas with a sprinkler system or any
 1085  other form of engineered lifesafety system before the end of
 1086  2019 2014.
 1087         1. A vote to forego retrofitting may be obtained by limited
 1088  proxy or by a ballot personally cast at a duly called membership
 1089  meeting, or by execution of a written consent by the member, and
 1090  is shall be effective upon the recording of a certificate
 1091  attesting to such vote in the public records of the county where
 1092  the condominium is located. The association shall mail or, hand
 1093  deliver, or electronically transmit to each unit owner written
 1094  notice at least 14 days before the prior to such membership
 1095  meeting in which the vote to forego retrofitting of the required
 1096  fire sprinkler system or any other form of engineered lifesafety
 1097  system is to take place. Within 30 days after the association’s
 1098  opt-out vote, notice of the results of the opt-out vote must
 1099  shall be mailed or, hand delivered, or electronically
 1100  transmitted to all unit owners. Evidence of compliance with this
 1101  30-day notice requirement must shall be made by an affidavit
 1102  executed by the person providing the notice and filed among the
 1103  official records of the association. After such notice is
 1104  provided to each owner, a copy must of such notice shall be
 1105  provided by the current owner to a new owner before prior to
 1106  closing and shall be provided by a unit owner to a renter before
 1107  prior to signing a lease.
 1108         2. If there has been a previous vote to forego
 1109  retrofitting, a vote to require retrofitting may be obtained at
 1110  a special meeting of the unit owners called by a petition of
 1111  least 10 percent of the voting interests. Such a vote may only
 1112  be called once every 3 years. Notice shall be provided as
 1113  required for any regularly called meeting of the unit owners,
 1114  and must state the purpose of the meeting. Electronic
 1115  transmission may not be used to provide notice of a meeting
 1116  called in whole or in part for this purpose.
 1117         3.2. As part of the information collected annually from
 1118  condominiums, the division shall require condominium
 1119  associations to report the membership vote and recording of a
 1120  certificate under this subsection and, if retrofitting has been
 1121  undertaken, the per-unit cost of such work. The division shall
 1122  annually report to the Division of State Fire Marshal of the
 1123  Department of Financial Services the number of condominiums that
 1124  have elected to forego retrofitting.
 1125         4. Notwithstanding s. 553.509, an association may not be
 1126  obligated to, and may forego the retrofitting of, any
 1127  improvements required by s. 553.509(2) upon an affirmative vote
 1128  of a majority of the voting interests in the affected
 1129  condominium.
 1130         (n) Director or officer delinquencies.—A director or
 1131  officer more than 90 days delinquent in the payment of any
 1132  monetary obligation due the association regular assessments
 1133  shall be deemed to have abandoned the office, creating a vacancy
 1134  in the office to be filled according to law.
 1135         (o) Director or officer offenses.—A director or officer
 1136  charged by information or indictment with a felony theft or
 1137  embezzlement offense involving the association’s funds or
 1138  property must shall be removed from office, creating a vacancy
 1139  in the office to be filled according to law until the end of the
 1140  period of the suspension or the end of the director’s term of
 1141  office, whichever occurs first. While such director or officer
 1142  has such criminal charge pending, he or she may not be appointed
 1143  or elected to a position as a director or officer. However, if
 1144  should the charges are be resolved without a finding of guilt,
 1145  the director or officer shall be reinstated for the remainder of
 1146  his or her term of office, if any.
 1147         Section 11. Paragraph (d) of subsection (1) of section
 1148  718.115, Florida Statutes, is amended to read:
 1149         718.115 Common expenses and common surplus.—
 1150         (1)
 1151         (d) If so provided in the declaration, the cost of
 1152  communications services as defined in chapter 202, information
 1153  services, or Internet services a master antenna television
 1154  system or duly franchised cable television service obtained
 1155  pursuant to a bulk contract is shall be deemed a common expense.
 1156  If the declaration does not provide for the cost of such
 1157  services a master antenna television system or duly franchised
 1158  cable television service obtained under a bulk contract as a
 1159  common expense, the board may enter into such a contract, and
 1160  the cost of the service will be a common expense. The cost for
 1161  the services under a bulk-rate contract may be but allocated on
 1162  a per-unit basis rather than a percentage basis if the
 1163  declaration provides for other than an equal sharing of common
 1164  expenses, and any contract entered into before July 1, 1998, in
 1165  which the cost of the service is not equally divided among all
 1166  unit owners, may be changed by vote of a majority of the voting
 1167  interests present at a regular or special meeting of the
 1168  association, to allocate the cost equally among all units. The
 1169  contract must be for at least shall be for a term of not less
 1170  than 2 years.
 1171         1. Any contract made by the board on or after July 1, 1998,
 1172  the effective date hereof for a community antenna system or duly
 1173  franchised cable television service may be canceled by a
 1174  majority of the voting interests present at the next regular or
 1175  special meeting of the association. Any member may make a motion
 1176  to cancel the said contract, but if no motion is made or if such
 1177  motion fails to obtain the required majority at the next regular
 1178  or special meeting, whichever occurs first is sooner, following
 1179  the making of the contract, then such contract shall be deemed
 1180  ratified for the term therein expressed.
 1181         2. Any Such contract must shall provide, and is shall be
 1182  deemed to provide if not expressly set forth, that any hearing
 1183  impaired or legally blind unit owner who does not occupy the
 1184  unit with a non-hearing-impaired or sighted person, or any unit
 1185  owner receiving supplemental security income under Title XVI of
 1186  the Social Security Act or food stamps as administered by the
 1187  Department of Children and Family Services pursuant to s.
 1188  414.31, may discontinue the cable or video service without
 1189  incurring disconnect fees, penalties, or subsequent service
 1190  charges, and, as to such units, the owners are shall not be
 1191  required to pay any common expenses charge related to such
 1192  service. If fewer less than all members of an association share
 1193  the expenses of cable or video service television, the expense
 1194  shall be shared equally by all participating unit owners. The
 1195  association may use the provisions of s. 718.116 to enforce
 1196  payment of the shares of such costs by the unit owners receiving
 1197  cable or video service television.
 1198         Section 12. Subsection (3) and paragraph (b) of subsection
 1199  (5) of section 718.116, Florida Statutes, is amended, and
 1200  subsection (11) is added to that section, to read:
 1201         718.116 Assessments; liability; lien and priority;
 1202  interest; collection.—
 1203         (3) Assessments and installments on assessments them which
 1204  are not paid when due bear interest at the rate provided in the
 1205  declaration, from the due date until paid. This rate may not
 1206  exceed the rate allowed by law, and, if no rate is provided in
 1207  the declaration, interest accrues shall accrue at the rate of 18
 1208  percent per year. Also, if provided by the declaration or bylaws
 1209  so provide, the association may, in addition to such interest,
 1210  charge an administrative late fee of up to in addition to such
 1211  interest, in an amount not to exceed the greater of $25 or 5
 1212  percent of each installment of the assessment for each
 1213  delinquent installment for which that the payment is late. Any
 1214  payment received by an association must shall be applied first
 1215  to any interest accrued by the association, then to any
 1216  administrative late fee, then to any costs and reasonable
 1217  attorney’s fees incurred in collection, and then to the
 1218  delinquent assessment. Costs may include delinquency letters and
 1219  other collections efforts by a licensed management company or a
 1220  licensed manager relating to a delinquent installment of an
 1221  assessment incurred before filing a claim of lien that does not
 1222  exceed $75. The foregoing is shall be applicable notwithstanding
 1223  any restrictive endorsement, designation, or instruction placed
 1224  on or accompanying a payment. A late fee is shall not be subject
 1225  to the provisions in chapter 687 or s. 718.303(3).
 1226         (5)
 1227         (b) To be valid, a claim of lien must state the description
 1228  of the condominium parcel, the name of the record owner, the
 1229  name and address of the association, the amount due, and the due
 1230  dates. It must be executed and acknowledged by an officer or
 1231  authorized agent of the association. The No such lien is not
 1232  shall be effective longer than 1 year after the claim of lien
 1233  was recorded unless, within that time, an action to enforce the
 1234  lien is commenced. The 1-year period is shall automatically be
 1235  extended for any length of time during which the association is
 1236  prevented from filing a foreclosure action by an automatic stay
 1237  resulting from a bankruptcy petition filed by the parcel owner
 1238  or any other person claiming an interest in the parcel. The
 1239  claim of lien secures shall secure all unpaid assessments that
 1240  which are due and that which may accrue after subsequent to the
 1241  recording of the claim of lien is recorded and through prior to
 1242  the entry of a final judgment certificate of title, as well as
 1243  interest and all reasonable costs and attorney’s fees incurred
 1244  by the association incident to the collection process. Upon
 1245  payment in full, the person making the payment is entitled to a
 1246  satisfaction of the lien.
 1247  
 1248  After notice of contest of lien has been recorded, the clerk of
 1249  the circuit court shall mail a copy of the recorded notice to
 1250  the association by certified mail, return receipt requested, at
 1251  the address shown in the claim of lien or most recent amendment
 1252  to it and shall certify to the service on the face of the
 1253  notice. Service is complete upon mailing. After service, the
 1254  association has 90 days in which to file an action to enforce
 1255  the lien; and, if the action is not filed within the 90-day
 1256  period, the lien is void. However, the 90-day period shall be
 1257  extended for any length of time that the association is
 1258  prevented from filing its action because of an automatic stay
 1259  resulting from the filing of a bankruptcy petition by the unit
 1260  owner or by any other person claiming an interest in the parcel.
 1261         (11)If the unit is occupied by a tenant and the unit owner
 1262  is delinquent in paying any monetary obligation due to the
 1263  association, the association may make a written demand that the
 1264  tenant pay the future monetary obligations related to the
 1265  condominium unit to the association, and the tenant must make
 1266  such payment. The demand is continuing in nature and, upon
 1267  demand, the tenant must pay the monetary obligations to the
 1268  association until the association releases the tenant or the
 1269  tenant discontinues tenancy in the unit. The association must
 1270  mail written notice to the unit owner of the association’s
 1271  demand that the tenant make payments to the association. The
 1272  association shall, upon request, provide the tenant with written
 1273  receipts for payments made. A tenant who acts in good faith in
 1274  response to a written demand from an association is immune from
 1275  any claim from the unit owner.
 1276         (a) If the tenant prepaid rent to the unit owner before
 1277  receiving the demand from the association and provides written
 1278  evidence of paying the rent to the association within 14 days
 1279  after receiving the demand, the tenant must make any subsequent
 1280  rental payments to the association to be credited against the
 1281  monetary obligations of the unit owner to the association.
 1282         (b) The tenant is not liable for increases in the amount of
 1283  the monetary obligations due unless the tenant was notified in
 1284  writing of the increase at least 10 days before the date the
 1285  rent is due. The liability of the tenant may not exceed the
 1286  amount due from the tenant to the tenant’s landlord. The
 1287  tenant’s landlord shall provide the tenant a credit against
 1288  rents due to the unit owner in the amount of monies paid to the
 1289  association under this section.
 1290         (c) The association may issue notices under s. 83.56 and
 1291  may sue for eviction under ss. 83.59-83.625 as if the
 1292  association were a landlord under part II of chapter 83 if the
 1293  tenant fails to pay a required payment to the association.
 1294  However, the association is not otherwise considered a landlord
 1295  under chapter 83 and specifically has no duties under s. 83.51.
 1296         (d) The tenant does not, by virtue of payment of monetary
 1297  obligations to the association, have any of the rights of a unit
 1298  owner to vote in any election or to examine the books and
 1299  records of the association.
 1300         (e) A court may supersede the effect of this subsection by
 1301  appointing a receiver.
 1302         Section 13. Subsections (2) and (19) of section 718.117,
 1303  Florida Statutes, are amended to read:
 1304         718.117 Termination of condominium.—
 1305         (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR
 1306  IMPOSSIBILITY.—
 1307         (a) Notwithstanding any provision to the contrary in the
 1308  declaration, the condominium form of ownership of a property may
 1309  be terminated by a plan of termination approved by the lesser of
 1310  the lowest percentage of voting interests necessary to amend the
 1311  declaration or as otherwise provided in the declaration for
 1312  approval of termination if when:
 1313         1. The total estimated cost of construction or repairs
 1314  necessary to construct the intended improvements or restore the
 1315  improvements to their former condition or bring them into
 1316  compliance with applicable laws or regulations exceeds the
 1317  combined fair market value of the all units in the condominium
 1318  after completion of the construction or repairs; or
 1319         2. It becomes impossible to operate or reconstruct a
 1320  condominium to in its prior physical configuration because of
 1321  land use laws or regulations.
 1322         (b) Notwithstanding paragraph (a), a condominium in which
 1323  75 percent or more of the units are timeshare units may be
 1324  terminated only pursuant to a plan of termination approved by 80
 1325  percent of the total voting interests of the association and the
 1326  holders of 80 percent of the original principal amount of
 1327  outstanding recorded mortgage liens of timeshare estates in the
 1328  condominium, unless the declaration provides for a lower voting
 1329  percentage.
 1330         (19) CREATION OF ANOTHER CONDOMINIUM.—The termination of a
 1331  condominium does not bar the filing of a declaration of
 1332  condominium or an amended and restated declaration of
 1333  condominium creation by the termination trustee of another
 1334  condominium affecting any portion of the same property.
 1335         Section 14. Subsection (1) of section 718.301, Florida
 1336  Statutes, is amended to read:
 1337         718.301 Transfer of association control; claims of defect
 1338  by association.—
 1339         (1) If When unit owners other than the developer own 15
 1340  percent or more of the units in a condominium that will be
 1341  operated ultimately by an association, the unit owners other
 1342  than the developer are shall be entitled to elect at least no
 1343  less than one-third of the members of the board of
 1344  administration of the association. Unit owners other than the
 1345  developer are entitled to elect at least not less than a
 1346  majority of the members of the board of administration of an
 1347  association:
 1348         (a) Three years after 50 percent of the units that will be
 1349  operated ultimately by the association have been conveyed to
 1350  purchasers;
 1351         (b) Three months after 90 percent of the units that will be
 1352  operated ultimately by the association have been conveyed to
 1353  purchasers;
 1354         (c) When all the units that will be operated ultimately by
 1355  the association have been completed, some of them have been
 1356  conveyed to purchasers, and none of the others are being offered
 1357  for sale by the developer in the ordinary course of business;
 1358         (d) When some of the units have been conveyed to purchasers
 1359  and none of the others are being constructed or offered for sale
 1360  by the developer in the ordinary course of business;
 1361         (e) When the developer files a petition seeking protection
 1362  in bankruptcy;
 1363         (f) When a receiver for the developer is appointed by a
 1364  circuit court and is not discharged within 30 days after such
 1365  appointment, unless the court determines within 30 days after
 1366  appointment of the receiver that transfer of control would be
 1367  detrimental to the association or its members; or
 1368         (g) Seven years after recordation of the declaration of
 1369  condominium; or, in the case of an association that which may
 1370  ultimately operate more than one condominium, 7 years after
 1371  recordation of the declaration for the first condominium it
 1372  operates; or, in the case of an association operating a phase
 1373  condominium created pursuant to s. 718.403, 7 years after
 1374  recordation of the declaration creating the initial phase,
 1375  whichever occurs first. The developer is entitled to elect at
 1376  least one member of the board of administration of an
 1377  association as long as the developer holds for sale in the
 1378  ordinary course of business at least 5 percent, in condominiums
 1379  with fewer than 500 units, and 2 percent, in condominiums with
 1380  more than 500 units, of the units in a condominium operated by
 1381  the association. After Following the time the developer
 1382  relinquishes control of the association, the developer may
 1383  exercise the right to vote any developer-owned units in the same
 1384  manner as any other unit owner except for purposes of
 1385  reacquiring control of the association or selecting the majority
 1386  members of the board of administration.
 1387         Section 15. Section 718.303, Florida Statutes, is amended
 1388  to read:
 1389         718.303 Obligations of owners and occupants; remedies
 1390  waiver; levy of fine against unit by association.—
 1391         (1) Each unit owner, each tenant and other invitee, and
 1392  each association is shall be governed by, and must shall comply
 1393  with the provisions of, this chapter, the declaration, the
 1394  documents creating the association, and the association bylaws
 1395  which and the provisions thereof shall be deemed expressly
 1396  incorporated into any lease of a unit. Actions for damages or
 1397  for injunctive relief, or both, for failure to comply with these
 1398  provisions may be brought by the association or by a unit owner
 1399  against:
 1400         (a) The association.
 1401         (b) A unit owner.
 1402         (c) Directors designated by the developer, for actions
 1403  taken by them before prior to the time control of the
 1404  association is assumed by unit owners other than the developer.
 1405         (d) Any director who willfully and knowingly fails to
 1406  comply with these provisions.
 1407         (e) Any tenant leasing a unit, and any other invitee
 1408  occupying a unit.
 1409  
 1410  The prevailing party in any such action or in any action in
 1411  which the purchaser claims a right of voidability based upon
 1412  contractual provisions as required in s. 718.503(1)(a) is
 1413  entitled to recover reasonable attorney’s fees. A unit owner
 1414  prevailing in an action between the association and the unit
 1415  owner under this section, in addition to recovering his or her
 1416  reasonable attorney’s fees, may recover additional amounts as
 1417  determined by the court to be necessary to reimburse the unit
 1418  owner for his or her share of assessments levied by the
 1419  association to fund its expenses of the litigation. This relief
 1420  does not exclude other remedies provided by law. Actions arising
 1421  under this subsection may shall not be deemed to be actions for
 1422  specific performance.
 1423         (2) A provision of this chapter may not be waived if the
 1424  waiver would adversely affect the rights of a unit owner or the
 1425  purpose of the provision, except that unit owners or members of
 1426  a board of administration may waive notice of specific meetings
 1427  in writing if provided by the bylaws. Any instruction given in
 1428  writing by a unit owner or purchaser to an escrow agent may be
 1429  relied upon by an escrow agent, whether or not such instruction
 1430  and the payment of funds thereunder might constitute a waiver of
 1431  any provision of this chapter.
 1432         (3) If a unit owner is delinquent for more than 90 days in
 1433  paying a monetary obligation due to the association the
 1434  declaration or bylaws so provide, the association may suspend
 1435  the right of a unit owner or a unit’s occupant, licensee, or
 1436  invitee to use common elements, common facilities, or any other
 1437  association property until the monetary obligation is paid. This
 1438  subsection does not apply to limited common elements intended to
 1439  be used only by that unit, common elements that must be used to
 1440  access the unit, utility services provided to the unit, parking
 1441  spaces, or elevators. The association may also levy reasonable
 1442  fines against a unit for the failure of the owner of the unit,
 1443  or its occupant, licensee, or invitee, to comply with any
 1444  provision of the declaration, the association bylaws, or
 1445  reasonable rules of the association. A No fine does not will
 1446  become a lien against a unit. A No fine may not exceed $100 per
 1447  violation. However, a fine may be levied on the basis of each
 1448  day of a continuing violation, with a single notice and
 1449  opportunity for hearing. However, the provided that no such fine
 1450  may not shall in the aggregate exceed $1,000. A No fine may not
 1451  be levied and a suspension may not be imposed unless the
 1452  association first provides at least 14 days’ written except
 1453  after giving reasonable notice and an opportunity for a hearing
 1454  to the unit owner and, if applicable, its occupant, licensee, or
 1455  invitee. The hearing must be held before a committee of other
 1456  unit owners who are neither board members nor persons residing
 1457  in a board member’s household. If the committee does not agree
 1458  with the fine or suspension, the fine or suspension may not be
 1459  levied or imposed. The provisions of this subsection do not
 1460  apply to unoccupied units.
 1461         (4)The notice and hearing requirements of subsection (3)
 1462  do not apply to the imposition of suspensions or fines against a
 1463  unit owner or a unit’s occupant, licensee, or invitee because of
 1464  failing to pay any amounts due the association. If such a fine
 1465  or suspension is imposed, the association must levy the fine or
 1466  impose a reasonable suspension at a properly noticed board
 1467  meeting, and after the imposition of such fine or suspension,
 1468  the association must notify the unit owner and, if applicable,
 1469  the unit’s occupant, licensee, or invitee by mail or hand
 1470  delivery.
 1471         (5)An association may also suspend the voting rights of a
 1472  member due to nonpayment of any monetary obligation due to the
 1473  association which is more than 90 days delinquent. The
 1474  suspension ends upon full payment of all obligations currently
 1475  due or overdue the association.
 1476         Section 16. Subsection (1) of section 718.501, Florida
 1477  Statutes, is amended to read:
 1478         718.501 Authority, responsibility, and duties of Division
 1479  of Florida Condominiums, Timeshares, and Mobile Homes.—
 1480         (1) The division may of Florida Condominiums, Timeshares,
 1481  and Mobile Homes of the Department of Business and Professional
 1482  Regulation, referred to as the “division” in this part, has the
 1483  power to enforce and ensure compliance with the provisions of
 1484  this chapter and rules relating to the development,
 1485  construction, sale, lease, ownership, operation, and management
 1486  of residential condominium units. In performing its duties, the
 1487  division has complete jurisdiction to investigate complaints and
 1488  enforce compliance with the provisions of this chapter with
 1489  respect to associations that are still under developer control
 1490  or the control of a bulk assignee or bulk buyer pursuant to part
 1491  VII of this chapter and complaints against developers, bulk
 1492  assignees, or bulk buyers involving improper turnover or failure
 1493  to turnover, pursuant to s. 718.301. However, after turnover has
 1494  occurred, the division has shall only have jurisdiction to
 1495  investigate complaints related only to financial issues,
 1496  elections, and unit owner access to association records pursuant
 1497  to s. 718.111(12).
 1498         (a)1. The division may make necessary public or private
 1499  investigations within or outside this state to determine whether
 1500  any person has violated this chapter or any rule or order
 1501  hereunder, to aid in the enforcement of this chapter, or to aid
 1502  in the adoption of rules or forms hereunder.
 1503         2. The division may submit any official written report,
 1504  worksheet, or other related paper, or a duly certified copy
 1505  thereof, compiled, prepared, drafted, or otherwise made by and
 1506  duly authenticated by a financial examiner or analyst to be
 1507  admitted as competent evidence in any hearing in which the
 1508  financial examiner or analyst is available for cross-examination
 1509  and attests under oath that such documents were prepared as a
 1510  result of an examination or inspection conducted pursuant to
 1511  this chapter.
 1512         (b) The division may require or permit any person to file a
 1513  statement in writing, under oath or otherwise, as the division
 1514  determines, as to the facts and circumstances concerning a
 1515  matter to be investigated.
 1516         (c) For the purpose of any investigation under this
 1517  chapter, the division director or any officer or employee
 1518  designated by the division director may administer oaths or
 1519  affirmations, subpoena witnesses and compel their attendance,
 1520  take evidence, and require the production of any matter which is
 1521  relevant to the investigation, including the existence,
 1522  description, nature, custody, condition, and location of any
 1523  books, documents, or other tangible things and the identity and
 1524  location of persons having knowledge of relevant facts or any
 1525  other matter reasonably calculated to lead to the discovery of
 1526  material evidence. Upon the failure by a person to obey a
 1527  subpoena or to answer questions propounded by the investigating
 1528  officer and upon reasonable notice to all persons affected
 1529  persons thereby, the division may apply to the circuit court for
 1530  an order compelling compliance.
 1531         (d) Notwithstanding any remedies available to unit owners
 1532  and associations, if the division has reasonable cause to
 1533  believe that a violation of any provision of this chapter or
 1534  related rule has occurred, the division may institute
 1535  enforcement proceedings in its own name against any developer,
 1536  bulk assignee, bulk buyer, association, officer, or member of
 1537  the board of administration, or its assignees or agents, as
 1538  follows:
 1539         1. The division may permit a person whose conduct or
 1540  actions may be under investigation to waive formal proceedings
 1541  and enter into a consent proceeding whereby orders, rules, or
 1542  letters of censure or warning, whether formal or informal, may
 1543  be entered against the person.
 1544         2. The division may issue an order requiring the developer,
 1545  bulk assignee, bulk buyer, association, developer-designated
 1546  officer, or developer-designated member of the board of
 1547  administration, developer-designated assignees or agents, bulk
 1548  assignee-designated assignees or agents, bulk buyer-designated
 1549  assignees or agents, community association manager, or community
 1550  association management firm to cease and desist from the
 1551  unlawful practice and take such affirmative action as in the
 1552  judgment of the division will carry out the purposes of this
 1553  chapter. If the division finds that a developer, bulk assignee,
 1554  bulk buyer, association, officer, or member of the board of
 1555  administration, or its assignees or agents, is violating or is
 1556  about to violate any provision of this chapter, any rule adopted
 1557  or order issued by the division, or any written agreement
 1558  entered into with the division, and presents an immediate danger
 1559  to the public requiring an immediate final order, it may issue
 1560  an emergency cease and desist order reciting with particularity
 1561  the facts underlying such findings. The emergency cease and
 1562  desist order is effective for 90 days. If the division begins
 1563  nonemergency cease and desist proceedings, the emergency cease
 1564  and desist order remains effective until the conclusion of the
 1565  proceedings under ss. 120.569 and 120.57.
 1566         3. If a developer, bulk assignee, or bulk buyer, fails to
 1567  pay any restitution determined by the division to be owed, plus
 1568  any accrued interest at the highest rate permitted by law,
 1569  within 30 days after expiration of any appellate time period of
 1570  a final order requiring payment of restitution or the conclusion
 1571  of any appeal thereof, whichever is later, the division must
 1572  shall bring an action in circuit or county court on behalf of
 1573  any association, class of unit owners, lessees, or purchasers
 1574  for restitution, declaratory relief, injunctive relief, or any
 1575  other available remedy. The division may also temporarily revoke
 1576  its acceptance of the filing for the developer to which the
 1577  restitution relates until payment of restitution is made.
 1578         4. The division may petition the court for the appointment
 1579  of a receiver or conservator. If appointed, the receiver or
 1580  conservator may take action to implement the court order to
 1581  ensure the performance of the order and to remedy any breach
 1582  thereof. In addition to all other means provided by law for the
 1583  enforcement of an injunction or temporary restraining order, the
 1584  circuit court may impound or sequester the property of a party
 1585  defendant, including books, papers, documents, and related
 1586  records, and allow the examination and use of the property by
 1587  the division and a court-appointed receiver or conservator.
 1588         5. The division may apply to the circuit court for an order
 1589  of restitution whereby the defendant in an action brought
 1590  pursuant to subparagraph 4. is shall be ordered to make
 1591  restitution of those sums shown by the division to have been
 1592  obtained by the defendant in violation of this chapter. Such
 1593  restitution shall, At the option of the court, such restitution
 1594  is be payable to the conservator or receiver appointed pursuant
 1595  to subparagraph 4. or directly to the persons whose funds or
 1596  assets were obtained in violation of this chapter.
 1597         6. The division may impose a civil penalty against a
 1598  developer, bulk assignee, or bulk buyer, or association, or its
 1599  assignee or agent, for any violation of this chapter or related
 1600  a rule adopted under this chapter. The division may impose a
 1601  civil penalty individually against an any officer or board
 1602  member who willfully and knowingly violates a provision of this
 1603  chapter, adopted rule, or a final order of the division; may
 1604  order the removal of such individual as an officer or from the
 1605  board of administration or as an officer of the association; and
 1606  may prohibit such individual from serving as an officer or on
 1607  the board of a community association for a period of time. The
 1608  term “willfully and knowingly” means that the division informed
 1609  the officer or board member that his or her action or intended
 1610  action violates this chapter, a rule adopted under this chapter,
 1611  or a final order of the division and that the officer or board
 1612  member refused to comply with the requirements of this chapter,
 1613  a rule adopted under this chapter, or a final order of the
 1614  division. The division, before prior to initiating formal agency
 1615  action under chapter 120, must shall afford the officer or board
 1616  member an opportunity to voluntarily comply and with this
 1617  chapter, a rule adopted under this chapter, or a final order of
 1618  the division. an officer or board member who complies within 10
 1619  days is not subject to a civil penalty. A penalty may be imposed
 1620  on the basis of each day of continuing violation, but in no
 1621  event shall the penalty for any offense may not exceed $5,000.
 1622  By January 1, 1998, the division shall adopt, by rule, penalty
 1623  guidelines applicable to possible violations or to categories of
 1624  violations of this chapter or rules adopted by the division. The
 1625  guidelines must specify a meaningful range of civil penalties
 1626  for each such violation of the statute and rules and must be
 1627  based upon the harm caused by the violation, the repetition of
 1628  the violation, and upon such other factors deemed relevant by
 1629  the division. For example, the division may consider whether the
 1630  violations were committed by a developer, bulk assignee, or bulk
 1631  buyer, or owner-controlled association, the size of the
 1632  association, and other factors. The guidelines must designate
 1633  the possible mitigating or aggravating circumstances that
 1634  justify a departure from the range of penalties provided by the
 1635  rules. It is the legislative intent that minor violations be
 1636  distinguished from those which endanger the health, safety, or
 1637  welfare of the condominium residents or other persons and that
 1638  such guidelines provide reasonable and meaningful notice to the
 1639  public of likely penalties that may be imposed for proscribed
 1640  conduct. This subsection does not limit the ability of the
 1641  division to informally dispose of administrative actions or
 1642  complaints by stipulation, agreed settlement, or consent order.
 1643  All amounts collected shall be deposited with the Chief
 1644  Financial Officer to the credit of the Division of Florida
 1645  Condominiums, Timeshares, and Mobile Homes Trust Fund. If a
 1646  developer, bulk assignee, or bulk buyer fails to pay the civil
 1647  penalty and the amount deemed to be owed to the association, the
 1648  division shall issue an order directing that such developer,
 1649  bulk assignee, or bulk buyer cease and desist from further
 1650  operation until such time as the civil penalty is paid or may
 1651  pursue enforcement of the penalty in a court of competent
 1652  jurisdiction. If an association fails to pay the civil penalty,
 1653  the division shall pursue enforcement in a court of competent
 1654  jurisdiction, and the order imposing the civil penalty or the
 1655  cease and desist order is will not become effective until 20
 1656  days after the date of such order. Any action commenced by the
 1657  division shall be brought in the county in which the division
 1658  has its executive offices or in the county where the violation
 1659  occurred.
 1660         7. If a unit owner presents the division with proof that
 1661  the unit owner has requested access to official records in
 1662  writing by certified mail, and that after 10 days the unit owner
 1663  again made the same request for access to official records in
 1664  writing by certified mail, and that more than 10 days has
 1665  elapsed since the second request and the association has still
 1666  failed or refused to provide access to official records as
 1667  required by this chapter, the division shall issue a subpoena
 1668  requiring production of the requested records where the records
 1669  are kept pursuant to s. 718.112.
 1670         8. In addition to subparagraph 6., the division may seek
 1671  the imposition of a civil penalty through the circuit court for
 1672  any violation for which the division may issue a notice to show
 1673  cause under paragraph (r). The civil penalty shall be at least
 1674  $500 but no more than $5,000 for each violation. The court may
 1675  also award to the prevailing party court costs and reasonable
 1676  attorney’s fees and, if the division prevails, may also award
 1677  reasonable costs of investigation.
 1678         (e) The division may prepare and disseminate a prospectus
 1679  and other information to assist prospective owners, purchasers,
 1680  lessees, and developers of residential condominiums in assessing
 1681  the rights, privileges, and duties pertaining thereto.
 1682         (f) The division may has authority to adopt rules pursuant
 1683  to ss. 120.536(1) and 120.54 to administer implement and enforce
 1684  the provisions of this chapter.
 1685         (g) The division shall establish procedures for providing
 1686  notice to an association and the developer, bulk assignee, or
 1687  bulk buyer during the period in which where the developer, bulk
 1688  assignee, or bulk buyer controls the association if when the
 1689  division is considering the issuance of a declaratory statement
 1690  with respect to the declaration of condominium or any related
 1691  document governing in such condominium community.
 1692         (h) The division shall furnish each association that which
 1693  pays the fees required by paragraph (2)(a) a copy of this
 1694  chapter, as amended act, subsequent changes to this act on an
 1695  annual basis, an amended version of this act as it becomes
 1696  available from the Secretary of State’s office on a biennial
 1697  basis, and the rules adopted thereto on an annual basis.
 1698         (i) The division shall annually provide each association
 1699  with a summary of declaratory statements and formal legal
 1700  opinions relating to the operations of condominiums which were
 1701  rendered by the division during the previous year.
 1702         (j) The division shall provide training and educational
 1703  programs for condominium association board members and unit
 1704  owners. The training may, in the division’s discretion, include
 1705  web-based electronic media, and live training and seminars in
 1706  various locations throughout the state. The division may shall
 1707  have the authority to review and approve education and training
 1708  programs for board members and unit owners offered by providers
 1709  and shall maintain a current list of approved programs and
 1710  providers and shall make such list available to board members
 1711  and unit owners in a reasonable and cost-effective manner.
 1712         (k) The division shall maintain a toll-free telephone
 1713  number accessible to condominium unit owners.
 1714         (l) The division shall develop a program to certify both
 1715  volunteer and paid mediators to provide mediation of condominium
 1716  disputes. The division shall provide, upon request, a list of
 1717  such mediators to any association, unit owner, or other
 1718  participant in arbitration proceedings under s. 718.1255
 1719  requesting a copy of the list. The division shall include on the
 1720  list of volunteer mediators only the names of persons who have
 1721  received at least 20 hours of training in mediation techniques
 1722  or who have mediated at least 20 disputes. In order to become
 1723  initially certified by the division, paid mediators must be
 1724  certified by the Supreme Court to mediate court cases in county
 1725  or circuit courts. However, the division may adopt, by rule,
 1726  additional factors for the certification of paid mediators,
 1727  which factors must be related to experience, education, or
 1728  background. Any person initially certified as a paid mediator by
 1729  the division must, in order to continue to be certified, comply
 1730  with the factors or requirements adopted by rule imposed by
 1731  rules adopted by the division.
 1732         (m) If When a complaint is made, the division must shall
 1733  conduct its inquiry with due regard for to the interests of the
 1734  affected parties. Within 30 days after receipt of a complaint,
 1735  the division shall acknowledge the complaint in writing and
 1736  notify the complainant whether the complaint is within the
 1737  jurisdiction of the division and whether additional information
 1738  is needed by the division from the complainant. The division
 1739  shall conduct its investigation and shall, within 90 days after
 1740  receipt of the original complaint or of timely requested
 1741  additional information, take action upon the complaint. However,
 1742  the failure to complete the investigation within 90 days does
 1743  not prevent the division from continuing the investigation,
 1744  accepting or considering evidence obtained or received after 90
 1745  days, or taking administrative action if reasonable cause exists
 1746  to believe that a violation of this chapter or a rule of the
 1747  division has occurred. If an investigation is not completed
 1748  within the time limits established in this paragraph, the
 1749  division shall, on a monthly basis, notify the complainant in
 1750  writing of the status of the investigation. When reporting its
 1751  action to the complainant, the division shall inform the
 1752  complainant of any right to a hearing pursuant to ss. 120.569
 1753  and 120.57.
 1754         (n) Condominium association directors, officers, and
 1755  employees; condominium developers; bulk assignees, bulk buyers,
 1756  and community association managers; and community association
 1757  management firms have an ongoing duty to reasonably cooperate
 1758  with the division in any investigation pursuant to this section.
 1759  The division shall refer to local law enforcement authorities
 1760  any person whom the division believes has altered, destroyed,
 1761  concealed, or removed any record, document, or thing required to
 1762  be kept or maintained by this chapter with the purpose to impair
 1763  its verity or availability in the department’s investigation.
 1764         (o) The division may:
 1765         1. Contract with agencies in this state or other
 1766  jurisdictions to perform investigative functions; or
 1767         2. Accept grants-in-aid from any source.
 1768         (p) The division shall cooperate with similar agencies in
 1769  other jurisdictions to establish uniform filing procedures and
 1770  forms, public offering statements, advertising standards, and
 1771  rules and common administrative practices.
 1772         (q) The division shall consider notice to a developer, bulk
 1773  assignee, or bulk buyer to be complete when it is delivered to
 1774  the developer’s address of the developer, bulk assignee, or bulk
 1775  buyer currently on file with the division.
 1776         (r) In addition to its enforcement authority, the division
 1777  may issue a notice to show cause, which must shall provide for a
 1778  hearing, upon written request, in accordance with chapter 120.
 1779         (s) The division shall submit to the Governor, the
 1780  President of the Senate, the Speaker of the House of
 1781  Representatives, and the chairs of the legislative
 1782  appropriations committees an annual report that includes, but
 1783  need not be limited to, the number of training programs provided
 1784  for condominium association board members and unit owners, the
 1785  number of complaints received by type, the number and percent of
 1786  complaints acknowledged in writing within 30 days and the number
 1787  and percent of investigations acted upon within 90 days in
 1788  accordance with paragraph (m), and the number of investigations
 1789  exceeding the 90-day requirement. The annual report must shall
 1790  also include an evaluation of the division’s core business
 1791  processes and make recommendations for improvements, including
 1792  statutory changes. The report shall be submitted by September 30
 1793  following the end of the fiscal year.
 1794         Section 17. Part VII of chapter 718, Florida Statutes,
 1795  consisting of sections 718.701, 718.702, 718.703, 718.704,
 1796  718.705, 718.706, 718.707, and 718.708, is created to read:
 1797         718.701Short title.—This part may be cited as the
 1798  “Distressed Condominium Relief Act.”
 1799         718.702Legislative intent.—
 1800         (1)The Legislature acknowledges the massive downturn in
 1801  the condominium market which has occurred throughout the state
 1802  and the impact of such downturn on developers, lenders, unit
 1803  owners, and condominium associations. Numerous condominium
 1804  projects have failed or are in the process of failing such that
 1805  the condominium has a small percentage of third-party unit
 1806  owners as compared to the unsold inventory of units. As a result
 1807  of the inability to find purchasers for this inventory of units,
 1808  which results in part from the devaluing of real estate in this
 1809  state, developers are unable to satisfy the requirements of
 1810  their lenders, leading to defaults on mortgages. Consequently,
 1811  lenders are faced with the task of finding a solution to the
 1812  problem in order to receive payment for their investments.
 1813         (2)The Legislature recognizes that all of the factors
 1814  listed in this section lead to condominiums becoming distressed,
 1815  resulting in detriment to the unit owners and the condominium
 1816  association due to the resulting shortage of assessment moneys
 1817  available for proper maintenance of the condominium. Such
 1818  shortage and the resulting lack of proper maintenance further
 1819  erodes property values. The Legislature finds that individuals
 1820  and entities within this state and in other states have
 1821  expressed interest in purchasing unsold inventory in one or more
 1822  condominium projects, but are reticent to do so because of
 1823  accompanying liabilities inherited from the original developer,
 1824  which are by definition imputed to the successor purchaser,
 1825  including a foreclosing mortgagee. This results in the potential
 1826  successor purchaser having unknown and unquantifiable risks that
 1827  the potential purchaser is unwilling to accept. As a result,
 1828  condominium projects stagnate, leaving all parties involved at
 1829  an impasse and without the ability to find a solution.
 1830         (3)The Legislature declares that it is the public policy
 1831  of this state to protect the interests of developers, lenders,
 1832  unit owners, and condominium associations with regard to
 1833  distressed condominiums, and that there is a need for relief
 1834  from certain provisions of the Florida Condominium Act geared
 1835  toward enabling economic opportunities for successor purchasers,
 1836  including foreclosing mortgagees. Such relief would benefit
 1837  existing unit owners and condominium associations. The
 1838  Legislature further finds and declares that this situation
 1839  cannot be open-ended without potentially prejudicing the rights
 1840  of unit owners and condominium associations, and thereby
 1841  declares that the provisions of this part may be used by
 1842  purchasers of condominium inventory for only a specific and
 1843  defined period.
 1844         718.703Definitions.—As used in this part, the term:
 1845         (1)“Bulk assignee” means a person who:
 1846         (a)Acquires more than seven condominium parcels as set
 1847  forth in s. 718.707; and
 1848         (b)Receives an assignment of some or all of the rights of
 1849  the developer as set forth in the declaration of condominium or
 1850  this chapter by a written instrument recorded as an exhibit to
 1851  the deed or as a separate instrument in the public records of
 1852  the county in which the condominium is located.
 1853         (2)“Bulk buyer” means a person who acquires more than
 1854  seven condominium parcels as set forth in s. 718.707, but who
 1855  does not receive an assignment of developer rights other than
 1856  the right to conduct sales, leasing, and marketing activities
 1857  within the condominium; the right to be exempt from the payment
 1858  of working capital contributions to the condominium association
 1859  arising out of, or in connection with, the bulk buyer’s
 1860  acquisition of a bulk number of units; and the right to be
 1861  exempt from any rights of first refusal which may be held by the
 1862  condominium association and would otherwise be applicable to
 1863  subsequent transfers of title from the bulk buyer to a third
 1864  party purchaser concerning one or more units.
 1865         718.704Assignment and assumption of developer rights by
 1866  bulk assignee; bulk buyer.—
 1867         (1)A bulk assignee assumes and is liable for all duties
 1868  and responsibilities of the developer under the declaration and
 1869  this chapter, except:
 1870         (a)Warranties of the developer under s. 718.203(1) or s.
 1871  718.618, except for design, construction, development, or repair
 1872  work performed by or on behalf of such bulk assignee;
 1873         (b)The obligation to:
 1874         1.Fund converter reserves under s. 718.618 for a unit that
 1875  was not acquired by the bulk assignee; or
 1876         2.Provide converter warranties on any portion of the
 1877  condominium property except as expressly provided by the bulk
 1878  assignee in the contract for purchase and sale executed with a
 1879  purchaser and pertaining to any design, construction,
 1880  development, or repair work performed by or on behalf of the
 1881  bulk assignee;
 1882         (c)The requirement to provide the association with a
 1883  cumulative audit of the association’s finances from the date of
 1884  formation of the condominium association as required by s.
 1885  718.301(4)(c). However, the bulk assignee must provide an audit
 1886  for the period during which the bulk assignee elects a majority
 1887  of the members of the board of administration;
 1888         (d)Any liability arising out of or in connection with
 1889  actions taken by the board of administration or the developer
 1890  appointed directors before the bulk assignee elects a majority
 1891  of the members of the board of administration; and
 1892         (e)Any liability for or arising out of the developer’s
 1893  failure to fund previous assessments or to resolve budgetary
 1894  deficits in relation to a developer’s right to guarantee
 1895  assessments, except as otherwise provided in subsection (2).
 1896  
 1897  The bulk assignee is also responsible for delivering documents
 1898  and materials in accordance with s. 718.705(3). A bulk assignee
 1899  may expressly assume some or all of the obligations of the
 1900  developer described in paragraphs (a)-(e).
 1901         (2)A bulk assignee receiving the assignment of the rights
 1902  of the developer to guarantee the level of assessments and fund
 1903  budgetary deficits pursuant to s. 718.116 assumes and is liable
 1904  for all obligations of the developer with respect to such
 1905  guarantee, including any applicable funding of reserves to the
 1906  extent required by law, for as long as the guarantee remains in
 1907  effect. A bulk assignee not receiving such assignment or a bulk
 1908  buyer does not assume and is not liable for the obligations of
 1909  the developer with respect to such guarantee, but is responsible
 1910  for payment of assessments in the same manner as all other
 1911  owners of condominium parcels.
 1912         (3)A bulk buyer is liable for the duties and
 1913  responsibilities of the developer under the declaration and this
 1914  chapter only to the extent provided in this part, together with
 1915  any other duties or responsibilities of the developer expressly
 1916  assumed in writing by the bulk buyer.
 1917         (4)An acquirer of condominium parcels is not a bulk
 1918  assignee or a bulk buyer if the transfer to such acquirer was
 1919  made before the effective date of this part with the intent to
 1920  hinder, delay, or defraud any purchaser, unit owner, or the
 1921  association, or if the acquirer is a person who would be
 1922  considered an insider under s. 726.102(7).
 1923         (5)An assignment of developer rights to a bulk assignee
 1924  may be made by the developer, a previous bulk assignee, or a
 1925  court acting on behalf of the developer or the previous bulk
 1926  assignee. At any particular time, there may be no more than one
 1927  bulk assignee within a condominium, but there may be more than
 1928  one bulk buyer. If more than one acquirer of condominium parcels
 1929  in the same condominium receives an assignment of developer
 1930  rights from the same person, the bulk assignee is the acquirer
 1931  whose instrument of assignment is recorded first.
 1932         718.705Board of administration; transfer of control.—
 1933         (1)For purposes of determining the timing for transfer of
 1934  control of the board of administration of the association to
 1935  unit owners other than the developer under s. 718.301(1)(a) and
 1936  (b), if a bulk assignee is entitled to elect a majority of the
 1937  members of the board, a condominium parcel acquired by the bulk
 1938  assignee is conveyed to a purchaser, or owned by an owner other
 1939  than the developer, until the condominium parcel is conveyed to
 1940  an owner who is not a bulk assignee.
 1941         (2)Unless control of the board of administration of the
 1942  association has already been relinquished pursuant to s.
 1943  718.301(1), the bulk assignee must relinquish control of the
 1944  association pursuant to s. 718.301 and this part, as if the bulk
 1945  assignee were the developer.
 1946         (3)If a bulk assignee relinquishes control of the board of
 1947  administration as set forth in s. 718.301, the bulk assignee
 1948  must deliver all of those items required by s. 718.301(4).
 1949  However, the bulk assignee is not required to deliver items and
 1950  documents not in the possession of the bulk assignee during the
 1951  period during which the bulk assignee was entitled to elect at
 1952  least a majority of the members of the board of administration.
 1953  In conjunction with acquisition of condominium parcels, a bulk
 1954  assignee shall undertake a good faith effort to obtain the
 1955  documents and materials that must be provided to the association
 1956  pursuant to s. 718.301(4). If the bulk assignee is not able to
 1957  obtain all of such documents and materials, the bulk assignee
 1958  must certify in writing to the association the names or
 1959  descriptions of the documents and materials that were not
 1960  obtainable by the bulk assignee. Delivery of the certificate
 1961  relieves the bulk assignee of responsibility for delivering the
 1962  documents and materials referenced in the certificate as
 1963  otherwise required under ss. 718.112 and 718.301 and this part.
 1964  The responsibility of the bulk assignee for the audit required
 1965  by s. 718.301(4) commences as of the date on which the bulk
 1966  assignee elected a majority of the members of the board of
 1967  administration.
 1968         (4)If a conflict arises between the provisions or
 1969  application of this section and s. 718.301, this section
 1970  prevails.
 1971         (5)Failure of a bulk assignee or bulk buyer to
 1972  substantially comply with all the requirements in this part
 1973  results in the loss of any and all protections or exemptions
 1974  provided under this part.
 1975         718.706Specific provisions pertaining to offering of units
 1976  by a bulk assignee or bulk buyer.—
 1977         (1)Before offering any units for sale or for lease for a
 1978  term exceeding 5 years, a bulk assignee or a bulk buyer must
 1979  file the following documents with the division and provide such
 1980  documents to a prospective purchaser or tenant:
 1981         (a)An updated prospectus or offering circular, or a
 1982  supplement to the prospectus or offering circular, filed by the
 1983  creating developer prepared in accordance with s. 718.504, which
 1984  must include the form of contract for sale and for lease in
 1985  compliance with s. 718.503(2);
 1986         (b)An updated Frequently Asked Questions and Answers
 1987  sheet;
 1988         (c)The executed escrow agreement if required under s.
 1989  718.202; and
 1990         (d)The financial information required by s. 718.111(13).
 1991  However, if a financial information report does not exist for
 1992  the fiscal year before acquisition of title by the bulk assignee
 1993  or bulk buyer, or accounting records cannot be obtained in good
 1994  faith by the bulk assignee or the bulk buyer which would permit
 1995  preparation of the required financial information report, the
 1996  bulk assignee or bulk buyer is excused from the requirement of
 1997  this paragraph. However, the bulk assignee or bulk buyer must
 1998  include in the purchase contract the following statement in
 1999  conspicuous type:
 2000  
 2001         THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
 2002         718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR
 2003         OF THE ASSOCIATION IS NOT AVAILABLE OR CANNOT BE
 2004         CREATED BY THE SELLER DUE TO THE INSUFFICIENT
 2005         ACCOUNTING RECORDS OF THE ASSOCIATION.
 2006  
 2007         (2)Before offering any units for sale or for lease for a
 2008  term exceeding 5 years, a bulk assignee must file with the
 2009  division and provide to a prospective purchaser a disclosure
 2010  statement that includes, but is not limited to:
 2011         (a)A description of any rights of the developer which have
 2012  been assigned to the bulk assignee;
 2013         (b)The following statement in conspicuous type:
 2014  
 2015         THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
 2016         DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS
 2017         APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION,
 2018         DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
 2019         OF SELLER; and
 2020         (c)If the condominium is a conversion subject to part VI,
 2021  the following statement in conspicuous type:
 2022  
 2023         THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
 2024         RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
 2025         718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY
 2026         EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN
 2027         THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
 2028         SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO
 2029         ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK
 2030         PERFORMED BY OR ON BEHALF OF THE SELLER.
 2031         (3)A bulk assignee, while it is in control of the board of
 2032  administration of the association, may not authorize, on behalf
 2033  of the association:
 2034         (a)The waiver of reserves or the reduction of funding of
 2035  the reserves pursuant to s. 718.112(2)(f)2., unless approved by
 2036  a majority of the voting interests not controlled by the
 2037  developer, bulk assignee, and bulk buyer; or
 2038         (b)The use of reserve expenditures for other purposes
 2039  pursuant to s. 718.112(2)(f)3., unless approved by a majority of
 2040  the voting interests not controlled by the developer, bulk
 2041  assignee, and bulk buyer.
 2042         (4)A bulk assignee or a bulk buyer must comply with all
 2043  the requirements of s. 718.302 regarding any contracts entered
 2044  into by the association during the period the bulk assignee or
 2045  bulk buyer maintains control of the board of administration.
 2046  Unit owners shall be afforded all the protections contained in
 2047  s. 718.302 regarding agreements entered into by the association
 2048  before unit owners other than the developer, bulk assignee, or
 2049  bulk buyer elected a majority of the board of administration.
 2050         (5)A bulk buyer must comply with the requirements
 2051  contained in the declaration regarding any transfer of a unit,
 2052  including sales, leases, and subleases. A bulk buyer is not
 2053  entitled to any exemptions afforded a developer or successor
 2054  developer under this chapter regarding the transfer of a unit,
 2055  including sales, leases, or subleases.
 2056         718.707Time limitation for classification as bulk assignee
 2057  or bulk buyer.—A person acquiring condominium parcels may not be
 2058  classified as a bulk assignee or bulk buyer unless the
 2059  condominium parcels were acquired before July 1, 2012. The date
 2060  of such acquisition shall be determined by the date of recording
 2061  of a deed or other instrument of conveyance for such parcels in
 2062  the public records of the county in which the condominium is
 2063  located, or by the date of issuance of a certificate of title in
 2064  a foreclosure proceeding with respect to such condominium
 2065  parcels.
 2066         718.708Liability of developers and others.—An assignment
 2067  of developer rights to a bulk assignee or bulk buyer does not
 2068  release the creating developer from liabilities under the
 2069  declaration or this chapter. This part does not limit the
 2070  liability of the creating developer for claims brought by unit
 2071  owners, bulk assignees, or bulk buyers for violations of this
 2072  chapter by the creating developer, unless specifically excluded
 2073  in this part. This part does not waive, release, compromise, or
 2074  limit liability established under chapter 718 except as
 2075  specifically excluded under this part.
 2076         Section 18. Paragraph (d) of subsection (1) of section
 2077  719.106, Florida Statutes, is amended to read:
 2078         719.106 Bylaws; cooperative ownership.—
 2079         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 2080  documents shall provide for the following, and if they do not,
 2081  they shall be deemed to include the following:
 2082         (d) Shareholder meetings.—There shall be an annual meeting
 2083  of the shareholders. All members of the board of administration
 2084  shall be elected at the annual meeting unless the bylaws provide
 2085  for staggered election terms or for their election at another
 2086  meeting. Any unit owner desiring to be a candidate for board
 2087  membership must shall comply with subparagraph 1. The bylaws
 2088  must shall provide the method for calling meetings, including
 2089  annual meetings. Written notice, which must notice shall
 2090  incorporate an identification of agenda items, shall be given to
 2091  each unit owner at least 14 days before prior to the annual
 2092  meeting and shall be posted in a conspicuous place on the
 2093  cooperative property at least 14 continuous days preceding the
 2094  annual meeting. Upon notice to the unit owners, the board must
 2095  shall by duly adopted rule designate a specific location on the
 2096  cooperative property upon which all notice of unit owner
 2097  meetings are shall be posted. In lieu of or in addition to the
 2098  physical posting of the meeting notice of any meeting of the
 2099  shareholders on the cooperative property, the association may,
 2100  by reasonable rule, adopt a procedure for conspicuously posting
 2101  and repeatedly broadcasting the notice and the agenda on a
 2102  closed-circuit cable television system serving the cooperative
 2103  association. However, if broadcast notice is used in lieu of a
 2104  posted notice posted physically on the cooperative property, the
 2105  notice and agenda must be broadcast at least four times every
 2106  broadcast hour of each day that a posted notice is otherwise
 2107  required under this section. If When broadcast notice is
 2108  provided, the notice and agenda must be broadcast in a manner
 2109  and for a sufficient continuous length of time so as to allow an
 2110  average reader to observe the notice and read and comprehend the
 2111  entire content of the notice and the agenda. Unless a unit owner
 2112  waives in writing the right to receive notice of the annual
 2113  meeting, the notice of the annual meeting must shall be sent by
 2114  mail, hand delivered, or electronically transmitted to each unit
 2115  owner. An officer of the association must shall provide an
 2116  affidavit or United States Postal Service certificate of
 2117  mailing, to be included in the official records of the
 2118  association, affirming that notices of the association meeting
 2119  were mailed, hand delivered, or electronically transmitted, in
 2120  accordance with this provision, to each unit owner at the
 2121  address last furnished to the association.
 2122         1. After January 1, 1992, The board of administration shall
 2123  be elected by written ballot or voting machine. A proxy may not
 2124  Proxies shall in no event be used in electing the board of
 2125  administration, either in general elections or elections to fill
 2126  vacancies caused by recall, resignation, or otherwise unless
 2127  otherwise provided in this chapter. At least Not less than 60
 2128  days before a scheduled election, the association shall mail,
 2129  deliver, or transmit, whether by separate association mailing,
 2130  delivery, or electronic transmission or included in another
 2131  association mailing, delivery, or electronic transmission,
 2132  including regularly published newsletters, to each unit owner
 2133  entitled to vote, a first notice of the date of the election.
 2134  Any unit owner or other eligible person desiring to be a
 2135  candidate for the board of administration must shall give
 2136  written notice to the association at least not less than 40 days
 2137  before a scheduled election. Together with the written notice
 2138  and agenda as set forth in this section, the association shall
 2139  mail, deliver, or electronically transmit a second notice of
 2140  election to all unit owners entitled to vote therein, together
 2141  with a ballot which lists shall list all candidates. Upon
 2142  request of a candidate, the association shall include an
 2143  information sheet, no larger than 8 1/2 inches by 11 inches,
 2144  which must be furnished by the candidate at least not less than
 2145  35 days before prior to the election, to be included with the
 2146  mailing, delivery, or electronic transmission of the ballot,
 2147  with the costs of mailing, delivery, or transmission and copying
 2148  to be borne by the association. The association is not liable
 2149  has no liability for the contents of the information sheets
 2150  provided by the candidates. In order to reduce costs, the
 2151  association may print or duplicate the information sheets on
 2152  both sides of the paper. The division shall by rule establish
 2153  voting procedures consistent with this subparagraph the
 2154  provisions contained herein, including rules establishing
 2155  procedures for giving notice by electronic transmission and
 2156  rules providing for the secrecy of ballots. Elections shall be
 2157  decided by a plurality of those ballots cast. There is shall be
 2158  no quorum requirement. However, at least 20 percent of the
 2159  eligible voters must cast a ballot in order to have a valid
 2160  election of members of the board of administration. A No unit
 2161  owner may not shall permit any other person to vote his or her
 2162  ballot, and any such ballots improperly cast are shall be deemed
 2163  invalid. A unit owner who needs assistance in casting the ballot
 2164  for the reasons stated in s. 101.051 may obtain assistance in
 2165  casting the ballot. Any unit owner violating this provision may
 2166  be fined by the association in accordance with s. 719.303. The
 2167  regular election must shall occur on the date of the annual
 2168  meeting. The provisions of This subparagraph does shall not
 2169  apply to timeshare cooperatives. Notwithstanding the provisions
 2170  of this subparagraph, an election and balloting are not required
 2171  unless more candidates file a notice of intent to run or are
 2172  nominated than vacancies exist on the board.
 2173         2. Any approval by unit owners called for by this chapter,
 2174  or the applicable cooperative documents, must shall be made at a
 2175  duly noticed meeting of unit owners and is shall be subject to
 2176  all requirements of this chapter or the applicable cooperative
 2177  documents relating to unit owner decisionmaking, except that
 2178  unit owners may take action by written agreement, without
 2179  meetings, on matters for which action by written agreement
 2180  without meetings is expressly allowed by the applicable
 2181  cooperative documents or law any Florida statute which provides
 2182  for the unit owner action.
 2183         3. Unit owners may waive notice of specific meetings if
 2184  allowed by the applicable cooperative documents or law any
 2185  Florida statute. If authorized by the bylaws, notice of meetings
 2186  of the board of administration, shareholder meetings, except
 2187  shareholder meetings called to recall board members under
 2188  paragraph (f), and committee meetings may be given by electronic
 2189  transmission to unit owners who consent to receive notice by
 2190  electronic transmission.
 2191         4. Unit owners shall have the right to participate in
 2192  meetings of unit owners with reference to all designated agenda
 2193  items. However, the association may adopt reasonable rules
 2194  governing the frequency, duration, and manner of unit owner
 2195  participation.
 2196         5. Any unit owner may tape record or videotape meetings of
 2197  the unit owners subject to reasonable rules adopted by the
 2198  division.
 2199         6. Unless otherwise provided in the bylaws, a vacancy
 2200  occurring on the board before the expiration of a term may be
 2201  filled by the affirmative vote of the majority of the remaining
 2202  directors, even if the remaining directors constitute less than
 2203  a quorum, or by the sole remaining director. In the alternative,
 2204  a board may hold an election to fill the vacancy, in which case
 2205  the election procedures must conform to the requirements of
 2206  subparagraph 1. unless the association has opted out of the
 2207  statutory election process, in which case the bylaws of the
 2208  association control. Unless otherwise provided in the bylaws, a
 2209  board member appointed or elected under this subparagraph shall
 2210  fill the vacancy for the unexpired term of the seat being
 2211  filled. Filling vacancies created by recall is governed by
 2212  paragraph (f) and rules adopted by the division.
 2213  
 2214  Notwithstanding subparagraphs (b)2. and (d)1., an association
 2215  may, by the affirmative vote of a majority of the total voting
 2216  interests, provide for a different voting and election procedure
 2217  in its bylaws, which vote may be by a proxy specifically
 2218  delineating the different voting and election procedures. The
 2219  different voting and election procedures may provide for
 2220  elections to be conducted by limited or general proxy.
 2221         Section 19. Subsection (5) of section 719.1055, Florida
 2222  Statutes, is amended to read:
 2223         719.1055 Amendment of cooperative documents; alteration and
 2224  acquisition of property.—
 2225         (5) The bylaws must include a provision whereby a
 2226  certificate of compliance from a licensed electrical contractor
 2227  or electrician may be accepted by the association’s board as
 2228  evidence of compliance of the cooperative units with the
 2229  applicable fire and life safety code. Notwithstanding the
 2230  provisions of chapter 633 or of any other code, statute,
 2231  ordinance, administrative rule, or regulation, or any
 2232  interpretation of the foregoing, a cooperative or unit owner is
 2233  not obligated to retrofit the common elements, common areas,
 2234  association property, or units of a residential cooperative with
 2235  a fire sprinkler system or any other form of engineered
 2236  lifesafety life safety system in a building that has been
 2237  certified for occupancy by the applicable governmental entity,
 2238  if the unit owners have voted to forego such retrofitting and
 2239  engineered lifesafety life safety system by the affirmative vote
 2240  of two-thirds of all voting interests in the affected
 2241  cooperative. However, a cooperative may not forego the
 2242  retrofitting with a fire sprinkler system of common areas in a
 2243  high-rise building. For purposes of this subsection, the term
 2244  “high-rise building” means a building that is greater than 75
 2245  feet in height where the building height is measured from the
 2246  lowest level of fire department access to the floor of the
 2247  highest occupiable story. For purposes of this subsection, the
 2248  term “common areas” means any enclosed hallway, corridor, lobby,
 2249  stairwell, or entryway. In no event shall The local authority
 2250  having jurisdiction may not require completion of retrofitting
 2251  of common areas with a sprinkler system or other form of
 2252  engineered lifesafety system before the end of 2019 2014.
 2253         (a) A vote to forego retrofitting may be obtained by
 2254  limited proxy or by a ballot personally cast at a duly called
 2255  membership meeting, or by execution of a written consent by the
 2256  member, and is shall be effective upon the recording of a
 2257  certificate attesting to such vote in the public records of the
 2258  county where the cooperative is located. The association shall
 2259  mail or, hand deliver, or electronically transmit to each unit
 2260  owner written notice at least 14 days before prior to such
 2261  membership meeting in which the vote to forego retrofitting of
 2262  the required fire sprinkler system or any other form of
 2263  engineered lifesafety system is to take place. Within 30 days
 2264  after the association’s opt-out vote, notice of the results of
 2265  the opt-out vote shall be mailed or, hand delivered, or
 2266  electronically transmitted to all unit owners. Evidence of
 2267  compliance with this 30-day notice must shall be made by an
 2268  affidavit executed by the person providing the notice and filed
 2269  among the official records of the association. After such notice
 2270  is provided to each owner, a copy of the such notice shall be
 2271  provided by the current owner to a new owner before prior to
 2272  closing and shall be provided by a unit owner to a renter before
 2273  prior to signing a lease.
 2274         (b) If there has been a previous vote to forego
 2275  retrofitting, a vote to require retrofitting may be obtained at
 2276  a special meeting of the unit owners called by a petition of
 2277  least 10 percent of the voting interests. Such vote may only be
 2278  called once every 3 years. Notice must be provided as required
 2279  for any regularly called meeting of the unit owners, and the
 2280  notice must state the purpose of the meeting. Electronic
 2281  transmission may not be used to provide notice of a meeting
 2282  called in whole or in part for this purpose.
 2283         (c)(b) As part of the information collected annually from
 2284  cooperatives, the division shall require associations to report
 2285  the membership vote and recording of a certificate under this
 2286  subsection and, if retrofitting has been undertaken, the per
 2287  unit cost of such work. The division shall annually report to
 2288  the Division of State Fire Marshal of the Department of
 2289  Financial Services the number of cooperatives that have elected
 2290  to forego retrofitting.
 2291         Section 20. Subsections (3) and (4) of section 719.108,
 2292  Florida Statutes, are amended, and subsection (10) is added to
 2293  that section, to read:
 2294         719.108 Rents and assessments; liability; lien and
 2295  priority; interest; collection; cooperative ownership.—
 2296         (3) Rents and assessments, and installments on them, not
 2297  paid when due bear interest at the rate provided in the
 2298  cooperative documents from the date due until paid. This rate
 2299  may not exceed the rate allowed by law, and, if a no rate is not
 2300  provided in the cooperative documents, then interest accrues
 2301  shall accrue at 18 percent per annum. Also, If the cooperative
 2302  documents or bylaws so provide, the association may charge an
 2303  administrative late fee in addition to such interest, in an
 2304  amount not to exceed the greater of $25 or 5 percent of each
 2305  installment of the assessment for each delinquent installment
 2306  that the payment is late. Any payment received by an association
 2307  must shall be applied first to any interest accrued by the
 2308  association, then to any administrative late fee, then to any
 2309  costs and reasonable attorney’s fees incurred in collection, and
 2310  then to the delinquent assessment. Costs may include delinquency
 2311  letters and other collections efforts by a licensed management
 2312  company or a licensed manager relating to a delinquent
 2313  installment of an assessment incurred before filing a claim of
 2314  lien that does not exceed $75. The foregoing applies shall be
 2315  applicable notwithstanding any restrictive endorsement,
 2316  designation, or instruction placed on or accompanying a payment.
 2317  A late fee is not subject to chapter 687 or s. 719.303(3).
 2318         (4) The association has shall have a lien on each
 2319  cooperative parcel for any unpaid rents and assessments, plus
 2320  interest, any authorized administrative late fees, and any
 2321  reasonable costs for collection services for which the
 2322  association has contracted against the unit owner of the
 2323  cooperative parcel. If authorized by the cooperative documents,
 2324  the said lien shall also secures secure reasonable attorney’s
 2325  fees incurred by the association incident to the collection of
 2326  the rents and assessments or enforcement of such lien. The lien
 2327  is effective from and after the recording of a claim of lien in
 2328  the public records in the county in which the cooperative parcel
 2329  is located which states the description of the cooperative
 2330  parcel, the name of the unit owner, the amount due, and the due
 2331  dates. The lien expires shall expire if a claim of lien is not
 2332  filed within 1 year after the date the assessment was due, and
 2333  the no such lien does not shall continue for a longer period
 2334  than 1 year after the claim of lien has been recorded unless,
 2335  within that time, an action to enforce the lien is commenced in
 2336  a court of competent jurisdiction. Except as otherwise provided
 2337  in this chapter, a lien may not be filed by the association
 2338  against a cooperative parcel until 30 days after the date on
 2339  which a notice of intent to file a lien has been delivered to
 2340  the owner.
 2341         (a)The notice must be sent to the unit owner at the
 2342  address of the unit by first-class United States mail and:
 2343         1.If the most recent address of the unit owner on the
 2344  records of the association is the address of the unit, the
 2345  notice must be sent by registered or certified mail, return
 2346  receipt requested, to the unit owner at the address of the unit.
 2347         2.If the most recent address of the unit owner on the
 2348  records of the association is in the United States, but is not
 2349  the address of the unit, the notice must be sent by registered
 2350  or certified mail, return receipt requested, to the unit owner
 2351  at his or her most recent address.
 2352         3.If the most recent address of the unit owner on the
 2353  records of the association is not in the United States, the
 2354  notice must be sent by first-class United States mail to the
 2355  unit owner at his or her most recent address.
 2356         (b)A notice that is sent pursuant to this subsection is
 2357  deemed delivered upon mailing. No lien may be filed by the
 2358  association against a cooperative parcel until 30 days after the
 2359  date on which a notice of intent to file a lien has been served
 2360  on the unit owner of the cooperative parcel by certified mail or
 2361  by personal service in the manner authorized by chapter 48 and
 2362  the Florida Rules of Civil Procedure.
 2363         (10)If the unit is occupied by a tenant and the share
 2364  owner is delinquent in paying any monetary obligation due to the
 2365  association, the association may make a written demand that the
 2366  tenant pay the future monetary obligations related to the
 2367  cooperative share to the association and the tenant must make
 2368  such payment. The demand is continuing in nature, and upon
 2369  demand, the tenant must pay the monetary obligations to the
 2370  association until the association releases the tenant or the
 2371  tenant discontinues tenancy in the unit. The association must
 2372  mail written notice to the unit owner of the association’s
 2373  demand that the tenant make payments to the association. The
 2374  association shall, upon request, provide the tenant with written
 2375  receipts for payments made. A tenant who acts in good faith in
 2376  response to a written demand from an association is immune from
 2377  any claim from the unit owner.
 2378         (a) If the tenant prepaid rent to the unit owner before
 2379  receiving the demand from the association and provides written
 2380  evidence of paying the rent to the association within 14 days
 2381  after receiving the demand, the tenant must make any subsequent
 2382  rental payments to the association to be credited against the
 2383  monetary obligations of the unit owner to the association.
 2384         (b) The tenant is not liable for increases in the amount of
 2385  the regular monetary obligations due unless the tenant was
 2386  notified in writing of the increase at least 10 days before the
 2387  date on which the rent is due. The liability of the tenant may
 2388  not exceed the amount due from the tenant to the tenants’
 2389  landlord. The tenant’s landlord shall provide the tenant a
 2390  credit against rents due to the unit owner in the amount of
 2391  monies paid to the association under this section.
 2392         (c) The association may issue notices under s. 83.56 and
 2393  may sue for eviction under ss. 83.59-83.625 as if the
 2394  association were a landlord under part II of chapter 83 if the
 2395  tenant fails to pay a required payment. However, the association
 2396  is not otherwise considered a landlord under chapter 83 and
 2397  specifically has no duties under s. 83.51.
 2398         (d) The tenant does not, by virtue of payment of monetary
 2399  obligations, have any of the rights of a unit owner to vote in
 2400  any election or to examine the books and records of the
 2401  association.
 2402         (e) A court may supersede the effect of this subsection by
 2403  appointing a receiver.
 2404         Section 21. Paragraph (b) of subsection (2) of section
 2405  720.304, Florida Statutes, is amended to read:
 2406         720.304 Right of owners to peaceably assemble; display of
 2407  flag; SLAPP suits prohibited.—
 2408         (2)
 2409         (b) Any homeowner may erect a freestanding flagpole no more
 2410  than 20 feet high on any portion of the homeowner’s real
 2411  property, regardless of any covenants, restrictions, bylaws,
 2412  rules, or requirements of the association, if the flagpole does
 2413  not obstruct sightlines at intersections and is not erected
 2414  within or upon an easement. The homeowner may further display in
 2415  a respectful manner from that flagpole, regardless of any
 2416  covenants, restrictions, bylaws, rules, or requirements of the
 2417  association, one official United States flag, not larger than 4
 2418  1/2 feet by 6 feet, and may additionally display one official
 2419  flag of the State of Florida or the United States Army, Navy,
 2420  Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
 2421  additional flag must be equal in size to or smaller than the
 2422  United States flag. The flagpole and display are subject to all
 2423  building codes, zoning setbacks, and other applicable
 2424  governmental regulations, including, but not limited to, noise
 2425  and lighting ordinances in the county or municipality in which
 2426  the flagpole is erected and all setback and locational criteria
 2427  contained in the governing documents.
 2428         Section 22. Subsection (2) of section 720.305, Florida
 2429  Statutes, is amended to read:
 2430         720.305 Obligations of members; remedies at law or in
 2431  equity; levy of fines and suspension of use rights.—
 2432         (2) If a member is delinquent for more than 90 days in
 2433  paying a monetary obligation due the association the governing
 2434  documents so provide, an association may suspend, until such
 2435  monetary obligation is paid for a reasonable period of time, the
 2436  rights of a member or a member’s tenants, guests, or invitees,
 2437  or both, to use common areas and facilities and may levy
 2438  reasonable fines of up to, not to exceed $100 per violation,
 2439  against any member or any tenant, guest, or invitee. A fine may
 2440  be levied for on the basis of each day of a continuing
 2441  violation, with a single notice and opportunity for hearing,
 2442  except that a no such fine may not shall exceed $1,000 in the
 2443  aggregate unless otherwise provided in the governing documents.
 2444  A fine of less than $1,000 may shall not become a lien against a
 2445  parcel. In any action to recover a fine, the prevailing party is
 2446  entitled to collect its reasonable attorney’s fees and costs
 2447  from the nonprevailing party as determined by the court. The
 2448  provisions regarding the suspension-of-use rights do not apply
 2449  to the portion of common areas that must be used to provide
 2450  access to the parcel or utility services provided to the parcel.
 2451         (a) A fine or suspension may not be imposed without notice
 2452  of at least 14 days notice to the person sought to be fined or
 2453  suspended and an opportunity for a hearing before a committee of
 2454  at least three members appointed by the board who are not
 2455  officers, directors, or employees of the association, or the
 2456  spouse, parent, child, brother, or sister of an officer,
 2457  director, or employee. If the committee, by majority vote, does
 2458  not approve a proposed fine or suspension, it may not be
 2459  imposed. If the association imposes a fine or suspension, the
 2460  association must provide written notice of such fine or
 2461  suspension by mail or hand delivery to the parcel owner and, if
 2462  applicable, to any tenant, licensee, or invitee of the parcel
 2463  owner.
 2464         (b) The requirements of this subsection do not apply to the
 2465  imposition of suspensions or fines upon any member because of
 2466  the failure of the member to pay assessments or other charges
 2467  when due if such action is authorized by the governing
 2468  documents.
 2469         (b)(c) Suspension of common-area-use rights do shall not
 2470  impair the right of an owner or tenant of a parcel to have
 2471  vehicular and pedestrian ingress to and egress from the parcel,
 2472  including, but not limited to, the right to park.
 2473         Section 23. Subsections (7) and (9) of section 720.306,
 2474  Florida Statutes, are amended to read:
 2475         720.306 Meetings of members; voting and election
 2476  procedures; amendments.—
 2477         (7) ADJOURNMENT.—Unless the bylaws require otherwise,
 2478  adjournment of an annual or special meeting to a different date,
 2479  time, or place must be announced at that meeting before an
 2480  adjournment is taken, or notice must be given of the new date,
 2481  time, or place pursuant to s. 720.303(2). Any business that
 2482  might have been transacted on the original date of the meeting
 2483  may be transacted at the adjourned meeting. If a new record date
 2484  for the adjourned meeting is or must be fixed under s. 607.0707
 2485  s. 617.0707, notice of the adjourned meeting must be given to
 2486  persons who are entitled to vote and are members as of the new
 2487  record date but were not members as of the previous record date.
 2488         (9) ELECTIONS AND BOARD VACANCIES.—Elections of directors
 2489  must be conducted in accordance with the procedures set forth in
 2490  the governing documents of the association. All members of the
 2491  association are shall be eligible to serve on the board of
 2492  directors, and a member may nominate himself or herself as a
 2493  candidate for the board at a meeting where the election is to be
 2494  held. Except as otherwise provided in the governing documents,
 2495  boards of directors must be elected by a plurality of the votes
 2496  cast by eligible voters. Any election dispute between a member
 2497  and an association must be submitted to mandatory binding
 2498  arbitration with the division. Such proceedings must shall be
 2499  conducted in the manner provided by s. 718.1255 and the
 2500  procedural rules adopted by the division. Unless otherwise
 2501  provided in the bylaws, any vacancy occurring on the board
 2502  before the expiration of a term may be filled by an affirmative
 2503  vote of the majority of the remaining directors, even if the
 2504  remaining directors constitute less than a quorum, or by the
 2505  sole remaining director. In the alternative, a board may hold an
 2506  election to fill the vacancy, in which case the election
 2507  procedures must conform to the requirements of the governing
 2508  documents. Unless otherwise provided in the bylaws, a board
 2509  member appointed or elected under this section is appointed for
 2510  the unexpired term of the seat being filled. Filling vacancies
 2511  created by recall is governed by s. 720.303(10) and rules
 2512  adopted by the division.
 2513         Section 24. Subsection (8) is added to section 720.3085,
 2514  Florida Statutes, to read:
 2515         720.3085 Payment for assessments; lien claims.—
 2516         (8)If the parcel is occupied by a tenant and the parcel
 2517  owner is delinquent in paying any monetary obligation due to the
 2518  association, the association may demand that the tenant pay to
 2519  the association the future monetary obligations related to the
 2520  parcel. The demand is continuing in nature, and upon demand, the
 2521  tenant must continue to pay the monetary obligations until the
 2522  association releases the tenant or the tenant discontinues
 2523  tenancy in the parcel. A tenant who acts in good faith in
 2524  response to a written demand from an association is immune from
 2525  any claim from the parcel owner.
 2526         (a) If the tenant prepaid rent to the parcel owner before
 2527  receiving the demand from the association and provides written
 2528  evidence of paying the rent to the association within 14 days
 2529  after receiving the demand, the tenant must make any subsequent
 2530  rental payments to the association to be credited against the
 2531  monetary obligations of the parcel owner to the association. The
 2532  association shall, upon request, provide the tenant with written
 2533  receipts for payments made. The association shall mail written
 2534  notice to the parcel owner of the association’s demand that the
 2535  tenant pay monetary obligations to the association.
 2536         (b) The tenant is not liable for increases in the amount of
 2537  the monetary obligations due unless the tenant was notified in
 2538  writing of the increase at least 10 days before the date on
 2539  which the rent is due. The tenant shall be given a credit
 2540  against rents due to the parcel owner in the amount of
 2541  assessments paid to the association.
 2542         (c) The association may issue notices under s. 83.56 and
 2543  may sue for eviction under ss. 83.59-83.625 as if the
 2544  association were a landlord under part II of chapter 83 if the
 2545  tenant fails to pay a monetary obligation. However, the
 2546  association is not otherwise considered a landlord under chapter
 2547  83 and specifically has no duties under s. 83.51.
 2548         (d) The tenant does not, by virtue of payment of monetary
 2549  obligations, have any of the rights of a parcel owner to vote in
 2550  any election or to examine the books and records of the
 2551  association.
 2552         (e) A court may supersede the effect of this subsection by
 2553  appointing a receiver.
 2554         Section 25. Subsection (6) is added to section 720.31,
 2555  Florida Statutes, to read:
 2556         720.31 Recreational leaseholds; right to acquire;
 2557  escalation clauses.—
 2558         (6)An association may enter into agreements to acquire
 2559  leaseholds, memberships, and other possessory or use interests
 2560  in lands or facilities, including, but not limited to, country
 2561  clubs, golf courses, marinas, submerged land, parking areas,
 2562  conservation areas, and other recreational facilities. An
 2563  association may enter into such agreements regardless of whether
 2564  the lands or facilities are contiguous to the lands of the
 2565  community or whether such lands or facilities are intended to
 2566  provide enjoyment, recreation, or other use or benefit to the
 2567  owners. All leaseholds, memberships, and other possessory or use
 2568  interests existing or created at the time of recording the
 2569  declaration must be stated and fully described in the
 2570  declaration. Subsequent to recording the declaration, agreements
 2571  acquiring leaseholds, memberships, or other possessory or use
 2572  interests not entered into within 12 months after recording the
 2573  declaration may be entered into only if authorized by the
 2574  declaration as a material alteration or substantial addition to
 2575  the common areas or association property. If the declaration is
 2576  silent, any such transaction requires the approval of 75 percent
 2577  of the total voting interests of the association. The
 2578  declaration may provide that the rental, membership fees,
 2579  operations, replacements, or other expenses are common expenses;
 2580  impose covenants and restrictions concerning their use; and
 2581  contain other provisions not inconsistent with this subsection.
 2582  An association exercising its rights under this subsection may
 2583  join with other associations that are part of the same
 2584  development or with a master association responsible for the
 2585  enforcement of shared covenants, conditions, and restrictions in
 2586  carrying out the intent of this subsection. This subsection is
 2587  intended to clarify law in existence before July 1, 2010.
 2588         Section 26. Paragraph (b) of subsection (2), paragraphs (a)
 2589  and (c) of subsection (5), and paragraphs (b), (c), (d), (f),
 2590  and (g) of subsection (6) of section 720.303, Florida Statutes,
 2591  are amended, and subsection (12) is added to that section, to
 2592  read:
 2593         720.303 Association powers and duties; meetings of board;
 2594  official records; budgets; financial reporting; association
 2595  funds; recalls.—
 2596         (2) BOARD MEETINGS.—
 2597         (b) Members have the right to attend all meetings of the
 2598  board and to speak on any matter placed on the agenda by
 2599  petition of the voting interests for at least 3 minutes. The
 2600  association may adopt written reasonable rules expanding the
 2601  right of members to speak and governing the frequency, duration,
 2602  and other manner of member statements, which rules must be
 2603  consistent with this paragraph and may include a sign-up sheet
 2604  for members wishing to speak. Notwithstanding any other law, the
 2605  requirement that board meetings and committee meetings be open
 2606  to the members is inapplicable to meetings between the board or
 2607  a committee and the association’s attorney to discuss proposed
 2608  or pending litigation, or with respect to meetings of the board
 2609  held for the purpose of discussing personnel matters are not
 2610  required to be open to the members other than directors.
 2611         (5) INSPECTION AND COPYING OF RECORDS.—The official records
 2612  shall be maintained within the state and must be open to
 2613  inspection and available for photocopying by members or their
 2614  authorized agents at reasonable times and places within 10
 2615  business days after receipt of a written request for access.
 2616  This subsection may be complied with by having a copy of the
 2617  official records available for inspection or copying in the
 2618  community. If the association has a photocopy machine available
 2619  where the records are maintained, it must provide parcel owners
 2620  with copies on request during the inspection if the entire
 2621  request is limited to no more than 25 pages.
 2622         (a) The failure of an association to provide access to the
 2623  records within 10 business days after receipt of a written
 2624  request submitted by certified mail, return receipt requested,
 2625  creates a rebuttable presumption that the association willfully
 2626  failed to comply with this subsection.
 2627         (c) The association may adopt reasonable written rules
 2628  governing the frequency, time, location, notice, records to be
 2629  inspected, and manner of inspections, but may not require impose
 2630  a requirement that a parcel owner to demonstrate any proper
 2631  purpose for the inspection, state any reason for the inspection,
 2632  or limit a parcel owner’s right to inspect records to less than
 2633  one 8-hour business day per month. The association may impose
 2634  fees to cover the costs of providing copies of the official
 2635  records, including, without limitation, the costs of copying.
 2636  The association may charge up to 50 cents per page for copies
 2637  made on the association’s photocopier. If the association does
 2638  not have a photocopy machine available where the records are
 2639  kept, or if the records requested to be copied exceed 25 pages
 2640  in length, the association may have copies made by an outside
 2641  vendor or association management company personnel and may
 2642  charge the actual cost of copying, including any reasonable
 2643  costs involving personnel fees and charges at an hourly rate for
 2644  vendor or employee time to cover administrative costs to the
 2645  vendor or association. The association shall maintain an
 2646  adequate number of copies of the recorded governing documents,
 2647  to ensure their availability to members and prospective members.
 2648  Notwithstanding the provisions of this paragraph, the following
 2649  records are shall not be accessible to members or parcel owners:
 2650         1. Any record protected by the lawyer-client privilege as
 2651  described in s. 90.502 and any record protected by the work
 2652  product privilege, including, but not limited to, any record
 2653  prepared by an association attorney or prepared at the
 2654  attorney’s express direction which reflects a mental impression,
 2655  conclusion, litigation strategy, or legal theory of the attorney
 2656  or the association and which was prepared exclusively for civil
 2657  or criminal litigation or for adversarial administrative
 2658  proceedings or which was prepared in anticipation of imminent
 2659  civil or criminal litigation or imminent adversarial
 2660  administrative proceedings until the conclusion of the
 2661  litigation or adversarial administrative proceedings.
 2662         2. Information obtained by an association in connection
 2663  with the approval of the lease, sale, or other transfer of a
 2664  parcel.
 2665         3. Disciplinary, health, insurance, and Personnel records
 2666  of the association’s employees, including, but not limited to,
 2667  disciplinary, payroll, health, and insurance records.
 2668         4. Medical records of parcel owners or community residents.
 2669         5. Social security numbers, driver’s license numbers,
 2670  credit card numbers, electronic mailing addresses, telephone
 2671  numbers, emergency contact information, any addresses for a
 2672  parcel owner other than as provided for association notice
 2673  requirements, and other personal identifying information of any
 2674  person, excluding the person’s name, parcel designation, mailing
 2675  address, and property address.
 2676         6. Any electronic security measure that is used by the
 2677  association to safeguard data, including passwords.
 2678         7. The software and operating system used by the
 2679  association which allows the manipulation of data, even if the
 2680  owner owns a copy of the same software used by the association.
 2681  The data is part of the official records of the association.
 2682         (6) BUDGETS.—
 2683         (b) In addition to annual operating expenses, the budget
 2684  may include reserve accounts for capital expenditures and
 2685  deferred maintenance for which the association is responsible.
 2686  If reserve accounts are not established pursuant to paragraph
 2687  (d), funding of such reserves is limited to the extent that the
 2688  governing documents do not limit increases in assessments,
 2689  including reserves. If the budget of the association includes
 2690  reserve accounts established pursuant to paragraph (d), such
 2691  reserves shall be determined, maintained, and waived in the
 2692  manner provided in this subsection. Once an association provides
 2693  for reserve accounts pursuant to paragraph (d) in the budget,
 2694  the association shall thereafter determine, maintain, and waive
 2695  reserves in compliance with this subsection. This section does
 2696  not preclude the termination of a reserve account established
 2697  pursuant to this paragraph upon approval of a majority of the
 2698  total voting interests of the association. Upon such approval,
 2699  the terminating reserve account shall be removed from the
 2700  budget.
 2701         (c)1. If the budget of the association does not provide for
 2702  reserve accounts pursuant to paragraph (d) governed by this
 2703  subsection and the association is responsible for the repair and
 2704  maintenance of capital improvements that may result in a special
 2705  assessment if reserves are not provided, each financial report
 2706  for the preceding fiscal year required by subsection (7) must
 2707  shall contain the following statement in conspicuous type:
 2708  
 2709         THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR
 2710         RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED
 2711         MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
 2712         OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS
 2713         PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
 2714         FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT
 2715         LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF
 2716         THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR
 2717         BY WRITTEN CONSENT.
 2718         2.If the budget of the association does provide for
 2719  funding accounts for deferred expenditures, including, but not
 2720  limited to, funds for capital expenditures and deferred
 2721  maintenance, but such accounts are not created or established
 2722  pursuant to paragraph (d), each financial report for the
 2723  preceding fiscal year required under subsection (7) must also
 2724  contain the following statement in conspicuous type:
 2725  
 2726         THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED
 2727         VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING
 2728         CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT
 2729         TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING
 2730         DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
 2731         PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION
 2732         720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
 2733         SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET
 2734         FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN
 2735         ACCORDANCE WITH THAT STATUTE.
 2736         (d) An association is shall be deemed to have provided for
 2737  reserve accounts if when reserve accounts have been initially
 2738  established by the developer or if when the membership of the
 2739  association affirmatively elects to provide for reserves. If
 2740  reserve accounts are not initially provided for by the
 2741  developer, the membership of the association may elect to do so
 2742  upon the affirmative approval of not less than a majority of the
 2743  total voting interests of the association. Such approval may be
 2744  obtained attained by vote of the members at a duly called
 2745  meeting of the membership or by the upon a written consent of
 2746  executed by not less than a majority of the total voting
 2747  interests of the association in the community. The approval
 2748  action of the membership must shall state that reserve accounts
 2749  shall be provided for in the budget and must designate the
 2750  components for which the reserve accounts are to be established.
 2751  Upon approval by the membership, the board of directors shall
 2752  include provide for the required reserve accounts for inclusion
 2753  in the budget in the next fiscal year following the approval and
 2754  in each year thereafter. Once established as provided in this
 2755  subsection, the reserve accounts must shall be funded or
 2756  maintained or shall have their funding waived in the manner
 2757  provided in paragraph (f).
 2758         (f) After one or more Once a reserve account or reserve
 2759  accounts are established, the membership of the association,
 2760  upon a majority vote at a meeting at which a quorum is present,
 2761  may provide for no reserves or less reserves than required by
 2762  this section. If a meeting of the unit owners has been called to
 2763  determine whether to waive or reduce the funding of reserves and
 2764  no such result is not achieved or a quorum is not present, the
 2765  reserves as included in the budget shall go into effect. After
 2766  the turnover, the developer may vote its voting interest to
 2767  waive or reduce the funding of reserves. Any vote taken pursuant
 2768  to this subsection to waive or reduce reserves is shall be
 2769  applicable only to one budget year.
 2770         (g) Funding formulas for reserves authorized by this
 2771  section must shall be based on either a separate analysis of
 2772  each of the required assets or a pooled analysis of two or more
 2773  of the required assets.
 2774         1. If the association maintains separate reserve accounts
 2775  for each of the required assets, the amount of the contribution
 2776  to each reserve account is shall be the sum of the following two
 2777  calculations:
 2778         a. The total amount necessary, if any, to bring a negative
 2779  component balance to zero.
 2780         b. The total estimated deferred maintenance expense or
 2781  estimated replacement cost of the reserve component less the
 2782  estimated balance of the reserve component as of the beginning
 2783  of the period for which the budget will be in effect. The
 2784  remainder, if greater than zero, shall be divided by the
 2785  estimated remaining useful life of the component.
 2786  
 2787  The formula may be adjusted each year for changes in estimates
 2788  and deferred maintenance performed during the year and may
 2789  include factors such as inflation and earnings on invested
 2790  funds.
 2791         2. If the association maintains a pooled account of two or
 2792  more of the required reserve assets, the amount of the
 2793  contribution to the pooled reserve account as disclosed on the
 2794  proposed budget may shall not be less than that required to
 2795  ensure that the balance on hand at the beginning of the period
 2796  for which the budget will go into effect plus the projected
 2797  annual cash inflows over the remaining estimated useful life of
 2798  all of the assets that make up the reserve pool are equal to or
 2799  greater than the projected annual cash outflows over the
 2800  remaining estimated useful lives of all of the assets that make
 2801  up the reserve pool, based on the current reserve analysis. The
 2802  projected annual cash inflows may include estimated earnings
 2803  from investment of principal and accounts receivable minus the
 2804  allowance for doubtful accounts. The reserve funding formula may
 2805  shall not include any type of balloon payments.
 2806         (12)COMPENSATION PROHIBITED.—A director, officer, or
 2807  committee member of the association may not directly receive any
 2808  salary or compensation from the association for the performance
 2809  of duties as a director, officer, or committee member and may
 2810  not in any other way benefit financially from service to the
 2811  association. This subsection does not preclude:
 2812         (a)Participation by such person in a financial benefit
 2813  accruing to all or a significant number of members as a result
 2814  of actions lawfully taken by the board or a committee of which
 2815  he or she is a member, including, but not limited to, routine
 2816  maintenance, repair, or replacement of community assets.
 2817         (b)Reimbursement for out-of-pocket expenses incurred by
 2818  such person on behalf of the association, subject to approval in
 2819  accordance with procedures established by the association’s
 2820  governing documents or, in the absence of such procedures, in
 2821  accordance with an approval process established by the board.
 2822         (c)Any recovery of insurance proceeds derived from a
 2823  policy of insurance maintained by the association for the
 2824  benefit of its members.
 2825         (d)Any fee or compensation authorized in the governing
 2826  documents.
 2827         (e)Any fee or compensation authorized in advance by a vote
 2828  of a majority of the voting interests voting in person or by
 2829  proxy at a meeting of the members.
 2830         (f)A developer or its representative from serving as a
 2831  director, officer, or committee member of the association and
 2832  benefitting financially from service to the association.
 2833         Section 27. Subsections (8) and (9) of section 720.306,
 2834  Florida Statutes, are amended to read:
 2835         720.306 Meetings of members; voting and election
 2836  procedures; amendments.—
 2837         (8) PROXY VOTING.—The members have the right, unless
 2838  otherwise provided in this subsection or in the governing
 2839  documents, to vote in person or by proxy.
 2840         (a) To be valid, a proxy must be dated, must state the
 2841  date, time, and place of the meeting for which it was given, and
 2842  must be signed by the authorized person who executed the proxy.
 2843  A proxy is effective only for the specific meeting for which it
 2844  was originally given, as the meeting may lawfully be adjourned
 2845  and reconvened from time to time, and automatically expires 90
 2846  days after the date of the meeting for which it was originally
 2847  given. A proxy is revocable at any time at the pleasure of the
 2848  person who executes it. If the proxy form expressly so provides,
 2849  any proxy holder may appoint, in writing, a substitute to act in
 2850  his or her place.
 2851         (b)If the governing documents permit voting by secret
 2852  ballot by members who are not in attendance at a meeting of the
 2853  members for the election of directors, such ballots must be
 2854  placed in an inner envelope with no identifying markings and
 2855  mailed or delivered to the association in an outer envelope
 2856  bearing identifying information reflecting the name of the
 2857  member, the lot or parcel for which the vote is being cast, and
 2858  the signature of the lot or parcel owner casting that ballot. If
 2859  the eligibility of the member to vote is confirmed and no other
 2860  ballot has been submitted for that lot or parcel, the inner
 2861  envelope shall be removed from the outer envelope bearing the
 2862  identification information, placed with the ballots which were
 2863  personally cast, and opened when the ballots are counted. If
 2864  more than one ballot is submitted for a lot or parcel, the
 2865  ballots for that lot or parcel shall be disqualified. Any vote
 2866  by ballot received after the closing of the balloting may not be
 2867  considered.
 2868         (9) ELECTIONS.—Elections of directors must be conducted in
 2869  accordance with the procedures set forth in the governing
 2870  documents of the association. All members of the association are
 2871  shall be eligible to serve on the board of directors, and a
 2872  member may nominate himself or herself as a candidate for the
 2873  board at a meeting where the election is to be held or, if the
 2874  election process allows voting by absentee ballot, in advance of
 2875  the balloting. Except as otherwise provided in the governing
 2876  documents, boards of directors must be elected by a plurality of
 2877  the votes cast by eligible voters. Any election dispute between
 2878  a member and an association must be submitted to mandatory
 2879  binding arbitration with the division. Such proceedings must
 2880  shall be conducted in the manner provided by s. 718.1255 and the
 2881  procedural rules adopted by the division.
 2882         Section 28. Paragraph (a) of subsection (5) of section
 2883  720.3085, Florida Statutes, is amended to read:
 2884         720.3085 Payment for assessments; lien claims.—
 2885         (5) The association may bring an action in its name to
 2886  foreclose a lien for unpaid assessments secured by a lien in the
 2887  same manner that a mortgage of real property is foreclosed and
 2888  may also bring an action to recover a money judgment for the
 2889  unpaid assessments without waiving any claim of lien. The action
 2890  to foreclose the lien may not be brought until 45 days after the
 2891  parcel owner has been provided notice of the association’s
 2892  intent to foreclose and collect the unpaid amount. The notice
 2893  must be given in the manner provided in paragraph (4)(b), and
 2894  the notice may not be provided until the passage of the 45 days
 2895  required in paragraph (4)(a).
 2896         (a) The association may recover any interest, late charges,
 2897  costs, and reasonable attorney’s fees incurred in a lien
 2898  foreclosure action or in an action to recover a money judgment
 2899  for the unpaid assessments. Costs may include delinquency
 2900  letters and other collections efforts by a licensed management
 2901  company or a licensed manager relating to a delinquent
 2902  installment of an assessment incurred before filing a claim of
 2903  lien that does not exceed $75.
 2904         Section 29. Section 720.315, Florida Statutes, is created
 2905  to read:
 2906         720.315Passage of special assessments.—Before turnover,
 2907  the board of directors controlled by the developer may not levy
 2908  a special assessment unless a majority of the parcel owners
 2909  other than the developer have approved the special assessment by
 2910  a majority vote at a duly called special meeting of the
 2911  membership at which a quorum is present.
 2912         Section 30. This act shall take effect July 1, 2010.

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