CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
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10                                                                

11  Senator Saunders moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14         On page 178, line 15, through page 179, line 10, delete

15  those lines

16

17  and insert:

18         Section 47.  Subsection (3) is added to section

19  617.3075, Florida Statutes, to read:

20         617.3075  Prohibited clauses in homeowners' association

21  documents.--

22         (3)  Homeowners' association documents, including

23  declarations of covenants, articles of incorporation, or

24  bylaws, may not preclude the display of one United States flag

25  by property owners. However, the flag must be displayed in a

26  respectful way and may be subject to reasonable standards for

27  size, placement, and safety, as adopted by the homeowners'

28  association, consistent with Title 36 U.S.C. Chapter 10 and

29  any local ordinances.

30         Section 48.  Section 718.103, Florida Statutes, is

31  amended to read:

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1         718.103  Definitions.--As used in this chapter, the

 2  term:

 3         (1)  "Assessment" means a share of the funds which are

 4  required for the payment of common expenses, which from time

 5  to time is assessed against the unit owner.

 6         (2)  "Association" means, in addition to any entity

 7  those entities responsible for the operation of common

 8  elements owned in undivided shares by unit owners, any entity

 9  which operates or maintains other real property in which

10  condominium unit owners have use rights, where unit owner

11  membership in the entity is composed exclusively of

12  condominium unit owners or their elected or appointed

13  representatives, and where membership in the entity is a

14  required condition of unit ownership.

15         (3)  "Association property" means that property, real

16  and personal, which is owned or leased by, or is dedicated by

17  a recorded plat to, the association for the use and benefit of

18  its members.

19         (4)  "Board of administration" or "board" means the

20  board of directors or other representative body which is

21  responsible for administration of the association.

22         (5)  "Buyer" means a person who purchases a condominium

23  unit. The term "purchaser" may be used interchangeably with

24  the term "buyer."

25         (6)  "Bylaws" means the bylaws of the association as

26  they are amended exist from time to time.

27         (7)  "Committee" means a group of board members, unit

28  owners, or board members and unit owners appointed by the

29  board or a member of the board to make recommendations to the

30  board regarding the proposed annual association budget or to

31  take action on behalf of the board.

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1         (8)  "Common elements" means the portions of the

 2  condominium property which are not included in the units.

 3         (9)  "Common expenses" means all expenses and

 4  assessments which are properly incurred by the association in

 5  the performance of its duties, including expenses specified in

 6  s. 718.115 for the condominium.

 7         (10)  "Common surplus" means the amount excess of all

 8  receipts or revenues, of the association collected on behalf

 9  of a condominium (including, but not limited to, assessments,

10  rents, or profits, collected by a condominium association

11  which exceeds, and revenues on account of the common elements)

12  over the common expenses.

13         (11)  "Condominium" means that form of ownership of

14  real property which is created pursuant to the provisions of

15  this chapter, which is comprised entirely of units that may be

16  owned by one or more persons, and in which there is,

17  appurtenant to each unit, an undivided share in common

18  elements.

19         (12)  "Condominium parcel" means a unit, together with

20  the undivided share in the common elements which is

21  appurtenant to the unit.

22         (13)  "Condominium property" means the lands,

23  leaseholds, and personal property that are subjected to

24  condominium ownership, whether or not contiguous, and all

25  improvements thereon and all easements and rights appurtenant

26  thereto intended for use in connection with the condominium.

27         (14)  "Conspicuous type" means bold type in capital

28  letters no smaller than the largest type, exclusive of

29  headings, on the page on which it appears and, in all cases,

30  at least 10-point type.  Where conspicuous type is required,

31  it must be separated on all sides from other type and print.

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

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 1  Conspicuous type may be used in a contract contracts for

 2  purchase and sale of a unit, a lease of a unit for more than 5

 3  years, or a prospectus or offering circular public offering

 4  statements only where required by law.

 5         (15)  "Declaration" or "declaration of condominium"

 6  means the instrument or instruments by which a condominium is

 7  created, as they are from time to time amended.

 8         (16)  "Developer" means a person who creates a

 9  condominium or offers condominium parcels for sale or lease in

10  the ordinary course of business, but does not include an owner

11  or lessee of a condominium or cooperative unit who has

12  acquired the unit for his or her own occupancy, nor does it

13  include a cooperative association which creates a condominium

14  by conversion of an existing residential cooperative after

15  control of the association has been transferred to the unit

16  owners if, following the conversion, the unit owners will be

17  the same persons who were unit owners of the cooperative and

18  no units are offered for sale or lease to the public as part

19  of the plan of conversion.

20         (17)  "Division" means the Division of Florida Land

21  Sales, Condominiums, and Mobile Homes of the Department of

22  Business and Professional Regulation.

23         (18)  "Land" means, unless otherwise defined in the

24  declaration as hereinafter provided, the surface of a legally

25  described parcel of real property and includes, unless

26  otherwise specified in the declaration and whether separate

27  from or including such surface, airspace lying above and

28  subterranean space lying below such surface.  However, if so

29  defined in the declaration, the term "land" may mean all or

30  any portion of the airspace or subterranean space between two

31  legally identifiable elevations and may exclude the surface of

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                                                  SENATE AMENDMENT

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 1  a parcel of real property and may mean any combination of the

 2  foregoing, whether or not contiguous.

 3         (19)  "Limited common elements" means those common

 4  elements which are reserved for the use of a certain

 5  condominium unit or units to the exclusion of all other units,

 6  as specified in the declaration of condominium.

 7         (20)  "Multicondominium" means a real estate

 8  development containing two or more condominiums all of which

 9  are operated by the same association.

10         (21)(20)  "Operation" or "operation of the condominium"

11  includes the administration and management of the condominium

12  property.

13         (22)(21)  "Rental agreement" means any written

14  agreement, or oral agreement if for less duration than 1 year,

15  providing for use and occupancy of premises.

16         (23)(22)  "Residential condominium" means a condominium

17  consisting of two or more condominium units, any of which are

18  intended for use as a private temporary or permanent

19  residence, except that a condominium is not a residential

20  condominium if the use for which the units are intended is

21  primarily commercial or industrial and not more than three

22  units are intended to be used for private residence, and are

23  intended to be used as housing for maintenance, managerial,

24  janitorial, or other operational staff of the condominium.

25  With respect to a condominium that is not a timeshare

26  condominium, a residential unit includes a unit intended as a

27  private temporary or permanent residence as well as a unit not

28  intended for commercial or industrial use. With respect to a

29  timeshare condominium, the timeshare instrument as defined in

30  s. 721.05(33) s. 721.05(30) shall govern the intended use of

31  each unit in the condominium. If a condominium is a

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  residential condominium but contains units intended to be used

 2  for commercial or industrial purposes, then, with respect to

 3  those units which are not intended for or used as private

 4  residences, the condominium is not a residential condominium.

 5  A condominium which contains both commercial and residential

 6  units is a mixed-use condominium and is subject to the

 7  requirements of s. 718.404.

 8         (24)(23)  "Special assessment" means any assessment

 9  levied against a unit owner owners other than the assessment

10  required by a budget adopted annually.

11         (25)(24)  "Timeshare estate" means any interest in a

12  unit under which the exclusive right of use, possession, or

13  occupancy of the unit circulates among the various purchasers

14  of a timeshare plan pursuant to chapter 721 on a recurring

15  basis for a period of time.

16         (26)(25)  "Timeshare unit" means a unit in which

17  timeshare estates have been created.

18         (27)(26)  "Unit" means a part of the condominium

19  property which is subject to exclusive ownership.  A unit may

20  be in improvements, land, or land and improvements together,

21  as specified in the declaration.

22         (28)(27)  "Unit owner" or "owner of a unit" means a

23  record owner of legal title to a condominium parcel.

24         (29)(28)  "Voting certificate" means a document which

25  designates one of the record title owners, or the corporate,

26  partnership, or entity representative, who is authorized to

27  vote on behalf of a condominium unit that is owned by more

28  than one owner or by any entity.

29         (30)(29)  "Voting interests interest" means the voting

30  rights distributed to the association members pursuant to s.

31  718.104(4)(i). In a multicondominium association, the voting

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                                                  SENATE AMENDMENT

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 1  interests of the association are the voting rights distributed

 2  to the unit owners in all condominiums operated by the

 3  association.  On matters related to a specific condominium in

 4  a multicondominium association, the voting interests of the

 5  condominium are the voting rights distributed to the unit

 6  owners in that condominium.

 7         Section 49.  Subsection (2) and paragraphs (f) and (g)

 8  of subsection (4) of section 718.104, Florida Statutes, are

 9  amended, and paragraph (h) is added to subsection (4), to

10  read:

11         718.104  Creation of condominiums; contents of

12  declaration.--Every condominium created in this state shall be

13  created pursuant to this chapter.

14         (2)  A condominium is created by recording a

15  declaration in the public records of the county where the land

16  is located, executed and acknowledged with the requirements

17  for a deed.  All persons who have record title to the interest

18  in the land being submitted to condominium ownership, or their

19  lawfully authorized agents, must join in the execution of the

20  declaration. Upon the recording of the declaration, or an

21  amendment adding a phase to the condominium under s.

22  718.403(6), all units described in the declaration or phase

23  amendment as being located in or on the land then being

24  submitted to condominium ownership shall come into existence,

25  regardless of the state of completion of planned improvements

26  in which the units may be located. Upon recording the

27  declaration of condominium pursuant to this section, the

28  developer shall file the recording information with the

29  division within 120 calendar 30 business days on a form

30  prescribed by the division.

31         (4)  The declaration must contain or provide for the

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

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 1  following matters:

 2         (f)  The undivided share of ownership of in the common

 3  elements and common surplus of the condominium that is

 4  appurtenant to each unit stated as a percentage or a fraction

 5  of percentages or fractions, which, in the aggregate, must

 6  equal the whole.  In the declaration of condominium for

 7  residential condominiums created after April 1, 1992, the

 8  ownership share of the common elements assigned to each

 9  residential unit shall be based either upon the total square

10  footage of each residential unit in uniform relationship to

11  the total square footage of each other residential unit in the

12  condominium or on an equal fractional basis.

13         (g)  The percentage or fractional shares of liability

14  for proportions or percentages of and manner of sharing common

15  expenses of the condominium and owning common surplus, which,

16  for all a residential units condominium, must be the same as

17  the undivided shares of ownership of in the common elements

18  and common surplus appurtenant to each unit as provided for in

19  paragraph (f).

20         (h)  If a developer reserves the right, in a

21  declaration recorded on or after July 1, 2000, to create a

22  multicondominium, the declaration must state, or provide a

23  specific formula for determining, the fractional or percentage

24  shares of liability for the common expenses of the association

25  and of ownership of the common surplus of the association to

26  be allocated to the units in each condominium to be operated

27  by the association.  If the declaration as originally recorded

28  fails to so provide, the share of liability for the common

29  expenses of the association and of ownership of the common

30  surplus of the association allocated to each unit in each

31  condominium operated by the association shall be a fraction of

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                                                  SENATE AMENDMENT

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 1  the whole, the numerator of which is the number "one" and the

 2  denominator of which is the total number of units in all

 3  condominiums operated by the association.

 4         Section 50.  Subsection (2) of section 718.106, Florida

 5  Statutes, is amended to read:

 6         718.106  Condominium parcels; appurtenances; possession

 7  and enjoyment.--

 8         (2)  There shall pass with a unit, as appurtenances

 9  thereto:

10         (a)  An undivided share in the common elements and

11  common surplus.

12         (b)  The exclusive right to use such portion of the

13  common elements as may be provided by the declaration,

14  including the right to transfer such right to other units or

15  unit owners to the extent authorized by the declaration as

16  originally recorded, or amendments to the declaration adopted

17  under s. 718.110(2).

18         (c)  An exclusive easement for the use of the airspace

19  occupied by the unit as it exists at any particular time and

20  as the unit may lawfully be altered or reconstructed from time

21  to time. An easement in airspace which is vacated shall be

22  terminated automatically.

23         (d)  Membership in the association designated in the

24  declaration, with the full voting rights appertaining thereto.

25         (e)  Other appurtenances as may be provided in the

26  declaration.

27         Section 51.  Subsections (4) and (9) of section

28  718.110, Florida Statutes, are amended, and subsection (12) is

29  added to that section, to read:

30         718.110  Amendment of declaration; correction of error

31  or omission in declaration by circuit court.--

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                                                  SENATE AMENDMENT

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 1         (4)  Unless otherwise provided in the declaration as

 2  originally recorded, no amendment may change the configuration

 3  or size of any condominium unit in any material fashion,

 4  materially alter or modify the appurtenances to the unit, or

 5  change the proportion or percentage by which the unit owner of

 6  the parcel shares the common expenses of the condominium and

 7  owns the common surplus of the condominium unless the record

 8  owner of the unit and all record owners of liens on the unit

 9  it join in the execution of the amendment and unless all the

10  record owners of all other units in the same condominium

11  approve the amendment.  The acquisition of property by the

12  association, and material alterations or substantial additions

13  to such property or the common elements by the association in

14  accordance with s. 718.111(7) or s. 718.113, shall not be

15  deemed to constitute a material alteration or modification of

16  the appurtenances to the units.  A declaration recorded after

17  April 1, 1992, may not require the approval of less than a

18  majority of total voting interests of the condominium for

19  amendments under this subsection, unless otherwise required by

20  a any governmental entity.

21         (9)  If there is an omission or error in a declaration

22  of condominium, or in any other document required by law to

23  establish the condominium, the association may correct the

24  error or omission by an amendment to the declaration or to the

25  other document required to create a condominium in the manner

26  provided in the declaration to amend the declaration or, if

27  none is provided, by vote of a majority of the voting

28  interests of the condominium.  The amendment is effective when

29  passed and approved and a certificate of the amendment is

30  executed and recorded as provided in subsections (2) and (3)

31  s. 718.104.  This procedure for amendment cannot be used if

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                                                  SENATE AMENDMENT

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 1  such an amendment would materially or adversely affect

 2  property rights of unit owners, unless the affected unit

 3  owners consent in writing. This subsection does not restrict

 4  the powers of the association to otherwise amend the

 5  declaration, or other documentation, but authorizes a simple

 6  process of amendment requiring a lesser vote for the purpose

 7  of curing defects, errors, or omissions when the property

 8  rights of unit owners are not materially or adversely

 9  affected.

10         (12)(a)  With respect to an existing multicondominium

11  association, any amendment to change the fractional or

12  percentage share of liability for the common expenses of the

13  association and ownership of the common surplus of the

14  association must be approved by at least a majority of the

15  total voting interests of each condominium operated by the

16  association unless the declarations of all condominiums

17  operated by the association uniformly require approval by a

18  greater percentage of the voting interests of each

19  condominium.

20         (b)  Unless approval by a greater percentage of the

21  voting interests of an existing multicondominium association

22  is expressly required in the declaration of an existing

23  condominium, the declaration may be amended upon approval of

24  at least a majority of the total voting interests of each

25  condominium operated by the multicondominium association for

26  the purpose of:

27         1.  Setting forth in the declaration the formula

28  currently utilized, but not previously stated in the

29  declaration, for determining the percentage or fractional

30  shares of liability for the common expenses of the

31  multicondominium association and ownership of the common

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                                                  SENATE AMENDMENT

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    Amendment No.    





 1  surplus of the multicondominium association.

 2         2.  Providing for the creation or enlargement of a

 3  multicondominium association by the merger or consolidation of

 4  two or more associations and changing the name of the

 5  association, as appropriate.

 6         Section 52.  Paragraphs (a) and (c) of subsection (12)

 7  and subsections (13), (14), and (15) of section 718.111,

 8  Florida Statutes, are amended to read:

 9         718.111  The association.--

10         (12)  OFFICIAL RECORDS.--

11         (a)  From the inception of the association, the

12  association shall maintain each of the following items, when

13  applicable, which shall constitute the official records of the

14  association:

15         1.  A copy of the plans, permits, warranties, and other

16  items provided by the developer pursuant to s. 718.301(4).

17         2.  A photocopy of the recorded declaration of

18  condominium of each condominium operated by the association

19  and of each amendment to each declaration.

20         3.  A photocopy of the recorded bylaws of the

21  association and of each amendment to the bylaws.

22         4.  A certified copy of the articles of incorporation

23  of the association, or other documents creating the

24  association, and of each amendment thereto.

25         5.  A copy of the current rules of the association.

26         6.  A book or books which contain the minutes of all

27  meetings of the association, of the board of directors, and of

28  unit owners, which minutes shall be retained for a period of

29  not less than 7 years.

30         7.  A current roster of all unit owners and their

31  mailing addresses, unit identifications, voting

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 1  certifications, and, if known, telephone numbers.

 2         8.  All current insurance policies of the association

 3  and condominiums operated by the association.

 4         9.  A current copy of any management agreement, lease,

 5  or other contract to which the association is a party or under

 6  which the association or the unit owners have an obligation or

 7  responsibility.

 8         10.  Bills of sale or transfer for all property owned

 9  by the association.

10         11.  Accounting records for the association and

11  separate accounting records for each condominium which the

12  association operates, according to good accounting practices.

13  All accounting records shall be maintained for a period of not

14  less than 7 years. The accounting records shall include, but

15  are not limited to:

16         a.  Accurate, itemized, and detailed records of all

17  receipts and expenditures.

18         b.  A current account and a monthly, bimonthly, or

19  quarterly statement of the account for each unit designating

20  the name of the unit owner, the due date and amount of each

21  assessment, the amount paid upon the account, and the balance

22  due.

23         c.  All audits, reviews, accounting statements, and

24  financial reports of the association or condominium.

25         d.  All contracts for work to be performed.  Bids for

26  work to be performed shall also be considered official records

27  and shall be maintained for a period of 1 year.

28         12.  Ballots, sign-in sheets, voting proxies, and all

29  other papers relating to voting by unit owners, which shall be

30  maintained for a period of 1 year from the date of the

31  election, vote, or meeting to which the document relates.

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 1         13.  All rental records, when the association is acting

 2  as agent for the rental of condominium units.

 3         14.  A copy of the current question and answer sheet as

 4  described by s. 718.504.

 5         15.  All other records of the association not

 6  specifically included in the foregoing which are related to

 7  the operation of the association.

 8         (c)  The official records of the association are open

 9  to inspection by any association member or the authorized

10  representative of such member at all reasonable times.  The

11  right to inspect the records includes the right to make or

12  obtain copies, at the reasonable expense, if any, of the

13  association member.  The association may adopt reasonable

14  rules regarding the frequency, time, location, notice, and

15  manner of record inspections and copying. The failure of an

16  association to provide the records within 10 working days

17  after receipt of a written request shall create a rebuttable

18  presumption that the association willfully failed to comply

19  with this paragraph.  A unit owner who is denied access to

20  official records is entitled to the actual damages or minimum

21  damages for the association's willful failure to comply with

22  this paragraph.  The minimum damages shall be $50 per calendar

23  day up to 10 days, the calculation to begin on the 11th

24  working day after receipt of the written request.  The failure

25  to permit inspection of the association records as provided

26  herein entitles any person prevailing in an enforcement action

27  to recover reasonable attorney's fees from the person in

28  control of the records who, directly or indirectly, knowingly

29  denied access to the records for inspection.  The association

30  shall maintain an adequate number of copies of the

31  declaration, articles of incorporation, bylaws, and rules, and

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 1  all amendments to each of the foregoing, as well as the

 2  question and answer sheet provided for in s. 718.504 and

 3  year-end financial information required in this section on the

 4  condominium property to ensure their availability to unit

 5  owners and prospective purchasers, and may charge its actual

 6  costs for preparing and furnishing these documents to those

 7  requesting the same. Notwithstanding the provisions of this

 8  paragraph, the following records shall not be accessible to

 9  unit owners:

10         1.  Any record protected by the lawyer-client privilege

11  as described in s. 90.502, and any record protected by the

12  work-product privilege including any A record which was

13  prepared by an association attorney or prepared at the

14  attorney's express direction, which reflects a mental

15  impression, conclusion, litigation strategy, or legal theory

16  of the attorney or the association, and which was prepared

17  exclusively for civil or criminal litigation or for

18  adversarial administrative proceedings, or which was prepared

19  in anticipation of imminent civil or criminal litigation or

20  imminent adversarial administrative proceedings until the

21  conclusion of the litigation or adversarial administrative

22  proceedings.

23         2.  Information obtained by an association in

24  connection with the approval of the lease, sale, or other

25  transfer of a unit.

26         3.  Medical records of unit owners.

27         (13)  FINANCIAL REPORTING REPORTS.--Within 90 days

28  after the end of the fiscal year, or annually on a date

29  provided in the bylaws, the association shall prepare and

30  complete, or cause to be prepared and completed by a third

31  party, a financial report for the preceding fiscal year.

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 1  Within 21 days after the financial report is completed or

 2  received by the association from the third party, the

 3  association shall mail to each unit owner at the address last

 4  furnished to the association by the unit owner, or hand

 5  deliver to each unit owner, a copy of the financial report or

 6  a notice that a copy of the financial report will be mailed or

 7  hand delivered to the unit owner, without charge, upon receipt

 8  of a written request from the unit owner.  The division shall

 9  adopt rules setting forth uniform accounting principles and

10  standards to be used by all associations and shall adopt rules

11  addressing financial reporting requirements for

12  multicondominium associations.  In adopting such rules, the

13  division shall consider the number of members and annual

14  revenues of an association.  Financial reports shall be

15  prepared as follows:

16         (a)  An association that meets the criteria of this

17  paragraph shall prepare or cause to be prepared a complete set

18  of financial statements in accordance with generally accepted

19  accounting principles.  The financial statements shall be

20  based upon the association's total annual revenues, as

21  follows:

22         1.  An association with total annual revenues of

23  $100,000 or more, but less than $200,000, shall prepare

24  compiled financial statements.

25         2.  An association with total annual revenues of at

26  least $200,000, but less than $400,000, shall prepare reviewed

27  financial statements.

28         3.  An association with total annual revenues of

29  $400,000 or more shall prepare audited financial statements.

30         (b)1.  An association with total annual revenues of

31  less than $100,000 shall prepare a report of cash receipts and

                                  16
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  expenditures.

 2         2.  An association which operates less than 50 units,

 3  regardless of the association's annual revenues, shall prepare

 4  a report of cash receipts and expenditures in lieu of

 5  financial statements required by paragraph (a).

 6         3.  A report of cash receipts and disbursements must

 7  disclose the amount of receipts by accounts and receipt

 8  classifications and the amount of expenses by accounts and

 9  expense classifications, including, but not limited to, the

10  following, as applicable: costs for security, professional and

11  management fees and expenses, taxes, costs for recreation

12  facilities, expenses for refuse collection and utility

13  services, expenses for lawn care, costs for building

14  maintenance and repair, insurance costs, administration and

15  salary expenses, and reserves accumulated and expended for

16  capital expenditures, deferred maintenance, and any other

17  category for which the association maintains reserves.

18         (c)  An association may prepare or cause to be

19  prepared, without a meeting of or approval by the unit owners:

20         1.  Compiled, reviewed, or audited financial

21  statements, if the association is required to prepare a report

22  of cash receipts and expenditures;

23         2.  Reviewed or audited financial statements, if the

24  association is required to prepare compiled financial

25  statements; or

26         3.  Audited financial statements if the association is

27  required to prepare reviewed financial statements.

28         (d)  If approved by a majority of the voting interests

29  present at a properly called meeting of the association, an

30  association may prepare or cause to be prepared:

31         1.  A report of cash receipts and expenditures in lieu

                                  17
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  of a compiled, reviewed, or audited financial statement;

 2         2.  A report of cash receipts and expenditures or a

 3  compiled financial statement in lieu of a reviewed or audited

 4  financial statement; or

 5         3.  A report of cash receipts and expenditures, a

 6  compiled financial statement, or a reviewed financial

 7  statement in lieu of an audited financial statement.

 8

 9  Such meeting and approval must occur prior to the end of the

10  fiscal year and is effective only for the fiscal year in which

11  the vote is taken.  With respect to an association to which

12  the developer has not turned over control of the association,

13  all unit owners, including the developer, may vote on issues

14  related to the preparation of financial reports for the first

15  2 fiscal years of the association's operation, beginning with

16  the fiscal year in which the declaration is recorded.

17  Thereafter, all unit owners except the developer may vote on

18  such issues until control is turned over to the association by

19  the developer. Within 60 days following the end of the fiscal

20  or calendar year or annually on such date as is otherwise

21  provided in the bylaws of the association, the board of

22  administration of the association shall mail or furnish by

23  personal delivery to each unit owner a complete financial

24  report of actual receipts and expenditures for the previous 12

25  months, or a complete set of financial statements for the

26  preceding fiscal year prepared in accordance with generally

27  accepted accounting principles. The report shall show the

28  amounts of receipts by accounts and receipt classifications

29  and shall show the amounts of expenses by accounts and expense

30  classifications, including, if applicable, but not limited to,

31  the following:

                                  18
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1         (a)  Costs for security;

 2         (b)  Professional and management fees and expenses;

 3         (c)  Taxes;

 4         (d)  Costs for recreation facilities;

 5         (e)  Expenses for refuse collection and utility

 6  services;

 7         (f)  Expenses for lawn care;

 8         (g)  Costs for building maintenance and repair;

 9         (h)  Insurance costs;

10         (i)  Administrative and salary expenses; and

11         (j)  Reserves for capital expenditures, deferred

12  maintenance, and any other category for which the association

13  maintains a reserve account or accounts.

14         (14)  The division shall adopt rules which may require

15  that the association deliver to the unit owners, in lieu of

16  the financial report required by subsection (13), a complete

17  set of financial statements for the preceding fiscal year.

18  The financial statements shall be delivered within 90 days

19  following the end of the previous fiscal year or annually on

20  such other date as provided by the bylaws. The rules of the

21  division may require that the financial statements be

22  compiled, reviewed, or audited, and the rules shall take into

23  consideration the criteria set forth in s. 718.501(1)(j). The

24  requirement to have the financial statements compiled,

25  reviewed, or audited does not apply to associations when a

26  majority of the voting interests of the association present at

27  a duly called meeting of the association have determined for a

28  fiscal year to waive this requirement.  In an association in

29  which turnover of control by the developer has not occurred,

30  the developer may vote to waive the audit requirement for the

31  first 2 years of the operation of the association, after which

                                  19
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  time waiver of an applicable audit requirement shall be by a

 2  majority of voting interests other than the developer.  The

 3  meeting shall be held prior to the end of the fiscal year, and

 4  the waiver shall be effective for only 1 fiscal year.  This

 5  subsection does not apply to a condominium which consists of

 6  50 or fewer units.

 7         (14)(15)  COMMINGLING.--All funds collected by an

 8  association shall be maintained separately in the

 9  association's name.  For investment purposes only, reserve

10  funds may be commingled with operating funds of the

11  association.  Commingled operating and reserve funds shall be

12  accounted for separately and a commingled account shall not,

13  at any time, be less than the amount identified as reserve

14  funds.  This subsection does not prohibit a multicondominium

15  association from commingling the operating funds of separate

16  condominiums or the reserve funds of separate condominiums.

17  Furthermore, for investment purposes only, a multicondominium

18  association may commingle the operating funds of separate

19  condominiums with the reserve funds of separate condominiums.

20  A manager or business entity required to be licensed or

21  registered under s. 468.432, or an agent, employee, officer,

22  or director of an association, shall not commingle any

23  association funds with his or her funds or with the funds of

24  any other condominium association or the funds of a community

25  association as defined in s. 468.431. All funds shall be

26  maintained separately in the association's name.  Reserve and

27  operating funds of the association shall not be commingled

28  unless combined for investment purposes. This subsection is

29  not meant to prohibit prudent investment of association funds

30  even if combined with operating or other reserve funds of the

31  same association, but such funds must be accounted for

                                  20
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  separately, and the combined account balance may not, at any

 2  time, be less than the amount identified as reserve funds in

 3  the combined account. No manager or business entity required

 4  to be licensed or registered under s. 468.432, and no agent,

 5  employee, officer, or director of a condominium association

 6  shall commingle any association funds with his or her funds or

 7  with the funds of any other condominium association or

 8  community association as defined in s. 468.431.

 9         Section 53.  Paragraphs (d), (e), and (f) of subsection

10  (2) of section 718.112, Florida Statutes, are amended to read:

11         718.112  Bylaws.--

12         (2)  REQUIRED PROVISIONS.--The bylaws shall provide for

13  the following and, if they do not do so, shall be deemed to

14  include the following:

15         (d)  Unit owner meetings.--

16         1.  There shall be an annual meeting of the unit

17  owners. Unless the bylaws provide otherwise, a vacancy on the

18  board of administration caused by the expiration of a

19  director's term shall be filled by electing a new board

20  member, and the election shall be by secret ballot; however,

21  if the number of vacancies equals or exceeds the number of

22  candidates, no election is required. If there is no provision

23  in the bylaws for terms of the members of the board of

24  administration, the terms of all members of the board of

25  administration shall expire upon the election of their

26  successors at the annual meeting. Any unit owner desiring to

27  be a candidate for board membership shall comply with

28  subparagraph 3. In order to be eligible for board membership,

29  a person must meet the requirements set forth in the

30  declaration. A person who has been convicted of any felony by

31  any court of record in the United States and who has not had

                                  21
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  his or her right to vote restored pursuant to law in the

 2  jurisdiction of his or her residence is not eligible for board

 3  membership. The validity of an action by the board is not

 4  affected if it is later determined that a member of the board

 5  is ineligible for board membership due to having been

 6  convicted of a felony.

 7         2.  The bylaws shall provide the method of calling

 8  meetings of unit owners, including annual meetings. Written

 9  notice, which notice must include an agenda, shall be mailed

10  or hand delivered to each unit owner at least 14 days prior to

11  the annual meeting and shall be posted in a conspicuous place

12  on the condominium property at least 14 continuous days

13  preceding the annual meeting. Upon notice to the unit owners,

14  the board shall by duly adopted rule designate a specific

15  location on the condominium property or association property

16  upon which all notices of unit owner meetings shall be posted;

17  however, if there is no condominium property or association

18  property upon which notices can be posted, this requirement

19  does not apply. Unless a unit owner waives in writing the

20  right to receive notice of the annual meeting by mail, such

21  the notice of the annual meeting shall be hand delivered or

22  mailed sent by mail to each unit owner. Notice for meetings

23  and notice for all other purposes shall be mailed to each unit

24  owner at the address last furnished to the association by the

25  unit owner, or hand delivered to each unit owner. However, if

26  Where a unit is owned by more than one person, the association

27  shall provide notice, for meetings and all other purposes, to

28  that one address which the developer initially identifies for

29  that purpose and thereafter as one or more of the owners of

30  the unit shall so advise the association in writing, or if no

31  address is given or the owners of the unit do not agree, to

                                  22
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  the address provided on the deed of record. An officer of the

 2  association, or the manager or other person providing notice

 3  of the association meeting, shall provide an affidavit or

 4  United States Postal Service certificate of mailing, to be

 5  included in the official records of the association affirming

 6  that the notice was mailed or hand delivered, in accordance

 7  with this provision, to each unit owner at the address last

 8  furnished to the association.

 9         3.  The members of the board of administration shall be

10  elected by written ballot or voting machine. Proxies shall in

11  no event be used in electing the board of administration,

12  either in general elections or elections to fill vacancies

13  caused by recall, resignation, or otherwise, unless otherwise

14  provided in this chapter. Not less than 60 days before a

15  scheduled election, the association shall mail or deliver,

16  whether by separate association mailing or included in another

17  association mailing or delivery including regularly published

18  newsletters, to each unit owner entitled to a vote, a first

19  notice of the date of the election. Any unit owner or other

20  eligible person desiring to be a candidate for the board of

21  administration must give written notice to the association not

22  less than 40 days before a scheduled election.  Together with

23  the written notice and agenda as set forth in subparagraph 2.,

24  the association shall mail or deliver a second notice of the

25  election to all unit owners entitled to vote therein, together

26  with a ballot which shall list all candidates. Upon request of

27  a candidate, the association shall include an information

28  sheet, no larger than 8 1/2  inches by 11 inches, which must

29  be furnished by the candidate not less than 35 days before the

30  election, to be included with the mailing of the ballot, with

31  the costs of mailing or delivery and copying to be borne by

                                  23
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  the association. However, The association is not liable has no

 2  liability for the contents of the information sheets prepared

 3  by the candidates.  In order to reduce costs, the association

 4  may print or duplicate the information sheets on both sides of

 5  the paper. The division shall by rule establish voting

 6  procedures consistent with the provisions contained herein,

 7  including rules providing for the secrecy of ballots.

 8  Elections shall be decided by a plurality of those ballots

 9  cast. There shall be no quorum requirement; however, at least

10  20 percent of the eligible voters must cast a ballot in order

11  to have a valid election of members of the board of

12  administration. No unit owner shall permit any other person to

13  vote his or her ballot, and any such ballots improperly cast

14  shall be deemed invalid, provided any unit owner who violates

15  this provision may be fined by the association in accordance

16  with s. 718.303. A unit owner who needs assistance in casting

17  the ballot for the reasons stated in s. 101.051 may obtain

18  assistance in casting the ballot. Any unit owner violating

19  this provision may be fined by the association in accordance

20  with s. 718.303. The regular election shall occur on the date

21  of the annual meeting. The provisions of this subparagraph

22  shall not apply to timeshare condominium associations.

23  Notwithstanding the provisions of this subparagraph, an

24  election is and balloting are not required unless more

25  candidates file notices of intent to run or are nominated than

26  board vacancies exist on the board.

27         4.  Any approval by unit owners called for by this

28  chapter or the applicable declaration or bylaws, including,

29  but not limited to, the approval requirement in s. 718.111(8),

30  shall be made at a duly noticed meeting of unit owners and

31  shall be subject to all requirements of this chapter or the

                                  24
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  applicable condominium documents relating to unit owner

 2  decisionmaking, except that unit owners may take action by

 3  written agreement, without meetings, on matters for which

 4  action by written agreement without meetings is expressly

 5  allowed by the applicable bylaws or declaration or any statute

 6  that provides for such action.

 7         5.  Unit owners may waive notice of specific meetings

 8  if allowed by the applicable bylaws or declaration or any

 9  statute.

10         6.  Unit owners shall have the right to participate in

11  meetings of unit owners with reference to all designated

12  agenda items. However, the association may adopt reasonable

13  rules governing the frequency, duration, and manner of unit

14  owner participation.

15         7.  Any unit owner may tape record or videotape a

16  meeting of the unit owners subject to reasonable rules adopted

17  by the division.

18         8.  Unless otherwise provided in the bylaws, any

19  vacancy occurring on the board before the expiration of a term

20  may be filled by the affirmative vote of the majority of the

21  remaining directors, even if the remaining directors

22  constitute less than a quorum, or by the sole remaining

23  director. In the alternative, a board may hold an election to

24  fill the vacancy, in which case the election procedures must

25  conform to the requirements of subparagraph 3. unless the

26  association has opted out of the statutory election process,

27  in which case the bylaws of the association control. Unless

28  otherwise provided in the bylaws, a board member appointed or

29  elected under this section shall fill the vacancy for the

30  unexpired term of the seat being filled. Filling vacancies

31  created by recall is governed by paragraph (j) and rules

                                  25
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  adopted by the division.

 2

 3  Notwithstanding subparagraphs (b)2. and (d)3., an association

 4  may, by the affirmative vote of a majority of the total voting

 5  interests, provide for different voting and election

 6  procedures in its bylaws, which vote may be by a proxy

 7  specifically delineating the different voting and election

 8  procedures. The different voting and election procedures may

 9  provide for elections to be conducted by limited or general

10  proxy.

11         (e)  Budget meeting.--

12         1.  Any meeting at which a proposed annual budget of an

13  association will be considered by the board or unit owners

14  shall be open to all unit owners. At least 14 days prior to

15  such a meeting, the board shall hand deliver to each unit

16  owner, or mail to each unit owner at the address last

17  furnished to the association by the unit owner, a notice of

18  such meeting and a copy of the proposed annual budget. An

19  officer or manager of the association, or other person

20  providing notice of such meeting, shall execute an affidavit

21  evidencing compliance with such notice requirement and such

22  affidavit shall be filed among the official records of the

23  association.

24         2.a.  If a board adopts in any fiscal year an annual

25  budget which requires assessments against unit owners which

26  exceed 115 percent of assessments for the preceding fiscal

27  year, the board shall conduct a special meeting of the unit

28  owners to consider a substitute budget if the board receives,

29  within 21 days after adoption of the annual budget, a written

30  request for a special meeting from at least 10 percent of all

31  voting interests.  The special meeting shall be conducted

                                  26
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  within 60 days after adoption of the annual budget.  At least

 2  14 days prior to such special meeting, the board shall hand

 3  deliver to each unit owner, or mail to each unit owner at the

 4  address last furnished to the association, a notice of the

 5  meeting. An officer or manager of the association, or other

 6  person providing notice of such meeting shall execute an

 7  affidavit evidencing compliance with this notice requirement

 8  and such affidavit shall be filed among the official records

 9  of the association.  Unit owners may consider and adopt a

10  substitute budget at the special meeting. A substitute budget

11  is adopted if approved by a majority of all voting interests

12  unless the bylaws require adoption by a greater percentage of

13  voting interests.  If there is not a quorum at the special

14  meeting or a substitute budget is not adopted, the annual

15  budget previously adopted by the board shall take effect as

16  scheduled.

17         b.  Any determination of whether assessments exceed 115

18  percent of assessments for the prior fiscal year shall exclude

19  any authorized provision for reasonable reserves for repair or

20  replacement of the condominium property, anticipated expenses

21  of the association which the board does not expect to be

22  incurred on a regular or annual basis, or assessments for

23  betterments to the condominium property.

24         c.  If the developer controls the board, assessments

25  shall not exceed 115 percent of assessments for the prior

26  fiscal year unless approved by a majority of all voting

27  interests. The board of administration shall hand deliver to

28  each unit owner, or mail to each unit owner at the address

29  last furnished to the association, a meeting notice and copies

30  of the proposed annual budget of common expenses not less than

31  14 days prior to the meeting of the unit owners or the board

                                  27
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  of administration at which the budget will be considered.

 2  Evidence of compliance with this 14-day notice must be made by

 3  an affidavit executed by an officer of the association or the

 4  manager or other person providing notice of the meeting and

 5  filed among the official records of the association.  The

 6  meeting must be open to the unit owners.  If an adopted budget

 7  requires assessments against the unit owners in any fiscal or

 8  calendar year which exceed 115 percent of the assessments for

 9  the preceding year, the board, upon written application of 10

10  percent of the voting interests to the board, shall call a

11  special meeting of the unit owners within 30 days upon not

12  less than 10 days' written notice to each unit owner.  At the

13  special meeting, unit owners shall consider and enact a

14  budget.  Unless the bylaws require a larger vote, the adoption

15  of the budget requires a vote of not less than a majority vote

16  of all the voting interests. The board of administration may

17  propose a budget to the unit owners at a meeting of members or

18  in writing, and if the budget or proposed budget is approved

19  by the unit owners at the meeting or by a majority of all the

20  voting interests in writing, the budget is adopted. If a

21  meeting of the unit owners has been called and a quorum is not

22  attained or a substitute budget is not adopted by the unit

23  owners, the budget adopted by the board of directors goes into

24  effect as scheduled.  In determining whether assessments

25  exceed 115 percent of similar assessments in prior years, any

26  authorized provisions for reasonable reserves for repair or

27  replacement of the condominium property, anticipated expenses

28  by the condominium association which are not anticipated to be

29  incurred on a regular or annual basis, or assessments for

30  betterments to the condominium property must be excluded from

31  the computation.  However, as long as the developer is in

                                  28
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  control of the board of administration, the board may not

 2  impose an assessment for any year greater than 115 percent of

 3  the prior fiscal or calendar year's assessment without

 4  approval of a majority of all the voting interests.

 5         (f)  Annual budget.--

 6         1.  The proposed annual budget of common expenses shall

 7  be detailed and shall show the amounts budgeted by accounts

 8  and expense classifications, including, if applicable, but not

 9  limited to, those expenses listed in s. 718.504(21) s.

10  718.504(20). A multicondominium association shall adopt a

11  separate budget of common expenses for each condominium the

12  association operates and shall adopt a separate budget of

13  common expenses for the association. In addition, if the

14  association maintains limited common elements with the cost to

15  be shared only by those entitled to use the limited common

16  elements as provided for in s. 718.113(1), the budget or a

17  schedule attached thereto shall show amounts budgeted

18  therefor. If, after turnover of control of the association to

19  the unit owners, any of the expenses listed in s. 718.504(21)

20  s. 718.504(20) are not applicable, they need not be listed.

21         2.  In addition to annual operating expenses, the

22  budget shall include reserve accounts for capital expenditures

23  and deferred maintenance. These accounts shall include, but

24  are not limited to, roof replacement, building painting, and

25  pavement resurfacing, regardless of the amount of deferred

26  maintenance expense or replacement cost, and for any other

27  item for which the deferred maintenance expense or replacement

28  cost exceeds $10,000. The amount to be reserved shall be

29  computed by means of a formula which is based upon estimated

30  remaining useful life and estimated replacement cost or

31  deferred maintenance expense of each reserve item.  The

                                  29
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  association may adjust replacement reserve assessments

 2  annually to take into account any changes in estimates or

 3  extension of the useful life of a reserve item caused by

 4  deferred maintenance. This subsection does not apply to an

 5  adopted budget budgets in which the members of an association

 6  have determined, by a majority vote at a duly called meeting

 7  of the association, and voting determined for a fiscal year to

 8  provide no reserves or less reserves less adequate than

 9  required by this subsection. However, prior to turnover of

10  control of an association by a developer to unit owners other

11  than a developer pursuant to s. 718.301, the developer may

12  vote to waive the reserves or reduce the funding of reserves

13  for the first 2 fiscal years of the association's operation of

14  the association, beginning with the fiscal year in which the

15  initial declaration is recorded, after which time reserves may

16  be waived or reduced only upon the vote of a majority of all

17  nondeveloper voting interests voting in person or by limited

18  proxy at a duly called meeting of the association. If a

19  meeting of the unit owners has been called to determine

20  whether to waive or reduce the funding of to provide no

21  reserves or reserves less adequate than required, and no such

22  result is achieved not attained or a quorum is not attained,

23  the reserves as included in the budget shall go into effect.

24  After the turnover, the developer may vote its voting interest

25  to waive or reduce the funding of reserves.

26         3.  Reserve funds and any interest accruing thereon

27  shall remain in the reserve account or accounts, and shall be

28  used only for authorized reserve expenditures unless their use

29  for other purposes is approved in advance by a majority vote

30  at a duly called meeting of the association. Prior to turnover

31  of control of an association by a developer to unit owners

                                  30
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  other than the developer pursuant to s. 718.301, the

 2  developer-controlled association shall not vote to use

 3  reserves for purposes other than that for which they were

 4  intended without the approval of a majority of all

 5  nondeveloper voting interests, voting in person or by limited

 6  proxy at a duly called meeting of the association.

 7         4.  In a multicondominium association, the only voting

 8  interests which are eligible to vote on questions that involve

 9  waiving or reducing the funding of reserves, or using existing

10  reserve funds for purposes other than purposes for which the

11  reserves were intended, are the voting interests of the units

12  subject to assessment to fund the reserves in question.

13         Section 54.  Subsection (2) of section 718.113, Florida

14  Statutes, is amended to read:

15         718.113  Maintenance; limitation upon improvement;

16  display of flag; hurricane shutters.--

17         (2)(a)  Except as otherwise provided in this section,

18  there shall be no material alteration or substantial additions

19  to the common elements or to real property which is

20  association property, except in a manner provided in the

21  declaration.  If the declaration does not specify the

22  procedure for approval of material alterations or substantial

23  additions, 75 percent of the total voting interests of the

24  association must approve the alterations or additions.

25         (b)  There shall not be any material alteration of, or

26  substantial addition to, the common elements of any

27  condominium operated by a multicondominium association unless

28  approved in the manner provided in the declaration of the

29  affected condominium or condominiums. If a declaration does

30  not specify a procedure for approving such an alteration or

31  addition, the approval of 75 percent of the total voting

                                  31
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  interests of each affected condominium is required. This

 2  subsection does not prohibit a provision in any declaration,

 3  articles of incorporation, or bylaws requiring the approval of

 4  unit owners in any condominium operated by the same

 5  association or requiring board approval before a material

 6  alteration or substantial addition to the common elements is

 7  permitted.

 8         (c)  There shall not be any material alteration or

 9  substantial addition made to association real property

10  operated by a multicondominium association, except as provided

11  in the declaration, articles of incorporation, or bylaws. If

12  the declaration, articles of incorporation, or bylaws do not

13  specify the procedure for approving an alteration or addition

14  to association real property, the approval of 75 percent of

15  the total voting interests of the association is required.

16         Section 55.  Section 718.115, Florida Statutes, is

17  amended to read:

18         718.115  Common expenses and common surplus.--

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

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

21  the common elements and association property, costs of

22  carrying out the powers and duties of the association, and any

23  other expense, whether or not included in the foregoing,

24  designated as common expense by this chapter, the declaration,

25  the documents creating the association, or the bylaws.  Common

26  expenses also include reasonable transportation services,

27  insurance for directors and officers, road maintenance and

28  operation expenses, in-house communications, and security

29  services, which are reasonably related to the general benefit

30  of the unit owners even if such expenses do not attach to the

31  common elements or property of the condominium.  However, such

                                  32
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  common expenses must either have been services or items

 2  provided on or after from the date the control of the board of

 3  administration of the association is was transferred from the

 4  developer to the unit owners or must be services or items

 5  provided for in the condominium documents or bylaws.

 6         (b)  The common expenses of a condominium within a

 7  multicondominium are the common expenses directly attributable

 8  to the operation of that condominium. The common expenses of a

 9  multicondominium association do not include the common

10  expenses directly attributable to the operation of any

11  specific condominium or condominiums within the

12  multicondominium.

13         (c)  The common expenses of a multicondominium

14  association may include categories of expenses related to the

15  property or common elements within a specific condominium in

16  the multicondominium if such property or common elements are

17  areas in which all members of the multicondominium association

18  have use rights or from which all members receive tangible

19  economic benefits. Such common expenses of the association

20  shall be identified in the declaration or bylaws of each

21  condominium within the multicondominium association.

22         (d)(b)  If so provided in the declaration, the cost of

23  a master antenna television system or duly franchised cable

24  television service obtained pursuant to a bulk contract shall

25  be deemed a common expense. If the declaration does not

26  provide for the cost of a master antenna television system or

27  duly franchised cable television service obtained under a bulk

28  contract as a common expense, the board of administration may

29  enter into such a contract, and the cost of the service will

30  be a common expense but allocated on a per-unit basis rather

31  than a percentage basis if the declaration provides for other

                                  33
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  than an equal sharing of common expenses, and any contract

 2  entered into before July 1, 1998, in which the cost of the

 3  service is not equally divided among all unit owners, may be

 4  changed by vote of a majority of the voting interests present

 5  at a regular or special meeting of the association, to

 6  allocate the cost equally among all units. The contract shall

 7  be for a term of not less than 2 years.

 8         1.  Any contract made by the board after the effective

 9  date hereof for a community antenna system or duly franchised

10  cable television service may be canceled by a majority of the

11  voting interests present at the next regular or special

12  meeting of the association.  Any member may make a motion to

13  cancel said contract, but if no motion is made or if such

14  motion fails to obtain the required majority at the next

15  regular or special meeting, whichever is sooner, following the

16  making of the contract, then such contract shall be deemed

17  ratified for the term therein expressed.

18         2.  Any such contract shall provide, and shall be

19  deemed to provide if not expressly set forth, that any hearing

20  impaired or legally blind unit owner who does not occupy the

21  unit with a non-hearing-impaired or sighted person, or any

22  unit owner receiving supplemental security income under Title

23  XVI of the Social Security Act or food stamps as administered

24  by the Department of Children and Family Services pursuant to

25  s. 414.31, may discontinue the service without incurring

26  disconnect fees, penalties, or subsequent service charges, and

27  as to such units, the owners shall not be required to pay any

28  common expenses charge related to such service. If less than

29  all members of an association share the expenses of cable

30  television, the expense shall be shared equally by all

31  participating unit owners. The association may use the

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  provisions of s. 718.116 to enforce payment of the shares of

 2  such costs by the unit owners receiving cable television.

 3         (e)(c)  The expense of installation, replacement,

 4  operation, repair, and maintenance of hurricane shutters by

 5  the board pursuant to s. 718.113(5) shall constitute a common

 6  expense as defined herein and shall be collected as provided

 7  in this section. Notwithstanding the provisions of s.

 8  718.116(9), a unit owner who has previously installed

 9  hurricane shutters in accordance with s. 718.113(5) or

10  laminated glass architecturally designed to function as

11  hurricane protection which complies with the applicable

12  building code shall receive a credit equal to the pro rata

13  portion of the assessed installation cost assigned to each

14  unit. However, such unit owner shall remain responsible for

15  the pro rata share of expenses for hurricane shutters

16  installed on common elements and association property by the

17  board pursuant to s. 718.113(5), and shall remain responsible

18  for a pro rata share of the expense of the replacement,

19  operation, repair, and maintenance of such shutters.

20         (f)(d)  If any unpaid share of common expenses or

21  assessments is extinguished by foreclosure of a superior lien

22  or by a deed in lieu of foreclosure thereof, the unpaid share

23  of common expenses or assessments are common expenses

24  collectible from all the unit owners in the condominium in

25  which the unit is located.

26         (2)  Except as otherwise provided by this chapter,

27  funds for the payment of the common expenses of a condominium

28  shall be collected by assessments against the units in that

29  condominium unit owners in the proportions or percentages

30  provided in that condominium's the declaration.  In a

31  residential condominium, or mixed-use condominium created

                                  35
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  after January 1, 1996, each unit's share unit owners' shares

 2  of the common expenses of the condominium and common surplus

 3  of the condominium shall be the same as the unit's appurtenant

 4  in the same proportions as their ownership interest in the

 5  common elements.

 6         (3)  Common surplus is owned by unit owners in the same

 7  shares as their ownership interest in the common elements.

 8         (4)(a)  Funds for payment of the common expenses of a

 9  condominium within a multicondominium shall be collected as

10  provided in subsection (2).  Common expenses of a

11  multicondominium association shall be funded by assessments

12  against all unit owners in the association in the proportion

13  or percentage set forth in the declaration as required by s.

14  718.104(4)(h) or s. 718.110(12), as applicable.

15         (b)  In a multicondominium association, the total

16  common surplus owned by a unit owner consists of that owner's

17  share of the common surplus of the association plus that

18  owner's share of the common surplus of the condominium in

19  which the owner's unit is located, in the proportion or

20  percentage set forth in the declaration as required by s.

21  718.104(4)(h) or s. 718.110(12), as applicable.

22         Section 56.  Subsection (9) of section 718.116, Florida

23  Statutes, is amended to read:

24         (Substantial rewording of subsection.  See

25         s. 718.116(9), F.S., for present text.)

26         718.116  Assessments; liability; lien and priority;

27  interest; collection.--

28         (9)(a)  A unit owner may not be excused from payment of

29  the unit owner's share of common expenses unless all other

30  unit owners are likewise proportionately excluded from

31  payment, except as provided in subsection (1) and in the

                                  36
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  following cases:

 2         1.  If authorized by the declaration, a developer who

 3  is offering units for sale may elect to be excused from

 4  payment of assessments against those unsold units for a stated

 5  period of time after the declaration is recorded.  However,

 6  the developer must pay common expenses incurred during such

 7  period which exceed regular periodic assessments against other

 8  unit owners in the same condominium.  The stated period must

 9  terminate no later than the first day of the fourth calendar

10  month following the month in which the first closing occurs of

11  a purchase contract for a unit in that condominium.  If a

12  developer-controlled association has maintained all insurance

13  coverage required by s. 718.111(11)(a), common expenses

14  incurred during the stated period resulting from a natural

15  disaster or an act of God occurring during the stated period,

16  which are not covered by proceeds from insurance maintained by

17  the association, may be assessed against all unit owners

18  owning units on the date of such natural disaster or act of

19  God, and their respective successors and assigns, including

20  the developer with respect to units owned by the developer. In

21  the event of such an assessment, all units shall be assessed

22  in accordance with s. 718.115(2).

23         2.  A developer who owns condominium units, and who is

24  offering the units for sale, may be excused from payment of

25  assessments against those unsold units for the period of time

26  the developer has guaranteed to all purchasers or other unit

27  owners in the same condominium that assessments will not

28  exceed a stated dollar amount and that the developer will pay

29  any common expenses that exceed the guaranteed amount. Such

30  guarantee may be stated in the purchase contract, declaration,

31  prospectus, or written agreement between the developer and a

                                  37
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  majority of the unit owners other than the developer and may

 2  provide that after the initial guarantee period, the developer

 3  may extend the guarantee for one or more stated periods. If a

 4  developer-controlled association has maintained all insurance

 5  coverage required by s. 718.111(11)(a), common expenses

 6  incurred during a guarantee period, as a result of a natural

 7  disaster or an act of God occurring during the same guarantee

 8  period, which are not covered by the proceeds from such

 9  insurance, may be assessed against all unit owners owning

10  units on the date of such natural disaster or act of God, and

11  their successors and assigns, including the developer with

12  respect to units owned by the developer.  Any such assessment

13  shall be in accordance with s. 718.115(2) or (4), as

14  applicable.

15         (b)  If the purchase contract, declaration, prospectus,

16  or written agreement between the developer and a majority of

17  unit owners other than the developer, provides for the

18  developer to be excused from payment of assessments under

19  paragraph (a), only regular periodic assessments for common

20  expenses as provided for in the declaration and prospectus and

21  disclosed in the estimated operating budget shall be used for

22  payment of common expenses during any period in which the

23  developer is excused. Accordingly, no funds which are

24  receivable from unit purchasers or unit owners and payable to

25  the association, including capital contributions or startup

26  funds collected from unit purchasers at closing, may be used

27  for payment of such common expenses.

28         (c)  If a developer of a multicondominium is excused

29  from payment of assessments under paragraph (a), the

30  developer's financial obligation to the multicondominium

31  association during any period in which the developer is

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  excused from payment of assessments is as follows:

 2         1.  The developer shall pay the common expenses of a

 3  condominium affected by a guarantee, including the funding of

 4  reserves as provided in the adopted annual budget of that

 5  condominium, which exceed the regular periodic assessments at

 6  the guaranteed level against all other unit owners within that

 7  condominium.

 8         2.  The developer shall pay the common expenses of a

 9  multicondominium association, including the funding of

10  reserves as provided in the adopted annual budget of the

11  association, which are allocated to units within a condominium

12  affected by a guarantee and which exceed the regular periodic

13  assessments against all other unit owners within that

14  condominium.

15         Section 57.  Subsection (11) is added to section

16  718.117, Florida Statutes, to read:

17         718.117  Termination.--

18         (11)  This section does not apply to the termination of

19  a condominium incident to a merger of that condominium with

20  one or more other condominiums under s. 718.110(7).

21         Section 58.  Subsection (8) of section 718.403, Florida

22  Statutes, is amended to read:

23         718.403  Phase condominiums.--

24         (8)  Upon recording the declaration of condominium or

25  amendments adding phases pursuant to this section, the

26  developer shall file the recording information with the

27  division within 120 Calendar 30 working days on a form

28  prescribed by the division.

29         Section 59.  Section 718.405, Florida Statutes, is

30  created to read:

31         718.405  Multicondominiums; multicondominium

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  associations.--

 2         (1)  An association may operate more than one

 3  condominium if the declaration for each condominium to be

 4  operated by that association provides for participation in a

 5  multicondominium, in conformity with this section, and

 6  discloses or describes:

 7         (a)  The manner or formula by which the assets,

 8  liabilities, common surplus, and common expenses of the

 9  association will be apportioned among the units within the

10  condominiums operated by the association, in accordance with

11  s. 718.104(4)(g) or (h), as applicable.

12         (b)  Whether unit owners in any other condominium, or

13  any other persons, will or may have the right to use

14  recreational areas or any other facilities or amenities that

15  are common elements of the condominium, and, if so, the

16  specific formula by which the other users will share the

17  common expenses related to those facilities or amenities.

18         (c)  Recreational and other commonly used facilities or

19  amenities which the developer has committed to provide that

20  will be owned, leased by, or dedicated by a recorded plat to

21  the association but which are not included within any

22  condominium operated by the association. The developer may

23  reserve the right to add additional facilities or amenities if

24  the declaration and prospectus for each condominium to be

25  operated by the association contains the following statement

26  in conspicuous type and in substantially the following form:

27  RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT

28  CONSENT OF UNIT OWNERS OR THE ASSOCIATION.

29         (d)  The voting rights of the unit owners in the

30  election of directors and in other multicondominium

31  association affairs when a vote of the owners is taken,

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  including, but not limited to, a statement as to whether each

 2  unit owner will have a right to personally cast his or her own

 3  vote in all matters voted upon.

 4         (2)  If any declaration requires a developer to convey

 5  additional lands or facilities to a multicondominium

 6  association and the developer fails to do so within the time

 7  specified, or within a reasonable time if none is specified in

 8  the declaration, any unit owner or the association may enforce

 9  that obligation against the developer or bring an action

10  against the developer for specific performance or for damages

11  that result from the developer's failure or refusal to convey

12  the additional lands or facilities.

13         (3)  The declaration for each condominium to be

14  operated by a multicondominium association may not, at the

15  time of the initial recording of the declaration, contain any

16  provision with respect to allocation of the association's

17  assets, liabilities, common surplus, or common expenses which

18  is inconsistent with this chapter or the provisions of a

19  declaration for any other condominium then being operated by

20  the multicondominium association.

21         (4)  This section does not prevent or restrict the

22  formation of a multicondominium by the merger or consolidation

23  of two or more condominium associations. Mergers or

24  consolidations of associations shall be accomplished in

25  accordance with this chapter, the declarations of the

26  condominiums being merged or consolidated, and chapter 617.

27  Section 718.110(4) does not apply to amendments to

28  declarations necessary to effect a merger or consolidation.

29         Section 60.  Section 718.5019, Florida Statutes, is

30  repealed.

31         Section 61.  Present subsections (15) through (27) of

                                  41
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  section 718.504, Florida Statutes, are redesignated as

 2  subsections (16) through (28), respectively, and a new

 3  subsection (15) is added to that section, to read:

 4         718.504  Prospectus or offering circular.--Every

 5  developer of a residential condominium which contains more

 6  than 20 residential units, or which is part of a group of

 7  residential condominiums which will be served by property to

 8  be used in common by unit owners of more than 20 residential

 9  units, shall prepare a prospectus or offering circular and

10  file it with the Division of Florida Land Sales, Condominiums,

11  and Mobile Homes prior to entering into an enforceable

12  contract of purchase and sale of any unit or lease of a unit

13  for more than 5 years and shall furnish a copy of the

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

15  the prospectus or offering circular, each buyer shall be

16  furnished a separate page entitled "Frequently Asked Questions

17  and Answers," which shall be in accordance with a format

18  approved by the division and a copy of the financial

19  information required by s. 718.111.  This page shall, in

20  readable language, inform prospective purchasers regarding

21  their voting rights and unit use restrictions, including

22  restrictions on the leasing of a unit; shall indicate whether

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

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

25  other commonly used facilities; shall contain a statement

26  identifying that amount of assessment which, pursuant to the

27  budget, would be levied upon each unit type, exclusive of any

28  special assessments, and which shall further identify the

29  basis upon which assessments are levied, whether monthly,

30  quarterly, or otherwise; shall state and identify any court

31  cases in which the association is currently a party of record

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  in which the association may face liability in excess of

 2  $100,000; and which shall further state whether membership in

 3  a recreational facilities association is mandatory, and if so,

 4  shall identify the fees currently charged per unit type.  The

 5  division shall by rule require such other disclosure as in its

 6  judgment will assist prospective purchasers. The prospectus or

 7  offering circular may include more than one condominium,

 8  although not all such units are being offered for sale as of

 9  the date of the prospectus or offering circular.  The

10  prospectus or offering circular must contain the following

11  information:

12         (15)  If the condominium is or may become part of a

13  multicondominium, the following information must be provided:

14         (a)  A statement in conspicuous type in substantially

15  the following form:  THIS CONDOMINIUM IS (MAY BE) PART OF A

16  MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL

17  (MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately

18  following this statement, the location in the prospectus or

19  offering circular and its exhibits where the multicondominium

20  aspects of the offering are described must be stated.

21         (b)  A summary of the provisions in the declaration,

22  articles of incorporation, and bylaws which establish and

23  provide for the operation of the multicondominium, including a

24  statement as to whether unit owners in the condominium will

25  have the right to use recreational or other facilities located

26  or planned to be located in other condominiums operated by the

27  same association, and the manner of sharing the common

28  expenses related to such facilities.

29         (c)  A statement of the minimum and maximum number of

30  condominiums, and the minimum and maximum number of units in

31  each of those condominiums, which will or may be operated by

                                  43
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1  the association, and the latest date by which the exact number

 2  will be finally determined.

 3         (d)  A statement as to whether any of the condominiums

 4  in the multicondominium may include units intended to be used

 5  for nonresidential purposes and the purpose or purposes

 6  permitted for such use.

 7         (e)  A general description of the location and

 8  approximate acreage of any land on which any additional

 9  condominiums to be operated by the association may be located.

10         Section 62.  Paragraph (j) of subsection (1) of section

11  718.501, Florida Statutes, is repealed.

12

13  (Redesignate subsequent sections.)

14

15

16  ================ T I T L E   A M E N D M E N T ===============

17  And the title is amended as follows:

18         On page 1, lines 2 and 3, delete those lines,

19

20  and insert:

21         An act relating to real property; amending s.

22         617.3075, F.S.; prohibiting homeowners'

23         associations from prohibiting display of the

24         United States flag; amending s. 718.103, F.S.;

25         revising definitions; providing an additional

26         definition; amending s. 718.104, F.S.;

27         providing additional requirements for a

28         declaration of condominium; modifying time

29         period for filing recorded documents; providing

30         for determining the percentage share of

31         liability for common expenses and ownership;

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1         amending s. 718.106, F.S.; providing for the

 2         right to assign exclusive use; providing for

 3         the right to seek election; amending s.

 4         718.110, F.S.; clarifying requirements for

 5         amending and recording the declaration of

 6         condominium; providing for determining the

 7         percentage share of liability for common

 8         expenses and ownership for purposes of

 9         condominiums comprising a multicondominium

10         development; amending s. 718.111, F.S.;

11         clarifying an attorney-client privilege;

12         revising requirements for financial reporting;

13         authorizing certain financial statements in

14         lieu of reports; deleting requirements for

15         financial statements; revising certain

16         limitations on the commingling of funds

17         maintained in the name of a condominium

18         association or multicondominium; amending s.

19         718.112, F.S.; revising requirements for budget

20         meetings; requiring separate budgets for

21         condominiums and associations; providing

22         conditions under which a multicondominium

23         association may waive or reduce its funding of

24         reserves; amending s. 718.113, F.S.; providing

25         certain limitations on making material

26         alterations or additions to multicondominiums;

27         providing a procedure for approving an

28         alteration or addition if not provided for in

29         the bylaws; revising requirements for

30         condominium boards with respect to installing

31         and maintaining hurricane shutters; specifying

                                  45
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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1         expenses that constitute common expenses of a

 2         multicondominium association; providing for an

 3         association's bylaws to allow certain

 4         educational expenses of the officers or

 5         directors to be a permitted common expense;

 6         amending s. 718.115, F.S.; providing for

 7         determining the common surplus owned by a unit

 8         owner of a multicondominium; authorizing

 9         condominium households receiving supplemental

10         security income or food stamps to discontinue

11         cable television service without fees,

12         penalties, or service charges; amending s.

13         718.116, F.S.; revising circumstances under

14         which a developer may be excused from paying

15         certain common expenses and assessments;

16         providing for the developer's obligation for

17         such expenses with respect to a

18         multicondominium association; amending s.

19         718.117, F.S.; providing that certain

20         requirements governing the termination of a

21         condominium are inapplicable to the merger of a

22         condominium with one or more other

23         condominiums; amending s. 718.403, F.S.;

24         modifying time period for filing recorded

25         documents; creating s. 718.405, F.S.; providing

26         for the creation of multicondominiums;

27         providing requirements for the declaration of

28         condominium; providing for the merger or

29         consolidation of condominium associations;

30         repealing s. 718.5019, F.S., relating to the

31         Advisory Council on Condominiums; amending s.

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                                                  SENATE AMENDMENT

    Bill No. CS/CS/HB 593

    Amendment No.    





 1         718.504, F.S.; providing requirements for the

 2         prospectus or offering circular for a

 3         condominium that is or may become part of a

 4         multicondominium; amending s. 721.13, F.S.;

 5         conforming a cross-reference; repealing s.

 6         718.501(1)(j), F.S., relating to uniform

 7         accounting principles, policies, and standards

 8         required to be adopted by the Division of

 9         Florida Land Sales, Condominiums, and Mobile

10         Homes of the Department of Business and

11         Professional Regulation; amending s. 719.103,

12         F.S.; providing for

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