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Florida Senate - 2008 CS for CS for SB's 2086 & 2498

By the Committees on Judiciary; Regulated Industries; and Senators Jones and Bennett

590-07896-08 20082086c2

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A bill to be entitled

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An act relating to the Department of Business and

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Professional Regulation; amending s. 718.111, F.S.;

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requiring that hazard insurance be based upon the

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replacement cost of the property to be insured as

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determined by an independent insurance appraisal or update

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of a prior appraisal; requiring that the full insurable

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value be determined at specified intervals; providing a

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means by which an association may provide adequate hazard

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insurance; authorizing an association to consider certain

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information when determining coverage amounts; providing

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for coverage by developer-controlled associations;

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providing that policies may include deductibles as

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determined by the association's board of directors;

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providing requirements and guidelines for the

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establishment of such deductibles; requiring that the

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amounts of deductibles be set at a meeting of the board;

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providing requirements for such meeting; requiring that an

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association controlled by unit owners operating as a

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residential condominium use its best efforts to obtain and

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maintain adequate insurance to protect the association and

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property under its supervision or control; providing that

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a declaration of condominium may provide that condominium

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property consisting of freestanding buildings comprised of

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no more than one building in or on such unit need not be

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insured by the association if the declaration requires the

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unit owner to obtain adequate insurance for the

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condominium property; authorizing an association to obtain

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and maintain liability insurance for directors and

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officers, insurance for the benefit of association

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employees, and flood insurance for common elements,

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association property, and units; requiring that every

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hazard insurance policy issued or renewed on or after a

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specified date for the purpose of protecting the

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condominium provide certain coverage; requiring that such

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policies contain certain provisions; providing that such

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policies issued to individual unit owners do not provide

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rights of subrogation against the condominium association;

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providing for the insurance of improvements or additions

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benefiting fewer than all unit owners; requiring that an

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association require each owner to provide evidence of a

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current policy of hazard and liability insurance upon

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request; limiting the frequency with which an association

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may make such a request; authorizing an association to

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purchase coverage on behalf of an owner under certain

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circumstances; providing for the collection of the costs

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of such a policy; providing responsibilities of the unit

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owner and association with regard to reconstruction work

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and associated costs after a casualty loss; authorizing a

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multicondominium association to operate such condominiums

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as a single condominium for certain purposes by majority

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vote of the members of all applicable condominiums;

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providing that such election constitutes an amendment to

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the declaration of all applicable condominiums; requiring

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that an association maintain insurance or fidelity bonding

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for all persons who control or disburse association funds;

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requiring that such insurance policy or fidelity bond

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cover the maximum funds in the custody of the association

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or its management agent at any one time; defining the term

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"persons who control or disburse funds of the

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association"; authorizing an association to amend the

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declaration of condominium without regard to any

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requirement for approval by mortgagees of amendments

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affecting insurance requirements for the purpose of

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conforming the declaration of condominium to certain

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coverage requirements; providing that any portion of the

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condominium property required to be insured by the

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association against casualty loss which is damaged be

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reconstructed, repaired, or replaced as necessary by the

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association as a common expense; providing that all hazard

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insurance deductibles, uninsured losses, and other damages

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in excess of hazard insurance coverage under the hazard

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insurance policies maintained by the association are a

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common expense of the condominium; providing exceptions;

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allocating responsibility for certain costs of repair or

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reconstruction; authorizing an association to opt out of

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certain requirements related to such allocation of

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responsibility by majority vote; providing a procedure by

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which a multicondominium association that has not

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consolidated its financial operations may opt out of such

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allocation of responsibility; requiring that a decision to

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opt out be recorded; providing that such decision takes

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effect on the date on which it is recorded; authorizing

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the reversal of such decision; providing a procedure for

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reversal; providing that an association is not obligated

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to pay for any reconstruction or repair expenses for

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improvements made by an owner or the development if an

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improvement benefits only the unit for which it was

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installed; amending s. 718.115, F.S.; requiring that

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certain expenses be designated as common expenses;

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amending s. 718.116, F.S.; authorizing the designee of a

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unit owner or mortgagee to request a certificate of

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assessment; requiring that the fee for preparation of such

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certificate be stated on the certificate; providing for

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the establishment of such fees; providing for payment of

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the fee; requiring that the fee be refunded if a planned

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sale or mortgage does not occur; providing that any such

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refund is the obligation of the unit owner and is

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collectable in the same manner as an assessment; amending

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s. 718.117, F.S.; prohibiting the distribution of proceeds

101

from the sale of a condominium unit to a lienholder from

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exceeding a unit owner's share of the proceeds; creating

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s. 720.30851, F.S.; requiring that the association provide

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a certificate signed by an officer or agent of the

105

association stating all assessments and other moneys owed

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to the association by the parcel owner or mortgagee with

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respect to the parcel within a specified period after the

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association's receipt of a request for an estoppel

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certificate by an owner or mortgagee; providing that any

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person other than a parcel owner who relies upon a

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certificate receives the benefits and protection thereof;

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providing that a summary proceeding may be brought to

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compel the association to comply with the requirement to

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provide a certificate; providing that the prevailing party

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is entitled to recover reasonable attorney's fees;

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requiring that the fee for preparation of such certificate

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be stated on the certificate; providing for the

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establishment of such fees; providing for payment of the

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fee; requiring that the fee be refunded if a planned sale

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or mortgage does not occur; providing that any such refund

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is the obligation of the unit owner and is collectable in

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the same manner as an assessment; amending s. 20.165,

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F.S.; changing the name of the Division of Florida Land

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Sales, Condominiums, and Mobile Homes to the Division of

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Florida Condominiums, Timeshares, and Mobile Homes and the

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Division of Technology, Licensure, and Testing to the

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Division of Technology; amending s. 215.20, F.S.;

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conforming the name of the division's trust fund to

129

correspond to the name change of the division; amending s.

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450.33, F.S.; removing the requirement for a farm labor

131

contractor to file a set of fingerprints with the

132

department; amending s. 455.203, F.S.; authorizing the

133

department to close and terminate deficient license

134

applications and to approve professional license

135

applications meeting certain criteria; amending s.

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455.217, F.S.; conforming terminology to changes made by

137

the act; amending s. 455.2273, F.S.; authorizing the

138

section to apply to disciplinary guidelines adopted by all

139

boards and divisions; amending s. 468.841, F.S.;

140

clarifying exemption provisions for license provisions

141

governing mold-related services; amending s. 475.17, F.S.;

142

revising requirements for licensure as a real estate

143

broker; amending s. 475.451, F.S.; deleting requirements

144

relating to the submission of certain real estate course

145

rosters to the department; amending s. 489.105, F.S.;

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clarifying that individuals and business entities that

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sell manufactured and factory-built buildings can legally

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enter into contracts for those sales; amending s. 489.511,

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F.S.; revising requirements for taking the electrical or

150

alarm system contractor certification examination;

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providing requirements for certification; amending s.

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489.515, F.S.; revising requirements for certification as

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a certified contractor by the Electrical Contractors'

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Licensing Board to reflect changes made to s. 489.511,

155

F.S., by this act; renumbering s. 498.009, F.S., relating

156

to the location of the division's offices; amending and

157

renumbering s. 498.011, F.S., relating to payment of per

158

diem, mileage, and other expenses for division employees;

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providing for reimbursement of expenses for on-site

160

review; deleting the expense reimbursement for inspection

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of subdivided lands; renumbering s. 498.013, F.S.,

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relating to the authentication of records; amending and

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renumbering s. 498.057, F.S., relating to service of

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process; deleting provision that service may be made by

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delivering a copy of the process to the division director;

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providing that the division can be the petitioner or the

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plaintiff; repealing ss. 498.001, 498.003, 498.005,

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relating to regulation of land sales practices; amending

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s. 548.0065, F.S.; including amateur mixed martial arts in

174

a provision relating to the authority of the Florida State

175

Boxing Commission to suspend amateur matches for violation

176

of certain health and safety standards; amending s.

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548.008, F.S.; removing prohibition against holding

178

amateur mixed martial arts matches in this state; amending

179

s. 548.041, F.S.; providing additional licensure

180

requirements for boxing participants; amending s. 718.501,

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F.S.; providing additional powers and duties of the

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division; providing for additional enforcement proceedings

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for carrying out the purposes of ch. 718, F.S.; deleting

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the payment of money by a developer to a condominium

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association as a permissible affirmative action; providing

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for actions of conservator or receiver; providing for

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application to circuit court for an order of restitution;

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providing for imposition of civil penalties and award of

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court costs, attorney's fees, and costs of investigation

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under certain circumstances; providing for contracting for

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investigative services; providing for acceptance of

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grants-in-aid; requiring the cooperation with similar

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agencies on establishment of certain procedures,

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standards, and forms; providing what constitutes

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completeness of notice; authorizing the division to issue

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a notice to show cause; providing conforming changes;

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amending s. 718.509, F.S., and transferring, renumbering,

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and amending s. 498.019, F.S.; consolidating and revising

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provisions relating to the creation, purposes, and sources

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of funds of the Division of Florida Condominiums,

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Timeshares, and Mobile Homes Trust Fund; revising

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provisions to conform to the change in division name;

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providing for the deposit of moneys resulting from an

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administrative final order; amending s. 721.03, F.S.;

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clarifying that timeshare plan includes a nonspecific

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multisite timeshare plan; amending ss. 73.073, 190.009,

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721.50, 723.003, 723.006, 723.009, and 723.0611, F.S., to

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conform; amending s. 849.094, F.S.; providing that certain

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provisions related to game promotion in connection with

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the sale of consumer products or services do not apply to

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pari-mutuel permitholders licensed to conduct slot machine

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gaming; providing effective dates.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Subsection (11) of section 718.111, Florida

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Statutes, is amended to read:

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     718.111  The association.--

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     (11)  INSURANCE.--In order to protect the safety, health,

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and welfare of the people of the State of Florida and to ensure

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consistency in the provision of insurance coverage to

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condominiums and their unit owners, this subsection applies

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paragraphs (a), (b), and (c) are deemed to apply to every

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residential condominium in the state, regardless of the date of

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its declaration of condominium. It is the intent of the

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Legislature to encourage lower or stable insurance premiums for

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associations described in this subsection section.

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     (a) Adequate hazard insurance, regardless of any

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requirement in the declaration of condominium for coverage by the

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association for full insurable value, replacement cost, or

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similar coverage, shall be based upon the replacement cost of the

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property to be insured as determined by an independent insurance

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appraisal or update of a prior appraisal. The full insurable

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value shall be determined at least once every 36 months.

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     1. An association or group of associations may provide

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adequate hazard insurance through a self-insurance fund that

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complies with the requirements of ss. 624.460-624.488.

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     2. The association may also provide adequate hazard

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insurance coverage individually or for a group of no fewer than

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three communities created and operating under this chapter,

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chapter 719, chapter 720, or chapter 721 by obtaining and

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maintaining for such communities insurance coverage sufficient to

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cover an amount equal to the probable maximum loss for the

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communities for a 250-year windstorm event. Such probable maximum

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loss must be determined through the use of a competent model that

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has been accepted by the Florida Commission on Hurricane Loss

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Projection Methodology. No policy or program providing such

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coverage shall be issued or renewed after July 1, 2008, unless it

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has been reviewed and approved by the Office of Insurance

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Regulation. The review and approval shall include approval of

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the policy and related forms pursuant to ss. 627.410 and 627.411,

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approval of the rates pursuant to s. 627.062, a determination

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that the loss model approved by the Commission was accurately and

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appropriately applied to the insured structures to determine the

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250-year probable maximum loss, and a determination that complete

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and accurate disclosure of all material provisions is provided

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to condominium unit owners prior to execution of the agreement by

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a condominium association.

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     3. When determining the adequate amount of hazard insurance

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coverage, the association may consider deductibles as determined

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by this subsection.

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     (b) If an association is a developer-controlled

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association, the association shall exercise its best efforts to

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obtain and maintain insurance as described in paragraph (a).

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Failure to obtain and maintain adequate hazard insurance during

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any period of developer control constitutes a breach of fiduciary

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responsibility by the developer-appointed members of the board of

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directors of the association, unless the members can show that

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despite such failure, they have made their best efforts to

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maintain the required coverage.

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     (c) Policies may include deductibles as determined by the

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board.

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     1. The deductibles shall be consistent with industry

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standards and prevailing practice for communities of similar size

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and age, and having similar construction and facilities in the

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locale where the condominium property is situated.

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     2. The deductibles may be based upon available funds,

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including reserve accounts, or predetermined assessment authority

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at the time the insurance is obtained.

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     3. The board shall establish the amount of deductibles

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based upon the level of available funds and predetermined

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assessment authority at a meeting of the board. Such meeting

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shall be open to all unit owners in the manner set forth in s.

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718.112(2)(e). The notice of such meeting must state the proposed

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deductible and the available funds and the assessment authority

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relied upon by the board and estimate any potential assessment

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amount against each unit, if any. The meeting described in this

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paragraph may be held in conjunction with a meeting to consider

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the proposed budget or an amendment thereto.

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     (d) An association controlled by unit owners operating as a

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residential condominium shall use its best efforts to obtain and

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maintain adequate insurance to protect the association, the

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association property, the common elements, and the condominium

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property that is required to be insured by the association

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pursuant to this subsection.

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     (e) The declaration of condominium as originally recorded,

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or as amended pursuant to procedures provided therein, may

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provide that condominium property consisting of freestanding

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buildings comprised of no more than one building in or on such

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unit need not be insured by the association if the declaration

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requires the unit owner to obtain adequate insurance for the

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condominium property. An association may also obtain and maintain

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liability insurance for directors and officers, insurance for the

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benefit of association employees, and flood insurance for common

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elements, association property, and units.

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     (f) Every hazard insurance policy issued or renewed on or

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after January 1, 2009, for the purpose of protecting the

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condominium shall provide primary coverage for:

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     1. All portions of the condominium property as originally

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installed or replacement of like kind and quality, in accordance

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with the original plans and specifications.

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     2. All alterations or additions made to the condominium

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property or association property pursuant to s. 718.113(2).

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     3. The coverage shall exclude all personal property within

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the unit or limited common elements, and floor, wall, and ceiling

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coverings, electrical fixtures, appliances, water heaters, water

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filters, built-in cabinets and countertops, and window

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treatments, including curtains, drapes, blinds, hardware, and

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similar window treatment components, or replacements of any of

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the foregoing.

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     (g) Every hazard insurance policy issued or renewed on or

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after January 1, 2009, to an individual unit owner must contain a

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provision stating that the coverage afforded by such policy is

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excess coverage over the amount recoverable under any other

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policy covering the same property. Such policies must include

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special assessment coverage of no less than $2,000 per

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occurrence. An insurance policy issued to an individual unit

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owner providing such coverage does not provide rights of

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subrogation against the condominium association operating the

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condominium in which such individual's unit is located.

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     1. All improvements or additions to the condominium

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property that benefit fewer than all unit owners shall be insured

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by the unit owner or owners having the use thereof, or may be

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insured by the association at the cost and expense of the unit

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owners having the use thereof.

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     2. The association shall require each owner to provide

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evidence of a currently effective policy of hazard and liability

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insurance upon request, but not more than once per year. Upon the

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failure of an owner to provide a certificate of insurance issued

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by an insurer approved to write such insurance in this state

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within 30 days after the date on which a written request is

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delivered, the association may purchase a policy of insurance on

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behalf of an owner. The cost of such a policy, together with

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reconstruction costs undertaken by the association but which are

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the responsibility of the unit owner, may be collected in the

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manner provided for the collection of assessments in s. 718.116.

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     3. All reconstruction work after a casualty loss shall be

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undertaken by the association except as otherwise authorized in

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this section. A unit owner may undertake reconstruction work on

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portions of the unit with the prior written consent of the board

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of administration. However, such work may be conditioned upon the

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approval of the repair methods, the qualifications of the

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proposed contractor, or the contract that is used for that

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purpose. A unit owner shall obtain all required governmental

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permits and approvals prior to commencing reconstruction.

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     4. Unit owners are responsible for the cost of

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reconstruction of any portions of the condominium property for

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which the unit owner is required to carry casualty insurance, and

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any such reconstruction work undertaken by the association shall

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be chargeable to the unit owner and enforceable as an assessment

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pursuant to s. 718.116. The association must be an additional

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named insured and loss payee on all casualty insurance policies

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issued to unit owners in the condominium operated by the

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association.

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     5. A multicondominium association may elect, by a majority

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vote of the collective members of the condominiums operated by

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the association, to operate such condominiums as a single

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condominium for purposes of insurance matters, including, but not

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limited to, the purchase of the hazard insurance required by this

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section and the apportionment of deductibles and damages in

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excess of coverage. The election to aggregate the treatment of

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insurance premiums, deductibles, and excess damages constitutes

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an amendment to the declaration of all condominiums operated by

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the association, and the costs of insurance shall be stated in

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the association budget. The amendments shall be recorded as

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required by s. 718.110.

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     (h) The association shall maintain insurance or fidelity

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bonding of all persons who control or disburse funds of the

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association. The insurance policy or fidelity bond must cover the

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maximum funds that will be in the custody of the association or

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its management agent at any one time. As used in this paragraph,

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the term "persons who control or disburse funds of the

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association" includes, but is not limited to, those individuals

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authorized to sign checks on behalf of the association, and the

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president, secretary, and treasurer of the association. The

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association shall bear the cost of any such bonding.

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     (i) The association may amend the declaration of

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condominium without regard to any requirement for approval by

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mortgagees of amendments affecting insurance requirements for the

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purpose of conforming the declaration of condominium to the

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coverage requirements of this subsection.

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     (j) Any portion of the condominium property required to be

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insured by the association against casualty loss pursuant to

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paragraph (f) which is damaged by casualty shall be

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reconstructed, repaired, or replaced as necessary by the

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association as a common expense. All hazard insurance

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deductibles, uninsured losses, and other damages in excess of

404

hazard insurance coverage under the hazard insurance policies

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maintained by the association are a common expense of the

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condominium, except that:

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     1. A unit owner is responsible for the costs of repair or

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replacement of any portion of the condominium property not paid

409

by insurance proceeds, if such damage is caused by intentional

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conduct, negligence, or failure to comply with the terms of the

411

declaration or the rules of the association by a unit owner, the

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members of his or her family, unit occupants, tenants, guests, or

413

invitees, without compromise of the subrogation rights of any

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insurer as set forth in paragraph (g).

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     2. The provisions of subparagraph 1. regarding the

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financial responsibility of a unit owner for the costs of

417

repairing or replacing other portions of the condominium property

418

also applies to the costs of repair or replacement of personal

419

property of other unit owners or the association, as well as

420

other property, whether real or personal, which the unit owners

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are required to insure under paragraph (g).

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     3. To the extent the cost of repair or reconstruction for

423

which the unit owner is responsible under this paragraph is

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reimbursed to the association by insurance proceeds, and, to the

425

extent the association has collected the cost of such repair or

426

reconstruction from the unit owner, the association shall

427

reimburse the unit owner without the waiver of any rights of

428

subrogation.

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     4. The association is not obligated to pay for repair or

430

reconstruction or repairs of casualty losses as a common expense

431

if the casualty losses were known or should have been known to a

432

unit owner and were not reported to the association until after

433

the insurance claim of the association for that casualty was

434

settled or resolved with finality, or denied on the basis that it

435

was untimely filed.

436

     (k) An association may, upon the approval of a majority of

437

the total voting interests in the association, opt out of the

438

provisions of paragraph (j) for the allocation of repair or

439

reconstruction expenses and allocate repair or reconstruction

440

expenses in the manner provided in the declaration as originally

441

recorded or as amended. Such vote may be approved by the voting

442

interests of the association without regard to any mortgagee

443

consent requirements.

444

     (l) In a multicondominium association that has not

445

consolidated its financial operations under s. 718.111(6), any

446

condominium operated by the association may opt out of the

447

provisions of paragraph (j) with the approval of a majority of

448

the total voting interests in that condominium. Such vote may be

449

approved by the voting interests without regard to any mortgagee

450

consent requirements.

451

     (m) Any association or condominium voting to opt out of the

452

guidelines for repair or reconstruction expenses as described in

453

paragraph (j) must record a notice setting forth the date of the

454

opt-out vote and the page of the official records book on which

455

the declaration is recorded. The decision to opt out is effective

456

upon the date of recording of the notice in the public records by

457

the association. An association that has voted to opt out of

458

paragraph (j) may reverse that decision by the same vote required

459

in paragraphs (k) and (l), and notice thereof shall be recorded

460

in the official records.

461

     (n) The association is not obligated to pay for any

462

reconstruction or repair expenses due to casualty loss to any

463

improvements installed by a current or former owner of the unit

464

or by the developer if the improvement benefits only the unit for

465

which it was installed and is not part of the standard

466

improvements installed by the developer on all units as part of

467

original construction, whether or not such improvement is located

468

within the unit. This paragraph does not relieve any party of its

469

obligations regarding recovery due under any insurance

470

implemented specifically for any such improvements.

471

     (o) The provisions of this subsection shall not apply to

472

timeshare condominium associations. Insurance for timeshare

473

condominium associations shall be maintained pursuant to s.

475

Therefore, the Legislature requires a report to be prepared by

476

the Office of Insurance Regulation of the Department of Financial

477

Services for publication 18 months from the effective date of

478

this act, evaluating premium increases or decreases for

479

associations, unit owner premium increases or decreases,

480

recommended changes to better define common areas, or any other

481

information the Office of Insurance Regulation deems appropriate.

482

     (a) A unit-owner controlled association operating a

483

residential condominium shall use its best efforts to obtain and

484

maintain adequate insurance to protect the association, the

485

association property, the common elements, and the condominium

486

property required to be insured by the association pursuant to

487

paragraph (b). If the association is developer controlled, the

488

association shall exercise due diligence to obtain and maintain

489

such insurance. Failure to obtain and maintain adequate insurance

490

during any period of developer control shall constitute a breach

491

of fiduciary responsibility by the developer-appointed members of

492

the board of directors of the association, unless said members

493

can show that despite such failure, they have exercised due

494

diligence. The declaration of condominium as originally recorded,

495

or amended pursuant to procedures provided therein, may require

496

that condominium property consisting of freestanding buildings

497

where there is no more than one building in or on such unit need

498

not be insured by the association if the declaration requires the

499

unit owner to obtain adequate insurance for the condominium

500

property. An association may also obtain and maintain liability

501

insurance for directors and officers, insurance for the benefit

502

of association employees, and flood insurance for common

503

elements, association property, and units. Adequate insurance,

504

regardless of any requirement in the declaration of condominium

505

for coverage by the association for "full insurable value,"

506

"replacement cost," or the like, may include reasonable

507

deductibles as determined by the board based upon available funds

508

or predetermined assessment authority at the time that the

509

insurance is obtained.

510

     1. Windstorm insurance coverage for a group of no fewer

511

than three communities created and operating under this chapter,

512

chapter 719, chapter 720, or chapter 721 may be obtained and

513

maintained for the communities if the insurance coverage is

514

sufficient to cover an amount equal to the probable maximum loss

515

for the communities for a 250-year windstorm event. Such probable

516

maximum loss must be determined through the use of a competent

517

model that has been accepted by the Florida Commission on

518

Hurricane Loss Projection Methodology. Such insurance coverage is

519

deemed adequate windstorm insurance for the purposes of this

520

section.

521

     2. An association or group of associations may self-insure

522

against claims against the association, the association property,

523

and the condominium property required to be insured by an

524

association, upon compliance with the applicable provisions of

525

ss. 624.460-624.488, which shall be considered adequate insurance

526

for the purposes of this section. A copy of each policy of

527

insurance in effect shall be made available for inspection by

528

unit owners at reasonable times.

529

     (b) Every hazard insurance policy issued or renewed on or

530

after January 1, 2004, to protect the condominium shall provide

531

primary coverage for:

532

     1. All portions of the condominium property located outside

533

the units;

534

     2. The condominium property located inside the units as

535

such property was initially installed, or replacements thereof of

536

like kind and quality and in accordance with the original plans

537

and specifications or, if the original plans and specifications

538

are not available, as they existed at the time the unit was

539

initially conveyed; and

540

     3. All portions of the condominium property for which the

541

declaration of condominium requires coverage by the association.

542

543

Anything to the contrary notwithstanding, the terms "condominium

544

property," "building," "improvements," "insurable improvements,"

545

"common elements," "association property," or any other term

546

found in the declaration of condominium which defines the scope

547

of property or casualty insurance that a condominium association

548

must obtain shall exclude all floor, wall, and ceiling coverings,

549

electrical fixtures, appliances, air conditioner or heating

550

equipment, water heaters, water filters, built-in cabinets and

551

countertops, and window treatments, including curtains, drapes,

552

blinds, hardware, and similar window treatment components, or

553

replacements of any of the foregoing which are located within the

554

boundaries of a unit and serve only one unit and all air

555

conditioning compressors that service only an individual unit,

556

whether or not located within the unit boundaries. The foregoing

557

is intended to establish the property or casualty insuring

558

responsibilities of the association and those of the individual

559

unit owner and do not serve to broaden or extend the perils of

560

coverage afforded by any insurance contract provided to the

561

individual unit owner. Beginning January 1, 2004, the association

562

shall have the authority to amend the declaration of condominium,

563

without regard to any requirement for mortgagee approval of

564

amendments affecting insurance requirements, to conform the

565

declaration of condominium to the coverage requirements of this

566

section.

567

     (c) Every hazard insurance policy issued or renewed on or

568

after January 1, 2004, to an individual unit owner shall provide

569

that the coverage afforded by such policy is excess over the

570

amount recoverable under any other policy covering the same

571

property. Each insurance policy issued to an individual unit

572

owner providing such coverage shall be without rights of

573

subrogation against the condominium association that operates the

574

condominium in which such unit owner's unit is located. All real

575

or personal property located within the boundaries of the unit

576

owner's unit which is excluded from the coverage to be provided

577

by the association as set forth in paragraph (b) shall be insured

578

by the individual unit owner.

579

     (d) The association shall obtain and maintain adequate

580

insurance or fidelity bonding of all persons who control or

581

disburse funds of the association. The insurance policy or

582

fidelity bond must cover the maximum funds that will be in the

583

custody of the association or its management agent at any one

584

time. As used in this paragraph, the term "persons who control or

585

disburse funds of the association" includes, but is not limited

586

to, those individuals authorized to sign checks and the

587

president, secretary, and treasurer of the association. The

588

association shall bear the cost of bonding.

589

     Section 2.  Paragraph (a) of subsection (1) of section

590

718.115, Florida Statutes, is amended to read:

591

     718.115  Common expenses and common surplus.--

592

     (1)(a)  Common expenses include the expenses of the

593

operation, maintenance, repair, replacement, or protection of the

594

common elements and association property, costs of carrying out

595

the powers and duties of the association, and any other expense,

596

whether or not included in the foregoing, designated as common

597

expense by this chapter, the declaration, the documents creating

598

the association, or the bylaws. Common expenses also include

599

reasonable transportation services, insurance for directors and

600

officers, road maintenance and operation expenses, in-house

601

communications, and security services, which are reasonably

602

related to the general benefit of the unit owners even if such

603

expenses do not attach to the common elements or property of the

604

condominium. However, such common expenses must either have been

605

services or items provided on or after the date control of the

606

association is transferred from the developer to the unit owners

607

or must be services or items provided for in the condominium

608

documents or bylaws. Unless the manner of payment or allocation

609

of expenses is otherwise addressed in the declaration of

610

condominium, the expenses of any items or services required by

611

any federal, state, or local governmental entity to be installed,

612

maintained, or supplied to the condominium property by the

613

association, including, but not limited to, fire safety equipment

614

or water and sewer service where a master meter serves the

615

condominium, shall be common expenses whether or not such items

616

or services are specifically identified as common expenses in the

617

declaration of condominium, articles of incorporation, or bylaws

618

of the association.

619

     Section 3.  Subsection (8) of section 718.116, Florida

620

Statutes, is amended to read:

621

     718.116  Assessments; liability; lien and priority;

622

interest; collection.--

623

     (8)  Within 15 days after receiving a written request

624

therefor from a unit owner or his or her designee purchaser, or

625

a unit mortgagee or his or her designee, the association shall

626

provide a certificate signed by an officer or agent of the

627

association stating all assessments and other moneys owed to the

628

association by the unit owner with respect to the condominium

629

parcel.

630

     (a) Any person other than the owner who relies upon such

631

certificate shall be protected thereby.

632

     (b) A summary proceeding pursuant to s. 51.011 may be

633

brought to compel compliance with this subsection, and in any

634

such action the prevailing party is entitled to recover

635

reasonable attorney's fees.

636

     (c) Notwithstanding any limitation on transfer fees

637

contained in s. 718.112(2)(i), the association or its authorized

638

agent may charge a reasonable fee for the preparation of the

639

certificate. The amount of the fee must be included on the

640

certificate.

641

     (d) The authority to charge a fee for the certificate shall

642

be established by a written resolution adopted by the board or

643

provided by a written management, bookkeeping, or maintenance

644

contract and is payable upon the preparation of the certificate.

645

If the certificate is requested in conjunction with the sale or

646

mortgage of a unit but the closing does not occur and no later

647

than 30 days after the closing date for which the certificate was

648

sought the preparer receives a written request, accompanied by

649

reasonable documentation, that the sale did not occur from a

650

payer that is not the unit owner, the fee shall be refunded to

651

that payer within 30 days after receipt of the request. The

652

refund is the obligation of the unit owner, and the association

653

may collect it from that owner in the same manner as an

654

assessment as provided in this section.

655

     Section 4.  Paragraph (c) of subsection (17) of section

656

718.117, Florida Statutes, is amended to read:

657

     718.117  Termination of condominium.--

658

     (17)  DISTRIBUTION.--

659

     (c)  The proceeds from any sale of condominium property or

660

association property and any remaining condominium property or

661

association property, common surplus, and other assets shall be

662

distributed in the following priority:

663

     1.  To pay the reasonable termination trustee's fees and

664

costs and accounting fees and costs.

665

     2.  To lienholders of liens recorded prior to the recording

666

of the declaration.

667

     3.  To purchase-money lienholders on units to the extent

668

necessary to satisfy their liens; however, the distribution may

669

not exceed a unit owner's share of the proceeds.

670

     4.  To lienholders of liens of the association which have

671

been consented to under s. 718.121(1).

672

     5.  To creditors of the association, as their interests

673

appear.

674

     6.  To unit owners, the proceeds of any sale of condominium

675

property subject to satisfaction of liens on each unit in their

676

order of priority, in shares specified in the plan of

677

termination, unless objected to by a unit owner or lienor as

678

provided in paragraph (b).

679

     7.  To unit owners, the remaining condominium property,

680

subject to satisfaction of liens on each unit in their order of

681

priority, in shares specified in the plan of termination, unless

682

objected to by a unit owner or a lienor as provided in paragraph

683

(b).

684

     8.  To unit owners, the proceeds of any sale of association

685

property, the remaining association property, common surplus, and

686

other assets of the association, subject to satisfaction of liens

687

on each unit in their order of priority, in shares specified in

688

the plan of termination, unless objected to by a unit owner or a

689

lienor as provided in paragraph (b).

690

     Section 5.  Section 720.30851, Florida Statutes, is created

691

to read:

692

     720.30851 Estoppel certificates.--Within 15 days after the

693

date on which a request for an estoppel certificate is received

694

from a parcel owner or mortgagee, or his or her designee, the

695

association shall provide a certificate signed by an officer or

696

authorized agent of the association stating all assessments and

697

other moneys owed to the association by the parcel owner or

698

mortgagee with respect to the parcel. An association may charge a

699

fee for the preparation of such certificate, and the amount of

700

such fee must be stated on the certificate.

701

     (1) Any person other than a parcel owner who relies upon a

702

certificate receives the benefits and protection thereof.

703

     (2) A summary proceeding pursuant to s. 51.011 may be

704

brought to compel compliance with this section, and the

705

prevailing party is entitled to recover reasonable attorney's

706

fees.

707

     (3) The authority to charge a fee for a certificate

708

required by this section shall be established by written

709

resolution adopted by the board or provided by written

710

management, bookkeeping, or maintenance contract. The fee is

711

payable upon the preparation of the certificate, and, if the

712

certificate is requested in conjunction with the sale or mortgage

713

of a unit and the closing does not occur, the fee shall be

714

refunded promptly upon written notice from the person requesting

715

the certificate stating that the sale or mortgage did not occur.

716

Any such refund is the obligation of the unit owner and is

717

collectible in the same manner as an assessment as provided in

718

this section.

719

          Section 6.  Paragraphs (d) and (j) of subsection (2) of

720

section 20.165, Florida Statutes, are amended to read:

721

     20.165  Department of Business and Professional

722

Regulation.--There is created a Department of Business and

723

Professional Regulation.

724

     (2)  The following divisions of the Department of Business

725

and Professional Regulation are established:

726

     (d) Division of Florida Land Sales, Condominiums,

727

Timeshares, and Mobile Homes.

728

     (j) Division of Technology, Licensure, and Testing.

729

     Section 7.  Subsection (2) of section 73.073, Florida

730

Statutes, is amended to read:

731

     73.073  Eminent domain procedure with respect to condominium

732

common elements.--

733

     (2)  With respect to the exercise of eminent domain or a

734

negotiated sale for the purchase or taking of a portion of the

735

common elements of a condominium, the condemning authority shall

736

have the responsibility of contacting the condominium association

737

and acquiring the most recent rolls indicating the names of the

738

unit owners or contacting the appropriate taxing authority to

739

obtain the names of the owners of record on the tax rolls.

740

Notification shall thereupon be sent by certified mail, return

741

receipt requested, to the unit owners of record of the

742

condominium units by the condemning authority indicating the

743

intent to purchase or take the required property and requesting a

744

response from the unit owner. The condemning authority shall be

745

responsible for the expense of sending notification pursuant to

746

this section. Such notice shall, at a minimum, include:

747

     (a)  The name and address of the condemning authority.

748

     (b)  A written or visual description of the property.

749

     (c)  The public purpose for which the property is needed.

750

     (d)  The appraisal value of the property.

751

     (e)  A clear, concise statement relating to the unit owner's

752

right to object to the taking or appraisal value and the

753

procedures and effects of exercising that right.

754

     (f)  A clear, concise statement relating to the power of the

755

association to convey the property on behalf of the unit owners

756

if no objection to the taking or appraisal value is raised, and

757

the effects of this alternative on the unit owner.

758

759

The Division of Florida Land Sales, Condominiums, Timeshares, and

760

Mobile Homes of the Department of Business and Professional

761

Regulation may adopt, by rule, a standard form for such notice

762

and may require the notice to include any additional relevant

763

information.

764

     Section 8.  Subsections (2) and (3) of section 190.009,

765

Florida Statutes, are amended to read:

766

     190.009  Disclosure of public financing.--

767

     (2) The Division of Florida Land Sales, Condominiums, and

768

Mobile Homes of the Department of Business and Professional

769

Regulation shall ensure that disclosures made by developers

770

pursuant to chapter 498 meet the requirements of subsection (1).

771

     (2)(3) The Department of Community Affairs shall keep a

772

current list of districts and their disclosures pursuant to this

773

act and shall make such studies and reports and take such actions

774

as it deems necessary.

775

     Section 9.  Paragraph (e) of subsection (6) of section

776

192.037, Florida Statutes, is amended to read:

777

     192.037  Fee timeshare real property; taxes and assessments;

778

escrow.--

779

     (6)

780

     (e)  On or before May 1 of each year, a statement of

781

receipts and disbursements of the escrow account must be filed

782

with the Division of Florida Land Sales, Condominiums,

783

Timeshares, and Mobile Homes of the Department of Business and

784

Professional Regulation, which may enforce this paragraph

785

pursuant to s. 721.26. This statement must appropriately show the

786

amount of principal and interest in such account.

787

     Section 10.  Paragraph (i) of subsection (8) of section

788

213.053, Florida Statutes, is amended to read:

789

     213.053  Confidentiality and information sharing.--

790

     (8)  Notwithstanding any other provision of this section,

791

the department may provide:

792

     (i)  Information relative to chapters 212 and 326 to the

793

Division of Florida Land Sales, Condominiums, Timeshares, and

794

Mobile Homes of the Department of Business and Professional

795

Regulation in the conduct of its official duties.

796

797

Disclosure of information under this subsection shall be pursuant

798

to a written agreement between the executive director and the

799

agency. Such agencies, governmental or nongovernmental, shall be

800

bound by the same requirements of confidentiality as the

801

Department of Revenue. Breach of confidentiality is a misdemeanor

802

of the first degree, punishable as provided by s. 775.082 or s.

804

     Section 11.  Paragraph (d) of subsection (4) of section

805

215.20, Florida Statutes, is amended to read:

806

     215.20  Certain income and certain trust funds to contribute

807

to the General Revenue Fund.--

808

     (4)  The income of a revenue nature deposited in the

809

following described trust funds, by whatever name designated, is

810

that from which the appropriations authorized by subsection (3)

811

shall be made:

812

     (d)  Within the Department of Business and Professional

813

Regulation:

814

     1.  The Administrative Trust Fund.

815

     2.  The Alcoholic Beverage and Tobacco Trust Fund.

816

     3.  The Cigarette Tax Collection Trust Fund.

817

     4. The Division of Florida Land Sales, Condominiums,

818

Timeshares, and Mobile Homes Trust Fund.

819

     5.  The Hotel and Restaurant Trust Fund, with the exception

820

of those fees collected for the purpose of funding of the

821

hospitality education program as stated in s. 509.302.

822

     6.  The Professional Regulation Trust Fund.

823

     7.  The trust funds administered by the Division of Pari-

824

mutuel Wagering.

825

826

The enumeration of the foregoing moneys or trust funds shall not

827

prohibit the applicability thereto of s. 215.24 should the

828

Governor determine that for the reasons mentioned in s. 215.24

829

the money or trust funds should be exempt herefrom, as it is the

830

purpose of this law to exempt income from its force and effect

831

when, by the operation of this law, federal matching funds or

832

contributions or private grants to any trust fund would be lost

833

to the state.

834

     Section 12.  Subsection (2) of section 326.002, Florida

835

Statutes, is amended to read:

836

     326.002  Definitions.--As used in ss. 326.001-326.006, the

837

term:

838

     (2) "Division" means the Division of Florida Land Sales,

839

Condominiums, Timeshares, and Mobile Homes of the Department of

840

Business and Professional Regulation.

841

     Section 13.  Paragraph (d) of subsection (2) and subsection

842

(3) of section 326.006, Florida Statutes, are amended to read:

843

     326.006  Powers and duties of division.--

844

     (2)  The division has the power to enforce and ensure

845

compliance with the provisions of this chapter and rules adopted

846

under this chapter relating to the sale and ownership of yachts

847

and ships. In performing its duties, the division has the

848

following powers and duties:

849

     (d)  Notwithstanding any remedies available to a yacht or

850

ship purchaser, if the division has reasonable cause to believe

851

that a violation of any provision of this chapter or rule adopted

852

under this chapter has occurred, the division may institute

853

enforcement proceedings in its own name against any broker or

854

salesperson or any of his or her assignees or agents, or against

855

any unlicensed person or any of his or her assignees or agents,

856

as follows:

857

     1.  The division may permit a person whose conduct or

858

actions are under investigation to waive formal proceedings and

859

enter into a consent proceeding whereby orders, rules, or letters

860

of censure or warning, whether formal or informal, may be entered

861

against the person.

862

     2.  The division may issue an order requiring the broker or

863

salesperson or any of his or her assignees or agents, or

864

requiring any unlicensed person or any of his or her assignees or

865

agents, to cease and desist from the unlawful practice and take

866

such affirmative action as in the judgment of the division will

867

carry out the purposes of this chapter.

868

     3.  The division may bring an action in circuit court on

869

behalf of a class of yacht or ship purchasers for declaratory

870

relief, injunctive relief, or restitution.

871

     4.  The division may impose a civil penalty against a broker

872

or salesperson or any of his or her assignees or agents, or

873

against an unlicensed person or any of his or her assignees or

874

agents, for any violation of this chapter or a rule adopted under

875

this chapter. A penalty may be imposed for each day of continuing

876

violation, but in no event may the penalty for any offense exceed

877

$10,000. All amounts collected must be deposited with the Chief

878

Financial Officer to the credit of the Division of Florida Land

879

Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund. If

880

a broker, salesperson, or unlicensed person working for a broker,

881

fails to pay the civil penalty, the division shall thereupon

882

issue an order suspending the broker's license until such time as

883

the civil penalty is paid or may pursue enforcement of the

884

penalty in a court of competent jurisdiction. The order imposing

885

the civil penalty or the order of suspension may not become

886

effective until 20 days after the date of such order. Any action

887

commenced by the division must be brought in the county in which

888

the division has its executive offices or in the county where the

889

violation occurred.

890

     (3)  All fees must be deposited in the Division of Florida

891

Land Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund

892

as provided by law.

893

     Section 14.  Subsection (18) of section 380.05, Florida

894

Statutes, is amended to read:

895

     380.05  Areas of critical state concern.--

896

     (18)  Neither the designation of an area of critical state

897

concern nor the adoption of any regulations for such an area

898

shall in any way limit or modify the rights of any person to

899

complete any development that was has been authorized by

900

registration of a subdivision pursuant to former chapter 498 or

901

former chapter 478, by recordation pursuant to local subdivision

902

plat law, or by a building permit or other authorization to

903

commence development on which there has been reliance and a

904

change of position, and which registration or recordation was

905

accomplished, or which permit or authorization was issued, prior

906

to the approval under subsection (6), or the adoption under

907

subsection (8), of land development regulations for the area of

908

critical state concern. If a developer has by his or her actions

909

in reliance on prior regulations obtained vested or other legal

910

rights that in law would have prevented a local government from

911

changing those regulations in a way adverse to the developer's

912

interests, nothing in this chapter authorizes any governmental

913

agency to abridge those rights.

914

     Section 15.  Subsection (20) of section 380.06, Florida

915

Statutes, is amended to read:

916

     380.06  Developments of regional impact.--

917

     (20)  VESTED RIGHTS.--Nothing in this section shall limit or

918

modify the rights of any person to complete any development that

919

was has been authorized by registration of a subdivision pursuant

920

to former chapter 498, by recordation pursuant to local

921

subdivision plat law, or by a building permit or other

922

authorization to commence development on which there has been

923

reliance and a change of position and which registration or

924

recordation was accomplished, or which permit or authorization

925

was issued, prior to July 1, 1973. If a developer has, by his or

926

her actions in reliance on prior regulations, obtained vested or

927

other legal rights that in law would have prevented a local

928

government from changing those regulations in a way adverse to

929

the developer's interests, nothing in this chapter authorizes any

930

governmental agency to abridge those rights.

931

     (a)  For the purpose of determining the vesting of rights

932

under this subsection, approval pursuant to local subdivision

933

plat law, ordinances, or regulations of a subdivision plat by

934

formal vote of a county or municipal governmental body having

935

jurisdiction after August 1, 1967, and prior to July 1, 1973, is

936

sufficient to vest all property rights for the purposes of this

937

subsection; and no action in reliance on, or change of position

938

concerning, such local governmental approval is required for

939

vesting to take place. Anyone claiming vested rights under this

940

paragraph must so notify the department in writing by January 1,

941

1986. Such notification shall include information adequate to

942

document the rights established by this subsection. When such

943

notification requirements are met, in order for the vested rights

944

authorized pursuant to this paragraph to remain valid after June

945

30, 1990, development of the vested plan must be commenced prior

946

to that date upon the property that the state land planning

947

agency has determined to have acquired vested rights following

948

the notification or in a binding letter of interpretation. When

949

the notification requirements have not been met, the vested

950

rights authorized by this paragraph shall expire June 30, 1986,

951

unless development commenced prior to that date.

952

     (b)  For the purpose of this act, the conveyance of, or the

953

agreement to convey, property to the county, state, or local

954

government as a prerequisite to zoning change approval shall be

955

construed as an act of reliance to vest rights as determined

956

under this subsection, provided such zoning change is actually

957

granted by such government.

958

     Section 16.  Paragraph (a) of subsection (4) of section

959

380.0651, Florida Statutes, is amended to read:

960

     380.0651  Statewide guidelines and standards.--

961

     (4)  Two or more developments, represented by their owners

962

or developers to be separate developments, shall be aggregated

963

and treated as a single development under this chapter when they

964

are determined to be part of a unified plan of development and

965

are physically proximate to one other.

966

     (a)  The criteria of two of the following subparagraphs must

967

be met in order for the state land planning agency to determine

968

that there is a unified plan of development:

969

     1.a.  The same person has retained or shared control of the

970

developments;

971

     b.  The same person has ownership or a significant legal or

972

equitable interest in the developments; or

973

     c.  There is common management of the developments

974

controlling the form of physical development or disposition of

975

parcels of the development.

976

     2.  There is a reasonable closeness in time between the

977

completion of 80 percent or less of one development and the

978

submission to a governmental agency of a master plan or series of

979

plans or drawings for the other development which is indicative

980

of a common development effort.

981

     3.  A master plan or series of plans or drawings exists

982

covering the developments sought to be aggregated which have been

983

submitted to a local general-purpose government, water management

984

district, the Florida Department of Environmental Protection, or

985

the Division of Florida Land Sales, Condominiums, Timeshares, and

986

Mobile Homes for authorization to commence development. The

987

existence or implementation of a utility's master utility plan

988

required by the Public Service Commission or general-purpose

989

local government or a master drainage plan shall not be the sole

990

determinant of the existence of a master plan.

991

     4.  The voluntary sharing of infrastructure that is

992

indicative of a common development effort or is designated

993

specifically to accommodate the developments sought to be

994

aggregated, except that which was implemented because it was

995

required by a local general-purpose government; water management

996

district; the Department of Environmental Protection; the

997

Division of Florida Land Sales, Condominiums, Timeshares, and

998

Mobile Homes; or the Public Service Commission.

999

     5.  There is a common advertising scheme or promotional plan

1000

in effect for the developments sought to be aggregated.

1001

     Section 17.  Paragraph (c) of subsection (4) of section

1002

381.0065, Florida Statutes, is amended to read:

1003

     381.0065  Onsite sewage treatment and disposal systems;

1004

regulation.--

1005

     (4)  PERMITS; INSTALLATION; AND CONDITIONS.--A person may

1006

not construct, repair, modify, abandon, or operate an onsite

1007

sewage treatment and disposal system without first obtaining a

1008

permit approved by the department. The department may issue

1009

permits to carry out this section, but shall not make the

1010

issuance of such permits contingent upon prior approval by the

1011

Department of Environmental Protection, except that the issuance

1012

of a permit for work seaward of the coastal construction control

1013

line established under s. 161.053 shall be contingent upon

1014

receipt of any required coastal construction control line permit

1015

from the Department of Environmental Protection. A construction

1016

permit is valid for 18 months from the issuance date and may be

1017

extended by the department for one 90-day period under rules

1018

adopted by the department. A repair permit is valid for 90 days

1019

from the date of issuance. An operating permit must be obtained

1020

prior to the use of any aerobic treatment unit or if the

1021

establishment generates commercial waste. Buildings or

1022

establishments that use an aerobic treatment unit or generate

1023

commercial waste shall be inspected by the department at least

1024

annually to assure compliance with the terms of the operating

1025

permit. The operating permit for a commercial wastewater system

1026

is valid for 1 year from the date of issuance and must be renewed

1027

annually. The operating permit for an aerobic treatment unit is

1028

valid for 2 years from the date of issuance and must be renewed

1029

every 2 years. If all information pertaining to the siting,

1030

location, and installation conditions or repair of an onsite

1031

sewage treatment and disposal system remains the same, a

1032

construction or repair permit for the onsite sewage treatment and

1033

disposal system may be transferred to another person, if the

1034

transferee files, within 60 days after the transfer of ownership,

1035

an amended application providing all corrected information and

1036

proof of ownership of the property. There is no fee associated

1037

with the processing of this supplemental information. A person

1038

may not contract to construct, modify, alter, repair, service,

1039

abandon, or maintain any portion of an onsite sewage treatment

1040

and disposal system without being registered under part III of

1041

chapter 489. A property owner who personally performs

1042

construction, maintenance, or repairs to a system serving his or

1043

her own owner-occupied single-family residence is exempt from

1044

registration requirements for performing such construction,

1045

maintenance, or repairs on that residence, but is subject to all

1046

permitting requirements. A municipality or political subdivision

1047

of the state may not issue a building or plumbing permit for any

1048

building that requires the use of an onsite sewage treatment and

1049

disposal system unless the owner or builder has received a

1050

construction permit for such system from the department. A

1051

building or structure may not be occupied and a municipality,

1052

political subdivision, or any state or federal agency may not

1053

authorize occupancy until the department approves the final

1054

installation of the onsite sewage treatment and disposal system.

1055

A municipality or political subdivision of the state may not

1056

approve any change in occupancy or tenancy of a building that

1057

uses an onsite sewage treatment and disposal system until the

1058

department has reviewed the use of the system with the proposed

1059

change, approved the change, and amended the operating permit.

1060

     (c) Notwithstanding the provisions of paragraphs (a) and

1061

(b), for subdivisions platted of record on or before October 1,

1062

1991, when a developer or other appropriate entity has previously

1063

made or makes provisions, including financial assurances or other

1064

commitments, acceptable to the Department of Health, that a

1065

central water system will be installed by a regulated public

1066

utility based on a density formula, private potable wells may be

1067

used with onsite sewage treatment and disposal systems until the

1068

agreed-upon densities are reached. The department may consider

1069

assurances filed with the Department of Business and Professional

1070

Regulation under chapter 498 in determining the adequacy of the

1071

financial assurance required by this paragraph. In a subdivision

1072

regulated by this paragraph, the average daily sewage flow may

1073

not exceed 2,500 gallons per acre per day. This section does not

1074

affect the validity of existing prior agreements. After October

1075

1, 1991, the exception provided under this paragraph is not

1076

available to a developer or other appropriate entity.

1077

     Section 18.  Subsections (8) through (12) of section 450.33,

1078

Florida Statutes, are amended to read:

1079

     450.33  Duties of farm labor contractor.--Every farm labor

1080

contractor must:

1081

     (8) File, within such time as the department may prescribe,

1082

a set of his or her fingerprints.

1083

     (8)(9) Produce evidence to the department that each vehicle

1084

he or she uses for the transportation of employees complies with

1085

the requirements and specifications established in chapter 316,

1086

s. 316.622, or Pub. L. No. 93-518 as amended by Pub. L. No. 97-

1087

470 meeting Department of Transportation requirements or, in lieu

1088

thereof, bears a valid inspection sticker showing that the

1089

vehicle has passed the inspection in the state in which the

1090

vehicle is registered.

1091

     (9)(10) Comply with all applicable statutes, rules, and

1092

regulations of the United States and of the State of Florida for

1093

the protection or benefit of labor, including, but not limited

1094

to, those providing for wages, hours, fair labor standards,

1095

social security, workers' compensation, unemployment

1096

compensation, child labor, and transportation.

1097

     (10)(11) Maintain accurate daily field records for each

1098

employee actually paid by the farm labor contractor reflecting

1099

the hours worked for the farm labor contractor and, if paid by

1100

unit, the number of units harvested and the amount paid per unit.

1101

     (11)(12) Clearly display on each vehicle used to transport

1102

migrant or seasonal farm workers a display sticker issued by the

1103

department, which states that the vehicle is authorized by the

1104

department to transport farm workers and the expiration date of

1105

the authorization.

1106

     Section 19.  Subsection (10) is added to section 455.203,

1107

Florida Statutes, to read:

1108

     455.203  Department; powers and duties.--The department, for

1109

the boards under its jurisdiction, shall:

1110

     (10) Have authority to:

1111

     (a) Close and terminate deficient license application files

1112

2 years after the board or the department notifies the applicant

1113

of the deficiency; and

1114

     (b) Approve applications for professional licenses that

1115

meet all statutory and rule requirements for licensure.

1116

     Section 20.  Subsection (5) of section 455.116, Florida

1117

Statutes, is amended to read:

1118

     455.116  Regulation trust funds.--The following trust funds

1119

shall be placed in the department:

1120

     (5) Division of Florida Land Sales, Condominiums,

1121

Timeshares, and Mobile Homes Trust Fund.

1122

     Section 21.  Subsection (1) of section 455.217, Florida

1123

Statutes, is amended to read:

1124

     455.217  Examinations.--This section shall be read in

1125

conjunction with the appropriate practice act associated with

1126

each regulated profession under this chapter.

1127

     (1) The Division of Technology, Licensure, and Testing of

1128

the Department of Business and Professional Regulation shall

1129

provide, contract, or approve services for the development,

1130

preparation, administration, scoring, score reporting, and

1131

evaluation of all examinations. The division shall seek the

1132

advice of the appropriate board in providing such services.

1133

     (a)  The department, acting in conjunction with the Division

1134

of Technology, Licensure, and Testing and the Division of Real

1135

Estate, as appropriate, shall ensure that examinations adequately

1136

and reliably measure an applicant's ability to practice the

1137

profession regulated by the department. After an examination

1138

developed or approved by the department has been administered,

1139

the board or department may reject any question which does not

1140

reliably measure the general areas of competency specified in the

1141

rules of the board or department, when there is no board. The

1142

department shall use professional testing services for the

1143

development, preparation, and evaluation of examinations, when

1144

such services are available and approved by the board.

1145

     (b)  For each examination developed by the department or

1146

contracted vendor, to the extent not otherwise specified by

1147

statute, the board or the department when there is no board,

1148

shall by rule specify the general areas of competency to be

1149

covered by the examination, the relative weight to be assigned in

1150

grading each area tested, the score necessary to achieve a

1151

passing grade, and the fees, where applicable, to cover the

1152

actual cost for any purchase, development, and administration of

1153

the required examination. However, statutory fee caps in each

1154

practice act shall apply. This subsection does not apply to

1155

national examinations approved and administered pursuant to

1156

paragraph (d).

1157

     (c)  If a practical examination is deemed to be necessary,

1158

rules shall specify the criteria by which examiners are to be

1159

selected, the grading criteria to be used by the examiner, the

1160

relative weight to be assigned in grading each criterion, and the

1161

score necessary to achieve a passing grade. When a mandatory

1162

standardization exercise for a practical examination is required

1163

by law, the board may conduct such exercise. Therefore, board

1164

members may serve as examiners at a practical examination with

1165

the consent of the board.

1166

     (d)  A board, or the department when there is no board, may

1167

approve by rule the use of any national examination which the

1168

department has certified as meeting requirements of national

1169

examinations and generally accepted testing standards pursuant to

1170

department rules. Providers of examinations, which may be either

1171

profit or nonprofit entities, seeking certification by the

1172

department shall pay the actual costs incurred by the department

1173

in making a determination regarding the certification. The

1174

department shall use any national examination which is available,

1175

certified by the department, and approved by the board. The name

1176

and number of a candidate may be provided to a national

1177

contractor for the limited purpose of preparing the grade tape

1178

and information to be returned to the board or department or, to

1179

the extent otherwise specified by rule, the candidate may apply

1180

directly to the vendor of the national examination. The

1181

department may delegate to the board the duty to provide and

1182

administer the examination. Any national examination approved by

1183

a board, or the department when there is no board, prior to

1184

October 1, 1997, is deemed certified under this paragraph. Any

1185

licensing or certification examination that is not developed or

1186

administered by the department in-house or provided as a national

1187

examination shall be competitively bid.

1188

     (e)  The department shall adopt rules regarding the security

1189

and monitoring of examinations. In order to maintain the security

1190

of examinations, the department may employ the procedures set

1191

forth in s. 455.228 to seek fines and injunctive relief against

1192

an examinee who violates the provisions of s. 455.2175 or the

1193

rules adopted pursuant to this paragraph. The department, or any

1194

agent thereof, may, for the purposes of investigation, confiscate

1195

any written, photographic, or recording material or device in the

1196

possession of the examinee at the examination site which the

1197

department deems necessary to enforce such provisions or rules.

1198

     (f)  If the professional board with jurisdiction over an

1199

examination concurs, the department may, for a fee, share with

1200

any other state's licensing authority an examination developed by

1201

or for the department unless prohibited by a contract entered

1202

into by the department for development or purchase of the

1203

examination. The department, with the concurrence of the

1204

appropriate board, shall establish guidelines that ensure

1205

security of a shared exam and shall require that any other

1206

state's licensing authority comply with those guidelines. Those

1207

guidelines shall be approved by the appropriate professional

1208

board. All fees paid by the user shall be applied to the

1209

department's examination and development program for professions

1210

regulated by this chapter. All fees paid by the user for

1211

professions not regulated by this chapter shall be applied to

1212

offset the fees for the development and administration of that

1213

profession's examination. If both a written and a practical

1214

examination are given, an applicant shall be required to retake

1215

only the portion of the examination for which he or she failed to

1216

achieve a passing grade, if he or she successfully passes that

1217

portion within a reasonable time of his or her passing the other

1218

portion.

1219

     Section 22.  Subsection (6) is added to section 455.2273,

1220

Florida Statutes, to read:

1221

     455.2273  Disciplinary guidelines.--

1222

     (6) Notwithstanding s. 455.017, this section applies to

1223

disciplinary guidelines adopted by all boards or divisions within

1224

the department.

1225

     Section 23.  Effective July 1, 2010, paragraph (d) of

1226

subsection (1) and paragraph (d) of subsection (2) of section

1227

468.841, Florida Statutes, are amended to read:

1228

     468.841  Exemptions.--

1229

     (1)  The following persons are not required to comply with

1230

any provisions of this part relating to mold assessment:

1231

     (d)  Persons or business organizations acting within the

1232

scope of the respective licenses required under chapter 471, part

1233

I of chapter 481, chapter 482, or chapter 489, or part XV of this

1234

chapter, are acting on behalf of an insurer under part VI of

1235

chapter 626, or are persons in the manufactured housing industry

1236

who are licensed under chapter 320, except when any such persons

1237

or business organizations hold themselves out for hire to the

1238

public as a "certified mold assessor remediator," "registered

1239

mold assessor remediator," "licensed mold assessor remediator,"

1240

"mold assessor remediator," "professional mold assessor

1241

remediator," or any combination thereof stating or implying

1242

licensure under this part.

1243

     (2)  The following persons are not required to comply with

1244

any provisions of this part relating to mold remediation:

1245

     (d)  Persons or business organizations that are acting

1246

within the scope of the respective licenses required under

1247

chapter 471, part I of chapter 481, chapter 482, or chapter 489,

1248

or part XV of this chapter, are acting on behalf of an insurer

1249

under part VI of chapter 626, or are persons in the manufactured

1250

housing industry who are licensed under chapter 320, except when

1251

any such persons or business organizations hold themselves out

1252

for hire to the public as a "certified mold remediator assessor,"

1253

"registered mold remediator assessor," "licensed mold remediator

1254

assessor," "mold remediator assessor," "professional mold

1255

remediator assessor," or any combination thereof stating or

1256

implying licensure under this part.

1257

     Section 24.  Paragraph (b) of subsection (2) of section

1258

475.17, Florida Statutes, is amended to read:

1259

     475.17  Qualifications for practice.--

1260

     (2)

1261

     (b)  A person may not be licensed as a real estate broker

1262

unless, in addition to the other requirements of law, the person

1263

has held:

1264

     1.  An active real estate sales associate's license for at

1265

least 24 12 months during the preceding 5 years in the office of

1266

one or more real estate brokers licensed in this state or any

1267

other state, territory, or jurisdiction of the United States or

1268

in any foreign national jurisdiction;

1269

     2.  A current and valid real estate sales associate's

1270

license for at least 24 12 months during the preceding 5 years in

1271

the employ of a governmental agency for a salary and performing

1272

the duties authorized in this part for real estate licensees; or

1273

     3.  A current and valid real estate broker's license for at

1274

least 24 12 months during the preceding 5 years in any other

1275

state, territory, or jurisdiction of the United States or in any

1276

foreign national jurisdiction.

1277

1278

This paragraph does not apply to a person employed as a real

1279

estate investigator by the Division of Real Estate, provided the

1280

person has been employed as a real estate investigator for at

1281

least 24 months. The person must be currently employed as a real

1282

estate investigator to sit for the real estate broker's

1283

examination and have held a valid and current sales associate's

1284

license for at least 12 months.

1285

     Section 25.  Subsection (9) of section 475.451, Florida

1286

Statutes, is amended to read:

1287

     475.451  Schools teaching real estate practice.--

1288

     (9)(a) Each school permitholder of a proprietary real

1289

estate school, each chief administrative person of such an

1290

institution, or each course sponsor shall deliver to the

1291

department, in a format acceptable to the department, a copy of

1292

the classroom course roster of courses that require satisfactory

1293

completion of an examination no later than 30 days beyond the end

1294

of the calendar month in which the course was completed.

1295

     (b) The course roster shall consist of the institution or

1296

school name and permit number, if applicable, the instructor's

1297

name and permit number, if applicable, course title, beginning

1298

and ending dates of the course, number of course hours, course

1299

location, if applicable, each student's full name and license

1300

number, if applicable, each student's mailing address, and the

1301

numerical grade each student achieved. The course roster shall

1302

also include the signature of the school permitholder, the chief

1303

administrative person, or the course sponsor.

1304

     Section 26.  Section 475.455, Florida Statutes, is amended

1305

to read:

1306

     475.455  Exchange of disciplinary information.--The

1307

commission shall inform the Division of Florida Land Sales,

1308

Condominiums, Timeshares, and Mobile Homes of the Department of

1309

Business and Professional Regulation of any disciplinary action

1310

the commission has taken against any of its licensees. The

1311

division shall inform the commission of any disciplinary action

1312

the division has taken against any broker or sales associate

1313

registered with the division.

1314

     Section 27.  Subsection (6) of section 489.105, Florida

1315

Statutes, is amended to read:

1316

     489.105  Definitions.--As used in this part:

1317

     (6)  "Contracting" means, except as exempted in this part,

1318

engaging in business as a contractor and includes, but is not

1319

limited to, performance of any of the acts as set forth in

1320

subsection (3) which define types of contractors. The attempted

1321

sale of contracting services and the negotiation or bid for a

1322

contract on these services also constitutes contracting. If the

1323

services offered require licensure or agent qualification, the

1324

offering, negotiation for a bid, or attempted sale of these

1325

services requires the corresponding licensure. However, the term

1326

"contracting" shall not extend to an individual, partnership,

1327

corporation, trust, or other legal entity that offers to sell or

1328

sells completed residences on property on which the individual or

1329

business entity has any legal or equitable interest, or to the

1330

individual or business entity that offers to sell or sells

1331

manufactured or factory-built buildings that will be completed on

1332

site on property on which either party to a contract has any

1333

legal or equitable interest, if the services of a qualified

1334

contractor certified or registered pursuant to the requirements

1335

of this chapter have been or will be retained for the purpose of

1336

constructing or completing such residences.

1337

     Section 28.  Section 489.511, Florida Statutes, is amended

1338

to read:

1339

     489.511  Certification; application; examinations;

1340

endorsement.--

1341

     (1)(a) Any person who is at least 18 years of age may take

1342

the certification examination.

1343

     (b) Any person desiring to be certified as a contractor

1344

shall apply to the department in writing and must meet the

1345

following criteria: to take the certification examination.

1346

     (2)(a) A person shall be entitled to take the certification

1347

examination for the purpose of determining whether he or she is

1348

qualified to engage in contracting throughout the state as a

1349

contractor if the person:

1350

     1. Is at least 18 years of age;

1351

     1.2. Be Is of good moral character;

1352

     2. Pass the certification examination, achieving a passing

1353

grade as established by board rule; and

1354

     3. Meet Meets eligibility requirements according to one of

1355

the following criteria:

1356

     a.  Has, within the 6 years immediately preceding the filing

1357

of the application, at least 3 years' proven management

1358

experience in the trade or education equivalent thereto, or a

1359

combination thereof, but not more than one-half of such

1360

experience may be educational equivalent;

1361

     b.  Has, within the 8 years immediately preceding the filing

1362

of the application, at least 4 years' experience as a supervisor

1363

or contractor in the trade for which he or she is making

1364

application;

1365

     c.  Has, within the 12 years immediately preceding the

1366

filing of the application, at least 6 years of comprehensive

1367

training, technical education, or supervisory experience

1368

associated with an electrical or alarm system contracting

1369

business, or at least 6 years of technical experience in

1370

electrical or alarm system work with the Armed Forces or a

1371

governmental entity;

1372

     d.  Has, within the 12 years immediately preceding the

1373

filing of the application, been licensed for 3 years as a

1374

professional engineer who is qualified by education, training, or

1375

experience to practice electrical engineering; or

1376

     e.  Has any combination of qualifications under sub-

1377

subparagraphs a.-c. totaling 6 years of experience.

1378

     (c)(b) For purposes of this subsection, "supervisor" means

1379

a person having the experience gained while having the general

1380

duty of overseeing the technical duties of the trade, provided

1381

that such experience is gained by a person who is able to perform

1382

the technical duties of the trade without supervision.

1383

     (d)(c) For purposes of this subsection, at least 40 percent

1384

of the work experience for an alarm system contractor I must be

1385

in the types of fire alarm systems typically used in a commercial

1386

setting.

1387

     (2)(3) The board may determine by rule the number of times

1388

per year the applicant may take the examination and after three

1389

unsuccessful attempts may On or after October 1, 1998, every

1390

applicant who is qualified shall be allowed to take the

1391

examination three times, notwithstanding the number of times the

1392

applicant has previously failed the examination. If an applicant

1393

fails the examination three times after October 1, 1998, the

1394

board shall require the applicant to complete additional college-

1395

level or technical education courses in the areas of deficiency,

1396

as determined by the board, as a condition of future eligibility

1397

to take the examination. The applicant must also submit a new

1398

application that meets all certification requirements at the time

1399

of its submission and must pay all appropriate fees.

1400

     (3)(4)(a) "Good moral character" means a personal history

1401

of honesty, fairness, and respect for the rights of others and

1402

for laws of this state and nation.

1403

     (b)  The board may determine that an individual applying for

1404

certification is ineligible to take the examination for failure

1405

to satisfy the requirement of good moral character only if:

1406

     1.  There is a substantial connection between the lack of

1407

good moral character of the individual and the professional

1408

responsibilities of a certified contractor; and

1409

     2.  The finding by the board of lack of good moral character

1410

is supported by clear and convincing evidence.

1411

     (c)  When an individual is found to be unqualified for

1412

certification examination because of a lack of good moral

1413

character, the board shall furnish such individual a statement

1414

containing the findings of the board, a complete record of the

1415

evidence upon which the determination was based, and a notice of

1416

the rights of the individual to a rehearing and appeal.

1417

     (4)(5) The board shall, by rule, designate those types of

1418

specialty electrical or alarm system contractors who may be

1419

certified under this part. The limit of the scope of work and

1420

responsibility of a certified specialty contractor shall be

1421

established by board rule. A certified specialty contractor

1422

category exists as an optional statewide licensing category.

1423

Qualification for certification in a specialty category created

1424

by rule shall be the same as set forth in paragraph (1)(b)

1425

(2)(a). The existence of a specialty category created by rule

1426

does not itself create any licensing requirement; however,

1427

neither does its optional nature remove any licensure requirement

1428

established elsewhere in this part.

1429

     (5)(6) The board shall certify as qualified for

1430

certification by endorsement any individual applying for

1431

certification who:

1432

     (a)  Meets the requirements for certification as set forth

1433

in this section; has passed a national, regional, state, or

1434

United States territorial licensing examination that is

1435

substantially equivalent to the examination required by this

1436

part; and has satisfied the requirements set forth in s. 489.521;

1437

or

1438

     (b)  Holds a valid license to practice electrical or alarm

1439

system contracting issued by another state or territory of the

1440

United States, if the criteria for issuance of such license was

1441

substantially equivalent to the certification criteria that

1442

existed in this state at the time the certificate was issued.

1443

     (6)(7) Upon the issuance of a certificate, any previously

1444

issued registered licenses for the classification in which the

1445

certification is issued are rendered void.

1446

     Section 29.  Paragraph (b) of subsection (1) of section

1447

489.515, Florida Statutes, is amended to read:

1448

     489.515  Issuance of certificates; registrations.--

1449

     (1)

1450

     (b)  The board shall certify as qualified for certification

1451

any person who satisfies the requirements of s. 489.511, who

1452

successfully passes the certification examination administered by

1453

the department, achieving a passing grade as established by board

1454

rule, and who submits satisfactory evidence that he or she has

1455

obtained both workers' compensation insurance or an acceptable

1456

exemption certificate issued by the department and public

1457

liability and property damage insurance for the health, safety,

1458

and welfare of the public in amounts determined by rule of the

1459

board, and furnishes evidence of financial responsibility,

1460

credit, and business reputation of either himself or herself or

1461

the business organization he or she desires to qualify.

1462

     Section 30.  Section 494.008, Florida Statutes, is amended

1463

to read:

1464

     494.008 Mortgages offered by land developers licensed

1465

pursuant to the Florida Uniform Land Sales Practices Law;

1466

requirements; prohibitions.--No mortgage loan which has a face

1467

amount of $35,000 or less and is secured by vacant land

1468

registered under the Florida Uniform Land Sales Practices Law,

1469

chapter 498, shall be sold to a mortgagee, except a financial

1470

institution, by any person unless all of the following

1471

requirements are met:

1472

     (1)  Each mortgage securing a note or other obligation sold

1473

or offered for sale shall be eligible for a recordation as a

1474

first mortgage.

1475

     (2)  Each mortgage negotiated pursuant to this section must

1476

include a mortgagee's title insurance policy or an opinion of

1477

title, from an attorney who is licensed to practice law in this

1478

state, on each parcel of land which is described in the mortgage.

1479

The policy or opinion shall reflect that there are no other

1480

mortgages on the property. A notice stating the priority of the

1481

mortgage shall be placed on the face of each mortgage in an

1482

amount over $35,000 issued pursuant to this section.

1483

     (3)  Contracts to purchase a mortgage loan shall contain,

1484

immediately above the purchaser's signature line, the statement

1485

in 10-point boldfaced type: "This mortgage is secured by vacant

1486

land subject to development at a future time." This statement

1487

shall also be typed or printed in 10-point type on the face of

1488

the note and mortgage sold.

1489

     (4)  The most recent assessment for tax purposes made by the

1490

county property appraiser of each parcel of land described in the

1491

mortgage shall be furnished to each mortgagee.

1492

     (5)  The mortgage broker shall record or cause to be

1493

recorded all mortgages or other similar documents prior to

1494

delivery of the note and mortgage to the mortgagee.

1495

     (6)  All funds received by the mortgage broker pursuant to

1496

this section shall promptly be deposited in the broker's trust

1497

account where they shall remain until the note and mortgage are

1498

fully executed and recorded.

1499

     (7)  Willful failure to comply with any of the above

1500

provisions shall subject the person to the penalties of s.

1501

494.05.

1502

     Section 31. Section 498.009, Florida Statutes, is

1503

renumbered as section 718.50152, Florida Statutes.

1504

     Section 32.  Section 498.011, Florida Statutes, is

1505

renumbered as section 718.50153, Florida Statutes, and amended to

1506

read:

1507

     718.50153 498.011 Payment of per diem, mileage, and other

1508

expenses to division employees.--The amount of per diem and

1509

mileage and expense money paid to employees shall be as provided

1510

in s. 112.061, except that the division shall establish by rule

1511

the standards for reimbursement of actual verified expenses

1512

incurred in connection with an on-site review inspection or

1513

investigation of subdivided lands.

1514

     Section 33. Section 498.013, Florida Statutes, is

1515

renumbered as section 718.50154, Florida Statutes.

1516

     Section 34.  Section 498.057, Florida Statutes, is

1517

renumbered as section 718.50155, Florida Statutes, and amended,

1518

to read:

1519

     718.50155 498.057 Service of process.--

1520

     (1)  In addition to the methods of service provided for in

1521

the Florida Rules of Civil Procedure and the Florida Statutes,

1522

service may be made and by delivering a copy of the process to

1523

the director of the division, which shall be binding upon the

1524

defendant or respondent if:

1525

     (a) The division plaintiff, which is acting as the

1526

petitioner or plaintiff may be the division, immediately sends a

1527

copy of the process and of the pleading by certified mail to the

1528

defendant or respondent at his or her last known address;, and

1529

     (b) The division plaintiff files an affidavit of compliance

1530

with this section on or before the return date of the process or

1531

within the time set by the court.

1532

     (2)  If any person, including any nonresident of this state,

1533

allegedly engages in conduct prohibited by this chapter, or any

1534

rule or order of the division, and has not filed a consent to

1535

service of process, and personal jurisdiction over him or her

1536

cannot otherwise be obtained in this state, the director shall be

1537

authorized to receive service of process in any noncriminal

1538

proceeding against that person or his or her successor which

1539

grows out of the conduct and which is brought by the division

1540

under this chapter or any rule or order of the division. The

1541

process shall have the same force and validity as if personally

1542

served. Notice shall be given as provided in subsection (1).

1543

     Section 35. Sections 498.001, 498.003, 498.005, 498.007,

1547

and 498.063, Florida Statutes, are repealed.

1548

     Section 36.  Section 509.512, Florida Statutes, is amended

1549

to read:

1550

     509.512  Timeshare plan developer and exchange company

1551

exemption.--Sections 509.501-509.511 do not apply to a developer

1552

of a timeshare plan or an exchange company approved by the

1553

Division of Florida Land Sales, Condominiums, Timeshares, and

1554

Mobile Homes pursuant to chapter 721, but only to the extent that

1555

the developer or exchange company engages in conduct regulated

1556

under chapter 721.

1557

     Section 37.  Subsection (2) of section 517.301, Florida

1558

Statutes, is amended to read:

1559

     517.301  Fraudulent transactions; falsification or

1560

concealment of facts.--

1561

     (2)  For purposes of ss. 517.311 and 517.312 and this

1562

section, the term "investment" means any commitment of money or

1563

property principally induced by a representation that an economic

1564

benefit may be derived from such commitment, except that the term

1565

"investment" does not include a commitment of money or property

1566

for:

1567

     (a)  The purchase of a business opportunity, business

1568

enterprise, or real property through a person licensed under

1569

chapter 475 or registered under former chapter 498; or

1570

     (b)  The purchase of tangible personal property through a

1571

person not engaged in telephone solicitation, where said property

1572

is offered and sold in accordance with the following conditions:

1573

     1.  There are no specific representations or guarantees made

1574

by the offeror or seller as to the economic benefit to be derived

1575

from the purchase;

1576

     2.  The tangible property is delivered to the purchaser

1577

within 30 days after sale, except that such 30-day period may be

1578

extended by the office if market conditions so warrant; and

1579

     3.  The seller has offered the purchaser a full refund

1580

policy in writing, exercisable by the purchaser within 10 days of

1581

the date of delivery of such tangible personal property, except

1582

that the amount of such refund may not in no event shall exceed

1583

the bid price in effect at the time the property is returned to

1584

the seller. If the applicable sellers' market is closed at the

1585

time the property is returned to the seller for a refund, the

1586

amount of such refund shall be based on the bid price for such

1587

property at the next opening of such market.

1588

     Section 38.  Subsection (4) of section 548.0065, Florida

1589

Statutes, is amended to read:

1590

     548.0065  Amateur matches; sanctioning and supervision;

1591

health and safety standards; compliance checks; continuation,

1592

suspension, and revocation of sanctioning approval.--

1593

     (4)  Any member of the commission or the executive director

1594

of the commission may suspend the approval of an amateur

1595

sanctioning organization for failure to supervise amateur matches

1596

or to enforce the approved health and safety standards required

1597

under this chapter, provided that the suspension complies with

1598

the procedures for summary suspensions in s. 120.60(6). At any

1599

amateur boxing, or kickboxing, or mixed martial arts contest, any

1600

member of the commission or a representative of the commission

1601

may immediately suspend one or more matches in an event whenever

1602

it appears that the match or matches violate the health and

1603

safety standards established by rule as required by this chapter.

1604

A law enforcement officer may assist any member of the commission

1605

or a representative of the commission to enforce an order to stop

1606

a contest if called upon to do so by a member of the commission

1607

or a representative of the commission.

1608

     Section 39.  Subsections (2), (3), and (4) of section

1609

548.008, Florida Statutes, are amended to read:

1610

     548.008  Prohibited competitions.--

1611

     (2) No amateur mixed martial arts match may be held in this

1612

state.

1613

     (2)(3) No professional match may be held in this state

1614

unless it meets the requirements for holding the match as

1615

provided in this chapter and the rules adopted by the commission.

1616

     (3)(4)(a) Any person participating in a match prohibited

1617

under this section, knowing the match to be prohibited, commits a

1618

misdemeanor of the second degree, punishable as provided in s.

1619

775.082 or s. 775.083.

1620

     (b)  Any person holding, promoting, or sponsoring a match

1621

prohibited under this section commits a felony of the third

1622

degree, punishable as provided in s. 775.082, s. 775.083, or s.

1623

775.084.

1624

     Section 40.  Subsection (1) of section 548.041, Florida

1625

Statutes, is amended to read:

1626

     548.041  Age, condition, and suspension of participants.--

1627

     (1) A person may shall not be licensed as a participant,

1628

and the license of a any participant shall be suspended or

1629

revoked, if such person:

1630

     (a)  Is under the age of 18;

1631

     (b)  Has participated in a match in this state which was not

1632

sanctioned by the commission or by a Native American commission

1633

properly constituted under federal law; or

1634

     (c)  Does not meet certain health and medical examination

1635

conditions as required by rule of the commission;.

1636

     (d) Has not competed in a minimum number of amateur boxing

1637

events as determined by commission rule prior to licensure; or

1638

     (e) Has not participated in a minimum number of amateur

1639

mixed martial arts events as determined by commission rule prior

1640

to licensure.

1641

     Section 41.  Subsection (1) of section 559.935, Florida

1642

Statutes, is amended to read:

1643

     559.935  Exemptions.--

1644

     (1)  This part does not apply to:

1645

     (a)  A bona fide employee of a seller of travel who is

1646

engaged solely in the business of her or his employer;

1647

     (b)  Any direct common carrier of passengers or property

1648

regulated by an agency of the Federal Government or employees of

1649

such carrier when engaged solely in the transportation business

1650

of the carrier as identified in the carrier's certificate;

1651

     (c)  An intrastate common carrier of passengers or property

1652

selling only transportation as defined in the applicable state or

1653

local registration or certification, or employees of such carrier

1654

when engaged solely in the transportation business of the

1655

carrier;

1656

     (d)  Hotels, motels, or other places of public accommodation

1657

selling public accommodations, or employees of such hotels,

1658

motels, or other places of public accommodation, when engaged

1659

solely in making arrangements for lodging, accommodations, or

1660

sightseeing tours within the state, or taking reservations for

1661

the traveler with times, dates, locations, and accommodations

1662

certain at the time the reservations are made, provided that

1663

hotels and motels registered with the Department of Business and

1664

Professional Regulation pursuant to chapter 509 are excluded from

1665

the provisions of this chapter;

1666

     (e)  Persons involved solely in the rental, leasing, or sale

1667

of residential property;

1668

     (f)  Persons involved solely in the rental, leasing, or sale

1669

of transportation vehicles;

1670

     (g)  Persons who make travel arrangements for themselves;

1671

for their employees or agents; for distributors, franchisees, or

1672

dealers of the persons' products or services; for entities which

1673

are financially related to the persons; or for the employees or

1674

agents of the distributor, franchisee, or dealer or financially

1675

related entity;

1676

     (h)  A developer of a timeshare plan or an exchange company

1677

approved by the Division of Florida Land Sales, Condominiums,

1678

Timeshares, and Mobile Homes pursuant to chapter 721, but only to

1679

the extent that the developer or exchange company engages in

1680

conduct regulated under chapter 721; or

1681

     (i)  Persons or entities engaged solely in offering diving

1682

services, including classes and sales or rentals of equipment,

1683

when engaged in making any prearranged travel-related or tourist-

1684

related services in conjunction with a primarily dive-related

1685

event.

1686

     Section 42.  Subsection (17) of section 718.103, Florida

1687

Statutes, is amended to read:

1688

     718.103  Definitions.--As used in this chapter, the term:

1689

     (17) "Division" means the Division of Florida Land Sales,

1690

Condominiums, Timeshares, and Mobile Homes of the Department of

1691

Business and Professional Regulation.

1692

     Section 43.  Paragraph (c) of subsection (4) of section

1693

718.105, Florida Statutes, is amended to read:

1694

     718.105  Recording of declaration.--

1695

     (4)

1696

     (c)  If the sum of money held by the clerk has not been paid

1697

to the developer or association as provided in paragraph (b)

1698

within by 3 years after the date the declaration was originally

1699

recorded, the clerk in his or her discretion may notify, in

1700

writing, the registered agent of the association that the sum is

1701

still available and the purpose for which it was deposited. If

1702

the association does not record the certificate within 90 days

1703

after the clerk has given the notice, the clerk may disburse the

1704

money to the developer. If the developer cannot be located, the

1705

clerk shall disburse the money to the Division of Florida Land

1706

Sales, Condominiums, Timeshares, and Mobile Homes for deposit in

1707

the Division of Florida Land Sales, Condominiums, Timeshares, and

1708

Mobile Homes Trust Fund.

1709

     Section 44.  Subsection (4) of section 718.1255, Florida

1710

Statutes, is amended to read:

1711

     718.1255  Alternative dispute resolution; voluntary

1712

mediation; mandatory nonbinding arbitration; legislative

1713

findings.--

1714

     (4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF

1715

DISPUTES.--The Division of Florida Land Sales, Condominiums,

1716

Timeshares, and Mobile Homes of the Department of Business and

1717

Professional Regulation shall employ full-time attorneys to act

1718

as arbitrators to conduct the arbitration hearings provided by

1719

this chapter. The division may also certify attorneys who are not

1720

employed by the division to act as arbitrators to conduct the

1721

arbitration hearings provided by this section. No person may be

1722

employed by the department as a full-time arbitrator unless he or

1723

she is a member in good standing of The Florida Bar. The

1724

department shall adopt promulgate rules of procedure to govern

1725

such arbitration hearings including mediation incident thereto.

1726

The decision of an arbitrator shall be final; however, such a

1727

decision shall not be deemed final agency action. Nothing in this

1728

provision shall be construed to foreclose parties from proceeding

1729

in a trial de novo unless the parties have agreed that the

1730

arbitration is binding. If such judicial proceedings are

1731

initiated, the final decision of the arbitrator shall be

1732

admissible in evidence in the trial de novo.

1733

     (a)  Prior to the institution of court litigation, a party

1734

to a dispute shall petition the division for nonbinding

1735

arbitration. The petition must be accompanied by a filing fee in

1736

the amount of $50. Filing fees collected under this section must

1737

be used to defray the expenses of the alternative dispute

1738

resolution program.

1739

     (b)  The petition must recite, and have attached thereto,

1740

supporting proof that the petitioner gave the respondents:

1741

     1.  Advance written notice of the specific nature of the

1742

dispute;

1743

     2.  A demand for relief, and a reasonable opportunity to

1744

comply or to provide the relief; and

1745

     3.  Notice of the intention to file an arbitration petition

1746

or other legal action in the absence of a resolution of the

1747

dispute.

1748

1749

Failure to include the allegations or proof of compliance with

1750

these prerequisites requires dismissal of the petition without

1751

prejudice.

1752

     (c)  Upon receipt, the petition shall be promptly reviewed

1753

by the division to determine the existence of a dispute and

1754

compliance with the requirements of paragraphs (a) and (b). If

1755

emergency relief is required and is not available through

1756

arbitration, a motion to stay the arbitration may be filed. The

1757

motion must be accompanied by a verified petition alleging facts

1758

that, if proven, would support entry of a temporary injunction,

1759

and if an appropriate motion and supporting papers are filed, the

1760

division may abate the arbitration pending a court hearing and

1761

disposition of a motion for temporary injunction.

1762

     (d)  Upon determination by the division that a dispute

1763

exists and that the petition substantially meets the requirements

1764

of paragraphs (a) and (b) and any other applicable rules, a copy

1765

of the petition shall forthwith be served by the division upon

1766

all respondents.

1767

     (e) Either Before or after the filing of the respondents'

1768

answer to the petition, any party may request that the arbitrator

1769

refer the case to mediation under this section and any rules

1770

adopted by the division. Upon receipt of a request for mediation,

1771

the division shall promptly contact the parties to determine if

1772

there is agreement that mediation would be appropriate. If all

1773

parties agree, the dispute must be referred to mediation.

1774

Notwithstanding a lack of an agreement by all parties, the

1775

arbitrator may refer a dispute to mediation at any time.

1776

     (f)  Upon referral of a case to mediation, the parties must

1777

select a mutually acceptable mediator. To assist in the

1778

selection, the arbitrator shall provide the parties with a list

1779

of both volunteer and paid mediators that have been certified by

1780

the division under s. 718.501. If the parties are unable to agree

1781

on a mediator within the time allowed by the arbitrator, the

1782

arbitrator shall appoint a mediator from the list of certified

1783

mediators. If a case is referred to mediation, the parties shall

1784

attend a mediation conference, as scheduled by the parties and

1785

the mediator. If any party fails to attend a duly noticed

1786

mediation conference, without the permission or approval of the

1787

arbitrator or mediator, the arbitrator must impose sanctions

1788

against the party, including the striking of any pleadings filed,

1789

the entry of an order of dismissal or default if appropriate, and

1790

the award of costs and attorneys' fees incurred by the other

1791

parties. Unless otherwise agreed to by the parties or as provided

1792

by order of the arbitrator, a party is deemed to have appeared at

1793

a mediation conference by the physical presence of the party or

1794

its representative having full authority to settle without

1795

further consultation, provided that an association may comply by

1796

having one or more representatives present with full authority to

1797

negotiate a settlement and recommend that the board of

1798

administration ratify and approve such a settlement within 5 days

1799

from the date of the mediation conference. The parties shall

1800

share equally the expense of mediation, unless they agree

1801

otherwise.

1802

     (g)  The purpose of mediation as provided for by this

1803

section is to present the parties with an opportunity to resolve

1804

the underlying dispute in good faith, and with a minimum

1805

expenditure of time and resources.

1806

     (h)  Mediation proceedings must generally be conducted in

1807

accordance with the Florida Rules of Civil Procedure, and these

1808

proceedings are privileged and confidential to the same extent as

1809

court-ordered mediation. Persons who are not parties to the

1810

dispute are not allowed to attend the mediation conference

1811

without the consent of all parties, with the exception of counsel

1812

for the parties and corporate representatives designated to

1813

appear for a party. If the mediator declares an impasse after a

1814

mediation conference has been held, the arbitration proceeding

1815

terminates, unless all parties agree in writing to continue the

1816

arbitration proceeding, in which case the arbitrator's decision

1817

shall be either binding or nonbinding, as agreed upon by the

1818

parties; in the arbitration proceeding, the arbitrator shall not

1819

consider any evidence relating to the unsuccessful mediation

1820

except in a proceeding to impose sanctions for failure to appear

1821

at the mediation conference. If the parties do not agree to

1822

continue arbitration, the arbitrator shall enter an order of

1823

dismissal, and either party may institute a suit in a court of

1824

competent jurisdiction. The parties may seek to recover any costs

1825

and attorneys' fees incurred in connection with arbitration and

1826

mediation proceedings under this section as part of the costs and

1827

fees that may be recovered by the prevailing party in any

1828

subsequent litigation.

1829

     (i)  Arbitration shall be conducted according to rules

1830

adopted promulgated by the division. The filing of a petition for

1831

arbitration shall toll the applicable statute of limitations.

1832

     (j) At the request of any party to the arbitration, the

1833

such arbitrator shall issue subpoenas for the attendance of

1834

witnesses and the production of books, records, documents, and

1835

other evidence and any party on whose behalf a subpoena is issued

1836

may apply to the court for orders compelling such attendance and

1837

production. Subpoenas shall be served and shall be enforceable in

1838

the manner provided by the Florida Rules of Civil Procedure.

1839

Discovery may, in the discretion of the arbitrator, be permitted

1840

in the manner provided by the Florida Rules of Civil Procedure.

1841

Rules adopted by the division may authorize any reasonable

1842

sanctions except contempt for a violation of the arbitration

1843

procedural rules of the division or for the failure of a party to

1844

comply with a reasonable nonfinal order issued by an arbitrator

1845

which is not under judicial review.

1846

     (k)  The arbitration decision shall be presented to the

1847

parties in writing. An arbitration decision is final in those

1848

disputes in which the parties have agreed to be bound. An

1849

arbitration decision is also final if a complaint for a trial de

1850

novo is not filed in a court of competent jurisdiction in which

1851

the condominium is located within 30 days. The right to file for

1852

a trial de novo entitles the parties to file a complaint in the

1853

appropriate trial court for a judicial resolution of the dispute.

1854

The prevailing party in an arbitration proceeding shall be

1855

awarded the costs of the arbitration and reasonable attorney's

1856

fees in an amount determined by the arbitrator. Such an award

1857

shall include the costs and reasonable attorney's fees incurred

1858

in the arbitration proceeding as well as the costs and reasonable

1859

attorney's fees incurred in preparing for and attending any

1860

scheduled mediation.

1861

     (l)  The party who files a complaint for a trial de novo

1862

shall be assessed the other party's arbitration costs, court

1863

costs, and other reasonable costs, including attorney's fees,

1864

investigation expenses, and expenses for expert or other

1865

testimony or evidence incurred after the arbitration hearing if

1866

the judgment upon the trial de novo is not more favorable than

1867

the arbitration decision. If the judgment is more favorable, the

1868

party who filed a complaint for trial de novo shall be awarded

1869

reasonable court costs and attorney's fees.

1870

     (m)  Any party to an arbitration proceeding may enforce an

1871

arbitration award by filing a petition in a court of competent

1872

jurisdiction in which the condominium is located. A petition may

1873

not be granted unless the time for appeal by the filing of a

1874

complaint for trial de novo has expired. If a complaint for a

1875

trial de novo has been filed, a petition may not be granted with

1876

respect to an arbitration award that has been stayed. If the

1877

petition for enforcement is granted, the petitioner shall recover

1878

reasonable attorney's fees and costs incurred in enforcing the

1879

arbitration award. A mediation settlement may also be enforced

1880

through the county or circuit court, as applicable, and any costs

1881

and fees incurred in the enforcement of a settlement agreement

1882

reached at mediation must be awarded to the prevailing party in

1883

any enforcement action.

1884

     Section 45.  Section 718.501, Florida Statutes, is amended

1885

to read:

1886

     718.501 Powers and duties of Division of Florida Land

1887

Sales, Condominiums, Timeshares, and Mobile Homes.--

1888

     (1) The Division of Florida Land Sales, Condominiums,

1889

Timeshares, and Mobile Homes of the Department of Business and

1890

Professional Regulation, referred to as the "division" in this

1891

part, in addition to other powers and duties prescribed by

1892

chapter 498, has the power to enforce and ensure compliance with

1893

the provisions of this chapter and rules promulgated pursuant

1894

hereto relating to the development, construction, sale, lease,

1895

ownership, operation, and management of residential condominium

1896

units. In performing its duties, the division has the following

1897

powers and duties:

1898

     (a)1. The division may make necessary public or private

1899

investigations within or outside this state to determine whether

1900

any person has violated this chapter or any rule or order

1901

hereunder, to aid in the enforcement of this chapter, or to aid

1902

in the adoption of rules or forms hereunder.

1903

     2. The division may submit any official written report,

1904

worksheet, or other related paper, or a duly certified copy

1905

thereof, compiled, prepared, drafted, or otherwise made by and

1906

duly authenticated by a financial examiner or analyst to be

1907

admitted as competent evidence in any hearing in which the

1908

financial examiner or analyst is available for cross-examination

1909

and attests under oath that such documents were prepared as a

1910

result of an examination or inspection conducted pursuant to this

1911

chapter.

1912

     (b)  The division may require or permit any person to file a

1913

statement in writing, under oath or otherwise, as the division

1914

determines, as to the facts and circumstances concerning a matter

1915

to be investigated.

1916

     (c)  For the purpose of any investigation under this

1917

chapter, the division director or any officer or employee

1918

designated by the division director may administer oaths or

1919

affirmations, subpoena witnesses and compel their attendance,

1920

take evidence, and require the production of any matter which is

1921

relevant to the investigation, including the existence,

1922

description, nature, custody, condition, and location of any

1923

books, documents, or other tangible things and the identity and

1924

location of persons having knowledge of relevant facts or any

1925

other matter reasonably calculated to lead to the discovery of

1926

material evidence. Upon the failure by a person to obey a

1927

subpoena or to answer questions propounded by the investigating

1928

officer and upon reasonable notice to all persons affected

1929

thereby, the division may apply to the circuit court for an order

1930

compelling compliance.

1931

     (d)  Notwithstanding any remedies available to unit owners

1932

and associations, if the division has reasonable cause to believe

1933

that a violation of any provision of this chapter or related rule

1934

promulgated pursuant hereto has occurred, the division may

1935

institute enforcement proceedings in its own name against any

1936

developer, association, officer, or member of the board of

1937

administration, or its assignees or agents, as follows:

1938

     1.  The division may permit a person whose conduct or

1939

actions may be under investigation to waive formal proceedings

1940

and enter into a consent proceeding whereby orders, rules, or

1941

letters of censure or warning, whether formal or informal, may be

1942

entered against the person.

1943

     2.  The division may issue an order requiring the developer,

1944

association, officer, or member of the board of administration,

1945

or its assignees or agents, to cease and desist from the unlawful

1946

practice and take such affirmative action as in the judgment of

1947

the division will carry out the purposes of this chapter. Such

1948

affirmative action may include, but is not limited to, an order

1949

requiring a developer to pay moneys determined to be owed to a

1950

condominium association. If the division finds that a developer,

1951

association, officer, or member of the board of administration,

1952

or its assignees or agents, is violating or is about to violate

1953

any provision of this chapter, any rule adopted or order issued

1954

by the division, or any written agreement entered into with the

1955

division, and presents an immediate danger to the public

1956

requiring an immediate final order, it may issue an emergency

1957

cease and desist order reciting with particularity the facts

1958

underlying such findings. The emergency cease and desist order is

1959

effective for 90 days. If the division begins nonemergency cease

1960

and desist proceedings, the emergency cease and desist order

1961

remains effective until the conclusion of the proceedings under

1962

ss. 120.569 and 120.57.

1963

     3.  The division may bring an action in circuit court on

1964

behalf of a class of unit owners, lessees, or purchasers for

1965

declaratory relief, injunctive relief, or restitution.

1966

     4. The division may petition the court for the appointment

1967

of a receiver or conservator. If appointed, the receiver or

1968

conservator may take action to implement the court order to

1969

ensure the performance of the order and to remedy any breach

1970

thereof. In addition to all other means provided by law for the

1971

enforcement of an injunction or temporary restraining order, the

1972

circuit court may impound or sequester the property of a party

1973

defendant, including books, papers, documents, and related

1974

records, and allow the examination and use of the property by the

1975

division and a court-appointed receiver or conservator.

1976

     5. The division may apply to the circuit court for an order

1977

of restitution whereby the defendant in an action brought

1978

pursuant to subparagraph 4. shall be ordered to make restitution

1979

of those sums shown by the division to have been obtained by the

1980

defendant in violation of this chapter. Such restitution shall,

1981

at the option of the court, be payable to the conservator or

1982

receiver appointed pursuant to subparagraph 4. or directly to the

1983

persons whose funds or assets were obtained in violation of this

1984

chapter.

1985

     6.4. The division may impose a civil penalty against a

1986

developer or association, or its assignee or agent, for any

1987

violation of this chapter or a rule adopted under this chapter

1988

promulgated pursuant hereto. The division may impose a civil

1989

penalty individually against any officer or board member who

1990

willfully and knowingly violates a provision of this chapter,

1991

adopted a rule adopted pursuant hereto, or a final order of the

1992

division. The term "willfully and knowingly" means that the

1993

division informed the officer or board member that his or her

1994

action or intended action violates this chapter, a rule adopted

1995

under this chapter, or a final order of the division and that the

1996

officer or board member refused to comply with the requirements

1997

of this chapter, a rule adopted under this chapter, or a final

1998

order of the division. The division, prior to initiating formal

1999

agency action under chapter 120, shall afford the officer or

2000

board member an opportunity to voluntarily comply with this

2001

chapter, a rule adopted under this chapter, or a final order of

2002

the division. An officer or board member who complies within 10

2003

days is not subject to a civil penalty. A penalty may be imposed

2004

on the basis of each day of continuing violation, but in no event

2005

shall the penalty for any offense exceed $5,000. By January 1,

2006

1998, the division shall adopt, by rule, penalty guidelines

2007

applicable to possible violations or to categories of violations

2008

of this chapter or rules adopted by the division. The guidelines

2009

must specify a meaningful range of civil penalties for each such

2010

violation of the statute and rules and must be based upon the

2011

harm caused by the violation, the repetition of the violation,

2012

and upon such other factors deemed relevant by the division. For

2013

example, the division may consider whether the violations were

2014

committed by a developer or owner-controlled association, the

2015

size of the association, and other factors. The guidelines must

2016

designate the possible mitigating or aggravating circumstances

2017

that justify a departure from the range of penalties provided by

2018

the rules. It is the legislative intent that minor violations be

2019

distinguished from those which endanger the health, safety, or

2020

welfare of the condominium residents or other persons and that

2021

such guidelines provide reasonable and meaningful notice to the

2022

public of likely penalties that may be imposed for proscribed

2023

conduct. This subsection does not limit the ability of the

2024

division to informally dispose of administrative actions or

2025

complaints by stipulation, agreed settlement, or consent order.

2026

All amounts collected shall be deposited with the Chief Financial

2027

Officer to the credit of the Division of Florida Land Sales,

2028

Condominiums, Timeshares, and Mobile Homes Trust Fund. If a

2029

developer fails to pay the civil penalty, the division shall

2030

thereupon issue an order directing that such developer cease and

2031

desist from further operation until such time as the civil

2032

penalty is paid or may pursue enforcement of the penalty in a

2033

court of competent jurisdiction. If an association fails to pay

2034

the civil penalty, the division shall thereupon pursue

2035

enforcement in a court of competent jurisdiction, and the order

2036

imposing the civil penalty or the cease and desist order will not

2037

become effective until 20 days after the date of such order. Any

2038

action commenced by the division shall be brought in the county

2039

in which the division has its executive offices or in the county

2040

where the violation occurred.

2041

     7. In addition to subparagraph 6., the division may seek

2042

the imposition of a civil penalty through the circuit court for

2043

any violation for which the division may issue a notice to show

2044

cause under paragraph (q). The civil penalty shall be at least

2045

$500 but no more than $5,000 for each violation. The court may

2046

also award to the prevailing party court costs and reasonable

2047

attorney's fees and, if the division prevails, may also award

2048

reasonable costs of investigation.

2049

     (e) The division may is authorized to prepare and

2050

disseminate a prospectus and other information to assist

2051

prospective owners, purchasers, lessees, and developers of

2052

residential condominiums in assessing the rights, privileges, and

2053

duties pertaining thereto.

2054

     (f)  The division has authority to adopt rules pursuant to

2055

ss. 120.536(1) and 120.54 to implement and enforce the provisions

2056

of this chapter.

2057

     (g)  The division shall establish procedures for providing

2058

notice to an association when the division is considering the

2059

issuance of a declaratory statement with respect to the

2060

declaration of condominium or any related document governing in

2061

such condominium community.

2062

     (h)  The division shall furnish each association which pays

2063

the fees required by paragraph (2)(a) a copy of this act,

2064

subsequent changes to this act on an annual basis, an amended

2065

version of this act as it becomes available from the Secretary of

2066

State's office on a biennial basis, and the rules adopted

2067

promulgated pursuant thereto on an annual basis.

2068

     (i)  The division shall annually provide each association

2069

with a summary of declaratory statements and formal legal

2070

opinions relating to the operations of condominiums which were

2071

rendered by the division during the previous year.

2072

     (j)  The division shall provide training programs for

2073

condominium association board members and unit owners.

2074

     (k)  The division shall maintain a toll-free telephone

2075

number accessible to condominium unit owners.

2076

     (l)  The division shall develop a program to certify both

2077

volunteer and paid mediators to provide mediation of condominium

2078

disputes. The division shall provide, upon request, a list of

2079

such mediators to any association, unit owner, or other

2080

participant in arbitration proceedings under s. 718.1255

2081

requesting a copy of the list. The division shall include on the

2082

list of volunteer mediators only the names of persons who have

2083

received at least 20 hours of training in mediation techniques or

2084

who have mediated at least 20 disputes. In order to become

2085

initially certified by the division, paid mediators must be

2086

certified by the Supreme Court to mediate court cases in either

2087

county or circuit courts. However, the division may adopt, by

2088

rule, additional factors for the certification of paid mediators,

2089

which factors must be related to experience, education, or

2090

background. Any person initially certified as a paid mediator by

2091

the division must, in order to continue to be certified, comply

2092

with the factors or requirements imposed by rules adopted by the

2093

division.

2094

     (m)  When a complaint is made, the division shall conduct

2095

its inquiry with due regard to the interests of the affected

2096

parties. Within 30 days after receipt of a complaint, the

2097

division shall acknowledge the complaint in writing and notify

2098

the complainant whether the complaint is within the jurisdiction

2099

of the division and whether additional information is needed by

2100

the division from the complainant. The division shall conduct its

2101

investigation and shall, within 90 days after receipt of the

2102

original complaint or of timely requested additional information,

2103

take action upon the complaint. However, the failure to complete

2104

the investigation within 90 days does not prevent the division

2105

from continuing the investigation, accepting or considering

2106

evidence obtained or received after 90 days, or taking

2107

administrative action if reasonable cause exists to believe that

2108

a violation of this chapter or a rule of the division has

2109

occurred. If an investigation is not completed within the time

2110

limits established in this paragraph, the division shall, on a

2111

monthly basis, notify the complainant in writing of the status of

2112

the investigation. When reporting its action to the complainant,

2113

the division shall inform the complainant of any right to a

2114

hearing pursuant to ss. 120.569 and 120.57.

2115

     (n) The division may:

2116

     1. Contract with agencies in this state or other

2117

jurisdictions to perform investigative functions; or

2118

     2. Accept grants-in-aid from any source.

2119

     (o) The division shall cooperate with similar agencies in

2120

other jurisdictions to establish uniform filing procedures and

2121

forms, public offering statements, advertising standards, and

2122

rules and common administrative practices.

2123

     (p) The division shall consider notice to a developer to be

2124

complete when it is delivered to the developer's address

2125

currently on file with the division.

2126

     (q) In addition to its enforcement authority, the division

2127

may issue a notice to show cause, which shall provide for a

2128

hearing, upon written request, in accordance with chapter 120.

2129

     (2)(a)  Effective January 1, 1992, Each condominium

2130

association which operates more than two units shall pay to the

2131

division an annual fee in the amount of $4 for each residential

2132

unit in condominiums operated by the association. If the fee is

2133

not paid by March 1, then the association shall be assessed a

2134

penalty of 10 percent of the amount due, and the association will

2135

not have standing to maintain or defend any action in the courts

2136

of this state until the amount due, plus any penalty, is paid.

2137

     (b)  All fees shall be deposited in the Division of Florida

2138

Land Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund

2139

as provided by law.

2140

     Section 46.  Subsection (1) of section 718.5011, Florida

2141

Statutes, is amended to read:

2142

     718.5011  Ombudsman; appointment; administration.--

2143

     (1)  There is created an Office of the Condominium

2144

Ombudsman, to be located for administrative purposes within the

2145

Division of Florida Land Sales, Condominiums, Timeshares, and

2146

Mobile Homes. The functions of the office shall be funded by the

2147

Division of Florida Land Sales, Condominiums, Timeshares, and

2148

Mobile Homes Trust Fund. The ombudsman shall be a bureau chief of

2149

the division, and the office shall be set within the division in

2150

the same manner as any other bureau is staffed and funded.

2151

     Section 47.  Paragraph (a) of subsection (2) of section

2152

718.502, Florida Statutes, is amended to read:

2153

     718.502  Filing prior to sale or lease.--

2154

     (2)(a)  Prior to filing as required by subsection (1), and

2155

prior to acquiring an ownership, leasehold, or contractual

2156

interest in the land upon which the condominium is to be

2157

developed, a developer shall not offer a contract for purchase of

2158

a unit or lease of a unit for more than 5 years. However, the

2159

developer may accept deposits for reservations upon the approval

2160

of a fully executed escrow agreement and reservation agreement

2161

form properly filed with the Division of Florida Land Sales,

2162

Condominiums, Timeshares, and Mobile Homes. Each filing of a

2163

proposed reservation program shall be accompanied by a filing fee

2164

of $250. Reservations shall not be taken on a proposed

2165

condominium unless the developer has an ownership, leasehold, or

2166

contractual interest in the land upon which the condominium is to

2167

be developed. The division shall notify the developer within 20

2168

days of receipt of the reservation filing of any deficiencies

2169

contained therein. Such notification shall not preclude the

2170

determination of reservation filing deficiencies at a later date,

2171

nor shall it relieve the developer of any responsibility under

2172

the law. The escrow agreement and the reservation agreement form

2173

shall include a statement of the right of the prospective

2174

purchaser to an immediate unqualified refund of the reservation

2175

deposit moneys upon written request to the escrow agent by the

2176

prospective purchaser or the developer.

2177

     Section 48.  Section 718.504, Florida Statutes, is amended

2178

to read:

2179

     718.504  Prospectus or offering circular.--Every developer

2180

of a residential condominium which contains more than 20

2181

residential units, or which is part of a group of residential

2182

condominiums which will be served by property to be used in

2183

common by unit owners of more than 20 residential units, shall

2184

prepare a prospectus or offering circular and file it with the

2185

Division of Florida Land Sales, Condominiums, Timeshares, and

2186

Mobile Homes prior to entering into an enforceable contract of

2187

purchase and sale of any unit or lease of a unit for more than 5

2188

years and shall furnish a copy of the prospectus or offering

2189

circular to each buyer. In addition to the prospectus or offering

2190

circular, each buyer shall be furnished a separate page entitled

2191

"Frequently Asked Questions and Answers," which shall be in

2192

accordance with a format approved by the division and a copy of

2193

the financial information required by s. 718.111. This page

2194

shall, in readable language, inform prospective purchasers

2195

regarding their voting rights and unit use restrictions,

2196

including restrictions on the leasing of a unit; shall indicate

2197

whether and in what amount the unit owners or the association is

2198

obligated to pay rent or land use fees for recreational or other

2199

commonly used facilities; shall contain a statement identifying

2200

that amount of assessment which, pursuant to the budget, would be

2201

levied upon each unit type, exclusive of any special assessments,

2202

and which shall further identify the basis upon which assessments

2203

are levied, whether monthly, quarterly, or otherwise; shall state

2204

and identify any court cases in which the association is

2205

currently a party of record in which the association may face

2206

liability in excess of $100,000; and which shall further state

2207

whether membership in a recreational facilities association is

2208

mandatory, and if so, shall identify the fees currently charged

2209

per unit type. The division shall by rule require such other

2210

disclosure as in its judgment will assist prospective purchasers.

2211

The prospectus or offering circular may include more than one

2212

condominium, although not all such units are being offered for

2213

sale as of the date of the prospectus or offering circular. The

2214

prospectus or offering circular must contain the following

2215

information:

2216

     (1)  The front cover or the first page must contain only:

2217

     (a)  The name of the condominium.

2218

     (b)  The following statements in conspicuous type:

2219

     1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT

2220

MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.

2221

     2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

2222

NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,

2223

ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS.

2224

     3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY

2225

STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS

2226

PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT

2227

REPRESENTATIONS.

2228

     (2)  Summary: The next page must contain all statements

2229

required to be in conspicuous type in the prospectus or offering

2230

circular.

2231

     (3)  A separate index of the contents and exhibits of the

2232

prospectus.

2233

     (4)  Beginning on the first page of the text (not including

2234

the summary and index), a description of the condominium,

2235

including, but not limited to, the following information:

2236

     (a)  Its name and location.

2237

     (b)  A description of the condominium property, including,

2238

without limitation:

2239

     1.  The number of buildings, the number of units in each

2240

building, the number of bathrooms and bedrooms in each unit, and

2241

the total number of units, if the condominium is not a phase

2242

condominium, or the maximum number of buildings that may be

2243

contained within the condominium, the minimum and maximum numbers

2244

of units in each building, the minimum and maximum numbers of

2245

bathrooms and bedrooms that may be contained in each unit, and

2246

the maximum number of units that may be contained within the

2247

condominium, if the condominium is a phase condominium.

2248

     2.  The page in the condominium documents where a copy of

2249

the plot plan and survey of the condominium is located.

2250

     3.  The estimated latest date of completion of constructing,

2251

finishing, and equipping. In lieu of a date, the description

2252

shall include a statement that the estimated date of completion

2253

of the condominium is in the purchase agreement and a reference

2254

to the article or paragraph containing that information.

2255

     (c)  The maximum number of units that will use facilities in

2256

common with the condominium. If the maximum number of units will

2257

vary, a description of the basis for variation and the minimum

2258

amount of dollars per unit to be spent for additional

2259

recreational facilities or enlargement of such facilities. If the

2260

addition or enlargement of facilities will result in a material

2261

increase of a unit owner's maintenance expense or rental expense,

2262

if any, the maximum increase and limitations thereon shall be

2263

stated.

2264

     (5)(a)  A statement in conspicuous type describing whether

2265

the condominium is created and being sold as fee simple interests

2266

or as leasehold interests. If the condominium is created or being

2267

sold on a leasehold, the location of the lease in the disclosure

2268

materials shall be stated.

2269

     (b)  If timeshare estates are or may be created with respect

2270

to any unit in the condominium, a statement in conspicuous type

2271

stating that timeshare estates are created and being sold in

2272

units in the condominium.

2273

     (6)  A description of the recreational and other commonly

2274

used facilities that will be used only by unit owners of the

2275

condominium, including, but not limited to, the following:

2276

     (a)  Each room and its intended purposes, location,

2277

approximate floor area, and capacity in numbers of people.

2278

     (b)  Each swimming pool, as to its general location,

2279

approximate size and depths, approximate deck size and capacity,

2280

and whether heated.

2281

     (c)  Additional facilities, as to the number of each

2282

facility, its approximate location, approximate size, and

2283

approximate capacity.

2284

     (d)  A general description of the items of personal property

2285

and the approximate number of each item of personal property that

2286

the developer is committing to furnish for each room or other

2287

facility or, in the alternative, a representation as to the

2288

minimum amount of expenditure that will be made to purchase the

2289

personal property for the facility.

2290

     (e)  The estimated date when each room or other facility

2291

will be available for use by the unit owners.

2292

     (f)1.  An identification of each room or other facility to

2293

be used by unit owners that will not be owned by the unit owners

2294

or the association;

2295

     2.  A reference to the location in the disclosure materials

2296

of the lease or other agreements providing for the use of those

2297

facilities; and

2298

     3.  A description of the terms of the lease or other

2299

agreements, including the length of the term; the rent payable,

2300

directly or indirectly, by each unit owner, and the total rent

2301

payable to the lessor, stated in monthly and annual amounts for

2302

the entire term of the lease; and a description of any option to

2303

purchase the property leased under any such lease, including the

2304

time the option may be exercised, the purchase price or how it is

2305

to be determined, the manner of payment, and whether the option

2306

may be exercised for a unit owner's share or only as to the

2307

entire leased property.

2308

     (g)  A statement as to whether the developer may provide

2309

additional facilities not described above; their general

2310

locations and types; improvements or changes that may be made;

2311

the approximate dollar amount to be expended; and the maximum

2312

additional common expense or cost to the individual unit owners

2313

that may be charged during the first annual period of operation

2314

of the modified or added facilities.

2315

2316

Descriptions as to locations, areas, capacities, numbers,

2317

volumes, or sizes may be stated as approximations or minimums.

2318

     (7)  A description of the recreational and other facilities

2319

that will be used in common with other condominiums, community

2320

associations, or planned developments which require the payment

2321

of the maintenance and expenses of such facilities, either

2322

directly or indirectly, by the unit owners. The description shall

2323

include, but not be limited to, the following:

2324

     (a)  Each building and facility committed to be built.

2325

     (b)  Facilities not committed to be built except under

2326

certain conditions, and a statement of those conditions or

2327

contingencies.

2328

     (c)  As to each facility committed to be built, or which

2329

will be committed to be built upon the happening of one of the

2330

conditions in paragraph (b), a statement of whether it will be

2331

owned by the unit owners having the use thereof or by an

2332

association or other entity which will be controlled by them, or

2333

others, and the location in the exhibits of the lease or other

2334

document providing for use of those facilities.

2335

     (d)  The year in which each facility will be available for

2336

use by the unit owners or, in the alternative, the maximum number

2337

of unit owners in the project at the time each of all of the

2338

facilities is committed to be completed.

2339

     (e)  A general description of the items of personal

2340

property, and the approximate number of each item of personal

2341

property, that the developer is committing to furnish for each

2342

room or other facility or, in the alternative, a representation

2343

as to the minimum amount of expenditure that will be made to

2344

purchase the personal property for the facility.

2345

     (f)  If there are leases, a description thereof, including

2346

the length of the term, the rent payable, and a description of

2347

any option to purchase.

2348

2349

Descriptions shall include location, areas, capacities, numbers,

2350

volumes, or sizes and may be stated as approximations or

2351

minimums.

2352

     (8)  Recreation lease or associated club membership:

2353

     (a)  If any recreational facilities or other facilities

2354

offered by the developer and available to, or to be used by, unit

2355

owners are to be leased or have club membership associated, the

2356

following statement in conspicuous type shall be included: THERE

2357

IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS

2358

CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS

2359

CONDOMINIUM. There shall be a reference to the location in the

2360

disclosure materials where the recreation lease or club

2361

membership is described in detail.

2362

     (b)  If it is mandatory that unit owners pay a fee, rent,

2363

dues, or other charges under a recreational facilities lease or

2364

club membership for the use of facilities, there shall be in

2365

conspicuous type the applicable statement:

2366

     1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS

2367

MANDATORY FOR UNIT OWNERS; or

2368

     2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,

2369

TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or

2370

     3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE COSTS

2371

AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, REPLACEMENT,

2372

RENT, AND FEES UNDER THE RECREATIONAL FACILITIES LEASE (OR THE

2373

OTHER INSTRUMENTS PROVIDING THE FACILITIES); or

2374

     4.  A similar statement of the nature of the organization or

2375

the manner in which the use rights are created, and that unit

2376

owners are required to pay.

2377

2378

Immediately following the applicable statement, the location in

2379

the disclosure materials where the development is described in

2380

detail shall be stated.

2381

     (c)  If the developer, or any other person other than the

2382

unit owners and other persons having use rights in the

2383

facilities, reserves, or is entitled to receive, any rent, fee,

2384

or other payment for the use of the facilities, then there shall

2385

be the following statement in conspicuous type: THE UNIT OWNERS

2386

OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR

2387

RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately

2388

following this statement, the location in the disclosure

2389

materials where the rent or land use fees are described in detail

2390

shall be stated.

2391

     (d)  If, in any recreation format, whether leasehold, club,

2392

or other, any person other than the association has the right to

2393

a lien on the units to secure the payment of assessments, rent,

2394

or other exactions, there shall appear a statement in conspicuous

2395

type in substantially the following form:

2396

     1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

2397

SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE

2398

RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE PAYMENTS

2399

MAY RESULT IN FORECLOSURE OF THE LIEN; or

2400

     2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

2401

SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE

2402

FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL

2403

OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE

2404

THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.

2405

2406

Immediately following the applicable statement, the location in

2407

the disclosure materials where the lien or lien right is

2408

described in detail shall be stated.

2409

     (9)  If the developer or any other person has the right to

2410

increase or add to the recreational facilities at any time after

2411

the establishment of the condominium whose unit owners have use

2412

rights therein, without the consent of the unit owners or

2413

associations being required, there shall appear a statement in

2414

conspicuous type in substantially the following form:

2415

RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT

2416

OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this

2417

statement, the location in the disclosure materials where such

2418

reserved rights are described shall be stated.

2419

     (10)  A statement of whether the developer's plan includes a

2420

program of leasing units rather than selling them, or leasing

2421

units and selling them subject to such leases. If so, there shall

2422

be a description of the plan, including the number and

2423

identification of the units and the provisions and term of the

2424

proposed leases, and a statement in boldfaced type that: THE

2425

UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.

2426

     (11)  The arrangements for management of the association and

2427

maintenance and operation of the condominium property and of

2428

other property that will serve the unit owners of the condominium

2429

property, and a description of the management contract and all

2430

other contracts for these purposes having a term in excess of 1

2431

year, including the following:

2432

     (a)  The names of contracting parties.

2433

     (b)  The term of the contract.

2434

     (c)  The nature of the services included.

2435

     (d)  The compensation, stated on a monthly and annual basis,

2436

and provisions for increases in the compensation.

2437

     (e)  A reference to the volumes and pages of the condominium

2438

documents and of the exhibits containing copies of such

2439

contracts.

2440

2441

Copies of all described contracts shall be attached as exhibits.

2442

If there is a contract for the management of the condominium

2443

property, then a statement in conspicuous type in substantially

2444

the following form shall appear, identifying the proposed or

2445

existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR THE

2446

MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE CONTRACT

2447

MANAGER). Immediately following this statement, the location in

2448

the disclosure materials of the contract for management of the

2449

condominium property shall be stated.

2450

     (12)  If the developer or any other person or persons other

2451

than the unit owners has the right to retain control of the board

2452

of administration of the association for a period of time which

2453

can exceed 1 year after the closing of the sale of a majority of

2454

the units in that condominium to persons other than successors or

2455

alternate developers, then a statement in conspicuous type in

2456

substantially the following form shall be included: THE DEVELOPER

2457

(OR OTHER PERSON) HAS THE RIGHT TO RETAIN CONTROL OF THE

2458

ASSOCIATION AFTER A MAJORITY OF THE UNITS HAVE BEEN SOLD.

2459

Immediately following this statement, the location in the

2460

disclosure materials where this right to control is described in

2461

detail shall be stated.

2462

     (13)  If there are any restrictions upon the sale, transfer,

2463

conveyance, or leasing of a unit, then a statement in conspicuous

2464

type in substantially the following form shall be included: THE

2465

SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR CONTROLLED.

2466

Immediately following this statement, the location in the

2467

disclosure materials where the restriction, limitation, or

2468

control on the sale, lease, or transfer of units is described in

2469

detail shall be stated.

2470

     (14)  If the condominium is part of a phase project, the

2471

following information shall be stated:

2472

     (a)  A statement in conspicuous type in substantially the

2473

following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND

2474

UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following

2475

this statement, the location in the disclosure materials where

2476

the phasing is described shall be stated.

2477

     (b)  A summary of the provisions of the declaration which

2478

provide for the phasing.

2479

     (c)  A statement as to whether or not residential buildings

2480

and units which are added to the condominium may be substantially

2481

different from the residential buildings and units originally in

2482

the condominium. If the added residential buildings and units may

2483

be substantially different, there shall be a general description

2484

of the extent to which such added residential buildings and units

2485

may differ, and a statement in conspicuous type in substantially

2486

the following form shall be included: BUILDINGS AND UNITS WHICH

2487

ARE ADDED TO THE CONDOMINIUM MAY BE SUBSTANTIALLY DIFFERENT FROM

2488

THE OTHER BUILDINGS AND UNITS IN THE CONDOMINIUM. Immediately

2489

following this statement, the location in the disclosure

2490

materials where the extent to which added residential buildings

2491

and units may substantially differ is described shall be stated.

2492

     (d)  A statement of the maximum number of buildings

2493

containing units, the maximum and minimum numbers of units in

2494

each building, the maximum number of units, and the minimum and

2495

maximum square footage of the units that may be contained within

2496

each parcel of land which may be added to the condominium.

2497

     (15)  If a condominium created on or after July 1, 2000, is

2498

or may become part of a multicondominium, the following

2499

information must be provided:

2500

     (a)  A statement in conspicuous type in substantially the

2501

following form: THIS CONDOMINIUM IS (MAY BE) PART OF A

2502

MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL

2503

(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following

2504

this statement, the location in the prospectus or offering

2505

circular and its exhibits where the multicondominium aspects of

2506

the offering are described must be stated.

2507

     (b)  A summary of the provisions in the declaration,

2508

articles of incorporation, and bylaws which establish and provide

2509

for the operation of the multicondominium, including a statement

2510

as to whether unit owners in the condominium will have the right

2511

to use recreational or other facilities located or planned to be

2512

located in other condominiums operated by the same association,

2513

and the manner of sharing the common expenses related to such

2514

facilities.

2515

     (c)  A statement of the minimum and maximum number of

2516

condominiums, and the minimum and maximum number of units in each

2517

of those condominiums, which will or may be operated by the

2518

association, and the latest date by which the exact number will

2519

be finally determined.

2520

     (d)  A statement as to whether any of the condominiums in

2521

the multicondominium may include units intended to be used for

2522

nonresidential purposes and the purpose or purposes permitted for

2523

such use.

2524

     (e)  A general description of the location and approximate

2525

acreage of any land on which any additional condominiums to be

2526

operated by the association may be located.

2527

     (16)  If the condominium is created by conversion of

2528

existing improvements, the following information shall be stated:

2529

     (a)  The information required by s. 718.616.

2530

     (b)  A caveat that there are no express warranties unless

2531

they are stated in writing by the developer.

2532

     (17)  A summary of the restrictions, if any, to be imposed

2533

on units concerning the use of any of the condominium property,

2534

including statements as to whether there are restrictions upon

2535

children and pets, and reference to the volumes and pages of the

2536

condominium documents where such restrictions are found, or if

2537

such restrictions are contained elsewhere, then a copy of the

2538

documents containing the restrictions shall be attached as an

2539

exhibit.

2540

     (18)  If there is any land that is offered by the developer

2541

for use by the unit owners and that is neither owned by them nor

2542

leased to them, the association, or any entity controlled by unit

2543

owners and other persons having the use rights to such land, a

2544

statement shall be made as to how such land will serve the

2545

condominium. If any part of such land will serve the condominium,

2546

the statement shall describe the land and the nature and term of

2547

service, and the declaration or other instrument creating such

2548

servitude shall be included as an exhibit.

2549

     (19)  The manner in which utility and other services,

2550

including, but not limited to, sewage and waste disposal, water

2551

supply, and storm drainage, will be provided and the person or

2552

entity furnishing them.

2553

     (20)  An explanation of the manner in which the

2554

apportionment of common expenses and ownership of the common

2555

elements has been determined.

2556

     (21)  An estimated operating budget for the condominium and

2557

the association, and a schedule of the unit owner's expenses

2558

shall be attached as an exhibit and shall contain the following

2559

information:

2560

     (a)  The estimated monthly and annual expenses of the

2561

condominium and the association that are collected from unit

2562

owners by assessments.

2563

     (b)  The estimated monthly and annual expenses of each unit

2564

owner for a unit, other than common expenses paid by all unit

2565

owners, payable by the unit owner to persons or entities other

2566

than the association, as well as to the association, including

2567

fees assessed pursuant to s. 718.113(1) for maintenance of

2568

limited common elements where such costs are shared only by those

2569

entitled to use the limited common element, and the total

2570

estimated monthly and annual expense. There may be excluded from

2571

this estimate expenses which are not provided for or contemplated

2572

by the condominium documents, including, but not limited to, the

2573

costs of private telephone; maintenance of the interior of

2574

condominium units, which is not the obligation of the

2575

association; maid or janitorial services privately contracted for

2576

by the unit owners; utility bills billed directly to each unit

2577

owner for utility services to his or her unit; insurance premiums

2578

other than those incurred for policies obtained by the

2579

condominium; and similar personal expenses of the unit owner. A

2580

unit owner's estimated payments for assessments shall also be

2581

stated in the estimated amounts for the times when they will be

2582

due.

2583

     (c)  The estimated items of expenses of the condominium and

2584

the association, except as excluded under paragraph (b),

2585

including, but not limited to, the following items, which shall

2586

be stated either as an association expense collectible by

2587

assessments or as unit owners' expenses payable to persons other

2588

than the association:

2589

     1.  Expenses for the association and condominium:

2590

     a.  Administration of the association.

2591

     b.  Management fees.

2592

     c.  Maintenance.

2593

     d.  Rent for recreational and other commonly used

2594

facilities.

2595

     e.  Taxes upon association property.

2596

     f.  Taxes upon leased areas.

2597

     g.  Insurance.

2598

     h.  Security provisions.

2599

     i.  Other expenses.

2600

     j.  Operating capital.

2601

     k.  Reserves.

2602

     l.  Fees payable to the division.

2603

     2.  Expenses for a unit owner:

2604

     a.  Rent for the unit, if subject to a lease.

2605

     b.  Rent payable by the unit owner directly to the lessor or

2606

agent under any recreational lease or lease for the use of

2607

commonly used facilities, which use and payment is a mandatory

2608

condition of ownership and is not included in the common expense

2609

or assessments for common maintenance paid by the unit owners to

2610

the association.

2611

     (d)  The following statement in conspicuous type: THE BUDGET

2612

CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN

2613

ACCORDANCE WITH THE CONDOMINIUM ACT AND IS A GOOD FAITH ESTIMATE

2614

ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON

2615

FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.

2616

ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH

2617

CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN THE

2618

OFFERING.

2619

     (e)  Each budget for an association prepared by a developer

2620

consistent with this subsection shall be prepared in good faith

2621

and shall reflect accurate estimated amounts for the required

2622

items in paragraph (c) at the time of the filing of the offering

2623

circular with the division, and subsequent increased amounts of

2624

any item included in the association's estimated budget that are

2625

beyond the control of the developer shall not be considered an

2626

amendment that would give rise to rescission rights set forth in

2627

s. 718.503(1)(a) or (b), nor shall such increases modify, void,

2628

or otherwise affect any guarantee of the developer contained in

2629

the offering circular or any purchase contract. It is the intent

2630

of this paragraph to clarify existing law.

2631

     (f)  The estimated amounts shall be stated for a period of

2632

at least 12 months and may distinguish between the period prior

2633

to the time unit owners other than the developer elect a majority

2634

of the board of administration and the period after that date.

2635

     (22)  A schedule of estimated closing expenses to be paid by

2636

a buyer or lessee of a unit and a statement of whether title

2637

opinion or title insurance policy is available to the buyer and,

2638

if so, at whose expense.

2639

     (23)  The identity of the developer and the chief operating

2640

officer or principal directing the creation and sale of the

2641

condominium and a statement of its and his or her experience in

2642

this field.

2643

     (24)  Copies of the following, to the extent they are

2644

applicable, shall be included as exhibits:

2645

     (a)  The declaration of condominium, or the proposed

2646

declaration if the declaration has not been recorded.

2647

     (b)  The articles of incorporation creating the association.

2648

     (c)  The bylaws of the association.

2649

     (d)  The ground lease or other underlying lease of the

2650

condominium.

2651

     (e)  The management agreement and all maintenance and other

2652

contracts for management of the association and operation of the

2653

condominium and facilities used by the unit owners having a

2654

service term in excess of 1 year.

2655

     (f)  The estimated operating budget for the condominium and

2656

the required schedule of unit owners' expenses.

2657

     (g)  A copy of the floor plan of the unit and the plot plan

2658

showing the location of the residential buildings and the

2659

recreation and other common areas.

2660

     (h)  The lease of recreational and other facilities that

2661

will be used only by unit owners of the subject condominium.

2662

     (i)  The lease of facilities used by owners and others.

2663

     (j)  The form of unit lease, if the offer is of a leasehold.

2664

     (k)  A declaration of servitude of properties serving the

2665

condominium but not owned by unit owners or leased to them or the

2666

association.

2667

     (l)  The statement of condition of the existing building or

2668

buildings, if the offering is of units in an operation being

2669

converted to condominium ownership.

2670

     (m)  The statement of inspection for termite damage and

2671

treatment of the existing improvements, if the condominium is a

2672

conversion.

2673

     (n)  The form of agreement for sale or lease of units.

2674

     (o)  A copy of the agreement for escrow of payments made to

2675

the developer prior to closing.

2676

     (p)  A copy of the documents containing any restrictions on

2677

use of the property required by subsection (17).

2678

     (25)  Any prospectus or offering circular complying, prior

2679

to the effective date of this act, with the provisions of former

2680

ss. 711.69 and 711.802 may continue to be used without amendment

2681

or may be amended to comply with the provisions of this chapter.

2682

     (26)  A brief narrative description of the location and

2683

effect of all existing and intended easements located or to be

2684

located on the condominium property other than those described in

2685

the declaration.

2686

     (27)  If the developer is required by state or local

2687

authorities to obtain acceptance or approval of any dock or

2688

marina facilities intended to serve the condominium, a copy of

2689

any such acceptance or approval acquired by the time of filing

2690

with the division under s. 718.502(1) or a statement that such

2691

acceptance or approval has not been acquired or received.

2692

     (28)  Evidence demonstrating that the developer has an

2693

ownership, leasehold, or contractual interest in the land upon

2694

which the condominium is to be developed.

2695

     Section 49.  Section 718.508, Florida Statutes, is amended

2696

to read:

2697

     718.508  Regulation by Division of Hotels and

2698

Restaurants.--In addition to the authority, regulation, or

2699

control exercised by the Division of Florida Land Sales,

2700

Condominiums, Timeshares, and Mobile Homes pursuant to this act

2701

with respect to condominiums, buildings included in a condominium

2702

property are shall be subject to the authority, regulation, or

2703

control of the Division of Hotels and Restaurants of the

2704

Department of Business and Professional Regulation, to the extent

2705

provided for in chapter 399.

2706

     Section 50.  Section 718.509, Florida Statutes, is amended,

2707

and section 498.019, Florida Statutes, is transferred, renumbered

2708

as subsections (1) and (2) of that section, and amended to read:

2709

     718.509 Division of Florida Land Sales, Condominiums,

2710

Timeshares, and Mobile Homes Trust Fund.--All funds collected by

2711

the division and any amount paid for a fee or penalty under this

2712

chapter shall be deposited in the State Treasury to the credit of

2713

the Division of Florida Land Sales, Condominiums, and Mobile

2714

Homes Trust Fund created by s. 498.019.

2715

     498.019 Division of Florida Land Sales, Condominiums, and

2716

Mobile Homes Trust Fund.--

2717

     (1)  There is created within the State Treasury the Division

2718

of Florida Land Sales, Condominiums, Timeshares, and Mobile Homes

2719

Trust Fund to be used for the administration and operation of

2720

this chapter and chapters 718, 719, 721, and 723 by the division.

2721

     (2)  All moneys collected by the division from fees, fines,

2722

or penalties or from costs awarded to the division by a court or

2723

administrative final order shall be paid into the Division of

2724

Florida Land Sales, Condominiums, Timeshares, and Mobile Homes

2725

Trust Fund. The Legislature shall appropriate funds from this

2726

trust fund sufficient to carry out the provisions of this chapter

2727

and the provisions of law with respect to each category of

2728

business covered by the this trust fund. The division shall

2729

maintain separate revenue accounts in the trust fund for each of

2730

the businesses regulated by the division. The division shall

2731

provide for the proportionate allocation among the accounts of

2732

expenses incurred by the division in the performance of its

2733

duties with respect to each of these businesses. As part of its

2734

normal budgetary process, the division shall prepare an annual

2735

report of revenue and allocated expenses related to the operation

2736

of each of these businesses which may be used to determine fees

2737

charged by the division. This subsection shall operate pursuant

2738

to the provisions of s. 215.20.

2739

     Section 51.  Paragraph (a) of subsection (2) of section

2740

718.608, Florida Statutes, is amended to read:

2741

     718.608  Notice of intended conversion; time of delivery;

2742

content.--

2743

     (2)(a)  Each notice of intended conversion shall be dated

2744

and in writing. The notice shall contain the following statement,

2745

with the phrases of the following statement which appear in upper

2746

case printed in conspicuous type:

2747

2748

     These apartments are being converted to condominium by  

2749

(name of developer)  , the developer.

2750

     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF

2751

YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL

2752

AGREEMENT AS FOLLOWS:

2753

     a.  If you have continuously been a resident of these

2754

apartments during the last 180 days and your rental agreement

2755

expires during the next 270 days, you may extend your rental

2756

agreement for up to 270 days after the date of this notice.

2757

     b.  If you have not been a continuous resident of these

2758

apartments for the last 180 days and your rental agreement

2759

expires during the next 180 days, you may extend your rental

2760

agreement for up to 180 days after the date of this notice.

2761

     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU

2762

MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE

2763

DATE OF THIS NOTICE.

2764

     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,

2765

you may extend your rental agreement for up to 45 days after the

2766

date of this notice while you decide whether to extend your

2767

rental agreement as explained above. To do so, you must notify

2768

the developer in writing. You will then have the full 45 days to

2769

decide whether to extend your rental agreement as explained

2770

above.

2771

     3.  During the extension of your rental agreement you will

2772

be charged the same rent that you are now paying.

2773

     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION

2774

OF THE RENTAL AGREEMENT AS FOLLOWS:

2775

     a.  If your rental agreement began or was extended or

2776

renewed after May 1, 1980, and your rental agreement, including

2777

extensions and renewals, has an unexpired term of 180 days or

2778

less, you may cancel your rental agreement upon 30 days' written

2779

notice and move. Also, upon 30 days' written notice, you may

2780

cancel any extension of the rental agreement.

2781

     b.  If your rental agreement was not begun or was not

2782

extended or renewed after May 1, 1980, you may not cancel the

2783

rental agreement without the consent of the developer. If your

2784

rental agreement, including extensions and renewals, has an

2785

unexpired term of 180 days or less, you may, however, upon 30

2786

days' written notice cancel any extension of the rental

2787

agreement.

2788

     5.  All notices must be given in writing and sent by mail,

2789

return receipt requested, or delivered in person to the developer

2790

at this address:   (name and address of developer)  .

2791

     6.  If you have continuously been a resident of these

2792

apartments during the last 180 days:

2793

     a.  You have the right to purchase your apartment and will

2794

have 45 days to decide whether to purchase. If you do not buy the

2795

unit at that price and the unit is later offered at a lower

2796

price, you will have the opportunity to buy the unit at the lower

2797

price. However, in all events your right to purchase the unit

2798

ends when the rental agreement or any extension of the rental

2799

agreement ends or when you waive this right in writing.

2800

     b.  Within 90 days you will be provided purchase information

2801

relating to your apartment, including the price of your unit and

2802

the condition of the building. If you do not receive this

2803

information within 90 days, your rental agreement and any

2804

extension will be extended 1 day for each day over 90 days until

2805

you are given the purchase information. If you do not want this

2806

rental agreement extension, you must notify the developer in

2807

writing.

2808

     7.  If you have any questions regarding this conversion or

2809

the Condominium Act, you may contact the developer or the state

2810

agency which regulates condominiums: The Division of Florida Land

2811

Sales, Condominiums, Timeshares, and Mobile Homes, (Tallahassee

2812

address and telephone number of division)  .

2813

     Section 52.  Subsection (17) of section 719.103, Florida

2814

Statutes, is amended to read:

2815

     719.103  Definitions.--As used in this chapter:

2816

     (17) "Division" means the Division of Florida Land Sales,

2817

Condominiums, Timeshares, and Mobile Homes of the Department of

2818

Business and Professional Regulation.

2819

     Section 53.  Section 719.1255, Florida Statutes, is amended

2820

to read:

2821

     719.1255  Alternative resolution of disputes.--The Division

2822

of Florida Land Sales, Condominiums, Timeshares, and Mobile Homes

2823

of the Department of Business and Professional Regulation shall

2824

provide for alternative dispute resolution in accordance with s.

2826

     Section 54.  Section 719.501, Florida Statutes, is amended

2827

to read:

2828

     719.501 Powers and duties of Division of Florida Land

2829

Sales, Condominiums, Timeshares, and Mobile Homes.--

2830

     (1) The Division of Florida Land Sales, Condominiums,

2831

Timeshares, and Mobile Homes of the Department of Business and

2832

Professional Regulation, referred to as the "division" in this

2833

part, in addition to other powers and duties prescribed by

2834

chapter 718 498, has the power to enforce and ensure compliance

2835

with the provisions of this chapter and adopted rules promulgated

2836

pursuant hereto relating to the development, construction, sale,

2837

lease, ownership, operation, and management of residential

2838

cooperative units. In performing its duties, the division shall

2839

have the following powers and duties:

2840

     (a)  The division may make necessary public or private

2841

investigations within or outside this state to determine whether

2842

any person has violated this chapter or any rule or order

2843

hereunder, to aid in the enforcement of this chapter, or to aid

2844

in the adoption of rules or forms hereunder.

2845

     (b)  The division may require or permit any person to file a

2846

statement in writing, under oath or otherwise, as the division

2847

determines, as to the facts and circumstances concerning a matter

2848

to be investigated.

2849

     (c)  For the purpose of any investigation under this

2850

chapter, the division director or any officer or employee

2851

designated by the division director may administer oaths or

2852

affirmations, subpoena witnesses and compel their attendance,

2853

take evidence, and require the production of any matter which is

2854

relevant to the investigation, including the existence,

2855

description, nature, custody, condition, and location of any

2856

books, documents, or other tangible things and the identity and

2857

location of persons having knowledge of relevant facts or any

2858

other matter reasonably calculated to lead to the discovery of

2859

material evidence. Upon failure by a person to obey a subpoena or

2860

to answer questions propounded by the investigating officer and

2861

upon reasonable notice to all persons affected thereby, the

2862

division may apply to the circuit court for an order compelling

2863

compliance.

2864

     (d)  Notwithstanding any remedies available to unit owners

2865

and associations, if the division has reasonable cause to believe

2866

that a violation of any provision of this chapter or related rule

2867

promulgated pursuant hereto has occurred, the division may

2868

institute enforcement proceedings in its own name against a

2869

developer, association, officer, or member of the board, or its

2870

assignees or agents, as follows:

2871

     1.  The division may permit a person whose conduct or

2872

actions may be under investigation to waive formal proceedings

2873

and enter into a consent proceeding whereby orders, rules, or

2874

letters of censure or warning, whether formal or informal, may be

2875

entered against the person.

2876

     2.  The division may issue an order requiring the developer,

2877

association, officer, or member of the board, or its assignees or

2878

agents, to cease and desist from the unlawful practice and take

2879

such affirmative action as in the judgment of the division will

2880

carry out the purposes of this chapter. Such affirmative action

2881

may include, but is not limited to, an order requiring a

2882

developer to pay moneys determined to be owed to a condominium

2883

association.

2884

     3.  The division may bring an action in circuit court on

2885

behalf of a class of unit owners, lessees, or purchasers for

2886

declaratory relief, injunctive relief, or restitution.

2887

     4.  The division may impose a civil penalty against a

2888

developer or association, or its assignees or agents, for any

2889

violation of this chapter or related a rule promulgated pursuant

2890

hereto. The division may impose a civil penalty individually

2891

against any officer or board member who willfully and knowingly

2892

violates a provision of this chapter, a rule adopted pursuant to

2893

this chapter, or a final order of the division. The term

2894

"willfully and knowingly" means that the division informed the

2895

officer or board member that his or her action or intended action

2896

violates this chapter, a rule adopted under this chapter, or a

2897

final order of the division, and that the officer or board member

2898

refused to comply with the requirements of this chapter, a rule

2899

adopted under this chapter, or a final order of the division. The

2900

division, prior to initiating formal agency action under chapter

2901

120, shall afford the officer or board member an opportunity to

2902

voluntarily comply with this chapter, a rule adopted under this

2903

chapter, or a final order of the division. An officer or board

2904

member who complies within 10 days is not subject to a civil

2905

penalty. A penalty may be imposed on the basis of each day of

2906

continuing violation, but in no event shall the penalty for any

2907

offense exceed $5,000. By January 1, 1998, the division shall

2908

adopt, by rule, penalty guidelines applicable to possible

2909

violations or to categories of violations of this chapter or

2910

rules adopted by the division. The guidelines must specify a

2911

meaningful range of civil penalties for each such violation of

2912

the statute and rules and must be based upon the harm caused by

2913

the violation, the repetition of the violation, and upon such

2914

other factors deemed relevant by the division. For example, the

2915

division may consider whether the violations were committed by a

2916

developer or owner-controlled association, the size of the

2917

association, and other factors. The guidelines must designate the

2918

possible mitigating or aggravating circumstances that justify a

2919

departure from the range of penalties provided by the rules. It

2920

is the legislative intent that minor violations be distinguished

2921

from those which endanger the health, safety, or welfare of the

2922

cooperative residents or other persons and that such guidelines

2923

provide reasonable and meaningful notice to the public of likely

2924

penalties that may be imposed for proscribed conduct. This

2925

subsection does not limit the ability of the division to

2926

informally dispose of administrative actions or complaints by

2927

stipulation, agreed settlement, or consent order. All amounts

2928

collected shall be deposited with the Chief Financial Officer to

2929

the credit of the Division of Florida Land Sales, Condominiums,

2930

Timeshares, and Mobile Homes Trust Fund. If a developer fails to

2931

pay the civil penalty, the division shall thereupon issue an

2932

order directing that such developer cease and desist from further

2933

operation until such time as the civil penalty is paid or may

2934

pursue enforcement of the penalty in a court of competent

2935

jurisdiction. If an association fails to pay the civil penalty,

2936

the division shall thereupon pursue enforcement in a court of

2937

competent jurisdiction, and the order imposing the civil penalty

2938

or the cease and desist order shall not become effective until 20

2939

days after the date of such order. Any action commenced by the

2940

division shall be brought in the county in which the division has

2941

its executive offices or in the county where the violation

2942

occurred.

2943

     (e) The division may is authorized to prepare and

2944

disseminate a prospectus and other information to assist

2945

prospective owners, purchasers, lessees, and developers of

2946

residential cooperatives in assessing the rights, privileges, and

2947

duties pertaining thereto.

2948

     (f)  The division has authority to adopt rules pursuant to

2949

ss. 120.536(1) and 120.54 to implement and enforce the provisions

2950

of this chapter.

2951

     (g)  The division shall establish procedures for providing

2952

notice to an association when the division is considering the

2953

issuance of a declaratory statement with respect to the

2954

cooperative documents governing such cooperative community.

2955

     (h)  The division shall furnish each association which pays

2956

the fees required by paragraph (2)(a) a copy of this act,

2957

subsequent changes to this act on an annual basis, an amended

2958

version of this act as it becomes available from the Secretary of

2959

State's office on a biennial basis, and the rules adopted

2960

promulgated pursuant thereto on an annual basis.

2961

     (i)  The division shall annually provide each association

2962

with a summary of declaratory statements and formal legal

2963

opinions relating to the operations of cooperatives which were

2964

rendered by the division during the previous year.

2965

     (j)  The division shall adopt uniform accounting principles,

2966

policies, and standards to be used by all associations in the

2967

preparation and presentation of all financial statements required

2968

by this chapter. The principles, policies, and standards shall

2969

take into consideration the size of the association and the total

2970

revenue collected by the association.

2971

     (k)  The division shall provide training programs for

2972

cooperative association board members and unit owners.

2973

     (l)  The division shall maintain a toll-free telephone

2974

number accessible to cooperative unit owners.

2975

     (m)  When a complaint is made to the division, the division

2976

shall conduct its inquiry with reasonable dispatch and with due

2977

regard to the interests of the affected parties. Within 30 days

2978

after receipt of a complaint, the division shall acknowledge the

2979

complaint in writing and notify the complainant whether the

2980

complaint is within the jurisdiction of the division and whether

2981

additional information is needed by the division from the

2982

complainant. The division shall conduct its investigation and

2983

shall, within 90 days after receipt of the original complaint or

2984

timely requested additional information, take action upon the

2985

complaint. However, the failure to complete the investigation

2986

within 90 days does not prevent the division from continuing the

2987

investigation, accepting or considering evidence obtained or

2988

received after 90 days, or taking administrative action if

2989

reasonable cause exists to believe that a violation of this

2990

chapter or a rule of the division has occurred. If an

2991

investigation is not completed within the time limits established

2992

in this paragraph, the division shall, on a monthly basis, notify

2993

the complainant in writing of the status of the investigation.

2994

When reporting its action to the complainant, the division shall

2995

inform the complainant of any right to a hearing pursuant to ss.

2996

120.569 and 120.57.

2997

     (n)  The division shall develop a program to certify both

2998

volunteer and paid mediators to provide mediation of cooperative

2999

disputes. The division shall provide, upon request, a list of

3000

such mediators to any association, unit owner, or other

3001

participant in arbitration proceedings under s. 718.1255

3002

requesting a copy of the list. The division shall include on the

3003

list of voluntary mediators only persons who have received at

3004

least 20 hours of training in mediation techniques or have

3005

mediated at least 20 disputes. In order to become initially

3006

certified by the division, paid mediators must be certified by

3007

the Supreme Court to mediate court cases in either county or

3008

circuit courts. However, the division may adopt, by rule,

3009

additional factors for the certification of paid mediators, which

3010

factors must be related to experience, education, or background.

3011

Any person initially certified as a paid mediator by the division

3012

must, in order to continue to be certified, comply with the

3013

factors or requirements imposed by rules adopted by the division.

3014

     (2)(a)  Each cooperative association shall pay to the

3015

division, on or before January 1 of each year, an annual fee in

3016

the amount of $4 for each residential unit in cooperatives

3017

operated by the association. If the fee is not paid by March 1,

3018

then the association shall be assessed a penalty of 10 percent of

3019

the amount due, and the association shall not have the standing

3020

to maintain or defend any action in the courts of this state

3021

until the amount due is paid.

3022

     (b)  All fees shall be deposited in the Division of Florida

3023

Land Sales, Condominiums, Timeshares, and Mobile Homes Trust Fund

3024

as provided by law.

3025

     Section 55.  Paragraph (a) of subsection (2) of section

3026

719.502, Florida Statutes, is amended to read:

3027

     719.502  Filing prior to sale or lease.--

3028

     (2)(a)  Prior to filing as required by subsection (1), and

3029

prior to acquiring an ownership, leasehold, or contractual

3030

interest in the land upon which the cooperative is to be

3031

developed, a developer shall not offer a contract for purchase or

3032

lease of a unit for more than 5 years. However, the developer may

3033

accept deposits for reservations upon the approval of a fully

3034

executed escrow agreement and reservation agreement form properly

3035

filed with the Division of Florida Land Sales, Condominiums,

3036

Timeshares, and Mobile Homes. Each filing of a proposed

3037

reservation program shall be accompanied by a filing fee of $250.

3038

Reservations shall not be taken on a proposed cooperative unless

3039

the developer has an ownership, leasehold, or contractual

3040

interest in the land upon which the cooperative is to be

3041

developed. The division shall notify the developer within 20 days

3042

of receipt of the reservation filing of any deficiencies

3043

contained therein. Such notification shall not preclude the

3044

determination of reservation filing deficiencies at a later date,

3045

nor shall it relieve the developer of any responsibility under

3046

the law. The escrow agreement and the reservation agreement form

3047

shall include a statement of the right of the prospective

3048

purchaser to an immediate unqualified refund of the reservation

3049

deposit moneys upon written request to the escrow agent by the

3050

prospective purchaser or the developer.

3051

     Section 56.  Section 719.504, Florida Statutes, is amended

3052

to read:

3053

     719.504  Prospectus or offering circular.--Every developer

3054

of a residential cooperative which contains more than 20

3055

residential units, or which is part of a group of residential

3056

cooperatives which will be served by property to be used in

3057

common by unit owners of more than 20 residential units, shall

3058

prepare a prospectus or offering circular and file it with the

3059

Division of Florida Land Sales, Condominiums, Timeshares, and

3060

Mobile Homes prior to entering into an enforceable contract of

3061

purchase and sale of any unit or lease of a unit for more than 5

3062

years and shall furnish a copy of the prospectus or offering

3063

circular to each buyer. In addition to the prospectus or offering

3064

circular, each buyer shall be furnished a separate page entitled

3065

"Frequently Asked Questions and Answers," which must be in

3066

accordance with a format approved by the division. This page

3067

must, in readable language: inform prospective purchasers

3068

regarding their voting rights and unit use restrictions,

3069

including restrictions on the leasing of a unit; indicate whether

3070

and in what amount the unit owners or the association is

3071

obligated to pay rent or land use fees for recreational or other

3072

commonly used facilities; contain a statement identifying that

3073

amount of assessment which, pursuant to the budget, would be

3074

levied upon each unit type, exclusive of any special assessments,

3075

and which identifies the basis upon which assessments are levied,

3076

whether monthly, quarterly, or otherwise; state and identify any

3077

court cases in which the association is currently a party of

3078

record in which the association may face liability in excess of

3079

$100,000; and state whether membership in a recreational

3080

facilities association is mandatory and, if so, identify the fees

3081

currently charged per unit type. The division shall by rule

3082

require such other disclosure as in its judgment will assist

3083

prospective purchasers. The prospectus or offering circular may

3084

include more than one cooperative, although not all such units

3085

are being offered for sale as of the date of the prospectus or

3086

offering circular. The prospectus or offering circular must

3087

contain the following information:

3088

     (1)  The front cover or the first page must contain only:

3089

     (a)  The name of the cooperative.

3090

     (b)  The following statements in conspicuous type:

3091

     1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT

3092

MATTERS TO BE CONSIDERED IN ACQUIRING A COOPERATIVE UNIT.

3093

     2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

3094

NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,

3095

ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS.

3096

     3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY

3097

STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS

3098

PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT

3099

REPRESENTATIONS.

3100

     (2)  Summary: The next page must contain all statements

3101

required to be in conspicuous type in the prospectus or offering

3102

circular.

3103

     (3)  A separate index of the contents and exhibits of the

3104

prospectus.

3105

     (4)  Beginning on the first page of the text (not including

3106

the summary and index), a description of the cooperative,

3107

including, but not limited to, the following information:

3108

     (a)  Its name and location.

3109

     (b)  A description of the cooperative property, including,

3110

without limitation:

3111

     1.  The number of buildings, the number of units in each

3112

building, the number of bathrooms and bedrooms in each unit, and

3113

the total number of units, if the cooperative is not a phase

3114

cooperative; or, if the cooperative is a phase cooperative, the

3115

maximum number of buildings that may be contained within the

3116

cooperative, the minimum and maximum number of units in each

3117

building, the minimum and maximum number of bathrooms and

3118

bedrooms that may be contained in each unit, and the maximum

3119

number of units that may be contained within the cooperative.

3120

     2.  The page in the cooperative documents where a copy of

3121

the survey and plot plan of the cooperative is located.

3122

     3.  The estimated latest date of completion of constructing,

3123

finishing, and equipping. In lieu of a date, a statement that the

3124

estimated date of completion of the cooperative is in the

3125

purchase agreement and a reference to the article or paragraph

3126

containing that information.

3127

     (c)  The maximum number of units that will use facilities in

3128

common with the cooperative. If the maximum number of units will

3129

vary, a description of the basis for variation and the minimum

3130

amount of dollars per unit to be spent for additional

3131

recreational facilities or enlargement of such facilities. If the

3132

addition or enlargement of facilities will result in a material

3133

increase of a unit owner's maintenance expense or rental expense,

3134

if any, the maximum increase and limitations thereon shall be

3135

stated.

3136

     (5)(a)  A statement in conspicuous type describing whether

3137

the cooperative is created and being sold as fee simple interests

3138

or as leasehold interests. If the cooperative is created or being

3139

sold on a leasehold, the location of the lease in the disclosure

3140

materials shall be stated.

3141

     (b)  If timeshare estates are or may be created with respect

3142

to any unit in the cooperative, a statement in conspicuous type

3143

stating that timeshare estates are created and being sold in such

3144

specified units in the cooperative.

3145

     (6)  A description of the recreational and other common

3146

areas that will be used only by unit owners of the cooperative,

3147

including, but not limited to, the following:

3148

     (a)  Each room and its intended purposes, location,

3149

approximate floor area, and capacity in numbers of people.

3150

     (b)  Each swimming pool, as to its general location,

3151

approximate size and depths, approximate deck size and capacity,

3152

and whether heated.

3153

     (c)  Additional facilities, as to the number of each

3154

facility, its approximate location, approximate size, and

3155

approximate capacity.

3156

     (d)  A general description of the items of personal property

3157

and the approximate number of each item of personal property that

3158

the developer is committing to furnish for each room or other

3159

facility or, in the alternative, a representation as to the

3160

minimum amount of expenditure that will be made to purchase the

3161

personal property for the facility.

3162

     (e)  The estimated date when each room or other facility

3163

will be available for use by the unit owners.

3164

     (f)1.  An identification of each room or other facility to

3165

be used by unit owners that will not be owned by the unit owners

3166

or the association;

3167

     2.  A reference to the location in the disclosure materials

3168

of the lease or other agreements providing for the use of those

3169

facilities; and

3170

     3.  A description of the terms of the lease or other

3171

agreements, including the length of the term; the rent payable,

3172

directly or indirectly, by each unit owner, and the total rent

3173

payable to the lessor, stated in monthly and annual amounts for

3174

the entire term of the lease; and a description of any option to

3175

purchase the property leased under any such lease, including the

3176

time the option may be exercised, the purchase price or how it is

3177

to be determined, the manner of payment, and whether the option

3178

may be exercised for a unit owner's share or only as to the

3179

entire leased property.

3180

     (g)  A statement as to whether the developer may provide

3181

additional facilities not described above, their general

3182

locations and types, improvements or changes that may be made,

3183

the approximate dollar amount to be expended, and the maximum

3184

additional common expense or cost to the individual unit owners

3185

that may be charged during the first annual period of operation

3186

of the modified or added facilities.

3187

3188

Descriptions as to locations, areas, capacities, numbers,

3189

volumes, or sizes may be stated as approximations or minimums.

3190

     (7)  A description of the recreational and other facilities

3191

that will be used in common with other cooperatives, community

3192

associations, or planned developments which require the payment

3193

of the maintenance and expenses of such facilities, either

3194

directly or indirectly, by the unit owners. The description shall

3195

include, but not be limited to, the following:

3196

     (a)  Each building and facility committed to be built.

3197

     (b)  Facilities not committed to be built except under

3198

certain conditions, and a statement of those conditions or

3199

contingencies.

3200

     (c)  As to each facility committed to be built, or which

3201

will be committed to be built upon the happening of one of the

3202

conditions in paragraph (b), a statement of whether it will be

3203

owned by the unit owners having the use thereof or by an

3204

association or other entity which will be controlled by them, or

3205

others, and the location in the exhibits of the lease or other

3206

document providing for use of those facilities.

3207

     (d)  The year in which each facility will be available for

3208

use by the unit owners or, in the alternative, the maximum number

3209

of unit owners in the project at the time each of all of the

3210

facilities is committed to be completed.

3211

     (e)  A general description of the items of personal

3212

property, and the approximate number of each item of personal

3213

property, that the developer is committing to furnish for each

3214

room or other facility or, in the alternative, a representation

3215

as to the minimum amount of expenditure that will be made to

3216

purchase the personal property for the facility.

3217

     (f)  If there are leases, a description thereof, including

3218

the length of the term, the rent payable, and a description of

3219

any option to purchase.

3220

3221

Descriptions shall include location, areas, capacities, numbers,

3222

volumes, or sizes and may be stated as approximations or

3223

minimums.

3224

     (8)  Recreation lease or associated club membership:

3225

     (a)  If any recreational facilities or other common areas

3226

offered by the developer and available to, or to be used by, unit

3227

owners are to be leased or have club membership associated, the

3228

following statement in conspicuous type shall be included: THERE

3229

IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS

3230

COOPERATIVE; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS

3231

COOPERATIVE. There shall be a reference to the location in the

3232

disclosure materials where the recreation lease or club

3233

membership is described in detail.

3234

     (b)  If it is mandatory that unit owners pay a fee, rent,

3235

dues, or other charges under a recreational facilities lease or

3236

club membership for the use of facilities, there shall be in

3237

conspicuous type the applicable statement:

3238

     1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS

3239

MANDATORY FOR UNIT OWNERS; or

3240

     2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,

3241

TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or

3242

     3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE COSTS

3243

AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, REPLACEMENT,

3244

RENT, AND FEES UNDER THE RECREATIONAL FACILITIES LEASE (OR THE

3245

OTHER INSTRUMENTS PROVIDING THE FACILITIES); or

3246

     4.  A similar statement of the nature of the organization or

3247

manner in which the use rights are created, and that unit owners

3248

are required to pay.

3249

3250

Immediately following the applicable statement, the location in

3251

the disclosure materials where the development is described in

3252

detail shall be stated.

3253

     (c)  If the developer, or any other person other than the

3254

unit owners and other persons having use rights in the

3255

facilities, reserves, or is entitled to receive, any rent, fee,

3256

or other payment for the use of the facilities, then there shall

3257

be the following statement in conspicuous type: THE UNIT OWNERS

3258

OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR

3259

RECREATIONAL OR OTHER COMMON AREAS. Immediately following this

3260

statement, the location in the disclosure materials where the

3261

rent or land use fees are described in detail shall be stated.

3262

     (d)  If, in any recreation format, whether leasehold, club,

3263

or other, any person other than the association has the right to

3264

a lien on the units to secure the payment of assessments, rent,

3265

or other exactions, there shall appear a statement in conspicuous

3266

type in substantially the following form:

3267

     1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

3268

SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE

3269

RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE PAYMENTS

3270

MAY RESULT IN FORECLOSURE OF THE LIEN; or

3271

     2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

3272

SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE

3273

FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL

3274

OR COMMONLY USED AREAS. THE UNIT OWNER'S FAILURE TO MAKE THESE

3275

PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.

3276

3277

Immediately following the applicable statement, the location in

3278

the disclosure materials where the lien or lien right is

3279

described in detail shall be stated.

3280

     (9)  If the developer or any other person has the right to

3281

increase or add to the recreational facilities at any time after

3282

the establishment of the cooperative whose unit owners have use

3283

rights therein, without the consent of the unit owners or

3284

associations being required, there shall appear a statement in

3285

conspicuous type in substantially the following form:

3286

RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT

3287

OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this

3288

statement, the location in the disclosure materials where such

3289

reserved rights are described shall be stated.

3290

     (10)  A statement of whether the developer's plan includes a

3291

program of leasing units rather than selling them, or leasing

3292

units and selling them subject to such leases. If so, there shall

3293

be a description of the plan, including the number and

3294

identification of the units and the provisions and term of the

3295

proposed leases, and a statement in boldfaced type that: THE

3296

UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.

3297

     (11)  The arrangements for management of the association and

3298

maintenance and operation of the cooperative property and of

3299

other property that will serve the unit owners of the cooperative

3300

property, and a description of the management contract and all

3301

other contracts for these purposes having a term in excess of 1

3302

year, including the following:

3303

     (a)  The names of contracting parties.

3304

     (b)  The term of the contract.

3305

     (c)  The nature of the services included.

3306

     (d)  The compensation, stated on a monthly and annual basis,

3307

and provisions for increases in the compensation.

3308

     (e)  A reference to the volumes and pages of the cooperative

3309

documents and of the exhibits containing copies of such

3310

contracts.

3311

3312

Copies of all described contracts shall be attached as exhibits.

3313

If there is a contract for the management of the cooperative

3314

property, then a statement in conspicuous type in substantially

3315

the following form shall appear, identifying the proposed or

3316

existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR THE

3317

MANAGEMENT OF THE COOPERATIVE PROPERTY WITH (NAME OF THE CONTRACT

3318

MANAGER). Immediately following this statement, the location in

3319

the disclosure materials of the contract for management of the

3320

cooperative property shall be stated.

3321

     (12)  If the developer or any other person or persons other

3322

than the unit owners has the right to retain control of the board

3323

of administration of the association for a period of time which

3324

can exceed 1 year after the closing of the sale of a majority of

3325

the units in that cooperative to persons other than successors or

3326

alternate developers, then a statement in conspicuous type in

3327

substantially the following form shall be included: THE DEVELOPER

3328

(OR OTHER PERSON) HAS THE RIGHT TO RETAIN CONTROL OF THE

3329

ASSOCIATION AFTER A MAJORITY OF THE UNITS HAVE BEEN SOLD.

3330

Immediately following this statement, the location in the

3331

disclosure materials where this right to control is described in

3332

detail shall be stated.

3333

     (13)  If there are any restrictions upon the sale, transfer,

3334

conveyance, or leasing of a unit, then a statement in conspicuous

3335

type in substantially the following form shall be included: THE

3336

SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR CONTROLLED.

3337

Immediately following this statement, the location in the

3338

disclosure materials where the restriction, limitation, or

3339

control on the sale, lease, or transfer of units is described in

3340

detail shall be stated.

3341

     (14)  If the cooperative is part of a phase project, the

3342

following shall be stated:

3343

     (a)  A statement in conspicuous type in substantially the

3344

following form shall be included: THIS IS A PHASE COOPERATIVE.

3345

ADDITIONAL LAND AND UNITS MAY BE ADDED TO THIS COOPERATIVE.

3346

Immediately following this statement, the location in the

3347

disclosure materials where the phasing is described shall be

3348

stated.

3349

     (b)  A summary of the provisions of the declaration

3350

providing for the phasing.

3351

     (c)  A statement as to whether or not residential buildings

3352

and units which are added to the cooperative may be substantially

3353

different from the residential buildings and units originally in

3354

the cooperative, and, if the added residential buildings and

3355

units may be substantially different, there shall be a general

3356

description of the extent to which such added residential

3357

buildings and units may differ, and a statement in conspicuous

3358

type in substantially the following form shall be included:

3359

BUILDINGS AND UNITS WHICH ARE ADDED TO THE COOPERATIVE MAY BE

3360

SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND UNITS IN THE

3361

COOPERATIVE. Immediately following this statement, the location

3362

in the disclosure materials where the extent to which added

3363

residential buildings and units may substantially differ is

3364

described shall be stated.

3365

     (d)  A statement of the maximum number of buildings

3366

containing units, the maximum and minimum number of units in each

3367

building, the maximum number of units, and the minimum and

3368

maximum square footage of the units that may be contained within

3369

each parcel of land which may be added to the cooperative.

3370

     (15)  If the cooperative is created by conversion of

3371

existing improvements, the following information shall be stated:

3372

     (a)  The information required by s. 719.616.

3373

     (b)  A caveat that there are no express warranties unless

3374

they are stated in writing by the developer.

3375

     (16)  A summary of the restrictions, if any, to be imposed

3376

on units concerning the use of any of the cooperative property,

3377

including statements as to whether there are restrictions upon

3378

children and pets, and reference to the volumes and pages of the

3379

cooperative documents where such restrictions are found, or if

3380

such restrictions are contained elsewhere, then a copy of the

3381

documents containing the restrictions shall be attached as an

3382

exhibit.

3383

     (17)  If there is any land that is offered by the developer

3384

for use by the unit owners and that is neither owned by them nor

3385

leased to them, the association, or any entity controlled by unit

3386

owners and other persons having the use rights to such land, a

3387

statement shall be made as to how such land will serve the

3388

cooperative. If any part of such land will serve the cooperative,

3389

the statement shall describe the land and the nature and term of

3390

service, and the cooperative documents or other instrument

3391

creating such servitude shall be included as an exhibit.

3392

     (18)  The manner in which utility and other services,

3393

including, but not limited to, sewage and waste disposal, water

3394

supply, and storm drainage, will be provided and the person or

3395

entity furnishing them.

3396

     (19)  An explanation of the manner in which the

3397

apportionment of common expenses and ownership of the common

3398

areas have been determined.

3399

     (20)  An estimated operating budget for the cooperative and

3400

the association, and a schedule of the unit owner's expenses

3401

shall be attached as an exhibit and shall contain the following

3402

information:

3403

     (a)  The estimated monthly and annual expenses of the

3404

cooperative and the association that are collected from unit

3405

owners by assessments.

3406

     (b)  The estimated monthly and annual expenses of each unit

3407

owner for a unit, other than assessments payable to the

3408

association, payable by the unit owner to persons or entities

3409

other than the association, and the total estimated monthly and

3410

annual expense. There may be excluded from this estimate expenses

3411

that are personal to unit owners, which are not uniformly

3412

incurred by all unit owners, or which are not provided for or

3413

contemplated by the cooperative documents, including, but not

3414

limited to, the costs of private telephone; maintenance of the

3415

interior of cooperative units, which is not the obligation of the

3416

association; maid or janitorial services privately contracted for

3417

by the unit owners; utility bills billed directly to each unit

3418

owner for utility services to his or her unit; insurance premiums

3419

other than those incurred for policies obtained by the

3420

cooperative; and similar personal expenses of the unit owner. A

3421

unit owner's estimated payments for assessments shall also be

3422

stated in the estimated amounts for the times when they will be

3423

due.

3424

     (c)  The estimated items of expenses of the cooperative and

3425

the association, except as excluded under paragraph (b),

3426

including, but not limited to, the following items, which shall

3427

be stated either as an association expense collectible by

3428

assessments or as unit owners' expenses payable to persons other

3429

than the association:

3430

     1.  Expenses for the association and cooperative:

3431

     a.  Administration of the association.

3432

     b.  Management fees.

3433

     c.  Maintenance.

3434

     d.  Rent for recreational and other commonly used areas.

3435

     e.  Taxes upon association property.

3436

     f.  Taxes upon leased areas.

3437

     g.  Insurance.

3438

     h.  Security provisions.

3439

     i.  Other expenses.

3440

     j.  Operating capital.

3441

     k.  Reserves.

3442

     l.  Fee payable to the division.

3443

     2.  Expenses for a unit owner:

3444

     a.  Rent for the unit, if subject to a lease.

3445

     b.  Rent payable by the unit owner directly to the lessor or

3446

agent under any recreational lease or lease for the use of

3447

commonly used areas, which use and payment are a mandatory

3448

condition of ownership and are not included in the common expense

3449

or assessments for common maintenance paid by the unit owners to

3450

the association.

3451

     (d)  The following statement in conspicuous type: THE BUDGET

3452

CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN

3453

ACCORDANCE WITH THE COOPERATIVE ACT AND IS A GOOD FAITH ESTIMATE

3454

ONLY AND REPRESENTS AN APPROXIMATION OF FUTURE EXPENSES BASED ON

3455

FACTS AND CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.

3456

ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH

3457

CHANGES IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN THE

3458

OFFERING.

3459

     (e)  Each budget for an association prepared by a developer

3460

consistent with this subsection shall be prepared in good faith

3461

and shall reflect accurate estimated amounts for the required

3462

items in paragraph (c) at the time of the filing of the offering

3463

circular with the division, and subsequent increased amounts of

3464

any item included in the association's estimated budget that are

3465

beyond the control of the developer shall not be considered an

3466

amendment that would give rise to rescission rights set forth in

3467

s. 719.503(1)(a) or (b), nor shall such increases modify, void,

3468

or otherwise affect any guarantee of the developer contained in

3469

the offering circular or any purchase contract. It is the intent

3470

of this paragraph to clarify existing law.

3471

     (f)  The estimated amounts shall be stated for a period of

3472

at least 12 months and may distinguish between the period prior

3473

to the time unit owners other than the developer elect a majority

3474

of the board of administration and the period after that date.

3475

     (21)  A schedule of estimated closing expenses to be paid by

3476

a buyer or lessee of a unit and a statement of whether title

3477

opinion or title insurance policy is available to the buyer and,

3478

if so, at whose expense.

3479

     (22)  The identity of the developer and the chief operating

3480

officer or principal directing the creation and sale of the

3481

cooperative and a statement of its and his or her experience in

3482

this field.

3483

     (23)  Copies of the following, to the extent they are

3484

applicable, shall be included as exhibits:

3485

     (a)  The cooperative documents, or the proposed cooperative

3486

documents if the documents have not been recorded.

3487

     (b)  The articles of incorporation creating the association.

3488

     (c)  The bylaws of the association.

3489

     (d)  The ground lease or other underlying lease of the

3490

cooperative.

3491

     (e)  The management agreement and all maintenance and other

3492

contracts for management of the association and operation of the

3493

cooperative and facilities used by the unit owners having a

3494

service term in excess of 1 year.

3495

     (f)  The estimated operating budget for the cooperative and

3496

the required schedule of unit owners' expenses.

3497

     (g)  A copy of the floor plan of the unit and the plot plan

3498

showing the location of the residential buildings and the

3499

recreation and other common areas.

3500

     (h)  The lease of recreational and other facilities that

3501

will be used only by unit owners of the subject cooperative.

3502

     (i)  The lease of facilities used by owners and others.

3503

     (j)  The form of unit lease, if the offer is of a leasehold.

3504

     (k)  A declaration of servitude of properties serving the

3505

cooperative but not owned by unit owners or leased to them or the

3506

association.

3507

     (l)  The statement of condition of the existing building or

3508

buildings, if the offering is of units in an operation being

3509

converted to cooperative ownership.

3510

     (m)  The statement of inspection for termite damage and

3511

treatment of the existing improvements, if the cooperative is a

3512

conversion.

3513

     (n)  The form of agreement for sale or lease of units.

3514

     (o)  A copy of the agreement for escrow of payments made to

3515

the developer prior to closing.

3516

     (p)  A copy of the documents containing any restrictions on

3517

use of the property required by subsection (16).

3518

     (24)  Any prospectus or offering circular complying with the

3519

provisions of former ss. 711.69 and 711.802 may continue to be

3520

used without amendment, or may be amended to comply with the

3521

provisions of this chapter.

3522

     (25)  A brief narrative description of the location and

3523

effect of all existing and intended easements located or to be

3524

located on the cooperative property other than those in the

3525

declaration.

3526

     (26)  If the developer is required by state or local

3527

authorities to obtain acceptance or approval of any dock or

3528

marina facility intended to serve the cooperative, a copy of such

3529

acceptance or approval acquired by the time of filing with the

3530

division pursuant to s. 719.502 or a statement that such

3531

acceptance has not been acquired or received.

3532

     (27)  Evidence demonstrating that the developer has an

3533

ownership, leasehold, or contractual interest in the land upon

3534

which the cooperative is to be developed.

3535

     Section 57.  Section 719.508, Florida Statutes, is amended

3536

to read:

3537

     719.508  Regulation by Division of Hotels and

3538

Restaurants.--In addition to the authority, regulation, or

3539

control exercised by the Division of Florida Land Sales,

3540

Condominiums, Timeshares, and Mobile Homes pursuant to this act

3541

with respect to cooperatives, buildings included in a cooperative

3542

property shall be subject to the authority, regulation, or

3543

control of the Division of Hotels and Restaurants of the

3544

Department of Business and Professional Regulation, to the extent

3545

provided for in chapters 399 and 509.

3546

     Section 58.  Paragraph (a) of subsection (2) of section

3547

719.608, Florida Statutes, is amended to read:

3548

     719.608  Notice of intended conversion; time of delivery;

3549

content.--

3550

     (2)(a)  Each notice of intended conversion shall be dated

3551

and in writing. The notice shall contain the following statement,

3552

with the phrases of the following statement which appear in upper

3553

case printed in conspicuous type:

3554

3555

     These apartments are being converted to cooperative by  

3556

(name of developer)  , the developer.

3557

     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF

3558

YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL

3559

AGREEMENT AS FOLLOWS:

3560

     a.  If you have continuously been a resident of these

3561

apartments during the last 180 days and your rental agreement

3562

expires during the next 270 days, you may extend your rental

3563

agreement for up to 270 days after the date of this notice.

3564

     b.  If you have not been a continuous resident of these

3565

apartments for the last 180 days and your rental agreement

3566

expires during the next 180 days, you may extend your rental

3567

agreement for up to 180 days after the date of this notice.

3568

     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU

3569

MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE

3570

DATE OF THIS NOTICE.

3571

     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,

3572

you may extend your rental agreement for up to 45 days after the

3573

date of this notice while you decide whether to extend your

3574

rental agreement as explained above. To do so, you must notify

3575

the developer in writing. You will then have the full 45 days to

3576

decide whether to extend your rental agreement as explained

3577

above.

3578

     3.  During the extension of your rental agreement you will

3579

be charged the same rent that you are now paying.

3580

     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION

3581

OF THE RENTAL AGREEMENT AS FOLLOWS:

3582

     a.  If your rental agreement began or was extended or

3583

renewed after May 1, 1980, and your rental agreement, including

3584

extensions and renewals, has an unexpired term of 180 days or

3585

less, you may cancel your rental agreement upon 30 days' written

3586

notice and move. Also, upon 30 days' written notice, you may

3587

cancel any extension of the rental agreement.

3588

     b.  If your rental agreement was not begun or was not

3589

extended or renewed after May 1, 1980, you may not cancel the

3590

rental agreement without the consent of the developer. If your

3591

rental agreement, including extensions and renewals, has an

3592

unexpired term of 180 days or less, you may, however, upon 30

3593

days' written notice cancel any extension of the rental

3594

agreement.

3595

     5.  All notices must be given in writing and sent by mail,

3596

return receipt requested, or delivered in person to the developer

3597

at this address:   (name and address of developer)  .

3598

     6.  If you have continuously been a resident of these

3599

apartments during the last 180 days:

3600

     a.  You have the right to purchase your apartment and will

3601

have 45 days to decide whether to purchase. If you do not buy the

3602

unit at that price and the unit is later offered at a lower

3603

price, you will have the opportunity to buy the unit at the lower

3604

price. However, in all events your right to purchase the unit

3605

ends when the rental agreement or any extension of the rental

3606

agreement ends or when you waive this right in writing.

3607

     b.  Within 90 days you will be provided purchase information

3608

relating to your apartment, including the price of your unit and

3609

the condition of the building. If you do not receive this

3610

information within 90 days, your rental agreement and any

3611

extension will be extended 1 day for each day over 90 days until

3612

you are given the purchase information. If you do not want this

3613

rental agreement extension, you must notify the developer in

3614

writing.

3615

     7.  If you have any questions regarding this conversion or

3616

the Cooperative Act, you may contact the developer or the state

3617

agency which regulates cooperatives: The Division of Florida Land

3618

Sales, Condominiums, Timeshares, and Mobile Homes, (Tallahassee

3619

address and telephone number of division)  .

3620

     Section 59.  Subsection (7) of section 720.301, Florida

3621

Statutes, is amended to read:

3622

     720.301  Definitions.--As used in this chapter, the term:

3623

     (7) "Division" means the Division of Florida Land Sales,

3624

Condominiums, Timeshares, and Mobile Homes in the Department of

3625

Business and Professional Regulation.

3626

     Section 60.  Subsection (2) of section 720.401, Florida

3627

Statutes, is amended to read:

3628

     720.401  Prospective purchasers subject to association

3629

membership requirement; disclosure required; covenants;

3630

assessments; contract cancellation.--

3631

     (2)  This section does not apply to any association

3632

regulated under chapter 718, chapter 719, chapter 721, or chapter

3633

723 or to a subdivider registered under chapter 498; and also

3634

does not apply if disclosure regarding the association is

3635

otherwise made in connection with the requirements of chapter

3636

718, chapter 719, chapter 721, or chapter 723.

3637

     Section 61.  Paragraph (c) of subsection (1) of section

3638

721.03, Florida Statutes, is amended to read:

3639

     721.03  Scope of chapter.--

3640

     (1)  This chapter applies to all timeshare plans consisting

3641

of more than seven timeshare periods over a period of at least 3

3642

years in which the accommodations and facilities, if any, are

3643

located within this state or offered within this state; provided

3644

that:

3645

     (c)  All timeshare accommodations or facilities which are

3646

located outside the state but offered for sale in this state

3647

shall be governed by the following:

3648

     1.  The offering for sale in this state of timeshare

3649

accommodations and facilities located outside the state is

3650

subject only to the provisions of ss. 721.01-721.12, 721.18,

3651

721.20, 721.21, 721.26, 721.28, and part II.

3652

     2.  The division shall not require a developer of timeshare

3653

accommodations or facilities located outside of this state to

3654

make changes in any timeshare instrument to conform to the

3655

provisions of s. 721.07 or s. 721.55. The division shall have the

3656

power to require disclosure of those provisions of the timeshare

3657

instrument that do not conform to s. 721.07 or s. 721.55 as the

3658

director determines is necessary to fairly, meaningfully, and

3659

effectively disclose all aspects of the timeshare plan.

3660

     3.  Except as provided in this subparagraph, the division

3661

shall have no authority to determine whether any person has

3662

complied with another state's laws or to disapprove any filing

3663

out-of-state, timeshare instrument, or component site document,

3664

based solely upon the lack or degree of timeshare regulation in

3665

another state. The division may require a developer to obtain and

3666

provide to the division existing documentation relating to an

3667

out-of-state filing, timeshare instrument, or component site

3668

document and prove compliance of same with the laws of that

3669

state. In this regard, the division may accept any evidence of

3670

the approval or acceptance of any out-of-state filing, timeshare

3671

instrument, or component site document by another state in lieu

3672

of requiring a developer to file the out-of-state filing,

3673

timeshare instrument, or component site document with the

3674

division pursuant to this section, or the division may accept an

3675

opinion letter from an attorney or law firm opining as to the

3676

compliance of such out-of-state filing, timeshare instrument, or

3677

component site document with the laws of another state. The

3678

division may refuse to approve the inclusion of any out-of-state

3679

filing, timeshare instrument, or component site document as part

3680

of a public offering statement based upon the inability of the

3681

developer to establish the compliance of same with the laws of

3682

another state.

3683

     4.  The division is authorized to enter into an agreement

3684

with another state for the purpose of facilitating the processing

3685

of out-of-state timeshare instruments or other component site

3686

documents pursuant to this chapter and for the purpose of

3687

facilitating the referral of consumer complaints to the

3688

appropriate state.

3689

     5.  Notwithstanding any other provision of this paragraph,

3690

the offer, in this state, of an additional interest to existing

3691

purchasers in the same timeshare plan, the same nonspecific

3692

multisite timeshare plan, or the same component site of a

3693

multisite timeshare plan with accommodations and facilities

3694

located outside of this state shall not be subject to the

3695

provisions of this chapter if the offer complies with the

3696

provisions of s. 721.11(4).

3697

     Section 62.  Subsection (11) of section 721.05, Florida

3698

Statutes, is amended to read:

3699

     721.05  Definitions.--As used in this chapter, the term:

3700

     (11) "Division" means the Division of Florida Land Sales,

3701

Condominiums, Timeshares, and Mobile Homes of the Department of

3702

Business and Professional Regulation.

3703

     Section 63.  Paragraph (d) of subsection (2) of section

3704

721.07, Florida Statutes, is amended to read:

3705

     721.07  Public offering statement.--Prior to offering any

3706

timeshare plan, the developer must submit a filed public offering

3707

statement to the division for approval as prescribed by s.

3708

721.03, s. 721.55, or this section. Until the division approves

3709

such filing, any contract regarding the sale of that timeshare

3710

plan is subject to cancellation by the purchaser pursuant to s.

3711

721.10.

3712

     (2)

3713

     (d)  A developer shall have the authority to deliver to

3714

purchasers any purchaser public offering statement that is not

3715

yet approved by the division, provided that the following shall

3716

apply:

3717

     1.  At the time the developer delivers an unapproved

3718

purchaser public offering statement to a purchaser pursuant to

3719

this paragraph, the developer shall deliver a fully completed and

3720

executed copy of the purchase contract required by s. 721.06 that

3721

contains the following statement in conspicuous type in

3722

substantially the following form which shall replace the

3723

statements required by s. 721.06(1)(g):

3724

3725

The developer is delivering to you a public offering statement

3726

that has been filed with but not yet approved by the Division of

3727

Florida Land Sales, Condominiums, Timeshares, and Mobile Homes.

3728

Any revisions to the unapproved public offering statement you

3729

have received must be delivered to you, but only if the revisions

3730

materially alter or modify the offering in a manner adverse to

3731

you. After the division approves the public offering statement,

3732

you will receive notice of the approval from the developer and

3733

the required revisions, if any.

3734

3735

Your statutory right to cancel this transaction without any

3736

penalty or obligation expires 10 calendar days after the date you

3737

signed your purchase contract or the date on which you receive

3738

the last of all documents required to be given to you pursuant to

3739

section 721.07(6), Florida Statutes, or 10 calendar days after

3740

you receive revisions required to be delivered to you, if any,

3741

whichever is later. If you decide to cancel this contract, you

3742

must notify the seller in writing of your intent to cancel. Your

3743

notice of cancellation shall be effective upon the date sent and

3744

shall be sent to   (Name of Seller)   at   (Address of Seller)  .

3745

Any attempt to obtain a waiver of your cancellation right is void

3746

and of no effect. While you may execute all closing documents in

3747

advance, the closing, as evidenced by delivery of the deed or

3748

other document, before expiration of your 10-day cancellation

3749

period, is prohibited.

3750

3751

     2.  After receipt of approval from the division and prior to

3752

closing, if any revisions made to the documents contained in the

3753

purchaser public offering statement materially alter or modify

3754

the offering in a manner adverse to a purchaser, the developer

3755

shall send the purchaser such revisions together with a notice

3756

containing a statement in conspicuous type in substantially the

3757

following form:

3758

3759

The unapproved public offering statement previously delivered to

3760

you, together with the enclosed revisions, has been approved by

3761

the Division of Florida Land Sales, Condominiums, Timeshares, and

3762

Mobile Homes. Accordingly, your cancellation right expires 10

3763

calendar days after you sign your purchase contract or 10

3764

calendar days after you receive these revisions, whichever is

3765

later. If you have any questions regarding your cancellation

3766

rights, you may contact the division at [insert division's

3767

current address].

3768

3769

     3.  After receipt of approval from the division and prior to

3770

closing, if no revisions have been made to the documents

3771

contained in the unapproved purchaser public offering statement,

3772

or if such revisions do not materially alter or modify the

3773

offering in a manner adverse to a purchaser, the developer shall

3774

send the purchaser a notice containing a statement in conspicuous

3775

type in substantially the following form:

3776

3777

The unapproved public offering statement previously delivered to

3778

you has been approved by the Division of Florida Land Sales,

3779

Condominiums, Timeshares, and Mobile Homes. Revisions made to the

3780

unapproved public offering statement, if any, are either not

3781

required to be delivered to you or are not deemed by the

3782

developer, in its opinion, to materially alter or modify the

3783

offering in a manner that is adverse to you. Accordingly, your

3784

cancellation right expired 10 days after you signed your purchase

3785

contract. A complete copy of the approved public offering

3786

statement is available through the managing entity for inspection

3787

as part of the books and records of the plan. If you have any

3788

questions regarding your cancellation rights, you may contact the

3789

division at [insert division's current address].

3790

     Section 64.  Subsection (8) of section 721.08, Florida

3791

Statutes, is amended to read:

3792

     721.08  Escrow accounts; nondisturbance instruments;

3793

alternate security arrangements; transfer of legal title.--

3794

     (8)  An escrow agent holding escrowed funds pursuant to this

3795

chapter that have not been claimed for a period of 5 years after

3796

the date of deposit shall make at least one reasonable attempt to

3797

deliver such unclaimed funds to the purchaser who submitted such

3798

funds to escrow. In making such attempt, an escrow agent is

3799

entitled to rely on a purchaser's last known address as set forth

3800

in the books and records of the escrow agent and is not required

3801

to conduct any further search for the purchaser. If an escrow

3802

agent's attempt to deliver unclaimed funds to any purchaser is

3803

unsuccessful, the escrow agent may deliver such unclaimed funds

3804

to the division and the division shall deposit such unclaimed

3805

funds in the Division of Florida Land Sales, Condominiums,

3806

Timeshares, and Mobile Homes Trust Fund, 30 days after giving

3807

notice in a publication of general circulation in the county in

3808

which the timeshare property containing the purchaser's timeshare

3809

interest is located. The purchaser may claim the same at any time

3810

prior to the delivery of such funds to the division. After

3811

delivery of such funds to the division, the purchaser shall have

3812

no more rights to the unclaimed funds. The escrow agent shall not

3813

be liable for any claims from any party arising out of the escrow

3814

agent's delivery of the unclaimed funds to the division pursuant

3815

to this section.

3816

     Section 65.  Section 721.26, Florida Statutes, is amended to

3817

read:

3818

     721.26  Regulation by division.--The division has the power

3819

to enforce and ensure compliance with the provisions of this

3820

chapter, except for parts III and IV, using the powers provided

3821

in this chapter, as well as the powers prescribed in chapters

3822

498, 718, and 719. In performing its duties, the division shall

3823

have the following powers and duties:

3824

     (1)  To aid in the enforcement of this chapter, or any

3825

division rule adopted or order promulgated or issued pursuant to

3826

this chapter, the division may make necessary public or private

3827

investigations within or outside this state to determine whether

3828

any person has violated or is about to violate this chapter, or

3829

any division rule adopted or order promulgated or issued pursuant

3830

to this chapter.

3831

     (2)  The division may require or permit any person to file a

3832

written statement under oath or otherwise, as the division

3833

determines, as to the facts and circumstances concerning a matter

3834

under investigation.

3835

     (3)  For the purpose of any investigation under this

3836

chapter, the director of the division or any officer or employee

3837

designated by the director may administer oaths or affirmations,

3838

subpoena witnesses and compel their attendance, take evidence,

3839

and require the production of any matter which is relevant to the

3840

investigation, including the identity, existence, description,

3841

nature, custody, condition, and location of any books, documents,

3842

or other tangible things and the identity and location of persons

3843

having knowledge of relevant facts or any other matter reasonably

3844

calculated to lead to the discovery of material evidence. Failure

3845

to obey a subpoena or to answer questions propounded by the

3846

investigating officer and upon reasonable notice to all persons

3847

affected thereby shall be a violation of this chapter. In

3848

addition to the other enforcement powers authorized in this

3849

subsection, the division may, at its discretion, apply to the

3850

circuit court for an order compelling compliance.

3851

     (4)  The division may prepare and disseminate a prospectus

3852

and other information to assist prospective purchasers, sellers,

3853

and managing entities of timeshare plans in assessing the rights,

3854

privileges, and duties pertaining thereto.

3855

     (5)  Notwithstanding any remedies available to purchasers,

3856

if the division has reasonable cause to believe that a violation

3857

of this chapter, or of any division rule adopted or order

3858

promulgated or issued pursuant to this chapter, has occurred, the

3859

division may institute enforcement proceedings in its own name

3860

against any regulated party, as such term is defined in this

3861

subsection:

3862

     (a)1.  "Regulated party," for purposes of this section,

3863

means any developer, exchange company, seller, managing entity,

3864

owners' association, owners' association director, owners'

3865

association officer, manager, management firm, escrow agent,

3866

trustee, any respective assignees or agents, or any other person

3867

having duties or obligations pursuant to this chapter.

3868

     2.  Any person who materially participates in any offer or

3869

disposition of any interest in, or the management or operation

3870

of, a timeshare plan in violation of this chapter or relevant

3871

rules involving fraud, deception, false pretenses,

3872

misrepresentation, or false advertising or the disbursement,

3873

concealment, or diversion of any funds or assets, which conduct

3874

adversely affects the interests of a purchaser, and which person

3875

directly or indirectly controls a regulated party or is a general

3876

partner, officer, director, agent, or employee of such regulated

3877

party, shall be jointly and severally liable under this

3878

subsection with such regulated party, unless such person did not

3879

know, and in the exercise of reasonable care could not have

3880

known, of the existence of the facts giving rise to the violation

3881

of this chapter. A right of contribution shall exist among

3882

jointly and severally liable persons pursuant to this paragraph.

3883

     (b)  The division may permit any person whose conduct or

3884

actions may be under investigation to waive formal proceedings

3885

and enter into a consent proceeding whereby an order, rule, or

3886

letter of censure or warning, whether formal or informal, may be

3887

entered against that person.

3888

     (c)  The division may issue an order requiring a regulated

3889

party to cease and desist from an unlawful practice under this

3890

chapter and take such affirmative action as in the judgment of

3891

the division will carry out the purposes of this chapter.

3892

     (d)1.  The division may bring an action in circuit court for

3893

declaratory or injunctive relief or for other appropriate relief,

3894

including restitution.

3895

     2.  The division shall have broad authority and discretion

3896

to petition the circuit court to appoint a receiver with respect

3897

to any managing entity which fails to perform its duties and

3898

obligations under this chapter with respect to the operation of a

3899

timeshare plan. The circumstances giving rise to an appropriate

3900

petition for receivership under this subparagraph include, but

3901

are not limited to:

3902

     a.  Damage to or destruction of any of the accommodations or

3903

facilities of a timeshare plan, where the managing entity has

3904

failed to repair or reconstruct same.

3905

     b.  A breach of fiduciary duty by the managing entity,

3906

including, but not limited to, undisclosed self-dealing or

3907

failure to timely assess, collect, or disburse the common

3908

expenses of the timeshare plan.

3909

     c.  Failure of the managing entity to operate the timeshare

3910

plan in accordance with the timeshare instrument and this

3911

chapter.

3912

3913

If, under the circumstances, it appears that the events giving

3914

rise to the petition for receivership cannot be reasonably and

3915

timely corrected in a cost-effective manner consistent with the

3916

timeshare instrument, the receiver may petition the circuit court

3917

to implement such amendments or revisions to the timeshare

3918

instrument as may be necessary to enable the managing entity to

3919

resume effective operation of the timeshare plan, or to enter an

3920

order terminating the timeshare plan, or to enter such further

3921

orders regarding the disposition of the timeshare property as the

3922

court deems appropriate, including the disposition and sale of

3923

the timeshare property held by the owners' association or the

3924

purchasers. In the event of a receiver's sale, all rights, title,

3925

and interest held by the owners' association or any purchaser

3926

shall be extinguished and title shall vest in the buyer. This

3927

provision applies to timeshare estates, personal property

3928

timeshare interests, and timeshare licenses. All reasonable costs

3929

and fees of the receiver relating to the receivership shall

3930

become common expenses of the timeshare plan upon order of the

3931

court.

3932

     3.  The division may revoke its approval of any filing for

3933

any timeshare plan for which a petition for receivership has been

3934

filed pursuant to this paragraph.

3935

     (e)1.  The division may impose a penalty against any

3936

regulated party for a violation of this chapter or any rule

3937

adopted thereunder. A penalty may be imposed on the basis of each

3938

day of continuing violation, but in no event may the penalty for

3939

any offense exceed $10,000. All accounts collected shall be

3940

deposited with the Chief Financial Officer to the credit of the

3941

Division of Florida Land Sales, Condominiums, Timeshares, and

3942

Mobile Homes Trust Fund.

3943

     2.a.  If a regulated party fails to pay a penalty, the

3944

division shall thereupon issue an order directing that such

3945

regulated party cease and desist from further operation until

3946

such time as the penalty is paid; or the division may pursue

3947

enforcement of the penalty in a court of competent jurisdiction.

3948

     b.  If an owners' association or managing entity fails to

3949

pay a civil penalty, the division may pursue enforcement in a

3950

court of competent jurisdiction.

3951

     (f)  In order to permit the regulated party an opportunity

3952

either to appeal such decision administratively or to seek relief

3953

in a court of competent jurisdiction, the order imposing the

3954

penalty or the cease and desist order shall not become effective

3955

until 20 days after the date of such order.

3956

     (g)  Any action commenced by the division shall be brought

3957

in the county in which the division has its executive offices or

3958

in the county where the violation occurred.

3959

     (h)  Notice to any regulated party shall be complete when

3960

delivered by United States mail, return receipt requested, to the

3961

party's address currently on file with the division or to such

3962

other address at which the division is able to locate the party.

3963

Every regulated party has an affirmative duty to notify the

3964

division of any change of address at least 5 business days prior

3965

to such change.

3966

     (6)  The division has authority to adopt rules pursuant to

3967

ss. 120.536(1) and 120.54 to implement and enforce the provisions

3968

of this chapter.

3969

     (7)(a)  The use of any unfair or deceptive act or practice

3970

by any person in connection with the sales or other operations of

3971

an exchange program or timeshare plan is a violation of this

3972

chapter.

3973

     (b)  Any violation of the Florida Deceptive and Unfair Trade

3974

Practices Act, ss. 501.201 et seq., relating to the creation,

3975

promotion, sale, operation, or management of any timeshare plan

3976

shall also be a violation of this chapter.

3977

     (c) The division may is authorized to institute proceedings

3978

against any such person and take any appropriate action

3979

authorized in this section in connection therewith,

3980

notwithstanding any remedies available to purchasers.

3981

     (8)  The failure of any person to comply with any order of

3982

the division is a violation of this chapter.

3983

     Section 66.  Section 721.28, Florida Statutes, is amended to

3984

read:

3985

     721.28 Division of Florida Land Sales, Condominiums,

3986

Timeshares, and Mobile Homes Trust Fund.--All funds collected by

3987

the division and any amounts paid as fees or penalties under this

3988

chapter shall be deposited in the State Treasury to the credit of

3989

the Division of Florida Land Sales, Condominiums, Timeshares, and

3990

Mobile Homes Trust Fund created by s. 718.509 498.019.

3991

     Section 67.  Paragraph (c) of subsection (1) of section

3992

721.301, Florida Statutes, is amended to read:

3993

     721.301  Florida Timesharing, Vacation Club, and Hospitality

3994

Program.--

3995

     (1)

3996

     (c)  The director may designate funds from the Division of

3997

Florida Land Sales, Condominiums, Timeshares, and Mobile Homes

3998

Trust Fund, not to exceed $50,000 annually, to support the

3999

projects and proposals undertaken pursuant to paragraph (b). All

4000

state trust funds to be expended pursuant to this section must be

4001

matched equally with private moneys and shall comprise no more

4002

than half of the total moneys expended annually.

4003

     Section 68.  Section 721.50, Florida Statutes, is amended to

4004

read:

4005

     721.50  Short title.--This part may be cited as the

4006

"McAllister Act" in recognition and appreciation for the years of

4007

extraordinary and insightful contributions by Mr. Bryan C.

4008

McAllister, Examinations Supervisor of the former, Division of

4009

Florida Land Sales, Condominiums, and Mobile Homes.

4010

     Section 69.  Subsection (1) of section 723.003, Florida

4011

Statutes, is amended to read:

4012

     723.003  Definitions.--As used in this chapter, the

4013

following words and terms have the following meanings unless

4014

clearly indicated otherwise:

4015

     (1) The term "division" means the Division of Florida Land

4016

Sales, Condominiums, Timeshares, and Mobile Homes of the

4017

Department of Business and Professional Regulation.

4018

     Section 70.  Paragraph (e) of subsection (5) of section

4019

723.006, Florida Statutes, is amended to read:

4020

     723.006  Powers and duties of division.--In performing its

4021

duties, the division has the following powers and duties:

4022

     (5)  Notwithstanding any remedies available to mobile home

4023

owners, mobile home park owners, and homeowners' associations, if

4024

the division has reasonable cause to believe that a violation of

4025

any provision of this chapter or related any rule promulgated

4026

pursuant hereto has occurred, the division may institute

4027

enforcement proceedings in its own name against a developer,

4028

mobile home park owner, or homeowners' association, or its

4029

assignee or agent, as follows:

4030

     (e)1.  The division may impose a civil penalty against a

4031

mobile home park owner or homeowners' association, or its

4032

assignee or agent, for any violation of this chapter, a properly

4033

adopted promulgated park rule or regulation, or a rule adopted or

4034

regulation promulgated pursuant hereto. A penalty may be imposed

4035

on the basis of each separate violation and, if the violation is

4036

a continuing one, for each day of continuing violation, but in no

4037

event may the penalty for each separate violation or for each day

4038

of continuing violation exceed $5,000. All amounts collected

4039

shall be deposited with the Chief Financial Officer to the credit

4040

of the Division of Florida Land Sales, Condominiums, Timeshares,

4041

and Mobile Homes Trust Fund.

4042

     2.  If a violator fails to pay the civil penalty, the

4043

division shall thereupon issue an order directing that such

4044

violator cease and desist from further violation until such time

4045

as the civil penalty is paid or may pursue enforcement of the

4046

penalty in a court of competent jurisdiction. If a homeowners'

4047

association fails to pay the civil penalty, the division shall

4048

thereupon pursue enforcement in a court of competent

4049

jurisdiction, and the order imposing the civil penalty or the

4050

cease and desist order shall not become effective until 20 days

4051

after the date of such order. Any action commenced by the

4052

division shall be brought in the county in which the division has

4053

its executive offices or in which the violation occurred.

4054

     Section 71.  Section 723.009, Florida Statutes, is amended

4055

to read:

4056

     723.009 Division of Florida Land Sales, Condominiums,

4057

Timeshares, and Mobile Homes Trust Fund.--All proceeds from the

4058

fees, penalties, and fines imposed pursuant to this chapter shall

4059

be deposited into the Division of Florida Land Sales,

4060

Condominiums, Timeshares, and Mobile Homes Trust Fund created by

4061

s. 718.509 498.019. Moneys in this fund, as appropriated by the

4062

Legislature pursuant to chapter 216, may be used to defray the

4063

expenses incurred by the division in administering the provisions

4064

of this chapter.

4065

     Section 72.  Paragraph (c) of subsection (2) of section

4066

723.0611, Florida Statutes, is amended to read:

4067

     723.0611  Florida Mobile Home Relocation Corporation.--

4068

     (2)

4069

     (c)  The corporation shall, for purposes of s. 768.28, be

4070

considered an agency of the state. Agents or employees of the

4071

corporation, members of the board of directors of the

4072

corporation, or representatives of the Division of Florida Land

4073

Sales, Condominiums, Timeshares, and Mobile Homes shall be

4074

considered officers, employees, or agents of the state, and

4075

actions against them and the corporation shall be governed by s.

4076

768.28.

4077

     Section 73.  Subsection (10) of section 849.094, Florida

4078

Statutes, is amended to read:

4079

     849.094  Game promotion in connection with sale of consumer

4080

products or services.--

4081

     (10)  This section does not apply to actions or transactions

4082

regulated by the Department of Business and Professional

4083

Regulation or to the activities of nonprofit organizations or to

4084

any other organization engaged in any enterprise other than the

4085

sale of consumer products or services. Subsections (3), (4), (5),

4086

(6), and (7) and paragraph (8)(a) and any of the rules made

4087

pursuant thereto do not apply to television or radio broadcasting

4088

companies licensed by the Federal Communications Commission or to

4089

pari-mutuel permitholders licensed to conduct slot machine gaming

4090

under chapter 551 in the conduct of game promotions held at or

4091

directed primarily to patrons of the slot machine licensee's

4092

facility.

4093

     Section 74.  Except as otherwise expressly provided in this

4094

act, this act shall take effect July 1, 2008.

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

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