Senate Bill sb1184c3

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    Florida Senate - 2004             CS for CS for CS for SB 1184

    By the Committees on Judiciary; Health, Aging, and Long-Term
    Care; Comprehensive Planning; and Senators Campbell and Lynn




    308-2394-04

  1                      A bill to be entitled

  2         An act relating to condominium and community

  3         associations; amending s. 718.111, F.S.;

  4         providing immunity from liability for certain

  5         information provided by associations to

  6         prospective purchasers or lienholders under

  7         certain circumstances; amending s. 720.303,

  8         F.S.; requiring specific notice to be given to

  9         association members before certain assessments

10         or rule changes may be considered at a meeting;

11         amending s. 768.1325, F.S.; providing immunity

12         from civil liability for community associations

13         that provide automated defibrillator devices

14         under certain circumstances; prohibiting

15         insurers from requiring associations to

16         purchase medical malpractice coverage as a

17         condition of issuing other coverage;

18         prohibiting insurers from excluding from

19         coverage under a general liability policy

20         damages resulting from the use of an automated

21         external defibrillator device; amending ss.

22         718.112 and 719.1055, F.S.; revising

23         notification and voting procedures with respect

24         to any vote to forego retrofitting of the

25         common areas of condominiums and cooperatives

26         with fire sprinkler systems; amending s.

27         718.503, F.S.; requiring unit owners who are

28         not developers to provide a specific question

29         and answer disclosure document to certain

30         prospective purchasers; creating s. 720.401,

31         F.S.; providing legislative intent relating to

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 1         the revival of governance of a community;

 2         creating s. 720.402, F.S.; providing

 3         eligibility to revive governance documents;

 4         specifying prerequisites to reviving governance

 5         documents; creating s. 720.403, F.S.; requiring

 6         the formation of an organizing committee;

 7         providing for membership; providing duties and

 8         responsibilities of the organizing committee;

 9         directing the organizing committee to prepare

10         certain documents; providing for the contents

11         of the documents; providing for a vote of the

12         eligible parcel owners; creating s. 720.404,

13         F.S.; directing the organizing committee to

14         file certain documents with the Department of

15         Community Affairs; specifies the content of the

16         submission to the department; requiring the

17         department to approve or disapprove the request

18         to revive the governance documents within a

19         specified time period; creating s. 720.405,

20         F.S.; requiring the organizing committee to

21         file and record certain documents within a

22         specified time period; directing the organizing

23         committee to give all affected parcel owners a

24         copy of the documents filed and recorded;

25         amending ss. 720.301 and 720.302, F.S.;

26         conforming provisions to changes made by the

27         act; amending s. 718.110, F.S.; restricting the

28         application of certain amendments restricting

29         owners' rental rights; providing an effective

30         date.

31  

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

 2  

 3         Section 1.  Paragraph (e) of subsection (12) of section

 4  718.111, Florida Statutes, is amended to read:

 5         718.111  The association.--

 6         (12)  OFFICIAL RECORDS.--

 7         (e)1.  The association or its authorized agent is shall

 8  not be required to provide a prospective purchaser or

 9  lienholder with information about the condominium or the

10  association other than information or documents required by

11  this chapter to be made available or disclosed. The

12  association or its authorized agent may shall be entitled to

13  charge a reasonable fee to the prospective purchaser,

14  lienholder, or the current unit owner for its time in

15  providing good faith responses to requests for information by

16  or on behalf of a prospective purchaser or lienholder, other

17  than that required by law, if the provided that such fee does

18  shall not exceed $150 plus the reasonable cost of photocopying

19  and any attorney's fees incurred by the association in

20  connection with the association's response.

21         2.  An association and its authorized agent are not

22  liable for providing such information in good faith pursuant

23  to a written request if the person providing the information

24  includes a written statement in substantially the following

25  form: "The responses herein are made in good faith and to the

26  best of my ability as to their accuracy."

27         Section 2.  Subsection (2) of section 720.303, Florida

28  Statutes, is amended to read:

29         720.303  Association powers and duties; meetings of

30  board; official records; budgets; financial reporting.--

31  

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 1         (2)  BOARD MEETINGS.--A meeting of the board of

 2  directors of an association occurs whenever a quorum of the

 3  board gathers to conduct association business.  All meetings

 4  of the board must be open to all members except for meetings

 5  between the board and its attorney with respect to proposed or

 6  pending litigation where the contents of the discussion would

 7  otherwise be governed by the attorney-client privilege.

 8  Notices of all board meetings must be posted in a conspicuous

 9  place in the community at least 48 hours in advance of a

10  meeting, except in an emergency.  In the alternative, if

11  notice is not posted in a conspicuous place in the community,

12  notice of each board meeting must be mailed or delivered to

13  each member at least 7 days before the meeting, except in an

14  emergency. Notwithstanding this general notice requirement,

15  for communities with more than 100 members, the bylaws may

16  provide for a reasonable alternative to posting or mailing of

17  notice for each board meeting, including publication of

18  notice, provision of a schedule of board meetings, or the

19  conspicuous posting and repeated broadcasting of the notice on

20  a closed-circuit cable television system serving the

21  homeowners' association. However, if broadcast notice is used

22  in lieu of a notice posted physically in the community, the

23  notice must be broadcast at least four times every broadcast

24  hour of each day that a posted notice is otherwise required.

25  When broadcast notice is provided, the notice and agenda must

26  be broadcast in a manner and for a sufficient continuous

27  length of time so as to allow an average reader to observe the

28  notice and read and comprehend the entire content of the

29  notice and the agenda. The bylaws or amended bylaws may

30  provide for giving notice by electronic transmission in a

31  manner authorized by law for meetings of the board of

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 1  directors, committee meetings requiring notice under this

 2  section, and annual and special meetings of the members;

 3  however, a member must consent in writing to receiving notice

 4  by electronic transmission. An assessment may not be levied at

 5  a board meeting unless a written the notice of the meeting is

 6  provided to all members at least 14 days before the meeting,

 7  which notice includes a statement that assessments will be

 8  considered at the meeting and the nature of the assessments.

 9  Rules that regulate the use of parcels in the community may

10  not be adopted, amended, or revoked at a board meeting unless

11  a written meeting notice is provided to all members at least

12  14 days before the meeting, which notice includes a statement

13  that changes to the rules regarding the use of parcels will be

14  considered at the meeting. Directors may not vote by proxy or

15  by secret ballot at board meetings, except that secret ballots

16  may be used in the election of officers.  This subsection also

17  applies to the meetings of any committee or other similar

18  body, when a final decision will be made regarding the

19  expenditure of association funds, and to any body vested with

20  the power to approve or disapprove architectural decisions

21  with respect to a specific parcel of residential property

22  owned by a member of the community.

23         Section 3.  Subsection (3) of section 768.1325, Florida

24  Statutes, is amended, and subsection (6) is added to that

25  section, to read:

26         768.1325  Cardiac Arrest Survival Act; immunity from

27  civil liability.--

28         (3)  Notwithstanding any other provision of law to the

29  contrary, and except as provided in subsection (4), any person

30  who uses or attempts to use an automated external

31  defibrillator device on a victim of a perceived medical

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 1  emergency, without objection of the victim of the perceived

 2  medical emergency, is immune from civil liability for any harm

 3  resulting from the use or attempted use of such device.  In

 4  addition, any person who acquired the device, including, but

 5  not limited to, a community association organized under

 6  chapter 617, chapter 718, chapter 719, chapter 720, chapter

 7  721, or chapter 723, is immune from such liability, if the

 8  harm was not due to the failure of such acquirer of the device

 9  to:

10         (a)  Notify the local emergency medical services

11  medical director of the most recent placement of the device

12  within a reasonable period of time after the device was

13  placed;

14         (b)  Properly maintain and test the device; or

15         (c)  Provide appropriate training in the use of the

16  device to an employee or agent of the acquirer when the

17  employee or agent was the person who used the device on the

18  victim, except that such requirement of training does not

19  apply if:

20         1.  The employee or agent was not an employee or agent

21  who would have been reasonably expected to use the device; or

22         2.  The period of time elapsing between the engagement

23  of the person as an employee or agent and the occurrence of

24  the harm, or between the acquisition of the device and the

25  occurrence of the harm in any case in which the device was

26  acquired after engagement of the employee or agent, was not a

27  reasonably sufficient period in which to provide the training.

28         (6)  An insurer may not require an acquirer of an

29  automated external defibrillator device which is a community

30  association organized under chapter 617, chapter 718, chapter

31  719, chapter 720, chapter 721, or chapter 723 to purchase

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 1  medical malpractice liability coverage as a condition of

 2  issuing any other coverage carried by the association, and an

 3  insurer may not exclude damages resulting from the use of an

 4  automated external defibrillator device from coverage under a

 5  general liability policy issued to an association.

 6         Section 4.  Paragraphs (f) and (l) of subsection (2) of

 7  section 718.112, Florida Statutes, are amended to read:

 8         718.112  Bylaws.--

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

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

11  include the following:

12         (f)  Annual budget.--

13         1.  The proposed annual budget of common expenses shall

14  be detailed and shall show the amounts budgeted by accounts

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

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

17  multicondominium association shall adopt a separate budget of

18  common expenses for each condominium the association operates

19  and shall adopt a separate budget of common expenses for the

20  association. In addition, if the association maintains limited

21  common elements with the cost to be shared only by those

22  entitled to use the limited common elements as provided for in

23  s. 718.113(1), the budget or a schedule attached thereto shall

24  show amounts budgeted therefor. If, after turnover of control

25  of the association to the unit owners, any of the expenses

26  listed in s. 718.504(21) are not applicable, they need not be

27  listed.

28         2.  In addition to annual operating expenses, the

29  budget shall include reserve accounts for capital expenditures

30  and deferred maintenance. These accounts shall include, but

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

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 1  pavement resurfacing, regardless of the amount of deferred

 2  maintenance expense or replacement cost, and for any other

 3  item for which the deferred maintenance expense or replacement

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

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

 6  remaining useful life and estimated replacement cost or

 7  deferred maintenance expense of each reserve item.  The

 8  association may adjust replacement reserve assessments

 9  annually to take into account any changes in estimates or

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

11  deferred maintenance. This subsection does not apply to an

12  adopted budget in which the members of an association have

13  determined, by a majority vote at a duly called meeting of the

14  association, to provide no reserves or less reserves than

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

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

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

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

19  for the first 2 fiscal years of the association's operation,

20  beginning with the fiscal year in which the initial

21  declaration is recorded, after which time reserves may be

22  waived or reduced only upon the vote of a majority of all

23  nondeveloper voting interests voting in person or by limited

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

25  meeting of the unit owners has been called to determine

26  whether to waive or reduce the funding of reserves, and no

27  such result is achieved or a quorum is not attained, the

28  reserves as included in the budget shall go into effect. After

29  the turnover, the developer may vote its voting interest to

30  waive or reduce the funding of reserves.

31  

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 1         3.  Reserve funds and any interest accruing thereon

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

 3  used only for authorized reserve expenditures unless their use

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

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

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

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

 8  developer-controlled association shall not vote to use

 9  reserves for purposes other than that for which they were

10  intended without the approval of a majority of all

11  nondeveloper voting interests, voting in person or by limited

12  proxy at a duly called meeting of the association.

13         4.  In a multicondominium association, The only voting

14  interests which are eligible to vote on questions that involve

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

16  reserve funds for purposes other than purposes for which the

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

18  subject to assessment to fund the reserves in question.

19         (l)  Certificate of compliance.--There shall be a

20  provision that a certificate of compliance from a licensed

21  electrical contractor or electrician may be accepted by the

22  association's board as evidence of compliance of the

23  condominium units with the applicable fire and life safety

24  code. Notwithstanding the provisions of chapter 633 or of any

25  other code, statute, ordinance, administrative rule, or

26  regulation, or any interpretation of the foregoing, an

27  association, condominium, or unit owner is not obligated to

28  retrofit the common elements or units of a residential

29  condominium with a fire sprinkler system or other engineered

30  lifesafety system in a building that has been certified for

31  occupancy by the applicable governmental entity, if the unit

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 1  owners have voted to forego such retrofitting and engineered

 2  lifesafety system by the affirmative vote of two-thirds of all

 3  voting interests in the affected condominium. However, a

 4  condominium association may not vote to forego the

 5  retrofitting with a fire sprinkler system of common areas in a

 6  high-rise building. For purposes of this subsection, the term

 7  "high-rise building" means a building that is greater than 75

 8  feet in height where the building height is measured from the

 9  lowest level of fire department access to the floor of the

10  highest occupiable story. For purposes of this subsection, the

11  term "common areas" means any enclosed hallway, corridor,

12  lobby, stairwell, or entryway. In no event shall the local

13  authority having jurisdiction require completion of

14  retrofitting of common areas with a sprinkler system before

15  the end of 2014.

16         1.  A vote to forego retrofitting may not be obtained

17  by general proxy or limited proxy or by a ballot, but shall be

18  obtained by a vote personally cast at a duly called membership

19  meeting, or by execution of a written consent by the member,

20  and shall be effective upon the recording of a certificate

21  attesting to such vote in the public records of the county

22  where the condominium is located. The association shall mail,

23  hand deliver, or electronically transmit to provide each unit

24  owner written notice at least 14 days prior to such membership

25  meeting in which of the vote to forego retrofitting of the

26  required fire sprinkler system is to take place, in at least

27  16-point bold type, by certified mail, within 20 days after

28  the association's vote. After such notice is provided to each

29  owner, a copy of such notice shall be provided by the current

30  owner to a new owner prior to closing and shall be provided by

31  a unit owner to a renter prior to signing a lease.

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 1         2.  As part of the information collected annually from

 2  condominiums, the division shall require condominium

 3  associations to report the membership vote and recording of a

 4  certificate under this subsection and, if retrofitting has

 5  been undertaken, the per-unit cost of such work. The division

 6  shall annually report to the Division of State Fire Marshal of

 7  the Department of Financial Services the number of

 8  condominiums that have elected to forego retrofitting.

 9         Section 5.  Paragraph (a) of subsection (5) of section

10  719.1055, Florida Statutes, is amended to read:

11         719.1055  Amendment of cooperative documents;

12  alteration and acquisition of property.--

13         (5)  Notwithstanding the provisions of chapter 633 or

14  of any other code, statute, ordinance, administrative rule, or

15  regulation, or any interpretation of the foregoing, a

16  cooperative or unit owner is not obligated to retrofit the

17  common elements or units of a residential cooperative with a

18  fire sprinkler system or other engineered life safety system

19  in a building that has been certified for occupancy by the

20  applicable governmental entity, if the unit owners have voted

21  to forego such retrofitting and engineered life safety system

22  by the affirmative vote of two-thirds of all voting interests

23  in the affected cooperative. However, a cooperative may not

24  forego the retrofitting with a fire sprinkler system of common

25  areas in a high-rise building. For purposes of this

26  subsection, the term "high-rise building" means a building

27  that is greater than 75 feet in height where the building

28  height is measured from the lowest level of fire department

29  access to the floor of the highest occupiable story. For

30  purposes of this subsection, the term "common areas" means any

31  enclosed hallway, corridor, lobby, stairwell, or entryway. In

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 1  no event shall the local authority having jurisdiction require

 2  completion of retrofitting of common areas with a sprinkler

 3  system before the end of 2014.

 4         (a)  A vote to forego retrofitting may not be obtained

 5  by general proxy or limited proxy or by a ballot, but shall be

 6  obtained by a vote personally cast at a duly called membership

 7  meeting, or by execution of a written consent by the member,

 8  and shall be effective upon the recording of a certificate

 9  attesting to such vote in the public records of the county

10  where the cooperative is located. The association shall mail,

11  hand deliver, or electronically transmit to provide each unit

12  owner written notice at least 14 days prior to such membership

13  meeting in which of the vote to forego retrofitting of the

14  required fire sprinkler system is to take place, in at least

15  16-point bold type, by certified mail, within 20 days after

16  the association's vote. After such notice is provided to each

17  owner, a copy of such notice shall be provided by the current

18  owner to a new owner prior to closing and shall be provided by

19  a unit owner to a renter prior to signing a lease.

20         Section 6.  Subsection (2) of section 718.503, Florida

21  Statutes, is amended to read:

22         718.503  Developer disclosure prior to sale;

23  nondeveloper unit owner disclosure prior to sale;

24  voidability.--

25         (2)  NONDEVELOPER DISCLOSURE.--

26         (a)  Each unit owner who is not a developer as defined

27  by this chapter shall comply with the provisions of this

28  subsection prior to the sale of his or her unit.  Each

29  prospective purchaser who has entered into a contract for the

30  purchase of a condominium unit is entitled, at the seller's

31  expense, to a current copy of the declaration of condominium,

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 1  articles of incorporation of the association, bylaws, and

 2  rules of the association, and a copy of the financial

 3  information required by s. 718.111, and the document entitled

 4  "Frequently Asked Questions and Answers" required by s.

 5  718.504.

 6         (b)  If a person licensed under part I of chapter 475

 7  provides to or otherwise obtains for a prospective purchaser

 8  the documents described in this subsection, the person is not

 9  liable for any error or inaccuracy contained in the documents.

10         (c)  Each contract entered into after July 1, 1992, for

11  the resale of a residential unit shall contain in conspicuous

12  type either:

13         1.  A clause which states:  THE BUYER HEREBY

14  ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF

15  THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION OF

16  THE ASSOCIATION, BYLAWS AND, RULES OF THE ASSOCIATION, AND A

17  COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND

18  FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 3

19  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR

20  TO EXECUTION OF THIS CONTRACT; or

21         2.  A clause which states:  THIS AGREEMENT IS VOIDABLE

22  BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION

23  TO CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND

24  LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT

25  BY THE BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE

26  DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS

27  AND, RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT

28  YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS

29  AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED

30  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT.

31  BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE

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 1  THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS,

 2  AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF

 3  INCORPORATION, BYLAWS, AND RULES OF THE ASSOCIATION, AND A

 4  COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND

 5  FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED

 6  IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

 7  TERMINATE AT CLOSING.

 8  

 9  A contract that does not conform to the requirements of this

10  paragraph is voidable at the option of the purchaser prior to

11  closing.

12         Section 7.  Section 720.401, Florida Statutes, is

13  created to read:

14         720.401  Preservation of residential communities;

15  revival of declaration of covenants.--

16         (1)  Consistent with required and optional elements of

17  local comprehensive plans and other applicable provisions of

18  the Local Government Comprehensive Planning and Land

19  Development Regulation Act, homeowners are encouraged to

20  preserve existing residential communities, promote available

21  and affordable housing, protect structural and aesthetic

22  elements of their residential community, and, as applicable,

23  maintain roads and streets, easements, water and sewer

24  systems, utilities, drainage improvements, conservation and

25  open areas, recreational amenities, and other infrastructure

26  and common areas that serve and support the residential

27  community by the revival of a previous declaration of

28  covenants and other governing documents that may have ceased

29  to govern some or all parcels in the community.

30         (2)  In order to preserve a residential community and

31  the associated infrastructure and common areas for the

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 1  purposes described in this section, the parcel owners in a

 2  community that was previously subject to a declaration of

 3  covenants that has ceased to govern one or more parcels in the

 4  community may revive the declaration and the homeowners'

 5  association for the community upon approval by the parcel

 6  owners to be governed thereby as provided in this act, and

 7  upon approval of the declaration and the other governing

 8  documents for the association by the Department of Community

 9  Affairs in a manner consistent with this act.

10         Section 8.  Section 720.402, Florida Statutes, is

11  created to read:

12         720.402  Eligible residential communities; requirements

13  for revival of declaration.--Parcel owners in a community are

14  eligible to seek approval from the Department of Community

15  Affairs to revive a declaration of covenants under this act if

16  all of the following requirements are met:

17         (1)  All parcels to be governed by the revived

18  declaration must have been once governed by a previous

19  declaration that has ceased to govern some or all of the

20  parcels in the community;

21         (2)  The revived declaration must be approved in the

22  manner provided in s. 720.403(6); and

23         (3)  The revived declaration may not contain covenants

24  that are more restrictive on the parcel owners than the

25  covenants contained in the previous declaration, except that

26  the declaration may:

27         (a)  Have an effective term of longer duration than the

28  term of the previous declaration;

29         (b)  Omit restrictions contained in the previous

30  declaration;

31  

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 1         (c)  Govern fewer than all of the parcels governed by

 2  the previous declaration;

 3         (d)  Provide for amendments to the declaration and

 4  other governing documents; and

 5         (e)  Contain provisions required by this chapter for

 6  new declarations that were not contained in the previous

 7  declaration.

 8         Section 9.  Section 720.403, Florida Statutes, is

 9  created to read:

10         720.403  Organizing committee; parcel owner approval.--

11         (1)  The proposal to revive a declaration of covenants

12  and a homeowners' association for a community under the terms

13  of this act shall be initiated by an organizing committee

14  consisting of not less than three parcel owners located in the

15  community that is proposed to be governed by the revived

16  declaration. The name, address, and telephone number of each

17  member of the organizing committee must be included in any

18  notice or other document provided by the committee to parcel

19  owners to be affected by the proposed revived declaration.

20         (2)  The organizing committee shall prepare or cause to

21  be prepared the complete text of the proposed revised

22  declaration of covenants to be submitted to the parcel owners

23  for approval. The proposed revived documents must identify

24  each parcel that is to be subject to the governing documents

25  by its legal description, and by the name of the parcel owner

26  or the person in whose name the parcel is assessed on the last

27  completed tax assessment roll of the county at the time when

28  the proposed revived declaration is submitted for approval by

29  the parcel owners.

30         (3)  The organizing committee shall prepare the full

31  text of the proposed articles of incorporation and bylaws of

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 1  the revived homeowners' association to be submitted to the

 2  parcel owners for approval, unless the association is then an

 3  existing corporation, in which case the organizing committee

 4  shall prepare the existing articles of incorporation and

 5  bylaws to be submitted to the parcel owners.

 6         (4)  The proposed revived declaration and other

 7  governing documents for the community shall:

 8         (a)  Provide that the voting interest of each parcel

 9  owner shall be the same as the voting interest of the parcel

10  owner under the previous governing documents;

11         (b)  Provide that the proportional-assessment

12  obligations of each parcel owner shall be the same as

13  proportional-assessment obligations of the parcel owner under

14  the previous governing documents;

15         (c)  Contain the same respective amendment provisions

16  as the previous governing documents or, if there were no

17  amendment provisions in the previous governing document,

18  amendment provisions that require approval of not less than

19  two-thirds of the affected parcel owners;

20         (d)  Contain no covenants that are more restrictive on

21  the affected parcel owners than the covenants contained in the

22  previous governing documents, except as permitted under s.

23  720.402(3); and

24         (e)  Comply with the other requirements for a

25  declaration of covenants and other governing documents as

26  specified in this chapter.

27         (5)  A copy of the complete text of the proposed

28  revised declaration of covenants, the proposed new or existing

29  articles of incorporation and bylaws of the homeowners'

30  association, and a graphic depiction of the property to be

31  governed by the revived declaration shall be presented to all

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 1  of the affected parcel owners by mail or hand delivery not

 2  less than 14 days before the time that the consent of the

 3  affected parcel owners to the proposed governing documents is

 4  sought by the organizing committee.

 5         (6)  A majority of the affected parcel owners must

 6  agree in writing to the revived declaration of covenants and

 7  governing documents of the homeowners' association or approve

 8  the revived declaration and governing documents by a vote at a

 9  meeting of the affected parcel owners noticed and conducted in

10  the manner prescribed by s. 720.306. Proof of notice of the

11  meeting to all affected owners of the meeting and the minutes

12  of the meeting recording the votes of the property owners

13  shall be certified by a court reporter or an attorney licensed

14  to practice in the state.

15         Section 10.  Section 720.404, Florida Statutes, is

16  created to read:

17         720.404  Department of Community Affairs; submission;

18  review and determination.--

19         (1)  No later than 60 days after the date the proposed

20  revived declaration and other governing documents are approved

21  by the affected parcel owners, the organizing committee or its

22  designee must submit the proposed revived governing documents

23  and supporting materials to the Department of Community

24  Affairs to review and determine whether to approve or

25  disapprove of the proposal to preserve the residential

26  community. The submission to the department must include:

27         (a)  The full text of the proposed revived declaration

28  of covenants and articles of incorporation and bylaws of the

29  homeowners' association;

30  

31  

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 1         (b)  A verified copy of the previous declaration of

 2  covenants and other previous governing documents for the

 3  community, including any amendments thereto;

 4         (c)  The legal description of each parcel to be subject

 5  to the revived declaration and other governing documents and a

 6  plat or other graphic depiction of the affected properties in

 7  the community;

 8         (d)  A verified copy of the written consents of the

 9  requisite number of the affected parcel owners approving the

10  revived declaration and other governing documents or, if

11  approval was obtained by a vote at a meeting of affected

12  parcel owners, verified copies of the notice of the meeting,

13  attendance, and voting results;

14         (e)  An affidavit by a current or former officer of the

15  association or by a member of the organizing committee

16  verifying that the requirements for the revived declaration

17  set forth in s. 720.402 have been satisfied; and

18         (f)  Such other documentation that the organizing

19  committee believes is supportive of the policy of preserving

20  the residential community and operating, managing, and

21  maintaining the infrastructure, aesthetic character, and

22  common areas serving the residential community.

23         (2)  No later than 60 days after receiving the

24  submission, the department must determine whether the proposed

25  revived declaration of covenants and other governing documents

26  comply with the requirements of this act.

27         (a)  If the department determines that the proposed

28  revived declaration and other governing documents comply with

29  the act and have been approved by the parcel owners as

30  required by this act, the department shall notify the

31  organizing committee in writing of its approval.

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 1         (b)  If the department determines that the proposed

 2  revived declaration and other governing documents do not

 3  comply with this act or have not been approved as required by

 4  this act, the department shall notify the organizing committee

 5  in writing that it does not approve the governing documents

 6  and shall state the reasons for the disapproval.

 7         Section 11.  Section 720.405, Florida Statutes, is

 8  created to read:

 9         720.405  Recording; notice of recording; applicability

10  and effective date.--

11         (1)  No later than 30 days after receiving approval

12  from the department, the organizing committee shall file the

13  articles of incorporation of the association with the Division

14  of Corporations of the Department of State if the articles

15  have not been previously filed with the division.

16         (2)  No later than 30 days after receiving approval

17  from the division, the president and secretary of the

18  association shall execute the revived declaration and other

19  governing documents approved by the department in the name of

20  the association and have the documents recorded with the clerk

21  of the circuit court in the county where the affected parcels

22  are located.

23         (3)  The recorded documents shall include the full text

24  of the approved declaration of covenants, the articles of

25  incorporation and bylaws of the homeowners' association, the

26  letter of approval by the department, and the legal

27  description of each affected parcel of property.

28         (4)  Immediately after recording the documents, a

29  complete copy of all of the approved recorded documents must

30  be mailed or hand delivered to the owner of each affected

31  parcel. The revived declaration and other governing documents

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 1  shall be effective upon recordation in the public records with

 2  respect to each affected parcel subject thereto, regardless of

 3  whether the particular parcel owner approved the revived

 4  declaration. Upon recordation, the revived declaration shall

 5  replace and supersede the previous declaration with respect to

 6  all affected parcels then governed by the previous declaration

 7  and shall have the same record priority as the superseded

 8  previous declaration.  With respect to any affected parcels

 9  that had ceased to be governed by the previous declaration as

10  of the recording date, the revived declaration may not have

11  retroactive effect with respect to the parcel and shall take

12  priority with respect to the parcel as of the recording date.

13         Section 12.  Section 720.301, Florida Statutes, is

14  amended to read:

15         720.301  Definitions.--As used in this chapter ss.

16  720.301-720.312, the term:

17         (1)  "Assessment" or "amenity fee" means a sum or sums

18  of money payable to the association, to the developer or other

19  owner of common areas, or to recreational facilities and other

20  properties serving the parcels by the owners of one or more

21  parcels as authorized in the governing documents, which if not

22  paid by the owner of a parcel, can result in a lien against

23  the parcel.

24         (2)  "Common area" means all real property within a

25  community which is owned or leased by an association or

26  dedicated for use or maintenance by the association or its

27  members, including, regardless of whether title has been

28  conveyed to the association:

29         (a)  Real property the use of which is dedicated to the

30  association or its members by a recorded plat; or

31  

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 1         (b)  Real property committed by a declaration of

 2  covenants to be leased or conveyed to the association.

 3         (3)  "Community" means the real property that is or

 4  will be subject to a declaration of covenants which is

 5  recorded in the county where the property is located.  The

 6  term "community" includes all real property, including

 7  undeveloped phases, that is or was the subject of a

 8  development-of-regional-impact development order, together

 9  with any approved modification thereto.

10         (4)  "Declaration of covenants," or "declaration,"

11  means a recorded written instrument in the nature of covenants

12  running with the land which subjects the land comprising the

13  community to the jurisdiction and control of an association or

14  associations in which the owners of the parcels, or their

15  association representatives, must be members.

16         (5)  "Developer" means a person or entity that:

17         (a)  Creates the community served by the association;

18  or

19         (b)  Succeeds to the rights and liabilities of the

20  person or entity that created the community served by the

21  association, provided that such is evidenced in writing.

22         (6)  "Governing documents" means:

23         (a)  The recorded declaration of covenants for a

24  community, and all duly adopted and recorded amendments,

25  supplements, and recorded exhibits thereto; and

26         (b)  The articles of incorporation and bylaws of the

27  homeowners' association, and any duly adopted amendments

28  thereto.

29         (7)  "Homeowners' association" or "association" means a

30  Florida corporation responsible for the operation of a

31  community or a mobile home subdivision in which the voting

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 1  membership is made up of parcel owners or their agents, or a

 2  combination thereof, and in which membership is a mandatory

 3  condition of parcel ownership, and which is authorized to

 4  impose assessments that, if unpaid, may become a lien on the

 5  parcel.  The term "homeowners' association" does not include a

 6  community development district or other similar special taxing

 7  district created pursuant to statute.

 8         (8)  "Member" means a member of an association, and may

 9  include, but is not limited to, a parcel owner or an

10  association representing parcel owners or a combination

11  thereof.

12         (9)  "Parcel" means a platted or unplatted lot, tract,

13  unit, or other subdivision of real property within a

14  community, as described in the declaration:

15         (a)  Which is capable of separate conveyance; and

16         (b)  Of which the parcel owner, or an association in

17  which the parcel owner must be a member, is obligated:

18         1.  By the governing documents to be a member of an

19  association that serves the community; and

20         2.  To pay to the homeowners' association assessments

21  that, if not paid, may result in a lien.

22         (10)  "Parcel owner" means the record owner of legal

23  title to a parcel.

24         (11)  "Voting interest" means the voting rights

25  distributed to the members of the homeowners' association,

26  pursuant to the governing documents.

27         Section 13.  Subsections (1), (3), and (4) of section

28  720.302, are amended to read:

29         720.302  Purposes, scope, and application.--

30         (1)  The purposes of this chapter ss. 720.301-720.312

31  are to give statutory recognition to corporations not for

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 1  profit that operate residential communities in this state, to

 2  provide procedures for operating homeowners' associations, and

 3  to protect the rights of association members without unduly

 4  impairing the ability of such associations to perform their

 5  functions.

 6         (3)  This chapter does Sections 720.301-720.312 do not

 7  apply to:

 8         (a)  A community that is composed of property primarily

 9  intended for commercial, industrial, or other nonresidential

10  use; or

11         (b)  The commercial or industrial parcels in a

12  community that contains both residential parcels and parcels

13  intended for commercial or industrial use.

14         (4)  This chapter does Sections 720.301-720.312 do not

15  apply to any association that is subject to regulation under

16  chapter 718, chapter 719, or chapter 721; or to any

17  nonmandatory association formed under chapter 723.

18         Section 14.  Subsection (13) is added to section

19  718.110, Florida Statutes, to read:

20         718.110  Amendment of declaration; correction of error

21  or omission in declaration by circuit court.--

22         (13)  Unless expressly stated in the amendment, any

23  amendment restricting unit owners' rights relating to the

24  rental of units applies only to unit owners who consent to the

25  amendment and unit owners who purchase their units after the

26  effective date of that amendment. Notwithstanding any other

27  provision of law or of the declaration or bylaws, if an

28  amendment expressly restricts the rental rights of

29  nonconsenting unit owners, it must be approved by not less

30  than three-fourths of the voting interests.

31         Section 15.  This act shall take effect July 1, 2004.

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                      CS CS Senate Bill 1184

 3                                 

 4  The bill adds several additional provisions to the prior
    version of the bill as follows:
 5  
    Condominiums
 6  
    -    Provide immunity from liability to condominium
 7       associations and their agents for providing information
         to prospective purchasers that is not required to be
 8       provided by law;

 9  -    Require nondeveloper sellers of condominium units to
         provide prospective purchasers with a document titled
10       "Frequently Asked Questions and Answers";

11  -    Require condominium associations to provide written
         notice to all members 14 days before a meeting of the
12       board of the association that will consider assessments
         and rules regulating the use of parcels;
13  
    -    Provide that the only voting interests entitled to vote
14       on reducing the funding of reserves or using the reserves
         for a purpose for which the reserves were not intended
15       are the voting interests that funded the reserves;

16  -    Provide that an amendment to a declaration of condominium
         that restricts the rental rights of a unit owners applies
17       only to a unit owners that consent to the restriction and
         to unit owners who purchase their units after the
18       effective date of the amendment, unless expressly stated
         to the contrary in the amendment;
19  
    -    Require an amendment to a declaration of condominium that
20       restricts the rental rights of nonconsenting condominium
         unit owners to be approved by at least three-fourths of
21       the voting interests in the association;

22  Firesafety

23  -    Authorize voting by limited proxy on votes to forego
         retrofitting a condominium or cooperative with a fire
24       sprinkler system;

25  -    Require condominium unit owners or cooperative members to
         be provided with 14-days notice before votes to forego
26       retrofitting with a fire sprinkler system;

27  Homeowners' Associations

28  -    Provide a method for the revival of a homeowners'
         associations expired declarations of covenants;
29  
    Automated External Defibrillators
30  
    -    Provide immunity from liability under certain
31       circumstances to community associations for damages
         caused by the use of an automated external defibrillator
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 1       owned by the association.

 2  

 3  

 4  

 5  

 6  

 7  

 8  

 9  

10  

11  

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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