November 19, 2019
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       Florida Senate - 2010      CS for CS for CS for SB's 1196 & 1222
       
       
       
       By the Committees on Judiciary; Military Affairs and Domestic
       Security; and Regulated Industries; and Senators Fasano, Ring,
       Gaetz, and Lynn
       
       
       590-04424A-10                                         20101196c3
    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; creating 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; specifying
   23         the maximum amount of any unit owner’s loss assessment
   24         coverage that can be assessed for any loss; providing
   25         that certain changes to the limits of a unit owner’s
   26         coverage for loss assessments made on or after a
   27         specified period before the date of loss do not apply
   28         to the loss; providing that certain insurers are not
   29         required to pay more than an amount equal to that unit
   30         owner’s loss assessment coverage limit; requiring that
   31         every property insurance policy to an individual unit
   32         owner contain a specified provision; amending s.
   33         633.0215, F.S.; exempting certain residential
   34         buildings from a requirement to install a manual fire
   35         alarm system; amending s. 718.103, F.S.; redefining
   36         the term “developer”; amending s. 718.110, F.S.;
   37         allowing the condominium association to have the
   38         authority to restrict through an amendment to a
   39         declaration of condominium, rather than prohibit, the
   40         rental of condominium units; authorizing the
   41         classification of certain portions of common elements
   42         as limited common elements upon receipt of the
   43         required vote to amend a declaration; providing that
   44         such reclassification is not an amendment pursuant to
   45         specified provisions of state law; amending s.
   46         718.111, F.S.; deleting a requirement for the board of
   47         a condominium to hold a meeting open to unit owners to
   48         establish the amount of an insurance deductible;
   49         revising the property to which a property insurance
   50         policy for a condominium association applies; revising
   51         the requirements for a condominium unit owner’s
   52         property insurance policy; limiting the circumstances
   53         under which a person who violates requirements to
   54         maintain association records may be personally liable
   55         for a civil penalty; providing that a condominium
   56         association is not responsible for the use of certain
   57         information provided to an association member under
   58         certain circumstances; specifying records of a
   59         condominium association which are exempt from a
   60         requirement that records be available for inspection
   61         by an association member; increasing the amount of
   62         time within which a condominium association must
   63         provide unit owners with a copy of the association’s
   64         annual financial report; revising the requirements for
   65         rules relating to the financial report that must be
   66         adopted by the Division of Florida Condominiums,
   67         Timeshares, and Mobile Homes of the Department of
   68         Business and Professional Regulation; revising the
   69         requirements for a financial report based on the
   70         amount of a condominium’s revenues; amending s.
   71         718.112, F.S.; revising provisions relating to the
   72         terms or appointment or election of condominium
   73         members to a board of administration; creating
   74         exceptions to such provisions for condominiums that
   75         contain timeshares; specifying a certification that a
   76         person who is appointed or elected to a board of
   77         administration must make or educational requirements
   78         such board member must satisfy; conforming cross
   79         references to changes made by the act; deleting a
   80         provision prohibiting an association from foregoing
   81         the retrofitting with a fire sprinkler system of
   82         common areas in a high-rise building; prohibiting
   83         local authorities having jurisdiction from requiring
   84         retrofitting with a sprinkler system or other
   85         engineered lifesafety system before a specified date;
   86         requiring that certain associations initiate, before a
   87         specified date, an application for a building permit
   88         for the required fire sprinkler installation with the
   89         local government having jurisdiction demonstrating
   90         that the association will be in compliance with
   91         certain firesafety requirements by a specified date;
   92         authorizing an association to forgo retrofitting under
   93         certain circumstances; providing requirements for a
   94         special meeting of unit owners which may be called
   95         every 3 years in order to vote to forgo retrofitting
   96         of the sprinkler system or other engineered lifesafety
   97         systems; providing meeting notice requirements;
   98         expanding the monetary obligations that a director or
   99         officer must satisfy to avoid abandoning his or her
  100         office; amending s. 718.115, F.S.; specifying certain
  101         services provided in a declaration of condominium
  102         which are obtained pursuant to a bulk contract to be
  103         deemed a common expense; specifying provisions that
  104         must be contained in a bulk contract; specifying
  105         cancellation procedures for bulk contracts; amending
  106         s. 718.116, F.S.; increasing the period of accrual of
  107         certain assessments used to determine the amount of
  108         limited liability of certain first mortgagees or their
  109         successors or assignees; requiring a tenant in a unit
  110         owned by a person who is delinquent in the payment of
  111         a monetary obligation to the condominium association
  112         to pay rent to the association under certain
  113         circumstances; authorizing the condominium association
  114         to sue such tenant who fails to pay rent for eviction
  115         under certain circumstances; providing that the tenant
  116         is immune from claims from the unit owner as the
  117         result of paying rent to the association under certain
  118         circumstances; amending s. 718.117, F.S.; revising the
  119         circumstances under which a condominium association
  120         may be terminated due to economic waste or
  121         impossibility; revising provisions specifying the
  122         effect of a termination of condominium; amending s.
  123         718.202, F.S.; authorizing the deposit of certain
  124         funds into multiple escrow accounts; requiring that an
  125         escrow agent maintain separate accounting records for
  126         each purchaser under certain circumstances; amending
  127         s. 718.301, F.S.; revising conditions under which unit
  128         owners other than the developer may elect at least a
  129         majority of the members of the board of administration
  130         of an association; amending s. 718.303, F.S.;
  131         authorizing an association to suspend for a reasonable
  132         time the right of a unit owner or the unit’s occupant,
  133         licensee, or invitee to use certain common elements
  134         under certain circumstances; prohibiting a fine from
  135         being levied or a suspension from being imposed unless
  136         the association meets certain requirements for notice
  137         and provides an opportunity for a hearing; authorizing
  138         an association to suspend voting rights of a member
  139         due to nonpayment of assessments, fines, or other
  140         charges under certain circumstances; amending s.
  141         718.501, F.S.; specifying that the jurisdiction of the
  142         Division of Florida Condominiums, Timeshares, and
  143         Mobile Homes includes bulk assignees and bulk buyers;
  144         creating part VII of ch. 718, F.S.; creating the
  145         “Distressed Condominium Relief Act”; providing
  146         legislative findings and intent; defining the terms
  147         “bulk assignee” and “bulk buyer”; providing for the
  148         assignment of developer rights by a bulk assignee;
  149         specifying liabilities of bulk assignees and bulk
  150         buyers; providing exceptions; providing additional
  151         responsibilities of bulk assignees and bulk buyers;
  152         authorizing certain entities to assign developer
  153         rights to a bulk assignee; limiting the number of bulk
  154         assignees at any given time; providing for the
  155         transfer of control of a board of administration to
  156         unit owners; providing effects of such transfer on
  157         parcels acquired by a bulk assignee; providing
  158         obligations of a bulk assignee upon the transfer of
  159         control of a board of administration; requiring that a
  160         bulk assignee certify certain information in writing;
  161         providing for the resolution of a conflict between
  162         specified provisions of state law; providing that the
  163         failure of a bulk assignee or bulk buyer to comply
  164         with specified provisions of state law results in the
  165         loss of certain protections and exemptions; requiring
  166         that a bulk assignee or bulk buyer file certain
  167         information with the Division of Florida Condominiums,
  168         Timeshares, and Mobile Homes of the Department of
  169         Business and Professional Regulation before offering
  170         any units for sale or lease in excess of a specified
  171         term; requiring that a copy of such information be
  172         provided to a prospective purchaser or tenant;
  173         requiring that certain contracts and disclosure
  174         statements contain specified statements; requiring
  175         that a bulk assignee or bulk buyer comply with certain
  176         disclosure requirements; prohibiting a bulk assignee
  177         from authorizing certain actions on behalf of an
  178         association while the bulk assignee is in control of
  179         the board of administration of the association;
  180         requiring that a bulk assignee or bulk buyer comply
  181         with certain laws with respect to contracts entered
  182         into by the association while the bulk assignee or
  183         bulk buyer was in control of the board of
  184         administration; providing parcel owners with specified
  185         protections regarding certain contracts; requiring
  186         that a bulk buyer comply with certain requirements
  187         regarding the transfer of a parcel; prohibiting a
  188         person from being classified as a bulk assignee or
  189         bulk buyer unless condominium parcels were acquired
  190         before a specified date; providing that the assignment
  191         of developer rights to a bulk assignee does not
  192         release a developer from certain liabilities; amending
  193         s. 719.106, F.S.; providing for the filling of
  194         vacancies on the condominium board of administration;
  195         amending s. 719.1055, F.S.; providing an additional
  196         required provision in cooperative bylaws; deleting a
  197         provision prohibiting an association from foregoing
  198         the retrofitting with a fire sprinkler system of
  199         common areas in a high-rise building; prohibiting
  200         local authorities having jurisdiction from requiring
  201         retrofitting with a sprinkler system or other
  202         engineered lifesafety system before a specified date;
  203         providing requirements for a special meeting of unit
  204         owners which may be called every 3 years in order to
  205         vote to require retrofitting of the sprinkler system
  206         or other engineered lifesafety system; providing
  207         meeting notice requirements; amending s. 719.108,
  208         F.S.; providing a prioritized list for disbursement of
  209         payments received by an association; providing for a
  210         lien by an association on a condominium unit for
  211         certain fees and costs; providing procedures and
  212         notice requirements for the filing of a lien by an
  213         association; requiring a tenant in a unit owned by a
  214         person who is delinquent in the payment of a monetary
  215         obligation to the condominium association to pay rent
  216         to the association under certain circumstances;
  217         amending s. 720.303, F.S.; revising provisions
  218         relating to homeowners’ association board meetings,
  219         inspection and copying of records, and reserve
  220         accounts of budgets; expanding the list of association
  221         records that are not accessible to members and parcel
  222         owners; prohibiting certain association personnel from
  223         receiving a salary or compensation; providing
  224         exceptions; amending s. 720.304, F.S.; providing that
  225         a flagpole and any flagpole display are subject to
  226         certain codes and regulations; amending s. 720.305,
  227         F.S.; authorizing the association to suspend rights to
  228         use common areas and facilities if the member is
  229         delinquent on the payment of a monetary obligation due
  230         for a certain period of time; providing procedures and
  231         notice requirements for levying a fine or imposing a
  232         suspension; amending s. 720.306, F.S.; providing
  233         requirements for secret ballots; providing procedures
  234         for filling a vacancy on the board of directors;
  235         amending s. 720.3085, F.S.; requiring a tenant in a
  236         property owned by a person who is delinquent in the
  237         payment of a monetary obligation to the condominium
  238         association to pay rent to the association under
  239         certain circumstances; amending s. 720.31, F.S.;
  240         authorizing an association to enter into certain
  241         agreements to use lands or facilities; requiring that
  242         certain items be stated and fully described in the
  243         declaration; limiting an association’s power to enter
  244         into such agreements after a specified period
  245         following the recording of a declaration; requiring
  246         that certain agreements be approved by a specified
  247         percentage of voting interests of an association when
  248         the declaration is silent as to the authority of an
  249         association to enter into such agreement; authorizing
  250         an association to join with other associations or a
  251         master association under certain circumstances and for
  252         specified purposes; creating s. 720.315, F.S.;
  253         prohibiting the board of directors of a homeowners’
  254         association from levying a special assessment before
  255         turnover of the association by the developer unless
  256         certain conditions are met; providing an effective
  257         date.
  258  
  259  Be It Enacted by the Legislature of the State of Florida:
  260  
  261         Section 1. Subsection (8) is added to section 399.02,
  262  Florida Statutes, to read:
  263         399.02 General requirements.—
  264         (8) Updates to the code requiring modifications for Phase
  265  II Firefighters’ Service on existing elevators, as amended into
  266  the Safety Code for Existing Elevators and Escalators, ASME
  267  A17.1 and A17.3, may not be enforced on elevators in
  268  condominiums, cooperatives, or multifamily residential buildings
  269  issued a certificate of occupancy by the local building
  270  authority as of July 1, 2008, for 5 years or until the elevator
  271  is replaced or requires major modification, whichever occurs
  272  first. This exception does not apply to a building for which a
  273  certificate of occupancy was issued after July 1, 2008. This
  274  exception does not prevent an elevator owner from requesting a
  275  variance from the applicable codes before or after the
  276  expiration of the 5-year term. This subsection does not prohibit
  277  the division from granting variances pursuant to s. 120.542. The
  278  division shall adopt rules to administer this subsection.
  279         Section 2. Subsection (7) of section 617.0721, Florida
  280  Statutes, is amended to read:
  281         617.0721 Voting by members.—
  282         (7) Subsections (1), (2), (5), and (6) do not apply to a
  283  corporation that is an association, as defined in s. 720.301, or
  284  a corporation regulated by chapter 718 or chapter 719.
  285         Section 3. Subsection (3) is added to section 617.0808,
  286  Florida Statutes, to read:
  287         617.0808 Removal of directors.—
  288         (3) This section does not apply to any corporation that is
  289  an association, as defined in s. 720.301, or a corporation
  290  regulated under chapter 718 or chapter 719.
  291         Section 4. Section 617.1606, Florida Statutes, is created
  292  to read:
  293         617.1606Access to records.—Sections 617.1601-617.1605 do
  294  not apply to a corporation that is an association, as defined in
  295  s. 720.301, or a corporation regulated under chapter 718 or
  296  chapter 719.
  297         Section 5. Section 627.714, Florida Statutes, is created to
  298  read:
  299         627.714Residential condominium unit owner coverage; loss
  300  assessment coverage required.—
  301         (1) For policies issued or renewed on or after July 1,
  302  2010, coverage under a unit owner’s residential property policy
  303  must include at least $2,000 in property loss assessment
  304  coverage for all assessments made as a result of the same direct
  305  loss to the property, regardless of the number of assessments,
  306  owned by all members of the association collectively if such
  307  loss is of the type of loss covered by the unit owner’s
  308  residential property insurance policy, to which a deductible of
  309  no more than $250 per direct property loss applies. If a
  310  deductible was or will be applied to other property loss
  311  sustained by the unit owner resulting from the same direct loss
  312  to the property, no deductible applies to the loss assessment
  313  coverage.
  314         (2) The maximum amount of any unit owner’s loss assessment
  315  coverage that can be assessed for any loss shall be an amount
  316  equal to that unit owner’s loss assessment coverage limit in
  317  effect one day before the date of the occurrence. Any changes to
  318  the limits of a unit owner’s coverage for loss assessments made
  319  on or after the day before the date of the occurrence are not
  320  applicable to such loss.
  321         (3) Regardless of the number of assessments, an insurer
  322  providing loss assessment coverage to a unit owner is not
  323  required to pay more than an amount equal to that unit owner’s
  324  loss assessment coverage limit as a result of the same direct
  325  loss to property.
  326         (4) Every individual unit owner’s residential property
  327  policy must contain a provision stating that the coverage
  328  afforded by such policy is excess coverage over the amount
  329  recoverable under any other policy covering the same property.
  330         Section 6. Subsection (13) is added to section 633.0215,
  331  Florida Statutes, to read:
  332         633.0215 Florida Fire Prevention Code.—
  333         (13) A condominium, cooperative, or multifamily residential
  334  building that is less than four stories in height and has a
  335  corridor providing an exterior means of egress is exempt from
  336  the requirement to install a manual fire alarm system under s.
  337  9.6 of the Life Safety Code adopted in the Florida Fire
  338  Prevention Code.
  339         Section 7. Subsection (16) of section 718.103, Florida
  340  Statutes, is amended to read:
  341         718.103 Definitions.—As used in this chapter, the term:
  342         (16) “Developer” means a person who creates a condominium
  343  or offers condominium parcels for sale or lease in the ordinary
  344  course of business, but does not include:
  345         (a) An owner or lessee of a condominium or cooperative unit
  346  who has acquired the unit for his or her own occupancy;, nor
  347  does it include
  348         (b) A cooperative association that which creates a
  349  condominium by conversion of an existing residential cooperative
  350  after control of the association has been transferred to the
  351  unit owners if, following the conversion, the unit owners are
  352  will be the same persons who were unit owners of the cooperative
  353  and no units are offered for sale or lease to the public as part
  354  of the plan of conversion;.
  355         (c)A bulk assignee or bulk buyer as defined in s. 718.703;
  356  or
  357         (d) A state, county, or municipal entity is not a developer
  358  for any purposes under this act when it is acting as a lessor
  359  and not otherwise named as a developer in the declaration of
  360  condominium association.
  361         Section 8. Subsection (13) of section 718.110, Florida
  362  Statutes, is amended, and subsection (14) is added to that
  363  section, to read:
  364         718.110 Amendment of declaration; correction of error or
  365  omission in declaration by circuit court.—
  366         (13) An Any amendment prohibiting restricting unit owners
  367  from renting their units or altering the duration of the rental
  368  term or specifying or limiting the number of times unit owners
  369  are entitled to rent their units during a specified period
  370  owners’ rights relating to the rental of units applies only to
  371  unit owners who consent to the amendment and unit owners who
  372  acquire title to purchase their units after the effective date
  373  of that amendment.
  374         (14) Except for those portions of the common elements
  375  designed and intended to be used by all unit owners, a portion
  376  of the common elements serving only one unit or a group of units
  377  may be reclassified as a limited common element upon the vote
  378  required to amend the declaration as provided therein or as
  379  required under paragraph (1)(a), and shall not be considered an
  380  amendment pursuant to subsection (4). This is a clarification of
  381  existing law.
  382         Section 9. Paragraphs (a), (b), (c), (d), (f), (g), (j),
  383  and (n) of subsection (11) and subsections (12) and (13) of
  384  section 718.111, Florida Statutes, are amended to read:
  385         718.111 The association.—
  386         (11) INSURANCE.—In order to protect the safety, health, and
  387  welfare of the people of the State of Florida and to ensure
  388  consistency in the provision of insurance coverage to
  389  condominiums and their unit owners, this subsection applies to
  390  every residential condominium in the state, regardless of the
  391  date of its declaration of condominium. It is the intent of the
  392  Legislature to encourage lower or stable insurance premiums for
  393  associations described in this subsection.
  394         (a) Adequate property hazard insurance, regardless of any
  395  requirement in the declaration of condominium for coverage by
  396  the association for full insurable value, replacement cost, or
  397  similar coverage, must shall be based on upon the replacement
  398  cost of the property to be insured as determined by an
  399  independent insurance appraisal or update of a prior appraisal.
  400  The replacement cost must full insurable value shall be
  401  determined at least once every 36 months.
  402         1. An association or group of associations may provide
  403  adequate property hazard insurance through a self-insurance fund
  404  that complies with the requirements of ss. 624.460-624.488.
  405         2. The association may also provide adequate property
  406  hazard insurance coverage for a group of at least no fewer than
  407  three communities created and operating under this chapter,
  408  chapter 719, chapter 720, or chapter 721 by obtaining and
  409  maintaining for such communities insurance coverage sufficient
  410  to cover an amount equal to the probable maximum loss for the
  411  communities for a 250-year windstorm event. Such probable
  412  maximum loss must be determined through the use of a competent
  413  model that has been accepted by the Florida Commission on
  414  Hurricane Loss Projection Methodology. A No policy or program
  415  providing such coverage may not shall be issued or renewed after
  416  July 1, 2008, unless it has been reviewed and approved by the
  417  Office of Insurance Regulation. The review and approval must
  418  shall include approval of the policy and related forms pursuant
  419  to ss. 627.410 and 627.411, approval of the rates pursuant to s.
  420  627.062, a determination that the loss model approved by the
  421  commission was accurately and appropriately applied to the
  422  insured structures to determine the 250-year probable maximum
  423  loss, and a determination that complete and accurate disclosure
  424  of all material provisions is provided to condominium unit
  425  owners before prior to execution of the agreement by a
  426  condominium association.
  427         3. When determining the adequate amount of property hazard
  428  insurance coverage, the association may consider deductibles as
  429  determined by this subsection.
  430         (b) If an association is a developer-controlled
  431  association, the association shall exercise its best efforts to
  432  obtain and maintain insurance as described in paragraph (a).
  433  Failure to obtain and maintain adequate property hazard
  434  insurance during any period of developer control constitutes a
  435  breach of fiduciary responsibility by the developer-appointed
  436  members of the board of directors of the association, unless the
  437  members can show that despite such failure, they have made their
  438  best efforts to maintain the required coverage.
  439         (c) Policies may include deductibles as determined by the
  440  board.
  441         1. The deductibles must shall be consistent with industry
  442  standards and prevailing practice for communities of similar
  443  size and age, and having similar construction and facilities in
  444  the locale where the condominium property is situated.
  445         2. The deductibles may be based upon available funds,
  446  including reserve accounts, or predetermined assessment
  447  authority at the time the insurance is obtained.
  448         3. The board shall establish the amount of deductibles
  449  based upon the level of available funds and predetermined
  450  assessment authority at a meeting of the board. Such meeting
  451  shall be open to all unit owners in the manner set forth in s.
  452  718.112(2)(e). The notice of such meeting must state the
  453  proposed deductible and the available funds and the assessment
  454  authority relied upon by the board and estimate any potential
  455  assessment amount against each unit, if any. The meeting
  456  described in this paragraph may be held in conjunction with a
  457  meeting to consider the proposed budget or an amendment thereto.
  458         (d) An association controlled by unit owners operating as a
  459  residential condominium shall use its best efforts to obtain and
  460  maintain adequate property insurance to protect the association,
  461  the association property, the common elements, and the
  462  condominium property that must is required to be insured by the
  463  association pursuant to this subsection.
  464         (f) Every property hazard insurance policy issued or
  465  renewed on or after January 1, 2009, for the purpose of
  466  protecting the condominium must shall provide primary coverage
  467  for:
  468         1. All portions of the condominium property as originally
  469  installed or replacement of like kind and quality, in accordance
  470  with the original plans and specifications.
  471         2. All alterations or additions made to the condominium
  472  property or association property pursuant to s. 718.113(2).
  473         3. The coverage must shall exclude all personal property
  474  within the unit or limited common elements, and floor, wall, and
  475  ceiling coverings, electrical fixtures, appliances, water
  476  heaters, water filters, built-in cabinets and countertops, and
  477  window treatments, including curtains, drapes, blinds, hardware,
  478  and similar window treatment components, or replacements of any
  479  of the foregoing which are located within the boundaries of the
  480  unit and serve only such unit. Such property and any insurance
  481  thereupon is the responsibility of the unit owner.
  482         (g) A condominium unit owner’s policy must conform to the
  483  requirements of s. 627.714. Every hazard insurance policy issued
  484  or renewed on or after January 1, 2009, to an individual unit
  485  owner must contain a provision stating that the coverage
  486  afforded by such policy is excess coverage over the amount
  487  recoverable under any other policy covering the same property.
  488  Such policies must include special assessment coverage of no
  489  less than $2,000 per occurrence. An insurance policy issued to
  490  an individual unit owner providing such coverage does not
  491  provide rights of subrogation against the condominium
  492  association operating the condominium in which such individual’s
  493  unit is located.
  494         1. All improvements or additions to the condominium
  495  property that benefit fewer than all unit owners shall be
  496  insured by the unit owner or owners having the use thereof, or
  497  may be insured by the association at the cost and expense of the
  498  unit owners having the use thereof.
  499         2. The association shall require each owner to provide
  500  evidence of a currently effective policy of hazard and liability
  501  insurance upon request, but not more than once per year. Upon
  502  the failure of an owner to provide a certificate of insurance
  503  issued by an insurer approved to write such insurance in this
  504  state within 30 days after the date on which a written request
  505  is delivered, the association may purchase a policy of insurance
  506  on behalf of an owner. The cost of such a policy, together with
  507  reconstruction costs undertaken by the association but which are
  508  the responsibility of the unit owner, may be collected in the
  509  manner provided for the collection of assessments in s. 718.116.
  510         1.3. All reconstruction work after a property casualty loss
  511  must shall be undertaken by the association except as otherwise
  512  authorized in this section. A unit owner may undertake
  513  reconstruction work on portions of the unit with the prior
  514  written consent of the board of administration. However, such
  515  work may be conditioned upon the approval of the repair methods,
  516  the qualifications of the proposed contractor, or the contract
  517  that is used for that purpose. A unit owner must shall obtain
  518  all required governmental permits and approvals before prior to
  519  commencing reconstruction.
  520         2.4. Unit owners are responsible for the cost of
  521  reconstruction of any portions of the condominium property for
  522  which the unit owner is required to carry property casualty
  523  insurance, and any such reconstruction work undertaken by the
  524  association is shall be chargeable to the unit owner and
  525  enforceable as an assessment pursuant to s. 718.116. The
  526  association must be an additional named insured and loss payee
  527  on all casualty insurance policies issued to unit owners in the
  528  condominium operated by the association.
  529         3.5. A multicondominium association may elect, by a
  530  majority vote of the collective members of the condominiums
  531  operated by the association, to operate the such condominiums as
  532  a single condominium for purposes of insurance matters,
  533  including, but not limited to, the purchase of the property
  534  hazard insurance required by this section and the apportionment
  535  of deductibles and damages in excess of coverage. The election
  536  to aggregate the treatment of insurance premiums, deductibles,
  537  and excess damages constitutes an amendment to the declaration
  538  of all condominiums operated by the association, and the costs
  539  of insurance must shall be stated in the association budget. The
  540  amendments must shall be recorded as required by s. 718.110.
  541         (j) Any portion of the condominium property that must
  542  required to be insured by the association against property
  543  casualty loss pursuant to paragraph (f) which is damaged by
  544  casualty shall be reconstructed, repaired, or replaced as
  545  necessary by the association as a common expense. All property
  546  hazard insurance deductibles, uninsured losses, and other
  547  damages in excess of property hazard insurance coverage under
  548  the property hazard insurance policies maintained by the
  549  association are a common expense of the condominium, except
  550  that:
  551         1. A unit owner is responsible for the costs of repair or
  552  replacement of any portion of the condominium property not paid
  553  by insurance proceeds, if such damage is caused by intentional
  554  conduct, negligence, or failure to comply with the terms of the
  555  declaration or the rules of the association by a unit owner, the
  556  members of his or her family, unit occupants, tenants, guests,
  557  or invitees, without compromise of the subrogation rights of the
  558  any insurer as set forth in paragraph (g).
  559         2. The provisions of subparagraph 1. regarding the
  560  financial responsibility of a unit owner for the costs of
  561  repairing or replacing other portions of the condominium
  562  property also apply to the costs of repair or replacement of
  563  personal property of other unit owners or the association, as
  564  well as other property, whether real or personal, which the unit
  565  owners are required to insure under paragraph (g).
  566         3. To the extent the cost of repair or reconstruction for
  567  which the unit owner is responsible under this paragraph is
  568  reimbursed to the association by insurance proceeds, and, to the
  569  extent the association has collected the cost of such repair or
  570  reconstruction from the unit owner, the association shall
  571  reimburse the unit owner without the waiver of any rights of
  572  subrogation.
  573         4. The association is not obligated to pay for
  574  reconstruction or repairs of property casualty losses as a
  575  common expense if the property casualty losses were known or
  576  should have been known to a unit owner and were not reported to
  577  the association until after the insurance claim of the
  578  association for that property casualty was settled or resolved
  579  with finality, or denied because on the basis that it was
  580  untimely filed.
  581         (n) The association is not obligated to pay for any
  582  reconstruction or repair expenses due to property casualty loss
  583  to any improvements installed by a current or former owner of
  584  the unit or by the developer if the improvement benefits only
  585  the unit for which it was installed and is not part of the
  586  standard improvements installed by the developer on all units as
  587  part of original construction, whether or not such improvement
  588  is located within the unit. This paragraph does not relieve any
  589  party of its obligations regarding recovery due under any
  590  insurance implemented specifically for any such improvements.
  591         (12) OFFICIAL RECORDS.—
  592         (a) From the inception of the association, the association
  593  shall maintain each of the following items, if when applicable,
  594  which shall constitute the official records of the association:
  595         1. A copy of the plans, permits, warranties, and other
  596  items provided by the developer pursuant to s. 718.301(4).
  597         2. A photocopy of the recorded declaration of condominium
  598  of each condominium operated by the association and of each
  599  amendment to each declaration.
  600         3. A photocopy of the recorded bylaws of the association
  601  and of each amendment to the bylaws.
  602         4. A certified copy of the articles of incorporation of the
  603  association, or other documents creating the association, and of
  604  each amendment thereto.
  605         5. A copy of the current rules of the association.
  606         6. A book or books which contain the minutes of all
  607  meetings of the association, of the board of administration, and
  608  of unit owners, which minutes must shall be retained for at
  609  least a period of not less than 7 years.
  610         7. A current roster of all unit owners and their mailing
  611  addresses, unit identifications, voting certifications, and, if
  612  known, telephone numbers. The association shall also maintain
  613  the electronic mailing addresses and the numbers designated by
  614  unit owners for receiving notice sent by electronic transmission
  615  of those unit owners consenting to receive notice by electronic
  616  transmission. The electronic mailing addresses and telephone
  617  numbers must provided by unit owners to receive notice by
  618  electronic transmission shall be removed from association
  619  records if when consent to receive notice by electronic
  620  transmission is revoked. However, the association is not liable
  621  for an erroneous disclosure of the electronic mail address or
  622  the number for receiving electronic transmission of notices.
  623         8. All current insurance policies of the association and
  624  condominiums operated by the association.
  625         9. A current copy of any management agreement, lease, or
  626  other contract to which the association is a party or under
  627  which the association or the unit owners have an obligation or
  628  responsibility.
  629         10. Bills of sale or transfer for all property owned by the
  630  association.
  631         11. Accounting records for the association and separate
  632  accounting records for each condominium which the association
  633  operates. All accounting records shall be maintained for at
  634  least a period of not less than 7 years. Any person who
  635  knowingly or intentionally defaces or destroys accounting
  636  records required to be created and maintained by this chapter
  637  during the period for which such records are required to be
  638  maintained, or who knowingly or intentionally fails to create or
  639  maintain such accounting records required to be maintained by
  640  this chapter, with the intent of causing harm to the association
  641  or one or more of its members, is personally subject to a civil
  642  penalty pursuant to s. 718.501(1)(d). The accounting records
  643  must shall include, but are not limited to:
  644         a. Accurate, itemized, and detailed records of all receipts
  645  and expenditures.
  646         b. A current account and a monthly, bimonthly, or quarterly
  647  statement of the account for each unit designating the name of
  648  the unit owner, the due date and amount of each assessment, the
  649  amount paid upon the account, and the balance due.
  650         c. All audits, reviews, accounting statements, and
  651  financial reports of the association or condominium.
  652         d. All contracts for work to be performed. Bids for work to
  653  be performed are shall also be considered official records and
  654  must shall be maintained by the association.
  655         12. Ballots, sign-in sheets, voting proxies, and all other
  656  papers relating to voting by unit owners, which must shall be
  657  maintained for a period of 1 year from the date of the election,
  658  vote, or meeting to which the document relates, notwithstanding
  659  paragraph (b).
  660         13. All rental records if, when the association is acting
  661  as agent for the rental of condominium units.
  662         14. A copy of the current question and answer sheet as
  663  described in by s. 718.504.
  664         15. All other records of the association not specifically
  665  included in the foregoing which are related to the operation of
  666  the association.
  667         16. A copy of the inspection report as provided for in s.
  668  718.301(4)(p).
  669         (b) The official records of the association must shall be
  670  maintained within the state for at least 7 years. The records of
  671  the association shall be made available to a unit owner within
  672  45 miles of the condominium property or within the county in
  673  which the condominium property is located within 5 working days
  674  after receipt of a written request by the board or its designee.
  675  However, such distance requirement does not apply to an
  676  association governing a timeshare condominium. This paragraph
  677  may be complied with by having a copy of the official records of
  678  the association available for inspection or copying on the
  679  condominium property or association property, or the association
  680  may offer the option of making the records of the association
  681  available to a unit owner either electronically via the Internet
  682  or by allowing the records to be viewed in electronic format on
  683  a computer screen and printed upon request. The association is
  684  not responsible for the use or misuse of the information
  685  provided to an association member or his or her authorized
  686  representative pursuant to the compliance requirements of this
  687  chapter unless the association has an affirmative duty not to
  688  disclose such information pursuant to this chapter.
  689         (c) The official records of the association are open to
  690  inspection by any association member or the authorized
  691  representative of such member at all reasonable times. The right
  692  to inspect the records includes the right to make or obtain
  693  copies, at the reasonable expense, if any, of the association
  694  member. The association may adopt reasonable rules regarding the
  695  frequency, time, location, notice, and manner of record
  696  inspections and copying. The failure of an association to
  697  provide the records within 10 working days after receipt of a
  698  written request creates shall create a rebuttable presumption
  699  that the association willfully failed to comply with this
  700  paragraph. A unit owner who is denied access to official records
  701  is entitled to the actual damages or minimum damages for the
  702  association’s willful failure to comply with this paragraph. The
  703  Minimum damages shall be $50 per calendar day up to 10 days, the
  704  calculation to begin on the 11th working day after receipt of
  705  the written request. The failure to permit inspection of the
  706  association records as provided herein entitles any person
  707  prevailing in an enforcement action to recover reasonable
  708  attorney’s fees from the person in control of the records who,
  709  directly or indirectly, knowingly denied access to the records
  710  for inspection. Any person who knowingly or intentionally
  711  defaces or destroys accounting records that are required by this
  712  chapter to be maintained during the period for which such
  713  records are required to be maintained, or who knowingly or
  714  intentionally fails to create or maintain accounting records
  715  that are required to be created or maintained by this chapter,
  716  with the intent of causing harm to the association or one or
  717  more of its members, is personally subject to a civil penalty
  718  pursuant to s. 718.501(1)(d). The association shall maintain an
  719  adequate number of copies of the declaration, articles of
  720  incorporation, bylaws, and rules, and all amendments to each of
  721  the foregoing, as well as the question and answer sheet provided
  722  for in s. 718.504 and year-end financial information required in
  723  this section, on the condominium property to ensure their
  724  availability to unit owners and prospective purchasers, and may
  725  charge its actual costs for preparing and furnishing these
  726  documents to those requesting the documents same.
  727  Notwithstanding the provisions of this paragraph, the following
  728  records are shall not be accessible to unit owners:
  729         1. Any record protected by the lawyer-client privilege as
  730  described in s. 90.502; and any record protected by the work
  731  product privilege, including any record prepared by an
  732  association attorney or prepared at the attorney’s express
  733  direction; which reflects a mental impression, conclusion,
  734  litigation strategy, or legal theory of the attorney or the
  735  association, and which was prepared exclusively for civil or
  736  criminal litigation or for adversarial administrative
  737  proceedings, or which was prepared in anticipation of imminent
  738  civil or criminal litigation or imminent adversarial
  739  administrative proceedings until the conclusion of the
  740  litigation or adversarial administrative proceedings.
  741         2. Information obtained by an association in connection
  742  with the approval of the lease, sale, or other transfer of a
  743  unit.
  744         3.Personnel records of association employees, including,
  745  but not limited to, disciplinary, payroll, health, and insurance
  746  records.
  747         4.3. Medical records of unit owners.
  748         5.4. Social security numbers, driver’s license numbers,
  749  credit card numbers, e-mail addresses, telephone numbers,
  750  emergency contact information, any addresses of a unit owner
  751  other than as provided to fulfill the association’s notice
  752  requirements, and other personal identifying information of any
  753  person, excluding the person’s name, unit designation, mailing
  754  address, and property address.
  755         6.Any electronic security measure that is used by the
  756  association to safeguard data, including passwords.
  757         7.The software and operating system used by the
  758  association which allows manipulation of data, even if the owner
  759  owns a copy of the same software used by the association. The
  760  data is part of the official records of the association.
  761         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  762  the fiscal year, or annually on a date provided in the bylaws,
  763  the association shall prepare and complete, or contract for the
  764  preparation and completion of, a financial report for the
  765  preceding fiscal year. Within 21 days after the final financial
  766  report is completed by the association or received from the
  767  third party, but not later than 120 days after the end of the
  768  fiscal year or other date as provided in the bylaws, the
  769  association shall mail to each unit owner at the address last
  770  furnished to the association by the unit owner, or hand deliver
  771  to each unit owner, a copy of the financial report or a notice
  772  that a copy of the financial report will be mailed or hand
  773  delivered to the unit owner, without charge, upon receipt of a
  774  written request from the unit owner. The division shall adopt
  775  rules setting forth uniform accounting principles and standards
  776  to be used by all associations and shall adopt rules addressing
  777  the financial reporting requirements for multicondominium
  778  associations. The rules must shall include, but not be limited
  779  to, standards for presenting a summary of association reserves,
  780  including a good faith estimate disclosing the annual amount of
  781  reserve funds that would be necessary for the association to
  782  fully fund reserves for each reserve item based on the straight
  783  line accounting method. This disclosure is not applicable to
  784  reserves funded via the pooling method. uniform accounting
  785  principles and standards for stating the disclosure of at least
  786  a summary of the reserves, including information as to whether
  787  such reserves are being funded at a level sufficient to prevent
  788  the need for a special assessment and, if not, the amount of
  789  assessments necessary to bring the reserves up to the level
  790  necessary to avoid a special assessment. The person preparing
  791  the financial reports shall be entitled to rely on an inspection
  792  report prepared for or provided to the association to meet the
  793  fiscal and fiduciary standards of this chapter. In adopting such
  794  rules, the division shall consider the number of members and
  795  annual revenues of an association. Financial reports shall be
  796  prepared as follows:
  797         (a) An association that meets the criteria of this
  798  paragraph shall prepare or cause to be prepared a complete set
  799  of financial statements in accordance with generally accepted
  800  accounting principles. The financial statements must shall be
  801  based upon the association’s total annual revenues, as follows:
  802         1. An association with total annual revenues of $100,000 or
  803  more, but less than $200,000, shall prepare compiled financial
  804  statements.
  805         2. An association with total annual revenues of at least
  806  $200,000, but less than $400,000, shall prepare reviewed
  807  financial statements.
  808         3. An association with total annual revenues of $400,000 or
  809  more shall prepare audited financial statements.
  810         (b)1. An association with total annual revenues of less
  811  than $100,000 shall prepare a report of cash receipts and
  812  expenditures.
  813         2. An association that which operates fewer less than 75 50
  814  units, regardless of the association’s annual revenues, shall
  815  prepare a report of cash receipts and expenditures in lieu of
  816  financial statements required by paragraph (a).
  817         3. A report of cash receipts and disbursements must
  818  disclose the amount of receipts by accounts and receipt
  819  classifications and the amount of expenses by accounts and
  820  expense classifications, including, but not limited to, the
  821  following, as applicable: costs for security, professional and
  822  management fees and expenses, taxes, costs for recreation
  823  facilities, expenses for refuse collection and utility services,
  824  expenses for lawn care, costs for building maintenance and
  825  repair, insurance costs, administration and salary expenses, and
  826  reserves accumulated and expended for capital expenditures,
  827  deferred maintenance, and any other category for which the
  828  association maintains reserves.
  829         (c) An association may prepare or cause to be prepared,
  830  without a meeting of or approval by the unit owners:
  831         1. Compiled, reviewed, or audited financial statements, if
  832  the association is required to prepare a report of cash receipts
  833  and expenditures;
  834         2. Reviewed or audited financial statements, if the
  835  association is required to prepare compiled financial
  836  statements; or
  837         3. Audited financial statements if the association is
  838  required to prepare reviewed financial statements.
  839         (d) If approved by a majority of the voting interests
  840  present at a properly called meeting of the association, an
  841  association may prepare or cause to be prepared:
  842         1. A report of cash receipts and expenditures in lieu of a
  843  compiled, reviewed, or audited financial statement;
  844         2. A report of cash receipts and expenditures or a compiled
  845  financial statement in lieu of a reviewed or audited financial
  846  statement; or
  847         3. A report of cash receipts and expenditures, a compiled
  848  financial statement, or a reviewed financial statement in lieu
  849  of an audited financial statement.
  850  
  851  Such meeting and approval must occur before prior to the end of
  852  the fiscal year and is effective only for the fiscal year in
  853  which the vote is taken, except that the approval may also may
  854  be effective for the following fiscal year. With respect to an
  855  association to which the developer has not turned over control
  856  of the association, all unit owners, including the developer,
  857  may vote on issues related to the preparation of financial
  858  reports for the first 2 fiscal years of the association’s
  859  operation, beginning with the fiscal year in which the
  860  declaration is recorded. Thereafter, all unit owners except the
  861  developer may vote on such issues until control is turned over
  862  to the association by the developer. Any audit or review
  863  prepared under this section shall be paid for by the developer
  864  if done before prior to turnover of control of the association.
  865  An association may not waive the financial reporting
  866  requirements of this section for more than 3 consecutive years.
  867         Section 10. Paragraphs (d), (l), (n), and (o) of subsection
  868  (2) of section 718.112, Florida Statutes, are amended to read:
  869         718.112 Bylaws.—
  870         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  871  following and, if they do not do so, shall be deemed to include
  872  the following:
  873         (d) Unit owner meetings.—
  874         1. There shall be An annual meeting of the unit owners
  875  shall be held at the location provided in the association bylaws
  876  and, if the bylaws are silent as to the location, the meeting
  877  shall be held within 45 miles of the condominium property.
  878  However, such distance requirement does not apply to an
  879  association governing a timeshare condominium. Unless the bylaws
  880  provide otherwise, a vacancy on the board caused by the
  881  expiration of a director’s term shall be filled by electing a
  882  new board member, and the election must shall be by secret
  883  ballot.; However, if the number of vacancies equals or exceeds
  884  the number of candidates, an no election is not required. Except
  885  in a timeshare condominium, the terms of all members of the
  886  board shall expire at the annual meeting and such board members
  887  may stand for reelection unless otherwise permitted by the
  888  bylaws. If In the event that the bylaws permit staggered terms
  889  of no more than 2 years and upon approval of a majority of the
  890  total voting interests, the association board members may serve
  891  2-year staggered terms. If the number of board members whose
  892  terms have expired exceeds the number of eligible members
  893  showing interest in or demonstrating an intention to run for the
  894  vacant positions no person is interested in or demonstrates an
  895  intention to run for the position of a board member whose term
  896  has expired according to the provisions of this subparagraph,
  897  each such board member whose term has expired is eligible for
  898  reappointment shall be automatically reappointed to the board of
  899  administration and need not stand for reelection. In a
  900  condominium association of more than 10 units or in a
  901  condominium association that does not include timeshare units or
  902  timeshare interests, coowners of a unit may not serve as members
  903  of the board of directors at the same time unless they own more
  904  than one unit or unless there are not enough eligible candidates
  905  to fill the vacancies on the board at the time of the vacancy.
  906  Any unit owner desiring to be a candidate for board membership
  907  must shall comply with sub-subparagraph subparagraph 3.a. A
  908  person who has been suspended or removed by the division under
  909  this chapter, or who is delinquent in the payment of any fee,
  910  fine, or special or regular assessment as provided in paragraph
  911  (n), is not eligible for board membership. A person who has been
  912  convicted of any felony in this state or in a United States
  913  District or Territorial Court, or who has been convicted of any
  914  offense in another jurisdiction that would be considered a
  915  felony if committed in this state, is not eligible for board
  916  membership unless such felon’s civil rights have been restored
  917  for at least a period of no less than 5 years as of the date on
  918  which such person seeks election to the board. The validity of
  919  an action by the board is not affected if it is later determined
  920  that a member of the board is ineligible for board membership
  921  due to having been convicted of a felony.
  922         2. The bylaws must shall provide the method of calling
  923  meetings of unit owners, including annual meetings. Written
  924  notice, which notice must include an agenda, shall be mailed,
  925  hand delivered, or electronically transmitted to each unit owner
  926  at least 14 days before prior to the annual meeting and must
  927  shall be posted in a conspicuous place on the condominium
  928  property at least 14 continuous days preceding the annual
  929  meeting. Upon notice to the unit owners, the board shall, by
  930  duly adopted rule, designate a specific location on the
  931  condominium property or association property upon which all
  932  notices of unit owner meetings shall be posted.; However, if
  933  there is no condominium property or association property upon
  934  which notices can be posted, this requirement does not apply. In
  935  lieu of or in addition to the physical posting of meeting
  936  notices notice of any meeting of the unit owners on the
  937  condominium property, the association may, by reasonable rule,
  938  adopt a procedure for conspicuously posting and repeatedly
  939  broadcasting the notice and the agenda on a closed-circuit cable
  940  television system serving the condominium association. However,
  941  if broadcast notice is used in lieu of a notice posted
  942  physically on the condominium property, the notice and agenda
  943  must be broadcast at least four times every broadcast hour of
  944  each day that a posted notice is otherwise required under this
  945  section. If When broadcast notice is provided, the notice and
  946  agenda must be broadcast in a manner and for a sufficient
  947  continuous length of time so as to allow an average reader to
  948  observe the notice and read and comprehend the entire content of
  949  the notice and the agenda. Unless a unit owner waives in writing
  950  the right to receive notice of the annual meeting, such notice
  951  must shall be hand delivered, mailed, or electronically
  952  transmitted to each unit owner. Notice for meetings and notice
  953  for all other purposes must shall be mailed to each unit owner
  954  at the address last furnished to the association by the unit
  955  owner, or hand delivered to each unit owner. However, if a unit
  956  is owned by more than one person, the association shall provide
  957  notice, for meetings and all other purposes, to that one address
  958  which the developer initially identifies for that purpose and
  959  thereafter as one or more of the owners of the unit shall so
  960  advise the association in writing, or if no address is given or
  961  the owners of the unit do not agree, to the address provided on
  962  the deed of record. An officer of the association, or the
  963  manager or other person providing notice of the association
  964  meeting, shall provide an affidavit or United States Postal
  965  Service certificate of mailing, to be included in the official
  966  records of the association affirming that the notice was mailed
  967  or hand delivered, in accordance with this provision.
  968         3. The members of the board shall be elected by written
  969  ballot or voting machine. Proxies may not shall in no event be
  970  used in electing the board, either in general elections or
  971  elections to fill vacancies caused by recall, resignation, or
  972  otherwise, unless otherwise provided in this chapter.
  973         a. At least Not less than 60 days before a scheduled
  974  election, the association shall mail, deliver, or electronically
  975  transmit, whether by separate association mailing or included in
  976  another association mailing, delivery, or transmission,
  977  including regularly published newsletters, to each unit owner
  978  entitled to a vote, a first notice of the date of the election
  979  along with a certification form provided by the division
  980  attesting that he or she has read and understands, to the best
  981  of his or her ability, the governing documents of the
  982  association and the provisions of this chapter and any
  983  applicable rules. Any unit owner or other eligible person
  984  desiring to be a candidate for the board must give written
  985  notice of his or her intent to be a candidate to the association
  986  at least not less than 40 days before a scheduled election.
  987  Together with the written notice and agenda as set forth in
  988  subparagraph 2., the association shall mail, deliver, or
  989  electronically transmit a second notice of the election to all
  990  unit owners entitled to vote therein, together with a ballot
  991  that lists which shall list all candidates. Upon request of a
  992  candidate, the association shall include an information sheet,
  993  no larger than 8 1/2 inches by 11 inches, which must be
  994  furnished by the candidate at least not less than 35 days before
  995  the election, must along with the signed certification form
  996  provided for in this subparagraph, to be included with the
  997  mailing, delivery, or transmission of the ballot, with the costs
  998  of mailing, delivery, or electronic transmission and copying to
  999  be borne by the association. The association is not liable for
 1000  the contents of the information sheets prepared by the
 1001  candidates. In order to reduce costs, the association may print
 1002  or duplicate the information sheets on both sides of the paper.
 1003  The division shall by rule establish voting procedures
 1004  consistent with this sub-subparagraph the provisions contained
 1005  herein, including rules establishing procedures for giving
 1006  notice by electronic transmission and rules providing for the
 1007  secrecy of ballots. Elections shall be decided by a plurality of
 1008  those ballots cast. There is shall be no quorum requirement;
 1009  however, at least 20 percent of the eligible voters must cast a
 1010  ballot in order to have a valid election of members of the
 1011  board. A No unit owner may not shall permit any other person to
 1012  vote his or her ballot, and any such ballots improperly cast are
 1013  shall be deemed invalid, provided any unit owner who violates
 1014  this provision may be fined by the association in accordance
 1015  with s. 718.303. A unit owner who needs assistance in casting
 1016  the ballot for the reasons stated in s. 101.051 may obtain such
 1017  assistance in casting the ballot. The regular election must
 1018  shall occur on the date of the annual meeting. The provisions of
 1019  This sub-subparagraph does subparagraph shall not apply to
 1020  timeshare condominium associations. Notwithstanding the
 1021  provisions of this sub-subparagraph subparagraph, an election is
 1022  not required unless more candidates file notices of intent to
 1023  run or are nominated than board vacancies exist.
 1024         b.Within 90 days after being elected or appointed to the
 1025  board, each newly elected or appointed director shall certify in
 1026  writing to the secretary of the association that he or she has
 1027  read the association’s declaration of condominium, articles of
 1028  incorporation, bylaws, and current written policies; that he or
 1029  she will work to uphold such documents and policies to the best
 1030  of his or her ability; and that he or she will faithfully
 1031  discharge his or her fiduciary responsibility to the
 1032  association’s members. In lieu of this written certification,
 1033  the newly elected or appointed director may submit a certificate
 1034  of satisfactory completion of the educational curriculum
 1035  administered by a division-approved condominium education
 1036  provider. A director who fails to timely file the written
 1037  certification or educational certificate is suspended from
 1038  service on the board until he or she complies with this sub
 1039  subparagraph. The board may temporarily fill the vacancy during
 1040  the period of suspension. The secretary shall cause the
 1041  association to retain a director’s written certification or
 1042  educational certificate for inspection by the members for 5
 1043  years after a director’s election. Failure to have such written
 1044  certification or educational certificate on file does not affect
 1045  the validity of any action.
 1046         4. Any approval by unit owners called for by this chapter
 1047  or the applicable declaration or bylaws, including, but not
 1048  limited to, the approval requirement in s. 718.111(8), shall be
 1049  made at a duly noticed meeting of unit owners and is shall be
 1050  subject to all requirements of this chapter or the applicable
 1051  condominium documents relating to unit owner decisionmaking,
 1052  except that unit owners may take action by written agreement,
 1053  without meetings, on matters for which action by written
 1054  agreement without meetings is expressly allowed by the
 1055  applicable bylaws or declaration or any statute that provides
 1056  for such action.
 1057         5. Unit owners may waive notice of specific meetings if
 1058  allowed by the applicable bylaws or declaration or any statute.
 1059  If authorized by the bylaws, notice of meetings of the board of
 1060  administration, unit owner meetings, except unit owner meetings
 1061  called to recall board members under paragraph (j), and
 1062  committee meetings may be given by electronic transmission to
 1063  unit owners who consent to receive notice by electronic
 1064  transmission.
 1065         6. Unit owners shall have the right to participate in
 1066  meetings of unit owners with reference to all designated agenda
 1067  items. However, the association may adopt reasonable rules
 1068  governing the frequency, duration, and manner of unit owner
 1069  participation.
 1070         7. Any unit owner may tape record or videotape a meeting of
 1071  the unit owners subject to reasonable rules adopted by the
 1072  division.
 1073         8. Unless otherwise provided in the bylaws, any vacancy
 1074  occurring on the board before the expiration of a term may be
 1075  filled by the affirmative vote of the majority of the remaining
 1076  directors, even if the remaining directors constitute less than
 1077  a quorum, or by the sole remaining director. In the alternative,
 1078  a board may hold an election to fill the vacancy, in which case
 1079  the election procedures must conform to the requirements of sub
 1080  subparagraph subparagraph 3.a. unless the association governs 10
 1081  units or fewer less and has opted out of the statutory election
 1082  process, in which case the bylaws of the association control.
 1083  Unless otherwise provided in the bylaws, a board member
 1084  appointed or elected under this section shall fill the vacancy
 1085  for the unexpired term of the seat being filled. Filling
 1086  vacancies created by recall is governed by paragraph (j) and
 1087  rules adopted by the division.
 1088  
 1089  Notwithstanding subparagraph subparagraphs (b)2. and sub
 1090  subparagraph (d)3.a., an association of 10 or fewer units may,
 1091  by the affirmative vote of a majority of the total voting
 1092  interests, provide for different voting and election procedures
 1093  in its bylaws, which vote may be by a proxy specifically
 1094  delineating the different voting and election procedures. The
 1095  different voting and election procedures may provide for
 1096  elections to be conducted by limited or general proxy.
 1097         (l) Certificate of compliance.There shall be A provision
 1098  that a certificate of compliance from a licensed electrical
 1099  contractor or electrician may be accepted by the association’s
 1100  board as evidence of compliance of the condominium units with
 1101  the applicable fire and life safety code must be included.
 1102  Notwithstanding the provisions of chapter 633 or of any other
 1103  code, statute, ordinance, administrative rule, or regulation, or
 1104  any interpretation of the foregoing, an association,
 1105  condominium, or unit owner is not obligated to retrofit the
 1106  common elements, association property, or units of a residential
 1107  condominium with a fire sprinkler system or any other form of
 1108  engineered lifesafety system in a building that has been
 1109  certified for occupancy by the applicable governmental entity,
 1110  if the unit owners have voted to forego such retrofitting and
 1111  engineered lifesafety system by the affirmative vote of a
 1112  majority two-thirds of all voting interests in the affected
 1113  condominium. However, a condominium association may not vote to
 1114  forego the retrofitting with a fire sprinkler system of common
 1115  areas in a high-rise building. For purposes of this subsection,
 1116  the term “high-rise building” means a building that is greater
 1117  than 75 feet in height where the building height is measured
 1118  from the lowest level of fire department access to the floor of
 1119  the highest occupiable story. For purposes of this subsection,
 1120  the term “common areas” means any enclosed hallway, corridor,
 1121  lobby, stairwell, or entryway. In no event shall The local
 1122  authority having jurisdiction may not require completion of
 1123  retrofitting of common areas with a sprinkler system or any
 1124  other form of engineered lifesafety system before the end of
 1125  2019 2014. By December 31, 2016, an association that is not in
 1126  compliance with the requirements for a fire sprinkler system or
 1127  other form of engineered lifesafety system and has not voted to
 1128  forego retrofitting of such system must initiate an application
 1129  for a building permit for the required installation with the
 1130  local government having jurisdiction demonstrating that the
 1131  association will become compliant by December 31, 2019.
 1132         1. A vote to forego retrofitting may be obtained by limited
 1133  proxy or by a ballot personally cast at a duly called membership
 1134  meeting, or by execution of a written consent by the member, and
 1135  is shall be effective upon the recording of a certificate
 1136  attesting to such vote in the public records of the county where
 1137  the condominium is located. The association shall mail or, hand
 1138  deliver, or electronically transmit to each unit owner written
 1139  notice at least 14 days before the prior to such membership
 1140  meeting in which the vote to forego retrofitting of the required
 1141  fire sprinkler system or any other form of engineered lifesafety
 1142  system is to take place. Within 30 days after the association’s
 1143  opt-out vote, notice of the results of the opt-out vote must
 1144  shall be mailed or, hand delivered, or electronically
 1145  transmitted to all unit owners. Evidence of compliance with this
 1146  30-day notice requirement must shall be made by an affidavit
 1147  executed by the person providing the notice and filed among the
 1148  official records of the association. After such notice is
 1149  provided to each owner, a copy must of such notice shall be
 1150  provided by the current owner to a new owner before prior to
 1151  closing and shall be provided by a unit owner to a renter before
 1152  prior to signing a lease.
 1153         2. If there has been a previous vote to forego
 1154  retrofitting, a vote to require retrofitting may be obtained at
 1155  a special meeting of the unit owners called by a petition of at
 1156  least 10 percent of the voting interests. Such a vote may only
 1157  be called once every 3 years. Notice shall be provided as
 1158  required for any regularly called meeting of the unit owners,
 1159  and must state the purpose of the meeting. Electronic
 1160  transmission may not be used to provide notice of a meeting
 1161  called in whole or in part for this purpose.
 1162         3.2. As part of the information collected annually from
 1163  condominiums, the division shall require condominium
 1164  associations to report the membership vote and recording of a
 1165  certificate under this subsection and, if retrofitting has been
 1166  undertaken, the per-unit cost of such work. The division shall
 1167  annually report to the Division of State Fire Marshal of the
 1168  Department of Financial Services the number of condominiums that
 1169  have elected to forego retrofitting.
 1170         4. Notwithstanding s. 553.509, an association may not be
 1171  obligated to, and may forego the retrofitting of, any
 1172  improvements required by s. 553.509(2) upon an affirmative vote
 1173  of a majority of the voting interests in the affected
 1174  condominium.
 1175         (n) Director or officer delinquencies.—A director or
 1176  officer more than 90 days delinquent in the payment of any
 1177  monetary obligation due the association regular assessments
 1178  shall be deemed to have abandoned the office, creating a vacancy
 1179  in the office to be filled according to law.
 1180         (o) Director or officer offenses.—A director or officer
 1181  charged by information or indictment with a felony theft or
 1182  embezzlement offense involving the association’s funds or
 1183  property must shall be removed from office, creating a vacancy
 1184  in the office to be filled according to law until the end of the
 1185  period of the suspension or the end of the director’s term of
 1186  office, whichever occurs first. While such director or officer
 1187  has such criminal charge pending, he or she may not be appointed
 1188  or elected to a position as a director or officer. However, if
 1189  should the charges are be resolved without a finding of guilt,
 1190  the director or officer shall be reinstated for the remainder of
 1191  his or her term of office, if any.
 1192         Section 11. Paragraph (d) of subsection (1) of section
 1193  718.115, Florida Statutes, is amended to read:
 1194         718.115 Common expenses and common surplus.—
 1195         (1)
 1196         (d) If so provided in the declaration, the cost of
 1197  communications services as defined in chapter 202, information
 1198  services, or Internet services a master antenna television
 1199  system or duly franchised cable television service obtained
 1200  pursuant to a bulk contract is shall be deemed a common expense.
 1201  If the declaration does not provide for the cost of such
 1202  services a master antenna television system or duly franchised
 1203  cable television service obtained under a bulk contract as a
 1204  common expense, the board may enter into such a contract, and
 1205  the cost of the service will be a common expense. The cost for
 1206  the services under a bulk-rate contract may be but allocated on
 1207  a per-unit basis rather than a percentage basis if the
 1208  declaration provides for other than an equal sharing of common
 1209  expenses, and any contract entered into before July 1, 1998, in
 1210  which the cost of the service is not equally divided among all
 1211  unit owners, may be changed by vote of a majority of the voting
 1212  interests present at a regular or special meeting of the
 1213  association, to allocate the cost equally among all units. The
 1214  contract must be for at least shall be for a term of not less
 1215  than 2 years.
 1216         1. Any contract made by the board on or after July 1, 1998,
 1217  the effective date hereof for a community antenna system or duly
 1218  franchised cable television service may be canceled by a
 1219  majority of the voting interests present at the next regular or
 1220  special meeting of the association. Any member may make a motion
 1221  to cancel the said contract, but if no motion is made or if such
 1222  motion fails to obtain the required majority at the next regular
 1223  or special meeting, whichever occurs first is sooner, following
 1224  the making of the contract, then such contract shall be deemed
 1225  ratified for the term therein expressed.
 1226         2. Any Such contract must shall provide, and is shall be
 1227  deemed to provide if not expressly set forth, that any hearing
 1228  impaired or legally blind unit owner who does not occupy the
 1229  unit with a non-hearing-impaired or sighted person, or any unit
 1230  owner receiving supplemental security income under Title XVI of
 1231  the Social Security Act or food stamps as administered by the
 1232  Department of Children and Family Services pursuant to s.
 1233  414.31, may discontinue the cable or video service without
 1234  incurring disconnect fees, penalties, or subsequent service
 1235  charges, and, as to such units, the owners are shall not be
 1236  required to pay any common expenses charge related to such
 1237  service. If fewer less than all members of an association share
 1238  the expenses of cable or video service television, the expense
 1239  shall be shared equally by all participating unit owners. The
 1240  association may use the provisions of s. 718.116 to enforce
 1241  payment of the shares of such costs by the unit owners receiving
 1242  cable or video service television.
 1243         Section 12. Paragraph (b) of subsection (1), subsection
 1244  (3), and paragraph (b) of subsection (5) of section 718.116,
 1245  Florida Statutes, are amended, and subsection (11) is added to
 1246  that section, to read:
 1247         718.116 Assessments; liability; lien and priority;
 1248  interest; collection.—
 1249         (1)
 1250         (b) The liability of a first mortgagee or its successor or
 1251  assignees who acquire title to a unit by foreclosure or by deed
 1252  in lieu of foreclosure for the unpaid assessments that became
 1253  due before prior to the mortgagee’s acquisition of title is
 1254  limited to the lesser of:
 1255         1. The unit’s unpaid common expenses and regular periodic
 1256  assessments which accrued or came due during the 12 6 months
 1257  immediately preceding the acquisition of title and for which
 1258  payment in full has not been received by the association; or
 1259         2. One percent of the original mortgage debt. The
 1260  provisions of this paragraph apply only if the first mortgagee
 1261  joined the association as a defendant in the foreclosure action.
 1262  Joinder of the association is not required if, on the date the
 1263  complaint is filed, the association was dissolved or did not
 1264  maintain an office or agent for service of process at a location
 1265  which was known to or reasonably discoverable by the mortgagee.
 1266         (3) Assessments and installments on assessments them which
 1267  are not paid when due bear interest at the rate provided in the
 1268  declaration, from the due date until paid. This rate may not
 1269  exceed the rate allowed by law, and, if no rate is provided in
 1270  the declaration, interest accrues shall accrue at the rate of 18
 1271  percent per year. Also, if provided by the declaration or bylaws
 1272  so provide, the association may, in addition to such interest,
 1273  charge an administrative late fee of up to in addition to such
 1274  interest, in an amount not to exceed the greater of $25 or 5
 1275  percent of each installment of the assessment for each
 1276  delinquent installment for which that the payment is late. Any
 1277  payment received by an association must shall be applied first
 1278  to any interest accrued by the association, then to any
 1279  administrative late fee, then to any costs and reasonable
 1280  attorney’s fees incurred in collection, and then to the
 1281  delinquent assessment. The foregoing is shall be applicable
 1282  notwithstanding any restrictive endorsement, designation, or
 1283  instruction placed on or accompanying a payment. A late fee is
 1284  shall not be subject to the provisions in chapter 687 or s.
 1285  718.303(3).
 1286         (5)
 1287         (b) To be valid, a claim of lien must state the description
 1288  of the condominium parcel, the name of the record owner, the
 1289  name and address of the association, the amount due, and the due
 1290  dates. It must be executed and acknowledged by an officer or
 1291  authorized agent of the association. The No such lien is not
 1292  shall be effective longer than 1 year after the claim of lien
 1293  was recorded unless, within that time, an action to enforce the
 1294  lien is commenced. The 1-year period is shall automatically be
 1295  extended for any length of time during which the association is
 1296  prevented from filing a foreclosure action by an automatic stay
 1297  resulting from a bankruptcy petition filed by the parcel owner
 1298  or any other person claiming an interest in the parcel. The
 1299  claim of lien secures shall secure all unpaid assessments that
 1300  which are due and that which may accrue after subsequent to the
 1301  recording of the claim of lien is recorded and through prior to
 1302  the entry of a final judgment certificate of title, as well as
 1303  interest and all reasonable costs and attorney’s fees incurred
 1304  by the association incident to the collection process. Upon
 1305  payment in full, the person making the payment is entitled to a
 1306  satisfaction of the lien.
 1307  
 1308  After notice of contest of lien has been recorded, the clerk of
 1309  the circuit court shall mail a copy of the recorded notice to
 1310  the association by certified mail, return receipt requested, at
 1311  the address shown in the claim of lien or most recent amendment
 1312  to it and shall certify to the service on the face of the
 1313  notice. Service is complete upon mailing. After service, the
 1314  association has 90 days in which to file an action to enforce
 1315  the lien; and, if the action is not filed within the 90-day
 1316  period, the lien is void. However, the 90-day period shall be
 1317  extended for any length of time that the association is
 1318  prevented from filing its action because of an automatic stay
 1319  resulting from the filing of a bankruptcy petition by the unit
 1320  owner or by any other person claiming an interest in the parcel.
 1321         (11)If the unit is occupied by a tenant and the unit owner
 1322  is delinquent in paying any monetary obligation due to the
 1323  association, the association may make a written demand that the
 1324  tenant pay the future monetary obligations related to the
 1325  condominium unit to the association, and the tenant must make
 1326  such payment. The demand is continuing in nature and, upon
 1327  demand, the tenant must pay the monetary obligations to the
 1328  association until the association releases the tenant or the
 1329  tenant discontinues tenancy in the unit. The association must
 1330  mail written notice to the unit owner of the association’s
 1331  demand that the tenant make payments to the association. The
 1332  association shall, upon request, provide the tenant with written
 1333  receipts for payments made. A tenant who acts in good faith in
 1334  response to a written demand from an association is immune from
 1335  any claim from the unit owner.
 1336         (a) If the tenant prepaid rent to the unit owner before
 1337  receiving the demand from the association and provides written
 1338  evidence of paying the rent to the association within 14 days
 1339  after receiving the demand, the tenant shall receive credit for
 1340  the prepaid rent for the applicable period and must make any
 1341  subsequent rental payments to the association to be credited
 1342  against the monetary obligations of the unit owner to the
 1343  association.
 1344         (b) The tenant is not liable for increases in the amount of
 1345  the monetary obligations due unless the tenant was notified in
 1346  writing of the increase at least 10 days before the date the
 1347  rent is due. The liability of the tenant may not exceed the
 1348  amount due from the tenant to the tenant’s landlord. The
 1349  tenant’s landlord shall provide the tenant a credit against
 1350  rents due to the unit owner in the amount of monies paid to the
 1351  association under this section.
 1352         (c) The association may issue notices under s. 83.56 and
 1353  may sue for eviction under ss. 83.59-83.625 as if the
 1354  association were a landlord under part II of chapter 83 if the
 1355  tenant fails to pay a required payment to the association.
 1356  However, the association is not otherwise considered a landlord
 1357  under chapter 83 and specifically has no duties under s. 83.51.
 1358         (d) The tenant does not, by virtue of payment of monetary
 1359  obligations to the association, have any of the rights of a unit
 1360  owner to vote in any election or to examine the books and
 1361  records of the association.
 1362         (e) A court may supersede the effect of this subsection by
 1363  appointing a receiver.
 1364         Section 13. Subsections (2) and (19) of section 718.117,
 1365  Florida Statutes, are amended to read:
 1366         718.117 Termination of condominium.—
 1367         (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR
 1368  IMPOSSIBILITY.—
 1369         (a) Notwithstanding any provision to the contrary in the
 1370  declaration, the condominium form of ownership of a property may
 1371  be terminated by a plan of termination approved by the lesser of
 1372  the lowest percentage of voting interests necessary to amend the
 1373  declaration or as otherwise provided in the declaration for
 1374  approval of termination if when:
 1375         1. The total estimated cost of construction or repairs
 1376  necessary to construct the intended improvements or restore the
 1377  improvements to their former condition or bring them into
 1378  compliance with applicable laws or regulations exceeds the
 1379  combined fair market value of the all units in the condominium
 1380  after completion of the construction or repairs; or
 1381         2. It becomes impossible to operate or reconstruct a
 1382  condominium to in its prior physical configuration because of
 1383  land use laws or regulations.
 1384         (b) Notwithstanding paragraph (a), a condominium in which
 1385  75 percent or more of the units are timeshare units may be
 1386  terminated only pursuant to a plan of termination approved by 80
 1387  percent of the total voting interests of the association and the
 1388  holders of 80 percent of the original principal amount of
 1389  outstanding recorded mortgage liens of timeshare estates in the
 1390  condominium, unless the declaration provides for a lower voting
 1391  percentage.
 1392         (19) CREATION OF ANOTHER CONDOMINIUM.—The termination of a
 1393  condominium does not bar the filing of a declaration of
 1394  condominium or an amended and restated declaration of
 1395  condominium creation by the termination trustee of another
 1396  condominium affecting any portion of the same property.
 1397         Section 14. Subsection (11) is added to section 718.202,
 1398  Florida Statutes, to read:
 1399         718.202 Sales or reservation deposits prior to closing.—
 1400         (11) All funds deposited into escrow pursuant to subsection
 1401  (1) or subsection (2) may be held in one or more escrow accounts
 1402  by the escrow agent. If only one escrow account is used, the
 1403  escrow agent must maintain separate accounting records for each
 1404  purchaser and for amounts separately covered under subsections
 1405  (1) and (2) and, if applicable, released to the developer
 1406  pursuant to subsection (3). Separate accounting by the escrow
 1407  agent of the escrow funds constitutes compliance with this
 1408  section even if the funds are held by the escrow agent in a
 1409  single escrow account. It is the intent of this subsection to
 1410  clarify existing law.
 1411         Section 15. Subsection (1) of section 718.301, Florida
 1412  Statutes, is amended to read:
 1413         718.301 Transfer of association control; claims of defect
 1414  by association.—
 1415         (1) If When unit owners other than the developer own 15
 1416  percent or more of the units in a condominium that will be
 1417  operated ultimately by an association, the unit owners other
 1418  than the developer are shall be entitled to elect at least no
 1419  less than one-third of the members of the board of
 1420  administration of the association. Unit owners other than the
 1421  developer are entitled to elect at least not less than a
 1422  majority of the members of the board of administration of an
 1423  association:
 1424         (a) Three years after 50 percent of the units that will be
 1425  operated ultimately by the association have been conveyed to
 1426  purchasers;
 1427         (b) Three months after 90 percent of the units that will be
 1428  operated ultimately by the association have been conveyed to
 1429  purchasers;
 1430         (c) When all the units that will be operated ultimately by
 1431  the association have been completed, some of them have been
 1432  conveyed to purchasers, and none of the others are being offered
 1433  for sale by the developer in the ordinary course of business;
 1434         (d) When some of the units have been conveyed to purchasers
 1435  and none of the others are being constructed or offered for sale
 1436  by the developer in the ordinary course of business;
 1437         (e) When the developer files a petition seeking protection
 1438  in bankruptcy;
 1439         (f) When a receiver for the developer is appointed by a
 1440  circuit court and is not discharged within 30 days after such
 1441  appointment, unless the court determines within 30 days after
 1442  appointment of the receiver that transfer of control would be
 1443  detrimental to the association or its members; or
 1444         (g) Seven years after recordation of the declaration of
 1445  condominium; or, in the case of an association that which may
 1446  ultimately operate more than one condominium, 7 years after
 1447  recordation of the declaration for the first condominium it
 1448  operates; or, in the case of an association operating a phase
 1449  condominium created pursuant to s. 718.403, 7 years after
 1450  recordation of the declaration creating the initial phase,
 1451  whichever occurs first. The developer is entitled to elect at
 1452  least one member of the board of administration of an
 1453  association as long as the developer holds for sale in the
 1454  ordinary course of business at least 5 percent, in condominiums
 1455  with fewer than 500 units, and 2 percent, in condominiums with
 1456  more than 500 units, of the units in a condominium operated by
 1457  the association. After Following the time the developer
 1458  relinquishes control of the association, the developer may
 1459  exercise the right to vote any developer-owned units in the same
 1460  manner as any other unit owner except for purposes of
 1461  reacquiring control of the association or selecting the majority
 1462  members of the board of administration.
 1463         Section 16. Section 718.303, Florida Statutes, is amended
 1464  to read:
 1465         718.303 Obligations of owners and occupants; remedies
 1466  waiver; levy of fine against unit by association.—
 1467         (1) Each unit owner, each tenant and other invitee, and
 1468  each association is shall be governed by, and must shall comply
 1469  with the provisions of, this chapter, the declaration, the
 1470  documents creating the association, and the association bylaws
 1471  which and the provisions thereof shall be deemed expressly
 1472  incorporated into any lease of a unit. Actions for damages or
 1473  for injunctive relief, or both, for failure to comply with these
 1474  provisions may be brought by the association or by a unit owner
 1475  against:
 1476         (a) The association.
 1477         (b) A unit owner.
 1478         (c) Directors designated by the developer, for actions
 1479  taken by them before prior to the time control of the
 1480  association is assumed by unit owners other than the developer.
 1481         (d) Any director who willfully and knowingly fails to
 1482  comply with these provisions.
 1483         (e) Any tenant leasing a unit, and any other invitee
 1484  occupying a unit.
 1485  
 1486  The prevailing party in any such action or in any action in
 1487  which the purchaser claims a right of voidability based upon
 1488  contractual provisions as required in s. 718.503(1)(a) is
 1489  entitled to recover reasonable attorney’s fees. A unit owner
 1490  prevailing in an action between the association and the unit
 1491  owner under this section, in addition to recovering his or her
 1492  reasonable attorney’s fees, may recover additional amounts as
 1493  determined by the court to be necessary to reimburse the unit
 1494  owner for his or her share of assessments levied by the
 1495  association to fund its expenses of the litigation. This relief
 1496  does not exclude other remedies provided by law. Actions arising
 1497  under this subsection may shall not be deemed to be actions for
 1498  specific performance.
 1499         (2) A provision of this chapter may not be waived if the
 1500  waiver would adversely affect the rights of a unit owner or the
 1501  purpose of the provision, except that unit owners or members of
 1502  a board of administration may waive notice of specific meetings
 1503  in writing if provided by the bylaws. Any instruction given in
 1504  writing by a unit owner or purchaser to an escrow agent may be
 1505  relied upon by an escrow agent, whether or not such instruction
 1506  and the payment of funds thereunder might constitute a waiver of
 1507  any provision of this chapter.
 1508         (3) If a unit owner is delinquent for more than 90 days in
 1509  paying a monetary obligation due to the association the
 1510  declaration or bylaws so provide, the association may suspend
 1511  the right of a unit owner or a unit’s occupant, licensee, or
 1512  invitee to use common elements, common facilities, or any other
 1513  association property until the monetary obligation is paid. This
 1514  subsection does not apply to limited common elements intended to
 1515  be used only by that unit, common elements that must be used to
 1516  access the unit, utility services provided to the unit, parking
 1517  spaces, or elevators. The association may also levy reasonable
 1518  fines against a unit for the failure of the owner of the unit,
 1519  or its occupant, licensee, or invitee, to comply with any
 1520  provision of the declaration, the association bylaws, or
 1521  reasonable rules of the association. A No fine does not will
 1522  become a lien against a unit. A No fine may not exceed $100 per
 1523  violation. However, a fine may be levied on the basis of each
 1524  day of a continuing violation, with a single notice and
 1525  opportunity for hearing. However, the provided that no such fine
 1526  may not shall in the aggregate exceed $1,000. A No fine may not
 1527  be levied and a suspension may not be imposed unless the
 1528  association first provides at least 14 days’ written except
 1529  after giving reasonable notice and an opportunity for a hearing
 1530  to the unit owner and, if applicable, its occupant, licensee, or
 1531  invitee. The hearing must be held before a committee of other
 1532  unit owners who are neither board members nor persons residing
 1533  in a board member’s household. If the committee does not agree
 1534  with the fine or suspension, the fine or suspension may not be
 1535  levied or imposed. The provisions of this subsection do not
 1536  apply to unoccupied units.
 1537         (4)The notice and hearing requirements of subsection (3)
 1538  do not apply to the imposition of suspensions or fines against a
 1539  unit owner or a unit’s occupant, licensee, or invitee because of
 1540  failing to pay any amounts due the association. If such a fine
 1541  or suspension is imposed, the association must levy the fine or
 1542  impose a reasonable suspension at a properly noticed board
 1543  meeting, and after the imposition of such fine or suspension,
 1544  the association must notify the unit owner and, if applicable,
 1545  the unit’s occupant, licensee, or invitee by mail or hand
 1546  delivery.
 1547         (5)An association may also suspend the voting rights of a
 1548  member due to nonpayment of any monetary obligation due to the
 1549  association which is more than 90 days delinquent. The
 1550  suspension ends upon full payment of all obligations currently
 1551  due or overdue the association.
 1552         Section 17. Subsection (1) of section 718.501, Florida
 1553  Statutes, is amended to read:
 1554         718.501 Authority, responsibility, and duties of Division
 1555  of Florida Condominiums, Timeshares, and Mobile Homes.—
 1556         (1) The division may of Florida Condominiums, Timeshares,
 1557  and Mobile Homes of the Department of Business and Professional
 1558  Regulation, referred to as the “division” in this part, has the
 1559  power to enforce and ensure compliance with the provisions of
 1560  this chapter and rules relating to the development,
 1561  construction, sale, lease, ownership, operation, and management
 1562  of residential condominium units. In performing its duties, the
 1563  division has complete jurisdiction to investigate complaints and
 1564  enforce compliance with the provisions of this chapter with
 1565  respect to associations that are still under developer control
 1566  or the control of a bulk assignee or bulk buyer pursuant to part
 1567  VII of this chapter and complaints against developers, bulk
 1568  assignees, or bulk buyers involving improper turnover or failure
 1569  to turnover, pursuant to s. 718.301. However, after turnover has
 1570  occurred, the division has shall only have jurisdiction to
 1571  investigate complaints related only to financial issues,
 1572  elections, and unit owner access to association records pursuant
 1573  to s. 718.111(12).
 1574         (a)1. The division may make necessary public or private
 1575  investigations within or outside this state to determine whether
 1576  any person has violated this chapter or any rule or order
 1577  hereunder, to aid in the enforcement of this chapter, or to aid
 1578  in the adoption of rules or forms hereunder.
 1579         2. The division may submit any official written report,
 1580  worksheet, or other related paper, or a duly certified copy
 1581  thereof, compiled, prepared, drafted, or otherwise made by and
 1582  duly authenticated by a financial examiner or analyst to be
 1583  admitted as competent evidence in any hearing in which the
 1584  financial examiner or analyst is available for cross-examination
 1585  and attests under oath that such documents were prepared as a
 1586  result of an examination or inspection conducted pursuant to
 1587  this chapter.
 1588         (b) The division may require or permit any person to file a
 1589  statement in writing, under oath or otherwise, as the division
 1590  determines, as to the facts and circumstances concerning a
 1591  matter to be investigated.
 1592         (c) For the purpose of any investigation under this
 1593  chapter, the division director or any officer or employee
 1594  designated by the division director may administer oaths or
 1595  affirmations, subpoena witnesses and compel their attendance,
 1596  take evidence, and require the production of any matter which is
 1597  relevant to the investigation, including the existence,
 1598  description, nature, custody, condition, and location of any
 1599  books, documents, or other tangible things and the identity and
 1600  location of persons having knowledge of relevant facts or any
 1601  other matter reasonably calculated to lead to the discovery of
 1602  material evidence. Upon the failure by a person to obey a
 1603  subpoena or to answer questions propounded by the investigating
 1604  officer and upon reasonable notice to all persons affected
 1605  persons thereby, the division may apply to the circuit court for
 1606  an order compelling compliance.
 1607         (d) Notwithstanding any remedies available to unit owners
 1608  and associations, if the division has reasonable cause to
 1609  believe that a violation of any provision of this chapter or
 1610  related rule has occurred, the division may institute
 1611  enforcement proceedings in its own name against any developer,
 1612  bulk assignee, bulk buyer, association, officer, or member of
 1613  the board of administration, or its assignees or agents, as
 1614  follows:
 1615         1. The division may permit a person whose conduct or
 1616  actions may be under investigation to waive formal proceedings
 1617  and enter into a consent proceeding whereby orders, rules, or
 1618  letters of censure or warning, whether formal or informal, may
 1619  be entered against the person.
 1620         2. The division may issue an order requiring the developer,
 1621  bulk assignee, bulk buyer, association, developer-designated
 1622  officer, or developer-designated member of the board of
 1623  administration, developer-designated assignees or agents, bulk
 1624  assignee-designated assignees or agents, bulk buyer-designated
 1625  assignees or agents, community association manager, or community
 1626  association management firm to cease and desist from the
 1627  unlawful practice and take such affirmative action as in the
 1628  judgment of the division will carry out the purposes of this
 1629  chapter. If the division finds that a developer, bulk assignee,
 1630  bulk buyer, association, officer, or member of the board of
 1631  administration, or its assignees or agents, is violating or is
 1632  about to violate any provision of this chapter, any rule adopted
 1633  or order issued by the division, or any written agreement
 1634  entered into with the division, and presents an immediate danger
 1635  to the public requiring an immediate final order, it may issue
 1636  an emergency cease and desist order reciting with particularity
 1637  the facts underlying such findings. The emergency cease and
 1638  desist order is effective for 90 days. If the division begins
 1639  nonemergency cease and desist proceedings, the emergency cease
 1640  and desist order remains effective until the conclusion of the
 1641  proceedings under ss. 120.569 and 120.57.
 1642         3. If a developer, bulk assignee, or bulk buyer, fails to
 1643  pay any restitution determined by the division to be owed, plus
 1644  any accrued interest at the highest rate permitted by law,
 1645  within 30 days after expiration of any appellate time period of
 1646  a final order requiring payment of restitution or the conclusion
 1647  of any appeal thereof, whichever is later, the division must
 1648  shall bring an action in circuit or county court on behalf of
 1649  any association, class of unit owners, lessees, or purchasers
 1650  for restitution, declaratory relief, injunctive relief, or any
 1651  other available remedy. The division may also temporarily revoke
 1652  its acceptance of the filing for the developer to which the
 1653  restitution relates until payment of restitution is made.
 1654         4. The division may petition the court for the appointment
 1655  of a receiver or conservator. If appointed, the receiver or
 1656  conservator may take action to implement the court order to
 1657  ensure the performance of the order and to remedy any breach
 1658  thereof. In addition to all other means provided by law for the
 1659  enforcement of an injunction or temporary restraining order, the
 1660  circuit court may impound or sequester the property of a party
 1661  defendant, including books, papers, documents, and related
 1662  records, and allow the examination and use of the property by
 1663  the division and a court-appointed receiver or conservator.
 1664         5. The division may apply to the circuit court for an order
 1665  of restitution whereby the defendant in an action brought
 1666  pursuant to subparagraph 4. is shall be ordered to make
 1667  restitution of those sums shown by the division to have been
 1668  obtained by the defendant in violation of this chapter. Such
 1669  restitution shall, At the option of the court, such restitution
 1670  is be payable to the conservator or receiver appointed pursuant
 1671  to subparagraph 4. or directly to the persons whose funds or
 1672  assets were obtained in violation of this chapter.
 1673         6. The division may impose a civil penalty against a
 1674  developer, bulk assignee, or bulk buyer, or association, or its
 1675  assignee or agent, for any violation of this chapter or related
 1676  a rule adopted under this chapter. The division may impose a
 1677  civil penalty individually against an any officer or board
 1678  member who willfully and knowingly violates a provision of this
 1679  chapter, adopted rule, or a final order of the division; may
 1680  order the removal of such individual as an officer or from the
 1681  board of administration or as an officer of the association; and
 1682  may prohibit such individual from serving as an officer or on
 1683  the board of a community association for a period of time. The
 1684  term “willfully and knowingly” means that the division informed
 1685  the officer or board member that his or her action or intended
 1686  action violates this chapter, a rule adopted under this chapter,
 1687  or a final order of the division and that the officer or board
 1688  member refused to comply with the requirements of this chapter,
 1689  a rule adopted under this chapter, or a final order of the
 1690  division. The division, before prior to initiating formal agency
 1691  action under chapter 120, must shall afford the officer or board
 1692  member an opportunity to voluntarily comply and with this
 1693  chapter, a rule adopted under this chapter, or a final order of
 1694  the division. an officer or board member who complies within 10
 1695  days is not subject to a civil penalty. A penalty may be imposed
 1696  on the basis of each day of continuing violation, but in no
 1697  event shall the penalty for any offense may not exceed $5,000.
 1698  By January 1, 1998, the division shall adopt, by rule, penalty
 1699  guidelines applicable to possible violations or to categories of
 1700  violations of this chapter or rules adopted by the division. The
 1701  guidelines must specify a meaningful range of civil penalties
 1702  for each such violation of the statute and rules and must be
 1703  based upon the harm caused by the violation, the repetition of
 1704  the violation, and upon such other factors deemed relevant by
 1705  the division. For example, the division may consider whether the
 1706  violations were committed by a developer, bulk assignee, or bulk
 1707  buyer, or owner-controlled association, the size of the
 1708  association, and other factors. The guidelines must designate
 1709  the possible mitigating or aggravating circumstances that
 1710  justify a departure from the range of penalties provided by the
 1711  rules. It is the legislative intent that minor violations be
 1712  distinguished from those which endanger the health, safety, or
 1713  welfare of the condominium residents or other persons and that
 1714  such guidelines provide reasonable and meaningful notice to the
 1715  public of likely penalties that may be imposed for proscribed
 1716  conduct. This subsection does not limit the ability of the
 1717  division to informally dispose of administrative actions or
 1718  complaints by stipulation, agreed settlement, or consent order.
 1719  All amounts collected shall be deposited with the Chief
 1720  Financial Officer to the credit of the Division of Florida
 1721  Condominiums, Timeshares, and Mobile Homes Trust Fund. If a
 1722  developer, bulk assignee, or bulk buyer fails to pay the civil
 1723  penalty and the amount deemed to be owed to the association, the
 1724  division shall issue an order directing that such developer,
 1725  bulk assignee, or bulk buyer cease and desist from further
 1726  operation until such time as the civil penalty is paid or may
 1727  pursue enforcement of the penalty in a court of competent
 1728  jurisdiction. If an association fails to pay the civil penalty,
 1729  the division shall pursue enforcement in a court of competent
 1730  jurisdiction, and the order imposing the civil penalty or the
 1731  cease and desist order is will not become effective until 20
 1732  days after the date of such order. Any action commenced by the
 1733  division shall be brought in the county in which the division
 1734  has its executive offices or in the county where the violation
 1735  occurred.
 1736         7. If a unit owner presents the division with proof that
 1737  the unit owner has requested access to official records in
 1738  writing by certified mail, and that after 10 days the unit owner
 1739  again made the same request for access to official records in
 1740  writing by certified mail, and that more than 10 days has
 1741  elapsed since the second request and the association has still
 1742  failed or refused to provide access to official records as
 1743  required by this chapter, the division shall issue a subpoena
 1744  requiring production of the requested records where the records
 1745  are kept pursuant to s. 718.112.
 1746         8. In addition to subparagraph 6., the division may seek
 1747  the imposition of a civil penalty through the circuit court for
 1748  any violation for which the division may issue a notice to show
 1749  cause under paragraph (r). The civil penalty shall be at least
 1750  $500 but no more than $5,000 for each violation. The court may
 1751  also award to the prevailing party court costs and reasonable
 1752  attorney’s fees and, if the division prevails, may also award
 1753  reasonable costs of investigation.
 1754         (e) The division may prepare and disseminate a prospectus
 1755  and other information to assist prospective owners, purchasers,
 1756  lessees, and developers of residential condominiums in assessing
 1757  the rights, privileges, and duties pertaining thereto.
 1758         (f) The division may has authority to adopt rules pursuant
 1759  to ss. 120.536(1) and 120.54 to administer implement and enforce
 1760  the provisions of this chapter.
 1761         (g) The division shall establish procedures for providing
 1762  notice to an association and the developer, bulk assignee, or
 1763  bulk buyer during the period in which where the developer, bulk
 1764  assignee, or bulk buyer controls the association if when the
 1765  division is considering the issuance of a declaratory statement
 1766  with respect to the declaration of condominium or any related
 1767  document governing in such condominium community.
 1768         (h) The division shall furnish each association that which
 1769  pays the fees required by paragraph (2)(a) a copy of this
 1770  chapter, as amended act, subsequent changes to this act on an
 1771  annual basis, an amended version of this act as it becomes
 1772  available from the Secretary of State’s office on a biennial
 1773  basis, and the rules adopted thereto on an annual basis.
 1774         (i) The division shall annually provide each association
 1775  with a summary of declaratory statements and formal legal
 1776  opinions relating to the operations of condominiums which were
 1777  rendered by the division during the previous year.
 1778         (j) The division shall provide training and educational
 1779  programs for condominium association board members and unit
 1780  owners. The training may, in the division’s discretion, include
 1781  web-based electronic media, and live training and seminars in
 1782  various locations throughout the state. The division may shall
 1783  have the authority to review and approve education and training
 1784  programs for board members and unit owners offered by providers
 1785  and shall maintain a current list of approved programs and
 1786  providers and shall make such list available to board members
 1787  and unit owners in a reasonable and cost-effective manner.
 1788         (k) The division shall maintain a toll-free telephone
 1789  number accessible to condominium unit owners.
 1790         (l) The division shall develop a program to certify both
 1791  volunteer and paid mediators to provide mediation of condominium
 1792  disputes. The division shall provide, upon request, a list of
 1793  such mediators to any association, unit owner, or other
 1794  participant in arbitration proceedings under s. 718.1255
 1795  requesting a copy of the list. The division shall include on the
 1796  list of volunteer mediators only the names of persons who have
 1797  received at least 20 hours of training in mediation techniques
 1798  or who have mediated at least 20 disputes. In order to become
 1799  initially certified by the division, paid mediators must be
 1800  certified by the Supreme Court to mediate court cases in county
 1801  or circuit courts. However, the division may adopt, by rule,
 1802  additional factors for the certification of paid mediators,
 1803  which factors must be related to experience, education, or
 1804  background. Any person initially certified as a paid mediator by
 1805  the division must, in order to continue to be certified, comply
 1806  with the factors or requirements adopted by rule imposed by
 1807  rules adopted by the division.
 1808         (m) If When a complaint is made, the division must shall
 1809  conduct its inquiry with due regard for to the interests of the
 1810  affected parties. Within 30 days after receipt of a complaint,
 1811  the division shall acknowledge the complaint in writing and
 1812  notify the complainant whether the complaint is within the
 1813  jurisdiction of the division and whether additional information
 1814  is needed by the division from the complainant. The division
 1815  shall conduct its investigation and shall, within 90 days after
 1816  receipt of the original complaint or of timely requested
 1817  additional information, take action upon the complaint. However,
 1818  the failure to complete the investigation within 90 days does
 1819  not prevent the division from continuing the investigation,
 1820  accepting or considering evidence obtained or received after 90
 1821  days, or taking administrative action if reasonable cause exists
 1822  to believe that a violation of this chapter or a rule of the
 1823  division has occurred. If an investigation is not completed
 1824  within the time limits established in this paragraph, the
 1825  division shall, on a monthly basis, notify the complainant in
 1826  writing of the status of the investigation. When reporting its
 1827  action to the complainant, the division shall inform the
 1828  complainant of any right to a hearing pursuant to ss. 120.569
 1829  and 120.57.
 1830         (n) Condominium association directors, officers, and
 1831  employees; condominium developers; bulk assignees, bulk buyers,
 1832  and community association managers; and community association
 1833  management firms have an ongoing duty to reasonably cooperate
 1834  with the division in any investigation pursuant to this section.
 1835  The division shall refer to local law enforcement authorities
 1836  any person whom the division believes has altered, destroyed,
 1837  concealed, or removed any record, document, or thing required to
 1838  be kept or maintained by this chapter with the purpose to impair
 1839  its verity or availability in the department’s investigation.
 1840         (o) The division may:
 1841         1. Contract with agencies in this state or other
 1842  jurisdictions to perform investigative functions; or
 1843         2. Accept grants-in-aid from any source.
 1844         (p) The division shall cooperate with similar agencies in
 1845  other jurisdictions to establish uniform filing procedures and
 1846  forms, public offering statements, advertising standards, and
 1847  rules and common administrative practices.
 1848         (q) The division shall consider notice to a developer, bulk
 1849  assignee, or bulk buyer to be complete when it is delivered to
 1850  the developer’s address of the developer, bulk assignee, or bulk
 1851  buyer currently on file with the division.
 1852         (r) In addition to its enforcement authority, the division
 1853  may issue a notice to show cause, which must shall provide for a
 1854  hearing, upon written request, in accordance with chapter 120.
 1855         (s) The division shall submit to the Governor, the
 1856  President of the Senate, the Speaker of the House of
 1857  Representatives, and the chairs of the legislative
 1858  appropriations committees an annual report that includes, but
 1859  need not be limited to, the number of training programs provided
 1860  for condominium association board members and unit owners, the
 1861  number of complaints received by type, the number and percent of
 1862  complaints acknowledged in writing within 30 days and the number
 1863  and percent of investigations acted upon within 90 days in
 1864  accordance with paragraph (m), and the number of investigations
 1865  exceeding the 90-day requirement. The annual report must shall
 1866  also include an evaluation of the division’s core business
 1867  processes and make recommendations for improvements, including
 1868  statutory changes. The report shall be submitted by September 30
 1869  following the end of the fiscal year.
 1870         Section 18. Part VII of chapter 718, Florida Statutes,
 1871  consisting of sections 718.701, 718.702, 718.703, 718.704,
 1872  718.705, 718.706, 718.707, and 718.708, is created to read:
 1873         718.701Short title.—This part may be cited as the
 1874  “Distressed Condominium Relief Act.”
 1875         718.702Legislative intent.—
 1876         (1)The Legislature acknowledges the massive downturn in
 1877  the condominium market which has occurred throughout the state
 1878  and the impact of such downturn on developers, lenders, unit
 1879  owners, and condominium associations. Numerous condominium
 1880  projects have failed or are in the process of failing such that
 1881  the condominium has a small percentage of third-party unit
 1882  owners as compared to the unsold inventory of units. As a result
 1883  of the inability to find purchasers for this inventory of units,
 1884  which results in part from the devaluing of real estate in this
 1885  state, developers are unable to satisfy the requirements of
 1886  their lenders, leading to defaults on mortgages. Consequently,
 1887  lenders are faced with the task of finding a solution to the
 1888  problem in order to receive payment for their investments.
 1889         (2)The Legislature recognizes that all of the factors
 1890  listed in this section lead to condominiums becoming distressed,
 1891  resulting in detriment to the unit owners and the condominium
 1892  association due to the resulting shortage of assessment moneys
 1893  available for proper maintenance of the condominium. Such
 1894  shortage and the resulting lack of proper maintenance further
 1895  erodes property values. The Legislature finds that individuals
 1896  and entities within this state and in other states have
 1897  expressed interest in purchasing unsold inventory in one or more
 1898  condominium projects, but are reticent to do so because of
 1899  accompanying liabilities inherited from the original developer,
 1900  which are by definition imputed to the successor purchaser,
 1901  including a foreclosing mortgagee. This results in the potential
 1902  successor purchaser having unknown and unquantifiable risks that
 1903  the potential purchaser is unwilling to accept. As a result,
 1904  condominium projects stagnate, leaving all parties involved at
 1905  an impasse and without the ability to find a solution.
 1906         (3)The Legislature declares that it is the public policy
 1907  of this state to protect the interests of developers, lenders,
 1908  unit owners, and condominium associations with regard to
 1909  distressed condominiums, and that there is a need for relief
 1910  from certain provisions of the Florida Condominium Act geared
 1911  toward enabling economic opportunities for successor purchasers,
 1912  including foreclosing mortgagees. Such relief would benefit
 1913  existing unit owners and condominium associations. The
 1914  Legislature further finds and declares that this situation
 1915  cannot be open-ended without potentially prejudicing the rights
 1916  of unit owners and condominium associations, and thereby
 1917  declares that the provisions of this part may be used by
 1918  purchasers of condominium inventory for only a specific and
 1919  defined period.
 1920         718.703Definitions.—As used in this part, the term:
 1921         (1)“Bulk assignee” means a person who:
 1922         (a)Acquires more than seven condominium parcels as set
 1923  forth in s. 718.707; and
 1924         (b)Receives an assignment of some or all of the rights of
 1925  the developer as set forth in the declaration of condominium or
 1926  this chapter by a written instrument recorded as an exhibit to
 1927  the deed or as a separate instrument in the public records of
 1928  the county in which the condominium is located.
 1929         (2)“Bulk buyer” means a person who acquires more than
 1930  seven condominium parcels as set forth in s. 718.707, but who
 1931  does not receive an assignment of developer rights other than
 1932  the right to conduct sales, leasing, and marketing activities
 1933  within the condominium; the right to be exempt from the payment
 1934  of working capital contributions to the condominium association
 1935  arising out of, or in connection with, the bulk buyer’s
 1936  acquisition of a bulk number of units; and the right to be
 1937  exempt from any rights of first refusal which may be held by the
 1938  condominium association and would otherwise be applicable to
 1939  subsequent transfers of title from the bulk buyer to a third
 1940  party purchaser concerning one or more units.
 1941         718.704Assignment and assumption of developer rights by
 1942  bulk assignee; bulk buyer.—
 1943         (1)A bulk assignee assumes and is liable for all duties
 1944  and responsibilities of the developer under the declaration and
 1945  this chapter, except:
 1946         (a)Warranties of the developer under s. 718.203(1) or s.
 1947  718.618, except for design, construction, development, or repair
 1948  work performed by or on behalf of such bulk assignee;
 1949         (b)The obligation to:
 1950         1.Fund converter reserves under s. 718.618 for a unit that
 1951  was not acquired by the bulk assignee; or
 1952         2.Provide converter warranties on any portion of the
 1953  condominium property except as expressly provided by the bulk
 1954  assignee in the contract for purchase and sale executed with a
 1955  purchaser and pertaining to any design, construction,
 1956  development, or repair work performed by or on behalf of the
 1957  bulk assignee;
 1958         (c)The requirement to provide the association with a
 1959  cumulative audit of the association’s finances from the date of
 1960  formation of the condominium association as required by s.
 1961  718.301(4)(c). However, the bulk assignee must provide an audit
 1962  for the period during which the bulk assignee elects a majority
 1963  of the members of the board of administration;
 1964         (d)Any liability arising out of or in connection with
 1965  actions taken by the board of administration or the developer
 1966  appointed directors before the bulk assignee elects a majority
 1967  of the members of the board of administration; and
 1968         (e)Any liability for or arising out of the developer’s
 1969  failure to fund previous assessments or to resolve budgetary
 1970  deficits in relation to a developer’s right to guarantee
 1971  assessments, except as otherwise provided in subsection (2).
 1972  
 1973  The bulk assignee is also responsible for delivering documents
 1974  and materials in accordance with s. 718.705(3). A bulk assignee
 1975  may expressly assume some or all of the obligations of the
 1976  developer described in paragraphs (a)-(e).
 1977         (2)A bulk assignee receiving the assignment of the rights
 1978  of the developer to guarantee the level of assessments and fund
 1979  budgetary deficits pursuant to s. 718.116 assumes and is liable
 1980  for all obligations of the developer with respect to such
 1981  guarantee, including any applicable funding of reserves to the
 1982  extent required by law, for as long as the guarantee remains in
 1983  effect. A bulk assignee not receiving such assignment or a bulk
 1984  buyer does not assume and is not liable for the obligations of
 1985  the developer with respect to such guarantee, but is responsible
 1986  for payment of assessments in the same manner as all other
 1987  owners of condominium parcels.
 1988         (3)A bulk buyer is liable for the duties and
 1989  responsibilities of the developer under the declaration and this
 1990  chapter only to the extent provided in this part, together with
 1991  any other duties or responsibilities of the developer expressly
 1992  assumed in writing by the bulk buyer.
 1993         (4)An acquirer of condominium parcels is not a bulk
 1994  assignee or a bulk buyer if the transfer to such acquirer was
 1995  made before the effective date of this part with the intent to
 1996  hinder, delay, or defraud any purchaser, unit owner, or the
 1997  association, or if the acquirer is a person who would be
 1998  considered an insider under s. 726.102(7).
 1999         (5)An assignment of developer rights to a bulk assignee
 2000  may be made by the developer, a previous bulk assignee, or a
 2001  court acting on behalf of the developer or the previous bulk
 2002  assignee. At any particular time, there may be no more than one
 2003  bulk assignee within a condominium, but there may be more than
 2004  one bulk buyer. If more than one acquirer of condominium parcels
 2005  in the same condominium receives an assignment of developer
 2006  rights from the same person, the bulk assignee is the acquirer
 2007  whose instrument of assignment is recorded first.
 2008         718.705Board of administration; transfer of control.—
 2009         (1)For purposes of determining the timing for transfer of
 2010  control of the board of administration of the association to
 2011  unit owners other than the developer under s. 718.301(1)(a) and
 2012  (b), if a bulk assignee is entitled to elect a majority of the
 2013  members of the board, a condominium parcel acquired by the bulk
 2014  assignee is conveyed to a purchaser, or owned by an owner other
 2015  than the developer, until the condominium parcel is conveyed to
 2016  an owner who is not a bulk assignee.
 2017         (2)Unless control of the board of administration of the
 2018  association has already been relinquished pursuant to s.
 2019  718.301(1), the bulk assignee must relinquish control of the
 2020  association pursuant to s. 718.301 and this part, as if the bulk
 2021  assignee were the developer.
 2022         (3)If a bulk assignee relinquishes control of the board of
 2023  administration as set forth in s. 718.301, the bulk assignee
 2024  must deliver all of those items required by s. 718.301(4).
 2025  However, the bulk assignee is not required to deliver items and
 2026  documents not in the possession of the bulk assignee during the
 2027  period during which the bulk assignee was entitled to elect at
 2028  least a majority of the members of the board of administration.
 2029  In conjunction with acquisition of condominium parcels, a bulk
 2030  assignee shall undertake a good faith effort to obtain the
 2031  documents and materials that must be provided to the association
 2032  pursuant to s. 718.301(4). If the bulk assignee is not able to
 2033  obtain all of such documents and materials, the bulk assignee
 2034  must certify in writing to the association the names or
 2035  descriptions of the documents and materials that were not
 2036  obtainable by the bulk assignee. Delivery of the certificate
 2037  relieves the bulk assignee of responsibility for delivering the
 2038  documents and materials referenced in the certificate as
 2039  otherwise required under ss. 718.112 and 718.301 and this part.
 2040  The responsibility of the bulk assignee for the audit required
 2041  by s. 718.301(4) commences as of the date on which the bulk
 2042  assignee elected a majority of the members of the board of
 2043  administration.
 2044         (4)If a conflict arises between the provisions or
 2045  application of this section and s. 718.301, this section
 2046  prevails.
 2047         (5)Failure of a bulk assignee or bulk buyer to
 2048  substantially comply with all the requirements in this part
 2049  results in the loss of any and all protections or exemptions
 2050  provided under this part.
 2051         718.706Specific provisions pertaining to offering of units
 2052  by a bulk assignee or bulk buyer.—
 2053         (1)Before offering any units for sale or for lease for a
 2054  term exceeding 5 years, a bulk assignee or a bulk buyer must
 2055  file the following documents with the division and provide such
 2056  documents to a prospective purchaser or tenant:
 2057         (a)An updated prospectus or offering circular, or a
 2058  supplement to the prospectus or offering circular, filed by the
 2059  original developer prepared in accordance with s. 718.504, which
 2060  must include the form of contract for sale and for lease in
 2061  compliance with s. 718.503(2);
 2062         (b)An updated Frequently Asked Questions and Answers
 2063  sheet;
 2064         (c)The executed escrow agreement if required under s.
 2065  718.202; and
 2066         (d)The financial information required by s. 718.111(13).
 2067  However, if a financial information report does not exist for
 2068  the fiscal year before acquisition of title by the bulk assignee
 2069  or bulk buyer, or accounting records cannot be obtained in good
 2070  faith by the bulk assignee or the bulk buyer which would permit
 2071  preparation of the required financial information report, the
 2072  bulk assignee or bulk buyer is excused from the requirement of
 2073  this paragraph. However, the bulk assignee or bulk buyer must
 2074  include in the purchase contract the following statement in
 2075  conspicuous type:
 2076  
 2077         THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
 2078         718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR
 2079         OF THE ASSOCIATION IS NOT AVAILABLE OR CANNOT BE
 2080         CREATED BY THE SELLER DUE TO THE INSUFFICIENT
 2081         ACCOUNTING RECORDS OF THE ASSOCIATION.
 2082  
 2083         (2)Before offering any units for sale or for lease for a
 2084  term exceeding 5 years, a bulk assignee must file with the
 2085  division and provide to a prospective purchaser a disclosure
 2086  statement that includes, but is not limited to:
 2087         (a)A description of any rights of the developer which have
 2088  been assigned to the bulk assignee or bulk buyer;
 2089         (b)The following statement in conspicuous type:
 2090  
 2091         THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
 2092         DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS
 2093         APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION,
 2094         DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
 2095         OF SELLER; and
 2096         (c)If the condominium is a conversion subject to part VI,
 2097  the following statement in conspicuous type:
 2098  
 2099         THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
 2100         RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
 2101         718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY
 2102         EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN
 2103         THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
 2104         SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO
 2105         ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK
 2106         PERFORMED BY OR ON BEHALF OF THE SELLER.
 2107         (3)A bulk assignee, while it is in control of the board of
 2108  administration of the association, may not authorize, on behalf
 2109  of the association:
 2110         (a)The waiver of reserves or the reduction of funding of
 2111  the reserves pursuant to s. 718.112(2)(f)2., unless approved by
 2112  a majority of the voting interests not controlled by the
 2113  developer, bulk assignee, and bulk buyer; or
 2114         (b)The use of reserve expenditures for other purposes
 2115  pursuant to s. 718.112(2)(f)3., unless approved by a majority of
 2116  the voting interests not controlled by the developer, bulk
 2117  assignee, and bulk buyer.
 2118         (4)A bulk assignee or a bulk buyer must comply with all
 2119  the requirements of s. 718.302 regarding any contracts entered
 2120  into by the association during the period the bulk assignee or
 2121  bulk buyer maintains control of the board of administration.
 2122  Unit owners shall be afforded all the protections contained in
 2123  s. 718.302 regarding agreements entered into by the association
 2124  before unit owners other than the developer, bulk assignee, or
 2125  bulk buyer elected a majority of the board of administration.
 2126         (5)A bulk buyer must comply with the requirements
 2127  contained in the declaration regarding any transfer of a unit,
 2128  including sales, leases, and subleases. A bulk buyer is not
 2129  entitled to any exemptions afforded a developer or successor
 2130  developer under this chapter regarding the transfer of a unit,
 2131  including sales, leases, or subleases.
 2132         718.707Time limitation for classification as bulk assignee
 2133  or bulk buyer.—A person acquiring condominium parcels may not be
 2134  classified as a bulk assignee or bulk buyer unless the
 2135  condominium parcels were acquired before July 1, 2012. The date
 2136  of such acquisition shall be determined by the date of recording
 2137  of a deed or other instrument of conveyance for such parcels in
 2138  the public records of the county in which the condominium is
 2139  located, or by the date of issuance of a certificate of title in
 2140  a foreclosure proceeding with respect to such condominium
 2141  parcels.
 2142         718.708Liability of developers and others.—An assignment
 2143  of developer rights to a bulk assignee or bulk buyer does not
 2144  release the original developer from liabilities under the
 2145  declaration or this chapter. This part does not limit the
 2146  liability of the original developer for claims brought by unit
 2147  owners, bulk assignees, or bulk buyers for violations of this
 2148  chapter by the original developer, unless specifically excluded
 2149  in this part. This part does not waive, release, compromise, or
 2150  limit liability established under chapter 718 except as
 2151  specifically excluded under this part.
 2152         Section 19. Paragraph (d) of subsection (1) of section
 2153  719.106, Florida Statutes, is amended to read:
 2154         719.106 Bylaws; cooperative ownership.—
 2155         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 2156  documents shall provide for the following, and if they do not,
 2157  they shall be deemed to include the following:
 2158         (d) Shareholder meetings.—There shall be an annual meeting
 2159  of the shareholders. All members of the board of administration
 2160  shall be elected at the annual meeting unless the bylaws provide
 2161  for staggered election terms or for their election at another
 2162  meeting. Any unit owner desiring to be a candidate for board
 2163  membership must shall comply with subparagraph 1. The bylaws
 2164  must shall provide the method for calling meetings, including
 2165  annual meetings. Written notice, which must notice shall
 2166  incorporate an identification of agenda items, shall be given to
 2167  each unit owner at least 14 days before prior to the annual
 2168  meeting and shall be posted in a conspicuous place on the
 2169  cooperative property at least 14 continuous days preceding the
 2170  annual meeting. Upon notice to the unit owners, the board must
 2171  shall by duly adopted rule designate a specific location on the
 2172  cooperative property upon which all notice of unit owner
 2173  meetings are shall be posted. In lieu of or in addition to the
 2174  physical posting of the meeting notice of any meeting of the
 2175  shareholders on the cooperative property, the association may,
 2176  by reasonable rule, adopt a procedure for conspicuously posting
 2177  and repeatedly broadcasting the notice and the agenda on a
 2178  closed-circuit cable television system serving the cooperative
 2179  association. However, if broadcast notice is used in lieu of a
 2180  posted notice posted physically on the cooperative property, the
 2181  notice and agenda must be broadcast at least four times every
 2182  broadcast hour of each day that a posted notice is otherwise
 2183  required under this section. If When broadcast notice is
 2184  provided, the notice and agenda must be broadcast in a manner
 2185  and for a sufficient continuous length of time so as to allow an
 2186  average reader to observe the notice and read and comprehend the
 2187  entire content of the notice and the agenda. Unless a unit owner
 2188  waives in writing the right to receive notice of the annual
 2189  meeting, the notice of the annual meeting must shall be sent by
 2190  mail, hand delivered, or electronically transmitted to each unit
 2191  owner. An officer of the association must shall provide an
 2192  affidavit or United States Postal Service certificate of
 2193  mailing, to be included in the official records of the
 2194  association, affirming that notices of the association meeting
 2195  were mailed, hand delivered, or electronically transmitted, in
 2196  accordance with this provision, to each unit owner at the
 2197  address last furnished to the association.
 2198         1. After January 1, 1992, The board of administration shall
 2199  be elected by written ballot or voting machine. A proxy may not
 2200  Proxies shall in no event be used in electing the board of
 2201  administration, either in general elections or elections to fill
 2202  vacancies caused by recall, resignation, or otherwise unless
 2203  otherwise provided in this chapter. At least Not less than 60
 2204  days before a scheduled election, the association shall mail,
 2205  deliver, or transmit, whether by separate association mailing,
 2206  delivery, or electronic transmission or included in another
 2207  association mailing, delivery, or electronic transmission,
 2208  including regularly published newsletters, to each unit owner
 2209  entitled to vote, a first notice of the date of the election.
 2210  Any unit owner or other eligible person desiring to be a
 2211  candidate for the board of administration must shall give
 2212  written notice to the association at least not less than 40 days
 2213  before a scheduled election. Together with the written notice
 2214  and agenda as set forth in this section, the association shall
 2215  mail, deliver, or electronically transmit a second notice of
 2216  election to all unit owners entitled to vote therein, together
 2217  with a ballot which lists shall list all candidates. Upon
 2218  request of a candidate, the association shall include an
 2219  information sheet, no larger than 8 1/2 inches by 11 inches,
 2220  which must be furnished by the candidate at least not less than
 2221  35 days before prior to the election, to be included with the
 2222  mailing, delivery, or electronic transmission of the ballot,
 2223  with the costs of mailing, delivery, or transmission and copying
 2224  to be borne by the association. The association is not liable
 2225  has no liability for the contents of the information sheets
 2226  provided by the candidates. In order to reduce costs, the
 2227  association may print or duplicate the information sheets on
 2228  both sides of the paper. The division shall by rule establish
 2229  voting procedures consistent with this subparagraph the
 2230  provisions contained herein, including rules establishing
 2231  procedures for giving notice by electronic transmission and
 2232  rules providing for the secrecy of ballots. Elections shall be
 2233  decided by a plurality of those ballots cast. There is shall be
 2234  no quorum requirement. However, at least 20 percent of the
 2235  eligible voters must cast a ballot in order to have a valid
 2236  election of members of the board of administration. A No unit
 2237  owner may not shall permit any other person to vote his or her
 2238  ballot, and any such ballots improperly cast are shall be deemed
 2239  invalid. A unit owner who needs assistance in casting the ballot
 2240  for the reasons stated in s. 101.051 may obtain assistance in
 2241  casting the ballot. Any unit owner violating this provision may
 2242  be fined by the association in accordance with s. 719.303. The
 2243  regular election must shall occur on the date of the annual
 2244  meeting. The provisions of This subparagraph does shall not
 2245  apply to timeshare cooperatives. Notwithstanding the provisions
 2246  of this subparagraph, an election and balloting are not required
 2247  unless more candidates file a notice of intent to run or are
 2248  nominated than vacancies exist on the board.
 2249         2. Any approval by unit owners called for by this chapter,
 2250  or the applicable cooperative documents, must shall be made at a
 2251  duly noticed meeting of unit owners and is shall be subject to
 2252  all requirements of this chapter or the applicable cooperative
 2253  documents relating to unit owner decisionmaking, except that
 2254  unit owners may take action by written agreement, without
 2255  meetings, on matters for which action by written agreement
 2256  without meetings is expressly allowed by the applicable
 2257  cooperative documents or law any Florida statute which provides
 2258  for the unit owner action.
 2259         3. Unit owners may waive notice of specific meetings if
 2260  allowed by the applicable cooperative documents or law any
 2261  Florida statute. If authorized by the bylaws, notice of meetings
 2262  of the board of administration, shareholder meetings, except
 2263  shareholder meetings called to recall board members under
 2264  paragraph (f), and committee meetings may be given by electronic
 2265  transmission to unit owners who consent to receive notice by
 2266  electronic transmission.
 2267         4. Unit owners shall have the right to participate in
 2268  meetings of unit owners with reference to all designated agenda
 2269  items. However, the association may adopt reasonable rules
 2270  governing the frequency, duration, and manner of unit owner
 2271  participation.
 2272         5. Any unit owner may tape record or videotape meetings of
 2273  the unit owners subject to reasonable rules adopted by the
 2274  division.
 2275         6. Unless otherwise provided in the bylaws, a vacancy
 2276  occurring on the board before the expiration of a term may be
 2277  filled by the affirmative vote of the majority of the remaining
 2278  directors, even if the remaining directors constitute less than
 2279  a quorum, or by the sole remaining director. In the alternative,
 2280  a board may hold an election to fill the vacancy, in which case
 2281  the election procedures must conform to the requirements of
 2282  subparagraph 1. unless the association has opted out of the
 2283  statutory election process, in which case the bylaws of the
 2284  association control. Unless otherwise provided in the bylaws, a
 2285  board member appointed or elected under this subparagraph shall
 2286  fill the vacancy for the unexpired term of the seat being
 2287  filled. Filling vacancies created by recall is governed by
 2288  paragraph (f) and rules adopted by the division.
 2289  
 2290  Notwithstanding subparagraphs (b)2. and (d)1., an association
 2291  may, by the affirmative vote of a majority of the total voting
 2292  interests, provide for a different voting and election procedure
 2293  in its bylaws, which vote may be by a proxy specifically
 2294  delineating the different voting and election procedures. The
 2295  different voting and election procedures may provide for
 2296  elections to be conducted by limited or general proxy.
 2297         Section 20. Subsection (5) of section 719.1055, Florida
 2298  Statutes, is amended to read:
 2299         719.1055 Amendment of cooperative documents; alteration and
 2300  acquisition of property.—
 2301         (5) The bylaws must include a provision whereby a
 2302  certificate of compliance from a licensed electrical contractor
 2303  or electrician may be accepted by the association’s board as
 2304  evidence of compliance of the cooperative units with the
 2305  applicable fire and life safety code. Notwithstanding the
 2306  provisions of chapter 633 or of any other code, statute,
 2307  ordinance, administrative rule, or regulation, or any
 2308  interpretation of the foregoing, a cooperative or unit owner is
 2309  not obligated to retrofit the common elements, common areas,
 2310  association property, or units of a residential cooperative with
 2311  a fire sprinkler system or any other form of engineered
 2312  lifesafety life safety system in a building that has been
 2313  certified for occupancy by the applicable governmental entity,
 2314  if the unit owners have voted to forego such retrofitting and
 2315  engineered lifesafety life safety system by the affirmative vote
 2316  of two-thirds of all voting interests in the affected
 2317  cooperative. However, a cooperative may not forego the
 2318  retrofitting with a fire sprinkler system of common areas in a
 2319  high-rise building. For purposes of this subsection, the term
 2320  “high-rise building” means a building that is greater than 75
 2321  feet in height where the building height is measured from the
 2322  lowest level of fire department access to the floor of the
 2323  highest occupiable story. For purposes of this subsection, the
 2324  term “common areas” means any enclosed hallway, corridor, lobby,
 2325  stairwell, or entryway. In no event shall The local authority
 2326  having jurisdiction may not require completion of retrofitting
 2327  of common areas with a sprinkler system or other form of
 2328  engineered lifesafety system before the end of 2019 2014.
 2329         (a) A vote to forego retrofitting may be obtained by
 2330  limited proxy or by a ballot personally cast at a duly called
 2331  membership meeting, or by execution of a written consent by the
 2332  member, and is shall be effective upon the recording of a
 2333  certificate attesting to such vote in the public records of the
 2334  county where the cooperative is located. The association shall
 2335  mail or, hand deliver, or electronically transmit to each unit
 2336  owner written notice at least 14 days before prior to such
 2337  membership meeting in which the vote to forego retrofitting of
 2338  the required fire sprinkler system or any other form of
 2339  engineered lifesafety system is to take place. Within 30 days
 2340  after the association’s opt-out vote, notice of the results of
 2341  the opt-out vote shall be mailed or, hand delivered, or
 2342  electronically transmitted to all unit owners. Evidence of
 2343  compliance with this 30-day notice must shall be made by an
 2344  affidavit executed by the person providing the notice and filed
 2345  among the official records of the association. After such notice
 2346  is provided to each owner, a copy of the such notice shall be
 2347  provided by the current owner to a new owner before prior to
 2348  closing and shall be provided by a unit owner to a renter before
 2349  prior to signing a lease.
 2350         (b) If there has been a previous vote to forego
 2351  retrofitting, a vote to require retrofitting may be obtained at
 2352  a special meeting of the unit owners called by a petition of
 2353  least 10 percent of the voting interests. Such vote may only be
 2354  called once every 3 years. Notice must be provided as required
 2355  for any regularly called meeting of the unit owners, and the
 2356  notice must state the purpose of the meeting. Electronic
 2357  transmission may not be used to provide notice of a meeting
 2358  called in whole or in part for this purpose.
 2359         (c)(b) As part of the information collected annually from
 2360  cooperatives, the division shall require associations to report
 2361  the membership vote and recording of a certificate under this
 2362  subsection and, if retrofitting has been undertaken, the per
 2363  unit cost of such work. The division shall annually report to
 2364  the Division of State Fire Marshal of the Department of
 2365  Financial Services the number of cooperatives that have elected
 2366  to forego retrofitting.
 2367         Section 21. Subsections (3) and (4) of section 719.108,
 2368  Florida Statutes, are amended, and subsection (10) is added to
 2369  that section, to read:
 2370         719.108 Rents and assessments; liability; lien and
 2371  priority; interest; collection; cooperative ownership.—
 2372         (3) Rents and assessments, and installments on them, not
 2373  paid when due bear interest at the rate provided in the
 2374  cooperative documents from the date due until paid. This rate
 2375  may not exceed the rate allowed by law, and, if a no rate is not
 2376  provided in the cooperative documents, then interest accrues
 2377  shall accrue at 18 percent per annum. Also, If the cooperative
 2378  documents or bylaws so provide, the association may charge an
 2379  administrative late fee in addition to such interest, in an
 2380  amount not to exceed the greater of $25 or 5 percent of each
 2381  installment of the assessment for each delinquent installment
 2382  that the payment is late. Any payment received by an association
 2383  must shall be applied first to any interest accrued by the
 2384  association, then to any administrative late fee, then to any
 2385  costs and reasonable attorney’s fees incurred in collection, and
 2386  then to the delinquent assessment. The foregoing applies shall
 2387  be applicable notwithstanding any restrictive endorsement,
 2388  designation, or instruction placed on or accompanying a payment.
 2389  A late fee is not subject to chapter 687 or s. 719.303(3).
 2390         (4) The association has shall have a lien on each
 2391  cooperative parcel for any unpaid rents and assessments, plus
 2392  interest, any authorized administrative late fees, and any
 2393  reasonable costs for collection services for which the
 2394  association has contracted against the unit owner of the
 2395  cooperative parcel. If authorized by the cooperative documents,
 2396  the said lien shall also secures secure reasonable attorney’s
 2397  fees incurred by the association incident to the collection of
 2398  the rents and assessments or enforcement of such lien. The lien
 2399  is effective from and after the recording of a claim of lien in
 2400  the public records in the county in which the cooperative parcel
 2401  is located which states the description of the cooperative
 2402  parcel, the name of the unit owner, the amount due, and the due
 2403  dates. The lien expires shall expire if a claim of lien is not
 2404  filed within 1 year after the date the assessment was due, and
 2405  the no such lien does not shall continue for a longer period
 2406  than 1 year after the claim of lien has been recorded unless,
 2407  within that time, an action to enforce the lien is commenced in
 2408  a court of competent jurisdiction. Except as otherwise provided
 2409  in this chapter, a lien may not be filed by the association
 2410  against a cooperative parcel until 30 days after the date on
 2411  which a notice of intent to file a lien has been delivered to
 2412  the owner.
 2413         (a)The notice must be sent to the unit owner at the
 2414  address of the unit by first-class United States mail and:
 2415         1.If the most recent address of the unit owner on the
 2416  records of the association is the address of the unit, the
 2417  notice must be sent by registered or certified mail, return
 2418  receipt requested, to the unit owner at the address of the unit.
 2419         2.If the most recent address of the unit owner on the
 2420  records of the association is in the United States, but is not
 2421  the address of the unit, the notice must be sent by registered
 2422  or certified mail, return receipt requested, to the unit owner
 2423  at his or her most recent address.
 2424         3.If the most recent address of the unit owner on the
 2425  records of the association is not in the United States, the
 2426  notice must be sent by first-class United States mail to the
 2427  unit owner at his or her most recent address.
 2428         (b)A notice that is sent pursuant to this subsection is
 2429  deemed delivered upon mailing. No lien may be filed by the
 2430  association against a cooperative parcel until 30 days after the
 2431  date on which a notice of intent to file a lien has been served
 2432  on the unit owner of the cooperative parcel by certified mail or
 2433  by personal service in the manner authorized by chapter 48 and
 2434  the Florida Rules of Civil Procedure.
 2435         (10)If the unit is occupied by a tenant and the unit owner
 2436  is delinquent in paying any monetary obligation due to the
 2437  association, the association may make a written demand that the
 2438  tenant pay the future monetary obligations related to the
 2439  cooperative share to the association and the tenant must make
 2440  such payment. The demand is continuing in nature, and upon
 2441  demand, the tenant must pay the monetary obligations to the
 2442  association until the association releases the tenant or the
 2443  tenant discontinues tenancy in the unit. The association must
 2444  mail written notice to the unit owner of the association’s
 2445  demand that the tenant make payments to the association. The
 2446  association shall, upon request, provide the tenant with written
 2447  receipts for payments made. A tenant who acts in good faith in
 2448  response to a written demand from an association is immune from
 2449  any claim from the unit owner.
 2450         (a) If the tenant prepaid rent to the unit owner before
 2451  receiving the demand from the association and provides written
 2452  evidence of paying the rent to the association within 14 days
 2453  after receiving the demand, the tenant shall receive credit for
 2454  the prepaid rent for the applicable period and must make any
 2455  subsequent rental payments to the association to be credited
 2456  against the monetary obligations of the unit owner to the
 2457  association.
 2458         (b) The tenant is not liable for increases in the amount of
 2459  the regular monetary obligations due unless the tenant was
 2460  notified in writing of the increase at least 10 days before the
 2461  date on which the rent is due. The liability of the tenant may
 2462  not exceed the amount due from the tenant to the tenants’
 2463  landlord. The tenant’s landlord shall provide the tenant a
 2464  credit against rents due to the unit owner in the amount of
 2465  monies paid to the association under this section.
 2466         (c) The association may issue notices under s. 83.56 and
 2467  may sue for eviction under ss. 83.59-83.625 as if the
 2468  association were a landlord under part II of chapter 83 if the
 2469  tenant fails to pay a required payment. However, the association
 2470  is not otherwise considered a landlord under chapter 83 and
 2471  specifically has no duties under s. 83.51.
 2472         (d) The tenant does not, by virtue of payment of monetary
 2473  obligations, have any of the rights of a unit owner to vote in
 2474  any election or to examine the books and records of the
 2475  association.
 2476         (e) A court may supersede the effect of this subsection by
 2477  appointing a receiver.
 2478         Section 22. Paragraph (b) of subsection (2), paragraphs (a)
 2479  and (c) of subsection (5), and paragraphs (b), (c), (d), (f),
 2480  and (g) of subsection (6) of section 720.303, Florida Statutes,
 2481  are amended, and subsection (12) is added to that section, to
 2482  read:
 2483         720.303 Association powers and duties; meetings of board;
 2484  official records; budgets; financial reporting; association
 2485  funds; recalls.—
 2486         (2) BOARD MEETINGS.—
 2487         (b) Members have the right to attend all meetings of the
 2488  board and to speak on any matter placed on the agenda by
 2489  petition of the voting interests for at least 3 minutes. The
 2490  association may adopt written reasonable rules expanding the
 2491  right of members to speak and governing the frequency, duration,
 2492  and other manner of member statements, which rules must be
 2493  consistent with this paragraph and may include a sign-up sheet
 2494  for members wishing to speak. Notwithstanding any other law, the
 2495  requirement that board meetings and committee meetings be open
 2496  to the members is inapplicable to meetings between the board or
 2497  a committee and the association’s attorney to discuss proposed
 2498  or pending litigation, or with respect to meetings of the board
 2499  held for the purpose of discussing personnel matters are not
 2500  required to be open to the members other than directors.
 2501         (5) INSPECTION AND COPYING OF RECORDS.—The official records
 2502  shall be maintained within the state and must be open to
 2503  inspection and available for photocopying by members or their
 2504  authorized agents at reasonable times and places within 10
 2505  business days after receipt of a written request for access.
 2506  This subsection may be complied with by having a copy of the
 2507  official records available for inspection or copying in the
 2508  community. If the association has a photocopy machine available
 2509  where the records are maintained, it must provide parcel owners
 2510  with copies on request during the inspection if the entire
 2511  request is limited to no more than 25 pages.
 2512         (a) The failure of an association to provide access to the
 2513  records within 10 business days after receipt of a written
 2514  request submitted by certified mail, return receipt requested,
 2515  creates a rebuttable presumption that the association willfully
 2516  failed to comply with this subsection.
 2517         (c) The association may adopt reasonable written rules
 2518  governing the frequency, time, location, notice, records to be
 2519  inspected, and manner of inspections, but may not require impose
 2520  a requirement that a parcel owner to demonstrate any proper
 2521  purpose for the inspection, state any reason for the inspection,
 2522  or limit a parcel owner’s right to inspect records to less than
 2523  one 8-hour business day per month. The association may impose
 2524  fees to cover the costs of providing copies of the official
 2525  records, including, without limitation, the costs of copying.
 2526  The association may charge up to 50 cents per page for copies
 2527  made on the association’s photocopier. If the association does
 2528  not have a photocopy machine available where the records are
 2529  kept, or if the records requested to be copied exceed 25 pages
 2530  in length, the association may have copies made by an outside
 2531  vendor or association management company personnel and may
 2532  charge the actual cost of copying, including any reasonable
 2533  costs involving personnel fees and charges at an hourly rate for
 2534  vendor or employee time to cover administrative costs to the
 2535  vendor or association. The association shall maintain an
 2536  adequate number of copies of the recorded governing documents,
 2537  to ensure their availability to members and prospective members.
 2538  Notwithstanding the provisions of this paragraph, the following
 2539  records are shall not be accessible to members or parcel owners:
 2540         1. Any record protected by the lawyer-client privilege as
 2541  described in s. 90.502 and any record protected by the work
 2542  product privilege, including, but not limited to, any record
 2543  prepared by an association attorney or prepared at the
 2544  attorney’s express direction which reflects a mental impression,
 2545  conclusion, litigation strategy, or legal theory of the attorney
 2546  or the association and which was prepared exclusively for civil
 2547  or criminal litigation or for adversarial administrative
 2548  proceedings or which was prepared in anticipation of imminent
 2549  civil or criminal litigation or imminent adversarial
 2550  administrative proceedings until the conclusion of the
 2551  litigation or adversarial administrative proceedings.
 2552         2. Information obtained by an association in connection
 2553  with the approval of the lease, sale, or other transfer of a
 2554  parcel.
 2555         3. Disciplinary, health, insurance, and Personnel records
 2556  of the association’s employees, including, but not limited to,
 2557  disciplinary, payroll, health, and insurance records.
 2558         4. Medical records of parcel owners or community residents.
 2559         5. Social security numbers, driver’s license numbers,
 2560  credit card numbers, electronic mailing addresses, telephone
 2561  numbers, emergency contact information, any addresses for a
 2562  parcel owner other than as provided for association notice
 2563  requirements, and other personal identifying information of any
 2564  person, excluding the person’s name, parcel designation, mailing
 2565  address, and property address.
 2566         6. Any electronic security measure that is used by the
 2567  association to safeguard data, including passwords.
 2568         7. The software and operating system used by the
 2569  association which allows the manipulation of data, even if the
 2570  owner owns a copy of the same software used by the association.
 2571  The data is part of the official records of the association.
 2572         (6) BUDGETS.—
 2573         (b) In addition to annual operating expenses, the budget
 2574  may include reserve accounts for capital expenditures and
 2575  deferred maintenance for which the association is responsible.
 2576  If reserve accounts are not established pursuant to paragraph
 2577  (d), funding of such reserves is limited to the extent that the
 2578  governing documents do not limit increases in assessments,
 2579  including reserves. If the budget of the association includes
 2580  reserve accounts established pursuant to paragraph (d), such
 2581  reserves shall be determined, maintained, and waived in the
 2582  manner provided in this subsection. Once an association provides
 2583  for reserve accounts pursuant to paragraph (d) in the budget,
 2584  the association shall thereafter determine, maintain, and waive
 2585  reserves in compliance with this subsection. This section does
 2586  not preclude the termination of a reserve account established
 2587  pursuant to this paragraph upon approval of a majority of the
 2588  total voting interests of the association. Upon such approval,
 2589  the terminating reserve account shall be removed from the
 2590  budget.
 2591         (c)1. If the budget of the association does not provide for
 2592  reserve accounts pursuant to paragraph (d) governed by this
 2593  subsection and the association is responsible for the repair and
 2594  maintenance of capital improvements that may result in a special
 2595  assessment if reserves are not provided, each financial report
 2596  for the preceding fiscal year required by subsection (7) must
 2597  shall contain the following statement in conspicuous type:
 2598  
 2599         THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR
 2600         RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED
 2601         MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
 2602         OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS
 2603         PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
 2604         FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT
 2605         LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF
 2606         THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR
 2607         BY WRITTEN CONSENT.
 2608         2.If the budget of the association does provide for
 2609  funding accounts for deferred expenditures, including, but not
 2610  limited to, funds for capital expenditures and deferred
 2611  maintenance, but such accounts are not created or established
 2612  pursuant to paragraph (d), each financial report for the
 2613  preceding fiscal year required under subsection (7) must also
 2614  contain the following statement in conspicuous type:
 2615  
 2616         THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED
 2617         VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING
 2618         CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT
 2619         TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING
 2620         DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
 2621         PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION
 2622         720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
 2623         SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET
 2624         FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN
 2625         ACCORDANCE WITH THAT STATUTE.
 2626         (d) An association is shall be deemed to have provided for
 2627  reserve accounts if when reserve accounts have been initially
 2628  established by the developer or if when the membership of the
 2629  association affirmatively elects to provide for reserves. If
 2630  reserve accounts are not initially provided for by the
 2631  developer, the membership of the association may elect to do so
 2632  upon the affirmative approval of not less than a majority of the
 2633  total voting interests of the association. Such approval may be
 2634  obtained attained by vote of the members at a duly called
 2635  meeting of the membership or by the upon a written consent of
 2636  executed by not less than a majority of the total voting
 2637  interests of the association in the community. The approval
 2638  action of the membership must shall state that reserve accounts
 2639  shall be provided for in the budget and must designate the
 2640  components for which the reserve accounts are to be established.
 2641  Upon approval by the membership, the board of directors shall
 2642  include provide for the required reserve accounts for inclusion
 2643  in the budget in the next fiscal year following the approval and
 2644  in each year thereafter. Once established as provided in this
 2645  subsection, the reserve accounts must shall be funded or
 2646  maintained or shall have their funding waived in the manner
 2647  provided in paragraph (f).
 2648         (f) After one or more Once a reserve account or reserve
 2649  accounts are established, the membership of the association,
 2650  upon a majority vote at a meeting at which a quorum is present,
 2651  may provide for no reserves or less reserves than required by
 2652  this section. If a meeting of the unit owners has been called to
 2653  determine whether to waive or reduce the funding of reserves and
 2654  no such result is not achieved or a quorum is not present, the
 2655  reserves as included in the budget shall go into effect. After
 2656  the turnover, the developer may vote its voting interest to
 2657  waive or reduce the funding of reserves. Any vote taken pursuant
 2658  to this subsection to waive or reduce reserves is shall be
 2659  applicable only to one budget year.
 2660         (g) Funding formulas for reserves authorized by this
 2661  section must shall be based on either a separate analysis of
 2662  each of the required assets or a pooled analysis of two or more
 2663  of the required assets.
 2664         1. If the association maintains separate reserve accounts
 2665  for each of the required assets, the amount of the contribution
 2666  to each reserve account is shall be the sum of the following two
 2667  calculations:
 2668         a. The total amount necessary, if any, to bring a negative
 2669  component balance to zero.
 2670         b. The total estimated deferred maintenance expense or
 2671  estimated replacement cost of the reserve component less the
 2672  estimated balance of the reserve component as of the beginning
 2673  of the period for which the budget will be in effect. The
 2674  remainder, if greater than zero, shall be divided by the
 2675  estimated remaining useful life of the component.
 2676  
 2677  The formula may be adjusted each year for changes in estimates
 2678  and deferred maintenance performed during the year and may
 2679  include factors such as inflation and earnings on invested
 2680  funds.
 2681         2. If the association maintains a pooled account of two or
 2682  more of the required reserve assets, the amount of the
 2683  contribution to the pooled reserve account as disclosed on the
 2684  proposed budget may shall not be less than that required to
 2685  ensure that the balance on hand at the beginning of the period
 2686  for which the budget will go into effect plus the projected
 2687  annual cash inflows over the remaining estimated useful life of
 2688  all of the assets that make up the reserve pool are equal to or
 2689  greater than the projected annual cash outflows over the
 2690  remaining estimated useful lives of all of the assets that make
 2691  up the reserve pool, based on the current reserve analysis. The
 2692  projected annual cash inflows may include estimated earnings
 2693  from investment of principal and accounts receivable minus the
 2694  allowance for doubtful accounts. The reserve funding formula may
 2695  shall not include any type of balloon payments.
 2696         (12)COMPENSATION PROHIBITED.—A director, officer, or
 2697  committee member of the association may not directly receive any
 2698  salary or compensation from the association for the performance
 2699  of duties as a director, officer, or committee member and may
 2700  not in any other way benefit financially from service to the
 2701  association. This subsection does not preclude:
 2702         (a)Participation by such person in a financial benefit
 2703  accruing to all or a significant number of members as a result
 2704  of actions lawfully taken by the board or a committee of which
 2705  he or she is a member, including, but not limited to, routine
 2706  maintenance, repair, or replacement of community assets.
 2707         (b)Reimbursement for out-of-pocket expenses incurred by
 2708  such person on behalf of the association, subject to approval in
 2709  accordance with procedures established by the association’s
 2710  governing documents or, in the absence of such procedures, in
 2711  accordance with an approval process established by the board.
 2712         (c)Any recovery of insurance proceeds derived from a
 2713  policy of insurance maintained by the association for the
 2714  benefit of its members.
 2715         (d)Any fee or compensation authorized in the governing
 2716  documents.
 2717         (e)Any fee or compensation authorized in advance by a vote
 2718  of a majority of the voting interests voting in person or by
 2719  proxy at a meeting of the members.
 2720         (f)A developer or its representative from serving as a
 2721  director, officer, or committee member of the association and
 2722  benefitting financially from service to the association.
 2723         Section 23. Paragraph (b) of subsection (2) of section
 2724  720.304, Florida Statutes, is amended to read:
 2725         720.304 Right of owners to peaceably assemble; display of
 2726  flag; SLAPP suits prohibited.—
 2727         (2)
 2728         (b) Any homeowner may erect a freestanding flagpole no more
 2729  than 20 feet high on any portion of the homeowner’s real
 2730  property, regardless of any covenants, restrictions, bylaws,
 2731  rules, or requirements of the association, if the flagpole does
 2732  not obstruct sightlines at intersections and is not erected
 2733  within or upon an easement. The homeowner may further display in
 2734  a respectful manner from that flagpole, regardless of any
 2735  covenants, restrictions, bylaws, rules, or requirements of the
 2736  association, one official United States flag, not larger than 4
 2737  1/2 feet by 6 feet, and may additionally display one official
 2738  flag of the State of Florida or the United States Army, Navy,
 2739  Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
 2740  additional flag must be equal in size to or smaller than the
 2741  United States flag. The flagpole and display are subject to all
 2742  building codes, zoning setbacks, and other applicable
 2743  governmental regulations, including, but not limited to, noise
 2744  and lighting ordinances in the county or municipality in which
 2745  the flagpole is erected and all setback and locational criteria
 2746  contained in the governing documents.
 2747         Section 24. Subsection (2) of section 720.305, Florida
 2748  Statutes, is amended to read:
 2749         720.305 Obligations of members; remedies at law or in
 2750  equity; levy of fines and suspension of use rights.—
 2751         (2) If a member is delinquent for more than 90 days in
 2752  paying a monetary obligation due the association the governing
 2753  documents so provide, an association may suspend, until such
 2754  monetary obligation is paid for a reasonable period of time, the
 2755  rights of a member or a member’s tenants, guests, or invitees,
 2756  or both, to use common areas and facilities and may levy
 2757  reasonable fines of up to, not to exceed $100 per violation,
 2758  against any member or any tenant, guest, or invitee. A fine may
 2759  be levied for on the basis of each day of a continuing
 2760  violation, with a single notice and opportunity for hearing,
 2761  except that a no such fine may not shall exceed $1,000 in the
 2762  aggregate unless otherwise provided in the governing documents.
 2763  A fine of less than $1,000 may shall not become a lien against a
 2764  parcel. In any action to recover a fine, the prevailing party is
 2765  entitled to collect its reasonable attorney’s fees and costs
 2766  from the nonprevailing party as determined by the court. The
 2767  provisions regarding the suspension-of-use rights do not apply
 2768  to the portion of common areas that must be used to provide
 2769  access to the parcel or utility services provided to the parcel.
 2770         (a) A fine or suspension may not be imposed without notice
 2771  of at least 14 days notice to the person sought to be fined or
 2772  suspended and an opportunity for a hearing before a committee of
 2773  at least three members appointed by the board who are not
 2774  officers, directors, or employees of the association, or the
 2775  spouse, parent, child, brother, or sister of an officer,
 2776  director, or employee. If the committee, by majority vote, does
 2777  not approve a proposed fine or suspension, it may not be
 2778  imposed. If the association imposes a fine or suspension, the
 2779  association must provide written notice of such fine or
 2780  suspension by mail or hand delivery to the parcel owner and, if
 2781  applicable, to any tenant, licensee, or invitee of the parcel
 2782  owner.
 2783         (b) The requirements of this subsection do not apply to the
 2784  imposition of suspensions or fines upon any member because of
 2785  the failure of the member to pay assessments or other charges
 2786  when due if such action is authorized by the governing
 2787  documents.
 2788         (b)(c) Suspension of common-area-use rights do shall not
 2789  impair the right of an owner or tenant of a parcel to have
 2790  vehicular and pedestrian ingress to and egress from the parcel,
 2791  including, but not limited to, the right to park.
 2792         Section 25. Subsections (7), (8), and (9) of section
 2793  720.306, Florida Statutes, are amended to read:
 2794         720.306 Meetings of members; voting and election
 2795  procedures; amendments.—
 2796         (7) ADJOURNMENT.—Unless the bylaws require otherwise,
 2797  adjournment of an annual or special meeting to a different date,
 2798  time, or place must be announced at that meeting before an
 2799  adjournment is taken, or notice must be given of the new date,
 2800  time, or place pursuant to s. 720.303(2). Any business that
 2801  might have been transacted on the original date of the meeting
 2802  may be transacted at the adjourned meeting. If a new record date
 2803  for the adjourned meeting is or must be fixed under s. 607.0707
 2804  s. 617.0707, notice of the adjourned meeting must be given to
 2805  persons who are entitled to vote and are members as of the new
 2806  record date but were not members as of the previous record date.
 2807         (8) PROXY VOTING.—The members have the right, unless
 2808  otherwise provided in this subsection or in the governing
 2809  documents, to vote in person or by proxy.
 2810         (a) To be valid, a proxy must be dated, must state the
 2811  date, time, and place of the meeting for which it was given, and
 2812  must be signed by the authorized person who executed the proxy.
 2813  A proxy is effective only for the specific meeting for which it
 2814  was originally given, as the meeting may lawfully be adjourned
 2815  and reconvened from time to time, and automatically expires 90
 2816  days after the date of the meeting for which it was originally
 2817  given. A proxy is revocable at any time at the pleasure of the
 2818  person who executes it. If the proxy form expressly so provides,
 2819  any proxy holder may appoint, in writing, a substitute to act in
 2820  his or her place.
 2821         (b)If the governing documents permit voting by secret
 2822  ballot by members who are not in attendance at a meeting of the
 2823  members for the election of directors, such ballots must be
 2824  placed in an inner envelope with no identifying markings and
 2825  mailed or delivered to the association in an outer envelope
 2826  bearing identifying information reflecting the name of the
 2827  member, the lot or parcel for which the vote is being cast, and
 2828  the signature of the lot or parcel owner casting that ballot. If
 2829  the eligibility of the member to vote is confirmed and no other
 2830  ballot has been submitted for that lot or parcel, the inner
 2831  envelope shall be removed from the outer envelope bearing the
 2832  identification information, placed with the ballots which were
 2833  personally cast, and opened when the ballots are counted. If
 2834  more than one ballot is submitted for a lot or parcel, the
 2835  ballots for that lot or parcel shall be disqualified. Any vote
 2836  by ballot received after the closing of the balloting may not be
 2837  considered.
 2838         (9) ELECTIONS AND BOARD VACANCIES.—Elections of directors
 2839  must be conducted in accordance with the procedures set forth in
 2840  the governing documents of the association. All members of the
 2841  association are shall be eligible to serve on the board of
 2842  directors, and a member may nominate himself or herself as a
 2843  candidate for the board at a meeting where the election is to be
 2844  held or, if the election process allows voting by absentee
 2845  ballot, in advance of the balloting. Except as otherwise
 2846  provided in the governing documents, boards of directors must be
 2847  elected by a plurality of the votes cast by eligible voters. Any
 2848  election dispute between a member and an association must be
 2849  submitted to mandatory binding arbitration with the division.
 2850  Such proceedings must shall be conducted in the manner provided
 2851  by s. 718.1255 and the procedural rules adopted by the division.
 2852  Unless otherwise provided in the bylaws, any vacancy occurring
 2853  on the board before the expiration of a term may be filled by an
 2854  affirmative vote of the majority of the remaining directors,
 2855  even if the remaining directors constitute less than a quorum,
 2856  or by the sole remaining director. In the alternative, a board
 2857  may hold an election to fill the vacancy, in which case the
 2858  election procedures must conform to the requirements of the
 2859  governing documents. Unless otherwise provided in the bylaws, a
 2860  board member appointed or elected under this section is
 2861  appointed for the unexpired term of the seat being filled.
 2862  Filling vacancies created by recall is governed by s.
 2863  720.303(10) and rules adopted by the division.
 2864         Section 26. Subsection (8) is added to section 720.3085,
 2865  Florida Statutes, to read:
 2866         720.3085 Payment for assessments; lien claims.—
 2867         (8)If the parcel is occupied by a tenant and the parcel
 2868  owner is delinquent in paying any monetary obligation due to the
 2869  association, the association may demand that the tenant pay to
 2870  the association the future monetary obligations related to the
 2871  parcel. The demand is continuing in nature, and upon demand, the
 2872  tenant must continue to pay the monetary obligations until the
 2873  association releases the tenant or the tenant discontinues
 2874  tenancy in the parcel. A tenant who acts in good faith in
 2875  response to a written demand from an association is immune from
 2876  any claim from the parcel owner.
 2877         (a) If the tenant prepaid rent to the parcel owner before
 2878  receiving the demand from the association and provides written
 2879  evidence of paying the rent to the association within 14 days
 2880  after receiving the demand, the tenant shall receive credit for
 2881  the prepaid rent for the applicable period and must make any
 2882  subsequent rental payments to the association to be credited
 2883  against the monetary obligations of the parcel owner to the
 2884  association. The association shall, upon request, provide the
 2885  tenant with written receipts for payments made. The association
 2886  shall mail written notice to the parcel owner of the
 2887  association’s demand that the tenant pay monetary obligations to
 2888  the association.
 2889         (b) The tenant is not liable for increases in the amount of
 2890  the monetary obligations due unless the tenant was notified in
 2891  writing of the increase at least 10 days before the date on
 2892  which the rent is due. The tenant shall be given a credit
 2893  against rents due to the parcel owner in the amount of
 2894  assessments paid to the association.
 2895         (c) The association may issue notices under s. 83.56 and
 2896  may sue for eviction under ss. 83.59-83.625 as if the
 2897  association were a landlord under part II of chapter 83 if the
 2898  tenant fails to pay a monetary obligation. However, the
 2899  association is not otherwise considered a landlord under chapter
 2900  83 and specifically has no duties under s. 83.51.
 2901         (d) The tenant does not, by virtue of payment of monetary
 2902  obligations, have any of the rights of a parcel owner to vote in
 2903  any election or to examine the books and records of the
 2904  association.
 2905         (e) A court may supersede the effect of this subsection by
 2906  appointing a receiver.
 2907         Section 27. Subsection (6) is added to section 720.31,
 2908  Florida Statutes, to read:
 2909         720.31 Recreational leaseholds; right to acquire;
 2910  escalation clauses.—
 2911         (6)An association may enter into agreements to acquire
 2912  leaseholds, memberships, and other possessory or use interests
 2913  in lands or facilities, including, but not limited to, country
 2914  clubs, golf courses, marinas, submerged land, parking areas,
 2915  conservation areas, and other recreational facilities. An
 2916  association may enter into such agreements regardless of whether
 2917  the lands or facilities are contiguous to the lands of the
 2918  community or whether such lands or facilities are intended to
 2919  provide enjoyment, recreation, or other use or benefit to the
 2920  owners. All leaseholds, memberships, and other possessory or use
 2921  interests existing or created at the time of recording the
 2922  declaration must be stated and fully described in the
 2923  declaration. Subsequent to recording the declaration, agreements
 2924  acquiring leaseholds, memberships, or other possessory or use
 2925  interests not entered into within 12 months after recording the
 2926  declaration may be entered into only if authorized by the
 2927  declaration as a material alteration or substantial addition to
 2928  the common areas or association property. If the declaration is
 2929  silent, any such transaction requires the approval of 75 percent
 2930  of the total voting interests of the association. The
 2931  declaration may provide that the rental, membership fees,
 2932  operations, replacements, or other expenses are common expenses;
 2933  impose covenants and restrictions concerning their use; and
 2934  contain other provisions not inconsistent with this subsection.
 2935  An association exercising its rights under this subsection may
 2936  join with other associations that are part of the same
 2937  development or with a master association responsible for the
 2938  enforcement of shared covenants, conditions, and restrictions in
 2939  carrying out the intent of this subsection. This subsection is
 2940  intended to clarify law in existence before July 1, 2010.
 2941         Section 28. Section 720.315, Florida Statutes, is created
 2942  to read:
 2943         720.315Passage of special assessments.—Before turnover,
 2944  the board of directors controlled by the developer may not levy
 2945  a special assessment unless a majority of the parcel owners
 2946  other than the developer have approved the special assessment by
 2947  a majority vote at a duly called special meeting of the
 2948  membership at which a quorum is present.
 2949         Section 29. This act shall take effect July 1, 2010.

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