Amendment
Bill No. 1223
Amendment No. 860815
CHAMBER ACTION
Senate House
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1Representative Robaina offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause, and insert:
5     Section 1.  Paragraph (e) of subsection (12) of section
6718.111, Florida Statutes, is amended to read:
7     718.111  The association.--
8     (12)  OFFICIAL RECORDS.--
9     (e)1.  The association or its authorized agent is shall not
10be required to provide a prospective purchaser or lienholder
11with information about the condominium or the association other
12than information or documents required by this chapter to be
13made available or disclosed. The association or its authorized
14agent may shall be entitled to charge a reasonable fee to the
15prospective purchaser, lienholder, or the current unit owner for
16its time in providing good faith responses to requests for
17information by or on behalf of a prospective purchaser or
18lienholder, other than that required by law, if the provided
19that such fee does shall not exceed $150 plus the reasonable
20cost of photocopying and any attorney's fees incurred by the
21association in connection with the association's response.
22     2.  An association and its authorized agent are not liable
23for providing such information in good faith pursuant to a
24written request if the person providing the information includes
25a written statement in substantially the following form: "The
26responses herein are made in good faith and to the best of my
27ability as to their accuracy."
28     Section 2.  Subsection (2) of section 720.303, Florida
29Statutes, is amended to read:
30     720.303  Association powers and duties; meetings of board;
31official records; budgets; financial reporting.--
32     (2)  BOARD MEETINGS.--A meeting of the board of directors
33of an association occurs whenever a quorum of the board gathers
34to conduct association business.  All meetings of the board must
35be open to all members except for meetings between the board and
36its attorney with respect to proposed or pending litigation
37where the contents of the discussion would otherwise be governed
38by the attorney-client privilege.  Notices of all board meetings
39must be posted in a conspicuous place in the community at least
4048 hours in advance of a meeting, except in an emergency.  In
41the alternative, if notice is not posted in a conspicuous place
42in the community, notice of each board meeting must be mailed or
43delivered to each member at least 7 days before the meeting,
44except in an emergency. Notwithstanding this general notice
45requirement, for communities with more than 100 members, the
46bylaws may provide for a reasonable alternative to posting or
47mailing of notice for each board meeting, including publication
48of notice, provision of a schedule of board meetings, or the
49conspicuous posting and repeated broadcasting of the notice on a
50closed-circuit cable television system serving the homeowners'
51association. However, if broadcast notice is used in lieu of a
52notice posted physically in the community, the notice must be
53broadcast at least four times every broadcast hour of each day
54that a posted notice is otherwise required. When broadcast
55notice is provided, the notice and agenda must be broadcast in a
56manner and for a sufficient continuous length of time so as to
57allow an average reader to observe the notice and read and
58comprehend the entire content of the notice and the agenda. The
59bylaws or amended bylaws may provide for giving notice by
60electronic transmission in a manner authorized by law for
61meetings of the board of directors, committee meetings requiring
62notice under this section, and annual and special meetings of
63the members; however, a member must consent in writing to
64receiving notice by electronic transmission. An assessment may
65not be levied at a board meeting unless a written the notice of
66the meeting is provided to all members at least 14 days before
67the meeting, which notice includes a statement that assessments
68will be considered at the meeting and the nature of the
69assessments. Rules that regulate the use of parcels in the
70community may not be adopted, amended, or revoked at a board
71meeting unless a written meeting notice is provided to all
72members at least 14 days before the meeting, which notice
73includes a statement that changes to the rules regarding the use
74of parcels will be considered at the meeting. Directors may not
75vote by proxy or by secret ballot at board meetings, except that
76secret ballots may be used in the election of officers.  This
77subsection also applies to the meetings of any committee or
78other similar body, when a final decision will be made regarding
79the expenditure of association funds, and to any body vested
80with the power to approve or disapprove architectural decisions
81with respect to a specific parcel of residential property owned
82by a member of the community.
83     Section 3.  Subsection (3) of section 768.1325, Florida
84Statutes, is amended, and subsection (6) is added to said
85section, to read:
86     768.1325  Cardiac Arrest Survival Act; immunity from civil
87liability.--
88     (3)  Notwithstanding any other provision of law to the
89contrary, and except as provided in subsection (4), any person
90who uses or attempts to use an automated external defibrillator
91device on a victim of a perceived medical emergency, without
92objection of the victim of the perceived medical emergency, is
93immune from civil liability for any harm resulting from the use
94or attempted use of such device.  In addition, any person who
95acquired the device, including, but not limited to, a community
96association organized under chapter 617, chapter 718, chapter
97719, chapter 720, chapter 721, or chapter 723, is immune from
98such liability, if the harm was not due to the failure of such
99acquirer of the device to:
100     (a)  Notify the local emergency medical services medical
101director of the most recent placement of the device within a
102reasonable period of time after the device was placed;
103     (b)  Properly maintain and test the device; or
104     (c)  Provide appropriate training in the use of the device
105to an employee or agent of the acquirer when the employee or
106agent was the person who used the device on the victim, except
107that such requirement of training does not apply if:
108     1.  The employee or agent was not an employee or agent who
109would have been reasonably expected to use the device; or
110     2.  The period of time elapsing between the engagement of
111the person as an employee or agent and the occurrence of the
112harm, or between the acquisition of the device and the
113occurrence of the harm in any case in which the device was
114acquired after engagement of the employee or agent, was not a
115reasonably sufficient period in which to provide the training.
116     (6)  An insurer may not require an acquirer of an automated
117external defibrillator device which is a community association
118organized under chapter 617, chapter 718, chapter 719, chapter
119720, chapter 721, or chapter 723 to purchase medical malpractice
120liability coverage as a condition of issuing any other coverage
121carried by the association, and an insurer may not exclude
122damages resulting from the use of an automated external
123defibrillator device from coverage under a general liability
124policy issued to an association.
125     Section 4.  Paragraphs (f) and (l) of subsection (2) of
126section 718.112, Florida Statutes, are amended to read:
127     718.112  Bylaws.--
128     (2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
129following and, if they do not do so, shall be deemed to include
130the following:
131     (f)  Annual budget.--
132     1.  The proposed annual budget of common expenses shall be
133detailed and shall show the amounts budgeted by accounts and
134expense classifications, including, if applicable, but not
135limited to, those expenses listed in s. 718.504(21). A
136multicondominium association shall adopt a separate budget of
137common expenses for each condominium the association operates
138and shall adopt a separate budget of common expenses for the
139association. In addition, if the association maintains limited
140common elements with the cost to be shared only by those
141entitled to use the limited common elements as provided for in
142s. 718.113(1), the budget or a schedule attached thereto shall
143show amounts budgeted therefor. If, after turnover of control of
144the association to the unit owners, any of the expenses listed
145in s. 718.504(21) are not applicable, they need not be listed.
146     2.  In addition to annual operating expenses, the budget
147shall include reserve accounts for capital expenditures and
148deferred maintenance. These accounts shall include, but are not
149limited to, roof replacement, building painting, and pavement
150resurfacing, regardless of the amount of deferred maintenance
151expense or replacement cost, and for any other item for which
152the deferred maintenance expense or replacement cost exceeds
153$10,000. The amount to be reserved shall be computed by means of
154a formula which is based upon estimated remaining useful life
155and estimated replacement cost or deferred maintenance expense
156of each reserve item.  The association may adjust replacement
157reserve assessments annually to take into account any changes in
158estimates or extension of the useful life of a reserve item
159caused by deferred maintenance. This subsection does not apply
160to an adopted budget in which the members of an association have
161determined, by a majority vote at a duly called meeting of the
162association, to provide no reserves or less reserves than
163required by this subsection. However, prior to turnover of
164control of an association by a developer to unit owners other
165than a developer pursuant to s. 718.301, the developer may vote
166to waive the reserves or reduce the funding of reserves for the
167first 2 fiscal years of the association's operation, beginning
168with the fiscal year in which the initial declaration is
169recorded, after which time reserves may be waived or reduced
170only upon the vote of a majority of all nondeveloper voting
171interests voting in person or by limited proxy at a duly called
172meeting of the association. If a meeting of the unit owners has
173been called to determine whether to waive or reduce the funding
174of reserves, and no such result is achieved or a quorum is not
175attained, the reserves as included in the budget shall go into
176effect. After the turnover, the developer may vote its voting
177interest to waive or reduce the funding of reserves.
178     3.  Reserve funds and any interest accruing thereon shall
179remain in the reserve account or accounts, and shall be used
180only for authorized reserve expenditures unless their use for
181other purposes is approved in advance by a majority vote at a
182duly called meeting of the association. Prior to turnover of
183control of an association by a developer to unit owners other
184than the developer pursuant to s. 718.301, the developer-
185controlled association shall not vote to use reserves for
186purposes other than that for which they were intended without
187the approval of a majority of all nondeveloper voting interests,
188voting in person or by limited proxy at a duly called meeting of
189the association.
190     4.  In a multicondominium association, The only voting
191interests which are eligible to vote on questions that involve
192waiving or reducing the funding of reserves, or using existing
193reserve funds for purposes other than purposes for which the
194reserves were intended, are the voting interests of the units
195subject to assessment to fund the reserves in question.
196     (l)  Certificate of compliance.--There shall be a provision
197that a certificate of compliance from a licensed electrical
198contractor or electrician may be accepted by the association's
199board as evidence of compliance of the condominium units with
200the applicable fire and life safety code. Notwithstanding the
201provisions of chapter 633 or of any other code, statute,
202ordinance, administrative rule, or regulation, or any
203interpretation of the foregoing, an association, condominium, or
204unit owner is not obligated to retrofit the common elements or
205units of a residential condominium with a fire sprinkler system
206or other engineered lifesafety system in a building that has
207been certified for occupancy by the applicable governmental
208entity, if the unit owners have voted to forego such
209retrofitting and engineered lifesafety system by the affirmative
210vote of two-thirds of all voting interests in the affected
211condominium. However, a condominium association may not vote to
212forego the retrofitting with a fire sprinkler system of common
213areas in a high-rise building. For purposes of this subsection,
214the term "high-rise building" means a building that is greater
215than 75 feet in height where the building height is measured
216from the lowest level of fire department access to the floor of
217the highest occupiable story. For purposes of this subsection,
218the term "common areas" means any enclosed hallway, corridor,
219lobby, stairwell, or entryway. In no event shall the local
220authority having jurisdiction require completion of retrofitting
221of common areas with a sprinkler system before the end of 2014.
222     1.  A vote to forego retrofitting may not be obtained by
223general proxy or limited proxy or by a ballot, but shall be
224obtained by a vote personally cast at a duly called membership
225meeting, or by execution of a written consent by the member, and
226shall be effective upon the recording of a certificate attesting
227to such vote in the public records of the county where the
228condominium is located. The association shall mail, hand
229deliver, or electronically transmit to provide each unit owner
230written notice at least 14 days prior to such membership meeting
231in which of the vote to forego retrofitting of the required fire
232sprinkler system is to take place, in at least 16-point bold
233type, by certified mail, within 20 days after the association's
234vote. Within 30 days after the association's opt-out vote,
235notice of the results of the opt-out vote shall be mailed, hand
236delivered, or electronically transmitted to all unit owners.
237Evidence of compliance with this 30-day notice shall be made by
238an affidavit executed by the person providing the notice and
239filed among the official records of the association. After such
240notice is provided to each owner, a copy of such notice shall be
241provided by the current owner to a new owner prior to closing
242and shall be provided by a unit owner to a renter prior to
243signing a lease.
244     2.  As part of the information collected annually from
245condominiums, the division shall require condominium
246associations to report the membership vote and recording of a
247certificate under this subsection and, if retrofitting has been
248undertaken, the per-unit cost of such work. The division shall
249annually report to the Division of State Fire Marshal of the
250Department of Financial Services the number of condominiums that
251have elected to forego retrofitting.
252     Section 5.  Paragraph (a) of subsection (5) of section
253719.1055, Florida Statutes, is amended to read:
254     719.1055  Amendment of cooperative documents; alteration
255and acquisition of property.--
256     (5)  Notwithstanding the provisions of chapter 633 or of
257any other code, statute, ordinance, administrative rule, or
258regulation, or any interpretation of the foregoing, a
259cooperative or unit owner is not obligated to retrofit the
260common elements or units of a residential cooperative with a
261fire sprinkler system or other engineered life safety system in
262a building that has been certified for occupancy by the
263applicable governmental entity, if the unit owners have voted to
264forego such retrofitting and engineered life safety system by
265the affirmative vote of two-thirds of all voting interests in
266the affected cooperative. However, a cooperative may not forego
267the retrofitting with a fire sprinkler system of common areas in
268a high-rise building. For purposes of this subsection, the term
269"high-rise building" means a building that is greater than 75
270feet in height where the building height is measured from the
271lowest level of fire department access to the floor of the
272highest occupiable story. For purposes of this subsection, the
273term "common areas" means any enclosed hallway, corridor, lobby,
274stairwell, or entryway. In no event shall the local authority
275having jurisdiction require completion of retrofitting of common
276areas with a sprinkler system before the end of 2014.
277     (a)  A vote to forego retrofitting may not be obtained by
278general proxy or limited proxy or by a ballot, but shall be
279obtained by a vote personally cast at a duly called membership
280meeting, or by execution of a written consent by the member, and
281shall be effective upon the recording of a certificate attesting
282to such vote in the public records of the county where the
283cooperative is located. The association shall mail, hand
284deliver, or electronically transmit to provide each unit owner
285written notice at least 14 days prior to such membership meeting
286in which of the vote to forego retrofitting of the required fire
287sprinkler system is to take place., in at least 16-point bold
288type, by certified mail, within 20 days after the association's
289vote. Within 30 days after the association's opt-out vote,
290notice of the results of the opt-out vote shall be mailed, hand
291delivered, or electronically transmitted to all unit owners.
292Evidence of compliance with this 30 day notice shall be made by
293an affidavit executed by the person providing the notice and
294filed among the official records of the association. After such
295notice is provided to each owner, a copy of such notice shall be
296provided by the current owner to a new owner prior to closing
297and shall be provided by a unit owner to a renter prior to
298signing a lease.
299     Section 6.  Section 718.5011, Florida Statutes, is created
300to read:
301     718.5011  Ombudsman; appointment; administration.--
302     (1)  There is created an Office of the Condominium
303Ombudsman, to be located, for administrative purposes, within
304the Division of Florida Land Sales, Condominiums, and Mobile
305Homes. The functions of the office shall be funded by the
306Division of Florida Land Sales, Condominiums, and Mobile Homes
307Trust Fund. The ombudsman shall be a bureau chief of the
308division and the office shall be set within the division in the
309same manner as any other bureau is staffed and funded.
310     (2)  The Secretary of Business and Professional Regulation
311shall appoint the ombudsman. The ombudsman must be an attorney
312admitted to practice before the Florida Supreme Court and shall
313serve at the pleasure of the secretary. A vacancy in the office
314shall be filled in the same manner as the original appointment.
315An officer or full-time employee of the ombudsman's office may
316not actively engage in any other business or profession; serve
317as the representative of any political party, executive
318committee, or other governing body of a political party; serve
319as an executive, officer, or employee of a political party;
320receive remuneration for activities on behalf of any candidate
321for public office; or engage in soliciting votes or other
322activities on behalf of a candidate for public office. The
323ombudsman or any employee of his or her office may not become a
324candidate for election to public office unless he or she first
325resigns from his or her office or employment.
326     Section 7.  Section 718.5012, Florida Statutes, is created
327to read:
328     718.5012  Ombudsman; powers and duties.--The ombudsman
329shall have the powers that are necessary to carry out the duties
330of his or her office, including the following specific powers:
331     (1)  To have access to and use of all files and records of
332the division.
333     (2)  To employ professional and clerical staff as necessary
334for the efficient operation of the office.
335     (3)  To prepare and issue reports and recommendations to
336the Governor, the department, the division, the Advisory Council
337on Condominiums, the President of the Senate, and the Speaker of
338the House of Representatives on any matter or subject within the
339jurisdiction of the division. The ombudsman shall make
340recommendations he or she deems appropriate for legislation
341relative to division procedures, rules, jurisdiction, personnel,
342and functions.
343     (4)  To act as liaison between the division, unit owners,
344boards of directors, board members, community association
345managers, and other affected parties. The ombudsman shall
346develop policies and procedures to assist unit owners, boards of
347directors, board members, community association managers, and
348other affected parties to understand their rights and
349responsibilities as set forth in this chapter and the
350condominium documents governing their respective association.
351The ombudsman shall coordinate and assist in the preparation and
352adoption of educational and reference material, and shall
353endeavor to coordinate with private or volunteer providers of
354these services, so that the availability of these resources is
355made known to the largest possible audience.
356     (5)  To monitor and review procedures and disputes
357concerning condominium elections or meetings, including, but not
358limited to, recommending that the division pursue enforcement
359action in any manner where there is reasonable cause to believe
360that election misconduct has occurred.
361     (6)  To make recommendations to the division for changes in
362rules and procedures for the filing, investigation, and
363resolution of complaints filed by unit owners, associations, and
364managers.
365     (7)  To provide resources to assist members of boards of
366directors and officers of associations to carry out their powers
367and duties consistent with this chapter, division rules, and the
368condominium documents governing the association.
369     (8)  To encourage and facilitate voluntary meetings with
370and between unit owners, boards of directors, board members,
371community association managers, and other affected parties when
372the meetings may assist in resolving a dispute within a
373community association before a person submits a dispute for a
374formal or administrative remedy. It is the intent of the
375Legislature that the ombudsman act as a neutral resource for
376both the rights and responsibilities of unit owners,
377associations, and board members.
378     Section 8.  Section 718.5014, Florida Statutes, is created
379to read:
380     718.5014  Ombudsman location.--The ombudsman shall maintain
381his or her principal office in Leon County on the premises of
382the division or, if suitable space cannot be provided there, at
383another place convenient to the offices of the division which
384will enable the ombudsman to expeditiously carry out the duties
385and functions of his or her office. The ombudsman may establish
386branch offices elsewhere in the state upon the concurrence of
387the secretary of the department.
388     Section 9.  Section 718.5015, Florida Statutes, is created
389to read:
390     718.5015  Advisory council; membership functions.--
391     (1)  There is created the Advisory Council on Condominiums.
392The council shall consist of seven appointed members. Two
393members shall be appointed by the President of the Senate, two
394members shall be appointed by the Speaker of the House of
395Representatives, and three members shall be appointed by the
396Governor. At least one member that is appointed by the Governor
397shall represent timeshare condominiums. Members shall be
398appointed to 2-year terms; however, one of the persons initially
399appointed by the Governor, by the President of the Senate, and
400by the Speaker of the House of Representatives shall be
401appointed to a 1-year term. The director of the division shall
402serve as an ex officio nonvoting member. The Legislature intends
403that the persons appointed represent a cross-section of persons
404interested in condominium issues. The council shall be located
405within the division for administrative purposes. Members of the
406council shall serve without compensation, but are entitled to
407receive per diem and travel expenses pursuant to s. 112.061
408while on official business.
409     (2)  The functions of the advisory council shall be to:
410     (a)  Receive, from the public, input regarding issues of
411concern with respect to condominiums and recommendations for
412changes in the condominium law. The issues that the council
413shall consider include, but are not limited to, the rights and
414responsibilities of the unit owners in relation to the rights
415and responsibilities of the association.
416     (b)  Review, evaluate, and advise the division concerning
417revisions and adoption of rules affecting condominiums.
418     (c)  Recommend improvements, if needed, in the education
419programs offered by the division.
420     (3)  The council may elect a chair and vice chair and such
421other officers as it may deem advisable. The council shall meet
422at the call of its chair, at the request of a majority of its
423membership, at the request of the division, or at such times as
424it may prescribe. A majority of the members of the council shall
425constitute a quorum. Council action may be taken by vote of a
426majority of the voting members who are present at a meeting
427where there is a quorum.
428     Section 10.  Subsection (2) of section 718.503, Florida
429Statutes, is amended to read:
430     718.503  Developer disclosure prior to sale; nondeveloper
431unit owner disclosure prior to sale; voidability.--
432     (2)  NONDEVELOPER DISCLOSURE.--
433     (a)  Each unit owner who is not a developer as defined by
434this chapter shall comply with the provisions of this subsection
435prior to the sale of his or her unit.  Each prospective
436purchaser who has entered into a contract for the purchase of a
437condominium unit is entitled, at the seller's expense, to a
438current copy of the declaration of condominium, articles of
439incorporation of the association, bylaws, and rules of the
440association, and a copy of the financial information required by
441s. 718.111, and the document entitled "Frequently Asked
442Questions and Answers" required by s. 718.504.
443     (b)  If a person licensed under part I of chapter 475
444provides to or otherwise obtains for a prospective purchaser the
445documents described in this subsection, the person is not liable
446for any error or inaccuracy contained in the documents.
447     (c)  Each contract entered into after July 1, 1992, for the
448resale of a residential unit shall contain in conspicuous type
449either:
450     1.  A clause which states:  THE BUYER HEREBY ACKNOWLEDGES
451THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
452OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION,
453BYLAWS AND, RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
454RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED
455QUESTIONS AND ANSWERS DOCUMENT MORE THAN 3 DAYS, EXCLUDING
456SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
457THIS CONTRACT; or
458     2.  A clause which states:  THIS AGREEMENT IS VOIDABLE BY
459BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO
460CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
461HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
462BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
463OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND, RULES OF
464THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END
465FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS
466DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED WAIVER OF
467THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND
468THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS,
469EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE
470BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
471BYLAWS, AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
472RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED
473QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING. BUYER'S
474RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.
475
476A contract that does not conform to the requirements of this
477paragraph is voidable at the option of the purchaser prior to
478closing.
479     Section 11.  Section 720.401, Florida Statutes, is created
480to read:
481     720.401  Preservation of residential communities; revival
482of declaration of covenants.--
483     (1)  Consistent with required and optional elements of
484local comprehensive plans and other applicable provisions of the
485Local Government Comprehensive Planning and Land Development
486Regulation Act, homeowners are encouraged to preserve existing
487residential communities, promote available and affordable
488housing, protect structural and aesthetic elements of their
489residential community, and, as applicable, maintain roads and
490streets, easements, water and sewer systems, utilities, drainage
491improvements, conservation and open areas, recreational
492amenities, and other infrastructure and common areas that serve
493and support the residential community by the revival of a
494previous declaration of covenants and other governing documents
495that may have ceased to govern some or all parcels in the
496community.
497     (2)  In order to preserve a residential community and the
498associated infrastructure and common areas for the purposes
499described in this section, the parcel owners in a community that
500was previously subject to a declaration of covenants that has
501ceased to govern one or more parcels in the community may revive
502the declaration and the homeowners' association for the
503community upon approval by the parcel owners to be governed
504thereby as provided in this act, and upon approval of the
505declaration and the other governing documents for the
506association by the Department of Community Affairs in a manner
507consistent with this act.
508     Section 12.  Section 720.402, Florida Statutes, is created
509to read:
510     720.402  Eligible residential communities; requirements for
511revival of declaration.--Parcel owners in a community are
512eligible to seek approval from the Department of Community
513Affairs to revive a declaration of covenants under this act if
514all of the following requirements are met:
515     (1)  All parcels to be governed by the revived declaration
516must have been once governed by a previous declaration that has
517ceased to govern some or all of the parcels in the community.
518     (2)  The revived declaration must be approved in the manner
519provided in s. 720.403(6).
520     (3)  The revived declaration may not contain covenants that
521are more restrictive on the parcel owners than the covenants
522contained in the previous declaration, except that the
523declaration may:
524     (a)  Have an effective term of longer duration than the
525term of the previous declaration.
526     (b)  Omit restrictions contained in the previous
527declaration.
528     (c)  Govern fewer than all of the parcels governed by the
529previous declaration.
530     (d)  Provide for amendments to the declaration and other
531governing documents.
532     (e)  Contain provisions required by this chapter for new
533declarations that were not contained in the previous
534declaration.
535     Section 13.  Section 720.403, Florida Statutes, is created
536to read:
537     720.403  Organizing committee; parcel owner approval.--
538     (1)  The proposal to revive a declaration of covenants and
539a homeowners' association for a community under the terms of
540this act shall be initiated by an organizing committee
541consisting of not less than three parcel owners located in the
542community that is proposed to be governed by the revived
543declaration. The name, address, and telephone number of each
544member of the organizing committee must be included in any
545notice or other document provided by the committee to parcel
546owners to be affected by the proposed revived declaration.
547     (2)  The organizing committee shall prepare or cause to be
548prepared the complete text of the proposed revised declaration
549of covenants to be submitted to the parcel owners for approval.
550The proposed revived documents must identify each parcel that is
551to be subject to the governing documents by its legal
552description, and by the name of the parcel owner or the person
553in whose name the parcel is assessed on the last completed tax
554assessment roll of the county at the time when the proposed
555revived declaration is submitted for approval by the parcel
556owners.
557     (3)  The organizing committee shall prepare the full text
558of the proposed articles of incorporation and bylaws of the
559revived homeowners' association to be submitted to the parcel
560owners for approval, unless the association is then an existing
561corporation, in which case the organizing committee shall
562prepare the existing articles of incorporation and bylaws to be
563submitted to the parcel owners.
564     (4)  The proposed revived declaration and other governing
565documents for the community shall:
566     (a)  Provide that the voting interest of each parcel owner
567shall be the same as the voting interest of the parcel owner
568under the previous governing documents.
569     (b)  Provide that the proportional-assessment obligations
570of each parcel owner shall be the same as proportional-
571assessment obligations of the parcel owner under the previous
572governing documents.
573     (c)  Contain the same respective amendment provisions as
574the previous governing documents or, if there were no amendment
575provisions in the previous governing document, amendment
576provisions that require approval of not less than two-thirds of
577the affected parcel owners.
578     (d)  Contain no covenants that are more restrictive on the
579affected parcel owners than the covenants contained in the
580previous governing documents, except as permitted under s.
581720.402(3).
582     (e)  Comply with the other requirements for a declaration
583of covenants and other governing documents as specified in this
584chapter.
585     (5)  A copy of the complete text of the proposed revised
586declaration of covenants, the proposed new or existing articles
587of incorporation and bylaws of the homeowners' association, and
588a graphic depiction of the property to be governed by the
589revived declaration shall be presented to all of the affected
590parcel owners by mail or hand delivery not less than 14 days
591before the time that the consent of the affected parcel owners
592to the proposed governing documents is sought by the organizing
593committee.
594     (6)  A majority of the affected parcel owners must agree in
595writing to the revived declaration of covenants and governing
596documents of the homeowners' association or approve the revived
597declaration and governing documents by a vote at a meeting of
598the affected parcel owners noticed and conducted in the manner
599prescribed by s. 720.306. Proof of notice of the meeting to all
600affected owners of the meeting and the minutes of the meeting
601recording the votes of the property owners shall be certified by
602a court reporter or an attorney licensed to practice in the
603state.
604     Section 14.  Section 720.404, Florida Statutes, is created
605to read:
606     720.404  Department of Community Affairs; submission;
607review and determination.--
608     (1)  No later than 60 days after the date the proposed
609revived declaration and other governing documents are approved
610by the affected parcel owners, the organizing committee or its
611designee must submit the proposed revived governing documents
612and supporting materials to the Department of Community Affairs
613to review and determine whether to approve or disapprove of the
614proposal to preserve the residential community. The submission
615to the department must include:
616     (a)  The full text of the proposed revived declaration of
617covenants and articles of incorporation and bylaws of the
618homeowners' association.
619     (b)  A verified copy of the previous declaration of
620covenants and other previous governing documents for the
621community, including any amendments thereto.
622     (c)  The legal description of each parcel to be subject to
623the revived declaration and other governing documents and a plat
624or other graphic depiction of the affected properties in the
625community.
626     (d)  A verified copy of the written consents of the
627requisite number of the affected parcel owners approving the
628revived declaration and other governing documents or, if
629approval was obtained by a vote at a meeting of affected parcel
630owners, verified copies of the notice of the meeting,
631attendance, and voting results.
632     (e)  An affidavit by a current or former officer of the
633association or by a member of the organizing committee verifying
634that the requirements for the revived declaration set forth in
635s. 720.402 have been satisfied.
636     (f)  Such other documentation that the organizing committee
637believes is supportive of the policy of preserving the
638residential community and operating, managing, and maintaining
639the infrastructure, aesthetic character, and common areas
640serving the residential community.
641     (2)  No later than 60 days after receiving the submission,
642the department must determine whether the proposed revived
643declaration of covenants and other governing documents comply
644with the requirements of this act.
645     (a)  If the department determines that the proposed revived
646declaration and other governing documents comply with the act
647and have been approved by the parcel owners as required by this
648act, the department shall notify the organizing committee in
649writing of its approval.
650     (b)  If the department determines that the proposed revived
651declaration and other governing documents do not comply with
652this act or have not been approved as required by this act, the
653department shall notify the organizing committee in writing that
654it does not approve the governing documents and shall state the
655reasons for the disapproval.
656     Section 15.  Section 720.405, Florida Statutes, is created
657to read:
658     720.405  Recording; notice of recording; applicability and
659effective date.--
660     (1)  No later than 30 days after receiving approval from
661the department, the organizing committee shall file the articles
662of incorporation of the association with the Division of
663Corporations of the Department of State if the articles have not
664been previously filed with the division.
665     (2)  No later than 30 days after receiving approval from
666the division, the president and secretary of the association
667shall execute the revived declaration and other governing
668documents approved by the department in the name of the
669association and have the documents recorded with the clerk of
670the circuit court in the county where the affected parcels are
671located.
672     (3)  The recorded documents shall include the full text of
673the approved declaration of covenants, the articles of
674incorporation and bylaws of the homeowners' association, the
675letter of approval by the department, and the legal description
676of each affected parcel of property. For purposes of chapter
677712, the association is deemed to be and shall be indexed as the
678grantee in a title transaction and the parcel owners named in
679the revived declaration are deemed to be and shall be indexed as
680the grantors in the title transaction.
681     (4)  Immediately after recording the documents, a complete
682copy of all of the approved recorded documents must be mailed or
683hand delivered to the owner of each affected parcel. The revived
684declaration and other governing documents shall be effective
685upon recordation in the public records with respect to each
686affected parcel subject thereto, regardless of whether the
687particular parcel owner approved the revived declaration. Upon
688recordation, the revived declaration shall replace and supersede
689the previous declaration with respect to all affected parcels
690then governed by the previous declaration and shall have the
691same record priority as the superseded previous declaration.
692With respect to any affected parcels that had ceased to be
693governed by the previous declaration as of the recording date,
694the revived declaration may not have retroactive effect with
695respect to the parcel and shall take priority with respect to
696the parcel as of the recording date.
697     (5)  The owner of any parcel that has ceased to be governed
698by a previous declaration of covenants as of July 1, 2004, may
699commence an action within 1 year after that date for a judicial
700determination that the previous declaration did not govern that
701parcel as of July 1, 2004, and that any revival of such
702declaration as to that parcel would unconstitutionally deprive
703the parcel owner of rights or property. A revived declaration
704that is implemented pursuant to this act shall not apply to or
705affect the rights of the respective parcel owner recognized by a
706court order or judgment in an action commenced within 1 year
707after July 1, 2004, and any rights so recognized may not be
708subsequently altered by a revived declaration implemented under
709this act without the consent of the affected property owner.
710     Section 16.  Section 720.301, Florida Statutes, is amended
711to read:
712     720.301  Definitions.--As used in this chapter ss. 720.301-
713720.312, the term:
714     (1)  "Assessment" or "amenity fee" means a sum or sums of
715money payable to the association, to the developer or other
716owner of common areas, or to recreational facilities and other
717properties serving the parcels by the owners of one or more
718parcels as authorized in the governing documents, which if not
719paid by the owner of a parcel, can result in a lien against the
720parcel.
721     (2)  "Common area" means all real property within a
722community which is owned or leased by an association or
723dedicated for use or maintenance by the association or its
724members, including, regardless of whether title has been
725conveyed to the association:
726     (a)  Real property the use of which is dedicated to the
727association or its members by a recorded plat; or
728     (b)  Real property committed by a declaration of covenants
729to be leased or conveyed to the association.
730     (3)  "Community" means the real property that is or will be
731subject to a declaration of covenants which is recorded in the
732county where the property is located.  The term "community"
733includes all real property, including undeveloped phases, that
734is or was the subject of a development-of-regional-impact
735development order, together with any approved modification
736thereto.
737     (4)  "Declaration of covenants," or "declaration," means a
738recorded written instrument in the nature of covenants running
739with the land which subjects the land comprising the community
740to the jurisdiction and control of an association or
741associations in which the owners of the parcels, or their
742association representatives, must be members.
743     (5)  "Department" means the Department of Business and
744Professional Regulation.
745     (6)(5)  "Developer" means a person or entity that:
746     (a)  Creates the community served by the association; or
747     (b)  Succeeds to the rights and liabilities of the person
748or entity that created the community served by the association,
749provided that such is evidenced in writing.
750     (7)  "Division" means the Division of Florida Land Sales,
751Condominiums, and Mobile Homes in the Department of Business and
752Professional Regulation.
753     (8)(6)  "Governing documents" means:
754     (a)  The recorded declaration of covenants for a community,
755and all duly adopted and recorded amendments, supplements, and
756recorded exhibits thereto; and
757     (b)  The articles of incorporation and bylaws of the
758homeowners' association, and any duly adopted amendments
759thereto.
760     (9)(7)  "Homeowners' association" or "association" means a
761Florida corporation responsible for the operation of a community
762or a mobile home subdivision in which the voting membership is
763made up of parcel owners or their agents, or a combination
764thereof, and in which membership is a mandatory condition of
765parcel ownership, and which is authorized to impose assessments
766that, if unpaid, may become a lien on the parcel.  The term
767"homeowners' association" does not include a community
768development district or other similar special taxing district
769created pursuant to statute.
770     (10)(8)  "Member" means a member of an association, and may
771include, but is not limited to, a parcel owner or an association
772representing parcel owners or a combination thereof, and
773includes any person or entity obligated by the governing
774documents to pay an assessment or amenity fee.
775     (11)(9)  "Parcel" means a platted or unplatted lot, tract,
776unit, or other subdivision of real property within a community,
777as described in the declaration:
778     (a)  Which is capable of separate conveyance; and
779     (b)  Of which the parcel owner, or an association in which
780the parcel owner must be a member, is obligated:
781     1.  By the governing documents to be a member of an
782association that serves the community; and
783     2.  To pay to the homeowners' association assessments that,
784if not paid, may result in a lien.
785     (12)(10)  "Parcel owner" means the record owner of legal
786title to a parcel.
787     (13)(11)  "Voting interest" means the voting rights
788distributed to the members of the homeowners' association,
789pursuant to the governing documents.
790     Section 17.  Subsections (1), (2), (3), and (4) of section
791720.302, Florida Statutes, are amended to read:
792     720.302  Purposes, scope, and application.--
793     (1)  The purposes of this chapter ss. 720.301-720.312 are
794to give statutory recognition to corporations not for profit
795that operate residential communities in this state, to provide
796procedures for operating homeowners' associations, and to
797protect the rights of association members without unduly
798impairing the ability of such associations to perform their
799functions.
800     (2)  The Legislature recognizes that it is not in the best
801interest of homeowners' associations or the individual
802association members thereof to create or impose a bureau or
803other agency of state government to regulate the affairs of
804homeowners' associations. However, in accordance with s.
805720.311, the Legislature finds that homeowners' associations and
806their individual members will benefit from an expedited
807alternative process for resolution of election and recall
808disputes and presuit mediation of other disputes involving
809covenant enforcement and authorizes the department to hear,
810administer, and determine these disputes as more fully set forth
811in this chapter. Further, the Legislature recognizes that
812certain contract rights have been created for the benefit of
813homeowners' associations and members thereof before the
814effective date of this act and that ss. 720.301-720.501 ss.
815720.301-720.312 are not intended to impair such contract rights,
816including, but not limited to, the rights of the developer to
817complete the community as initially contemplated.
818     (3)  This chapter does Sections 720.301-720.312 do not
819apply to:
820     (a)  A community that is composed of property primarily
821intended for commercial, industrial, or other nonresidential
822use; or
823     (b)  The commercial or industrial parcels in a community
824that contains both residential parcels and parcels intended for
825commercial or industrial use.
826     (4)  This chapter does Sections 720.301-720.312 do not
827apply to any association that is subject to regulation under
828chapter 718, chapter 719, or chapter 721; or to any nonmandatory
829association formed under chapter 723.
830     Section 18.  Section 720.303, Florida Statutes, is amended
831to read:
832     720.303  Association powers and duties; meetings of board;
833official records; budgets; financial reporting; association
834funds; recalls.--
835     (1)  POWERS AND DUTIES.--An association which operates a
836community as defined in s. 720.301, must be operated by an
837association that is a Florida corporation. After October 1,
8381995, the association must be incorporated and the initial
839governing documents must be recorded in the official records of
840the county in which the community is located. An association may
841operate more than one community. The officers and directors of
842an association have a fiduciary relationship to the members who
843are served by the association. The powers and duties of an
844association include those set forth in this chapter and, except
845as expressly limited or restricted in this chapter, those set
846forth in the governing documents. After control of the
847association is obtained by members unit owners other than the
848developer, the association may institute, maintain, settle, or
849appeal actions or hearings in its name on behalf of all members
850concerning matters of common interest to the members, including,
851but not limited to, the common areas; roof or structural
852components of a building, or other improvements for which the
853association is responsible; mechanical, electrical, or plumbing
854elements serving an improvement or building for which the
855association is responsible; representations of the developer
856pertaining to any existing or proposed commonly used facility;
857and protesting ad valorem taxes on commonly used facilities. The
858association may defend actions in eminent domain or bring
859inverse condemnation actions. Before commencing litigation
860against any party in the name of the association involving
861amounts in controversy in excess of $100,000, the association
862must obtain the affirmative approval of a majority of the voting
863interests at a meeting of the membership at which a quorum has
864been attained. This subsection does not limit any statutory or
865common-law right of any individual member or class of members to
866bring any action without participation by the association. A
867member does not have authority to act for the association by
868virtue of being a member. An association may have more than one
869class of members and may issue membership certificates. An
870association of 15 or fewer parcel owners may enforce only the
871requirements of those deed restrictions established prior to the
872purchase of each parcel upon an affected parcel owner or owners.
873     (2)  BOARD MEETINGS.--
874     (a)  A meeting of the board of directors of an association
875occurs whenever a quorum of the board gathers to conduct
876association business.  All meetings of the board must be open to
877all members except for meetings between the board and its
878attorney with respect to proposed or pending litigation where
879the contents of the discussion would otherwise be governed by
880the attorney-client privilege.
881     (b)  Members have the right to attend all meetings of the
882board and to speak on any matter placed on the agenda by
883petition of the voting interests for at least 3 minutes. The
884association may adopt written reasonable rules expanding the
885right of members to speak and governing the frequency, duration,
886and other manner of member statements, which rules must be
887consistent with this paragraph and may include a sign-up sheet
888for members wishing to speak. Notwithstanding any other law, the
889requirement that board meetings and committee meetings be open
890to the members is inapplicable to meetings between the board or
891a committee and the association's attorney, with respect to
892meetings of the board held for the purpose of discussing
893personnel matters.
894     (c)  The bylaws shall provide for giving notice to parcel
895owners and members of all board meetings and, if they do not do
896so, shall be deemed to provide the following:
897     1.  Notices of all board meetings must be posted in a
898conspicuous place in the community at least 48 hours in advance
899of a meeting, except in an emergency.  In the alternative, if
900notice is not posted in a conspicuous place in the community,
901notice of each board meeting must be mailed or delivered to each
902member at least 7 days before the meeting, except in an
903emergency. Notwithstanding this general notice requirement, for
904communities with more than 100 members, the bylaws may provide
905for a reasonable alternative to posting or mailing of notice for
906each board meeting, including publication of notice, provision
907of a schedule of board meetings, or the conspicuous posting and
908repeated broadcasting of the notice on a closed-circuit cable
909television system serving the homeowners' association. However,
910if broadcast notice is used in lieu of a notice posted
911physically in the community, the notice must be broadcast at
912least four times every broadcast hour of each day that a posted
913notice is otherwise required. When broadcast notice is provided,
914the notice and agenda must be broadcast in a manner and for a
915sufficient continuous length of time so as to allow an average
916reader to observe the notice and read and comprehend the entire
917content of the notice and the agenda. The bylaws or amended
918bylaws may provide for giving notice by electronic transmission
919in a manner authorized by law for meetings of the board of
920directors, committee meetings requiring notice under this
921section, and annual and special meetings of the members;
922however, a member must consent in writing to receiving notice by
923electronic transmission.
924     2.  An assessment may not be levied at a board meeting
925unless the notice of the meeting includes a statement that
926assessments will be considered and the nature of the
927assessments. Written notice of any meeting at which special
928assessments will be considered or at which amendments to rules
929regarding parcel use will be considered must be mailed, hand
930delivered, or electronically transmitted to the members and
931parcel owners and posted conspicuously on the property or
932broadcast on closed-circuit cable television not less than 14
933days before the meeting.
934     3.  Directors may not vote by proxy or by secret ballot at
935board meetings, except that secret ballots may be used in the
936election of officers.  This subsection also applies to the
937meetings of any committee or other similar body, when a final
938decision will be made regarding the expenditure of association
939funds, and to any body vested with the power to approve or
940disapprove architectural decisions with respect to a specific
941parcel of residential property owned by a member of the
942community.
943     (d)  If 20 percent of the total voting interests petition
944the board to address an item of business, the board shall at its
945next regular board meeting or at a special meeting of the board,
946but not later than 60 days after the receipt of the petition,
947take the petitioned item up on an agenda. The board shall give
948all members notice of the meeting at which the petitioned item
949shall be addressed in accordance with the 14-day notice
950requirement pursuant to subparagraph 2. Each member shall have
951the right to speak for at least 3 minutes on each matter placed
952on the agenda by petition, provided that the member signs the
953sign-up sheet, if one is provided, or submits a written request
954to speak prior to the meeting. Other than addressing the
955petitioned item at the meeting, the board is not obligated to
956take any other action requested by the petition.
957     (3)  MINUTES.--Minutes of all meetings of the members of an
958association and of the board of directors of an association must
959be maintained in written form or in another form that can be
960converted into written form within a reasonable time.  A vote or
961abstention from voting on each matter voted upon for each
962director present at a board meeting must be recorded in the
963minutes.
964     (4)  OFFICIAL RECORDS.--The association shall maintain each
965of the following items, when applicable, which constitute the
966official records of the association:
967     (a)  Copies of any plans, specifications, permits, and
968warranties related to improvements constructed on the common
969areas or other property that the association is obligated to
970maintain, repair, or replace.
971     (b)  A copy of the bylaws of the association and of each
972amendment to the bylaws.
973     (c)  A copy of the articles of incorporation of the
974association and of each amendment thereto.
975     (d)  A copy of the declaration of covenants and a copy of
976each amendment thereto.
977     (e)  A copy of the current rules of the homeowners'
978association.
979     (f)  The minutes of all meetings of the board of directors
980and of the members, which minutes must be retained for at least
9817 years.
982     (g)  A current roster of all members and their mailing
983addresses and parcel identifications. The association shall also
984maintain the electronic mailing addresses and the numbers
985designated by members for receiving notice sent by electronic
986transmission of those members consenting to receive notice by
987electronic transmission. The electronic mailing addresses and
988numbers provided by unit owners to receive notice by electronic
989transmission shall be removed from association records when
990consent to receive notice by electronic transmission is revoked.
991However, the association is not liable for an erroneous
992disclosure of the electronic mail address or the number for
993receiving electronic transmission of notices.
994     (h)  All of the association's insurance policies or a copy
995thereof, which policies must be retained for at least 7 years.
996     (i)  A current copy of all contracts to which the
997association is a party, including, without limitation, any
998management agreement, lease, or other contract under which the
999association has any obligation or responsibility.  Bids received
1000by the association for work to be performed must also be
1001considered official records and must be kept for a period of 1
1002year.
1003     (j)  The financial and accounting records of the
1004association, kept according to good accounting practices.  All
1005financial and accounting records must be maintained for a period
1006of at least 7 years.  The financial and accounting records must
1007include:
1008     1.  Accurate, itemized, and detailed records of all
1009receipts and expenditures.
1010     2.  A current account and a periodic statement of the
1011account for each member, designating the name and current
1012address of each member who is obligated to pay assessments, the
1013due date and amount of each assessment or other charge against
1014the member, the date and amount of each payment on the account,
1015and the balance due.
1016     3.  All tax returns, financial statements, and financial
1017reports of the association.
1018     4.  Any other records that identify, measure, record, or
1019communicate financial information.
1020     (k)  A copy of the disclosure summary described in s.
1021720.401(2).
1022     (l)  All other written records of the association not
1023specifically included in the foregoing which are related to the
1024operation of the association.
1025     (5)  INSPECTION AND COPYING OF RECORDS.--The official
1026records shall be maintained within the state and must be open to
1027inspection and available for photocopying by members or their
1028authorized agents at reasonable times and places within 10
1029business days after receipt of a written request for access.
1030This subsection may be complied with by having a copy of the
1031official records available for inspection or copying in the
1032community. If the association has a photocopy machine available
1033where the records are maintained, it must provide parcel owners
1034with copies on request during the inspection if the entire
1035request is limited to no more than 25 pages.
1036     (a)  The failure of an association to provide access to the
1037records within 10 business days after receipt of a written
1038request creates a rebuttable presumption that the association
1039willfully failed to comply with this subsection.
1040     (b)  A member who is denied access to official records is
1041entitled to the actual damages or minimum damages for the
1042association's willful failure to comply with this subsection.  
1043The minimum damages are to be $50 per calendar day up to 10
1044days, the calculation to begin on the 11th business day after
1045receipt of the written request.
1046     (c)  The association may adopt reasonable written rules
1047governing the frequency, time, location, notice, records to be
1048inspected, and manner of inspections, but may not impose a
1049requirement that a parcel owner demonstrate any proper purpose
1050for the inspection, state any reason for the inspection, or
1051limit a parcel owner's right to inspect records to less than one
10528-hour business day per month. The association and may impose
1053fees to cover the costs of providing copies of the official
1054records, including, without limitation, the costs of copying.
1055The association may charge up to 50 cents per page for copies
1056made on the association's photocopier. If the association does
1057not have a photocopy machine available where the records are
1058kept, or if the records requested to be copied exceed 25 pages
1059in length, the association may have copies made by an outside
1060vendor and may charge the actual cost of copying. The
1061association shall maintain an adequate number of copies of the
1062recorded governing documents, to ensure their availability to
1063members and prospective members, and may charge only its actual
1064costs for reproducing and furnishing these documents to those
1065persons who are entitled to receive them. Notwithstanding the
1066provisions of this paragraph, the following records shall not be
1067accessible to members or parcel owners:
1068     1.  Any record protected by the lawyer-client privilege as
1069described in s. 90.502 and any record protected by the work-
1070product privilege, including, but not limited to, any record
1071prepared by an association attorney or prepared at the
1072attorney's express direction which reflects a mental impression,
1073conclusion, litigation strategy, or legal theory of the attorney
1074or the association and was prepared exclusively for civil or
1075criminal litigation or for adversarial administrative
1076proceedings or which was prepared in anticipation of imminent
1077civil or criminal litigation or imminent adversarial
1078administrative proceedings until the conclusion of the
1079litigation or adversarial administrative proceedings.
1080     2.  Information obtained by an association in connection
1081with the approval of the lease, sale, or other transfer of a
1082parcel.
1083     3.  Disciplinary, health, insurance, and personnel records
1084of the association's employees.
1085     4.  Medical records of parcel owners or community
1086residents.
1087     (6)  BUDGETS.--The association shall prepare an annual
1088budget. The budget must reflect the estimated revenues and
1089expenses for that year and the estimated surplus or deficit as
1090of the end of the current year.  The budget must set out
1091separately all fees or charges for recreational amenities,
1092whether owned by the association, the developer, or another
1093person.  The association shall provide each member with a copy
1094of the annual budget or a written notice that a copy of the
1095budget is available upon request at no charge to the member.  
1096The copy must be provided to the member within the time limits
1097set forth in subsection (5).
1098     (7)  FINANCIAL REPORTING.--The association shall prepare an
1099annual financial report within 60 days after the close of the
1100fiscal year. The association shall, within the time limits set
1101forth in subsection (5), provide each member with a copy of the
1102annual financial report or a written notice that a copy of the
1103financial report is available upon request at no charge to the
1104member. Financial reports shall be prepared as follows The
1105financial report must consist of either:
1106     (a)  An association that meets the criteria of this
1107paragraph shall prepare or cause to be prepared a complete set
1108of financial statements in accordance with generally accepted
1109accounting principles. The financial statements shall be based
1110upon the association's total annual revenues, as follows:
1111     1.  An association with total annual revenues of $100,000
1112or more, but less than $200,000, shall prepare compiled
1113financial statements.
1114     2.  An association with total annual revenues of at least
1115$200,000, but less than $400,000, shall prepare reviewed
1116financial statements.
1117     3.  An association with total annual revenues of $400,000
1118or more shall prepare audited financial statements. Financial
1119statements presented in conformity with generally accepted
1120accounting principles; or
1121     (b)  A financial report of actual receipts and
1122expenditures, cash basis, which report must show:
1123     1.  An association with total annual revenues of less than
1124$100,000 shall prepare a report of cash receipts and
1125expenditures. The amount of receipts and expenditures by
1126classification; and
1127     2.  An association in a community of fewer than 50 parcels,
1128regardless of the association's annual revenues, may prepare a
1129report of cash receipts and expenditures in lieu of financial
1130statements required by paragraph (a) unless the governing
1131documents provide otherwise. The beginning and ending cash
1132balances of the association.
1133     3.  A report of cash receipts and disbursement must
1134disclose the amount of receipts by accounts and receipt
1135classifications and the amount of expenses by accounts and
1136expense classifications, including, but not limited to, the
1137following, as applicable: costs for security, professional, and
1138management fees and expenses; taxes; costs for recreation
1139facilities; expenses for refuse collection and utility services;
1140expenses for lawn care; costs for building maintenance and
1141repair; insurance costs; administration and salary expenses; and
1142reserves if maintained by the association.
1143     (c)  If 20 percent of the parcel owners petition the board
1144for a level of financial reporting higher than that required by
1145this section, the association shall duly notice and hold a
1146meeting of members within 30 days of receipt of the petition for
1147the purpose of voting on raising the level of reporting for that
1148fiscal year. Upon approval of a majority of the total voting
1149interests of the parcel owners, the association shall prepare or
1150cause to be prepared, shall amend the budget or adopt a special
1151assessment to pay for the financial report regardless of any
1152provision to the contrary in the governing documents, and shall
1153provide within 90 days of the meeting or the end of the fiscal
1154year, whichever occurs later:
1155     1.  Compiled, reviewed, or audited financial statements, if
1156the association is otherwise required to prepare a report of
1157cash receipts and expenditures;
1158     2.  Reviewed or audited financial statements, if the
1159association is otherwise required to prepare compiled financial
1160statements; or
1161     3.  Audited financial statements if the association is
1162otherwise required to prepare reviewed financial statements.
1163     (d)  If approved by a majority of the voting interests
1164present at a properly called meeting of the association, an
1165association may prepare or cause to be prepared:
1166     1.  A report of cash receipts and expenditures in lieu of a
1167compiled, reviewed, or audited financial statement;
1168     2.  A report of cash receipts and expenditures or a
1169compiled financial statement in lieu of a reviewed or audited
1170financial statement; or
1171     3.  A report of cash receipts and expenditures, a compiled
1172financial statement, or a reviewed financial statement in lieu
1173of an audited financial statement.
1174     (8)  ASSOCIATION FUNDS; COMMINGLING.--
1175     (a)  All association funds held by a developer shall be
1176maintained separately in the association's name. Reserve and
1177operating funds of the association shall not be commingled prior
1178to turnover except the association may jointly invest reserve
1179funds; however, such jointly invested funds must be accounted
1180for separately.
1181     (b)  No developer in control of a homeowners' association
1182shall commingle any association funds with his or her funds or
1183with the funds of any other homeowners' association or community
1184association.
1185     (c)  Association funds may not be used by a developer to
1186defend a civil or criminal action, administrative proceeding, or
1187arbitration proceeding that has been filed against the developer
1188or directors appointed to the association board by the
1189developer, even when the subject of the action or proceeding
1190concerns the operation of the developer-controlled association.
1191     (9)  APPLICABILITY.--Sections 617.1601-617.1604 do not
1192apply to a homeowners' association in which the members have the
1193inspection and copying rights set forth in this section.
1194     (10)  RECALL OF DIRECTORS.--
1195     (a)1.  Regardless of any provision to the contrary
1196contained in the governing documents, subject to the provisions
1197of s. 720.307 regarding transition of association control, any
1198member of the board or directors may be recalled and removed
1199from office with or without cause by a majority of the total
1200voting interests.
1201     2.  When the governing documents, including the
1202declaration, articles of incorporation, or bylaws, provide that
1203only a specific class of members is entitled to elect a board
1204director or directors, only that class of members may vote to
1205recall those board directors so elected.
1206     (b)1.  Board directors may be recalled by an agreement in
1207writing or by written ballot without a membership meeting. The
1208agreement in writing or the written ballots, or a copy thereof,
1209shall be served on the association by certified mail or by
1210personal service in the manner authorized by chapter 48 and the
1211Florida Rules of Civil Procedure.
1212     2.  The board shall duly notice and hold a meeting of the
1213board within 5 full business days after receipt of the agreement
1214in writing or written ballots. At the meeting, the board shall
1215either certify the written ballots or written agreement to
1216recall a director or directors of the board, in which case such
1217director or directors shall be recalled effective immediately
1218and shall turn over to the board within 5 full business days any
1219and all records and property of the association in their
1220possession, or proceed as described in paragraph (d).
1221     3.  When it is determined by the department pursuant to
1222binding arbitration proceedings that an initial recall effort
1223was defective, written recall agreements or written ballots used
1224in the first recall effort and not found to be defective may be
1225reused in one subsequent recall effort. However, in no event is
1226a written agreement or written ballot valid for more than 120
1227days after it has been signed by the member.
1228     4.  Any rescission or revocation of a member's written
1229recall ballot or agreement must be in writing and, in order to
1230be effective, must be delivered to the association before the
1231association is served with the written recall agreements or
1232ballots.
1233     5.  The agreement in writing or ballot shall list at least
1234as many possible replacement directors as there are directors
1235subject to the recall, when at least a majority of the board is
1236sought to be recalled; the person executing the recall
1237instrument may vote for as many replacement candidates as there
1238are directors subject to the recall.
1239     (c)1.  If the declaration, articles of incorporation, or
1240bylaws specifically provide, the members may also recall and
1241remove a board director or directors by a vote taken at a
1242meeting. If so provided in the governing documents, a special
1243meeting of the members to recall a director or directors of the
1244board of administration may be called by 10 percent of the
1245voting interests giving notice of the meeting as required for a
1246meeting of members, and the notice shall state the purpose of
1247the meeting. Electronic transmission may not be used as a method
1248of giving notice of a meeting called in whole or in part for
1249this purpose.
1250     2.  The board shall duly notice and hold a board meeting
1251within 5 full business days after the adjournment of the member
1252meeting to recall one or more directors. At the meeting, the
1253board shall certify the recall, in which case such member or
1254members shall be recalled effective immediately and shall turn
1255over to the board within 5 full business days any and all
1256records and property of the association in their possession, or
1257shall proceed as set forth in subparagraph (d).
1258     (d)  If the board determines not to certify the written
1259agreement or written ballots to recall a director or directors
1260of the board or does not certify the recall by a vote at a
1261meeting, the board shall, within 5 full business days after the
1262meeting, file with the department a petition for binding
1263arbitration pursuant to the applicable procedures in ss.
1264718.1255 and 718.112(2)(j) and the rules adopted thereunder. For
1265the purposes of this section, the members who voted at the
1266meeting or who executed the agreement in writing shall
1267constitute one party under the petition for arbitration. If the
1268arbitrator certifies the recall as to any director or directors
1269of the board, the recall will be effective upon mailing of the
1270final order of arbitration to the association. The director or
1271directors so recalled shall deliver to the board any and all
1272records of the association in their possession within 5 full
1273business days after the effective date of the recall.
1274     (e)  If a vacancy occurs on the board as a result of a
1275recall and less than a majority of the board directors are
1276removed, the vacancy may be filled by the affirmative vote of a
1277majority of the remaining directors, notwithstanding any
1278provision to the contrary contained in this subsection or in the
1279association documents. If vacancies occur on the board as a
1280result of a recall and a majority or more of the board directors
1281are removed, the vacancies shall be filled by members voting in
1282favor of the recall; if removal is at a meeting, any vacancies
1283shall be filled by the members at the meeting. If the recall
1284occurred by agreement in writing or by written ballot, members
1285may vote for replacement directors in the same instrument in
1286accordance with procedural rules adopted by the division, which
1287rules need not be consistent with this subsection.
1288     (f)  If the board fails to duly notice and hold a board
1289meeting within 5 full business days after service of an
1290agreement in writing or within 5 full business days after the
1291adjournment of the member recall meeting, the recall shall be
1292deemed effective and the board directors so recalled shall
1293immediately turn over to the board all records and property of
1294the association.
1295     (g)  If a director who is removed fails to relinquish his
1296or her office or turn over records as required under this
1297section, the circuit court in the county where the association
1298maintains its principal office may, upon the petition of the
1299association, summarily order the director to relinquish his or
1300her office and turn over all association records upon
1301application of the association.
1302     (h)  The minutes of the board meeting at which the board
1303decides whether to certify the recall are an official
1304association record. The minutes must record the date and time of
1305the meeting, the decision of the board, and the vote count taken
1306on each board member subject to the recall. In addition, when
1307the board decides not to certify the recall, as to each vote
1308rejected, the minutes must identify the parcel number and the
1309specific reason for each such rejection.
1310     (i)  When the recall of more than one board director is
1311sought, the written agreement, ballot, or vote at a meeting
1312shall provide for a separate vote for each board director sought
1313to be recalled.
1314     Section 19.  Section 720.304, Florida Statutes, is amended
1315to read:
1316     720.304  Right of owners to peaceably assemble; display of
1317flag; SLAPP suits prohibited.--
1318     (1)  All common areas and recreational facilities serving
1319any homeowners' association shall be available to parcel owners
1320in the homeowners' association served thereby and their invited
1321guests for the use intended for such common areas and
1322recreational facilities.  The entity or entities responsible for
1323the operation of the common areas and recreational facilities
1324may adopt reasonable rules and regulations pertaining to the use
1325of such common areas and recreational facilities.  No entity or
1326entities shall unreasonably restrict any parcel owner's right to
1327peaceably assemble or right to invite public officers or
1328candidates for public office to appear and speak in common areas
1329and recreational facilities.
1330     (2)  Any homeowner may display one portable, removable
1331United States flag or official flag of the State of Florida in a
1332respectful manner, and on Armed Forces Day, Memorial Day, Flag
1333Day, Independence Day, and Veterans Day may display in a
1334respectful manner portable, removable official flags, not larger
1335than 4 1/2 feet by 6 feet, which represents the United States
1336Army, Navy, Air Force, Marine Corps, or Coast Guard, regardless
1337of any declaration rules or requirements dealing with flags or
1338decorations.
1339     (3)  Any owner prevented from exercising rights guaranteed
1340by subsection (1) or subsection (2) may bring an action in the
1341appropriate court of the county in which the alleged
1342infringement occurred, and, upon favorable adjudication, the
1343court shall enjoin the enforcement of any provision contained in
1344any homeowners' association document or rule that operates to
1345deprive the owner of such rights.
1346     (4)  It is the intent of the Legislature to protect the
1347right of parcel owners to exercise their rights to instruct
1348their representatives and petition for redress of grievances
1349before the various governmental entities of this state as
1350protected by the First Amendment to the United States
1351Constitution and s. 5, Art. I of the State Constitution. The
1352Legislature recognizes that "Strategic Lawsuits Against Public
1353Participation" or "SLAPP" suits, as they are typically called,
1354have occurred when members are sued by individuals, business
1355entities, or governmental entities arising out of a parcel
1356owner's appearance and presentation before a governmental entity
1357on matters related to the homeowners' association. However, it
1358is the public policy of this state that government entities,
1359business organizations, and individuals not engage in SLAPP
1360suits because such actions are inconsistent with the right of
1361parcel owners to participate in the state's institutions of
1362government. Therefore, the Legislature finds and declares that
1363prohibiting such lawsuits by governmental entities, business
1364entities, and individuals against parcel owners who address
1365matters concerning their homeowners' association will preserve
1366this fundamental state policy, preserve the constitutional
1367rights of parcel owners, and assure the continuation of
1368representative government in this state. It is the intent of the
1369Legislature that such lawsuits be expeditiously disposed of by
1370the courts.
1371     (a)  As used in this subsection, the term "governmental
1372entity" means the state, including the executive, legislative,
1373and judicial branches of government, the independent
1374establishments of the state, counties, municipalities,
1375districts, authorities, boards, or commissions, or any agencies
1376of these branches which are subject to chapter 286.
1377     (b)  A governmental entity, business organization, or
1378individual in this state may not file or cause to be filed
1379through its employees or agents any lawsuit, cause of action,
1380claim, cross-claim, or counterclaim against a parcel owner
1381without merit and solely because such parcel owner has exercised
1382the right to instruct his or her representatives or the right to
1383petition for redress of grievances before the various
1384governmental entities of this state, as protected by the First
1385Amendment to the United States Constitution and s. 5, Art. I of
1386the State Constitution.
1387     (c)  A parcel owner sued by a governmental entity, business
1388organization, or individual in violation of this section has a
1389right to an expeditious resolution of a claim that the suit is
1390in violation of this section. A parcel owner may petition the
1391court for an order dismissing the action or granting final
1392judgment in favor of that parcel owner. The petitioner may file
1393a motion for summary judgment, together with supplemental
1394affidavits, seeking a determination that the governmental
1395entity's, business organization's, or individual's lawsuit has
1396been brought in violation of this section. The governmental
1397entity, business organization, or individual shall thereafter
1398file its response and any supplemental affidavits. As soon as
1399practicable, the court shall set a hearing on the petitioner's
1400motion, which shall be held at the earliest possible time after
1401the filing of the governmental entity's, business organization's
1402or individual's response. The court may award the parcel owner
1403sued by the governmental entity, business organization, or
1404individual actual damages arising from the governmental
1405entity's, individual's, or business organization's violation of
1406this section. A court may treble the damages awarded to a
1407prevailing parcel owner and shall state the basis for the treble
1408damages award in its judgment. The court shall award the
1409prevailing party reasonable attorney's fees and costs incurred
1410in connection with a claim that an action was filed in violation
1411of this section.
1412     (d)  Homeowners' associations may not expend association
1413funds in prosecuting a SLAPP suit against a parcel owner.
1414     (5)(a)  Any parcel owner may construct an access ramp if a
1415resident or occupant of the parcel has a medical necessity or
1416disability that requires a ramp for egress and ingress under the
1417following conditions:
1418     1.  The ramp must be as unobtrusive as possible, be
1419designed to blend in aesthetically as practicable, and be
1420reasonably sized to fit the intended use.
1421     2.  Plans for the ramp must be submitted in advance to the
1422homeowners' association. The association may make reasonable
1423requests to modify the design to achieve architectural
1424consistency with surrounding structures and surfaces.
1425     (b)  The parcel owner must submit to the association an
1426affidavit from a physician attesting to the medical necessity or
1427disability of the resident or occupant of the parcel requiring
1428the access ramp. Certification used for s. 320.0848 shall be
1429sufficient to meet the affidavit requirement.
1430     (6)  Any parcel owner may display a sign of reasonable size
1431provided by a contractor for security services within 10 feet of
1432any entrance to the home.
1433     Section 20.  Subsection (2) of section 720.305, Florida
1434Statutes, is amended to read:
1435     720.305  Obligations of members; remedies at law or in
1436equity; levy of fines and suspension of use rights; failure to
1437fill sufficient number of vacancies on board of directors to
1438constitute a quorum; appointment of receiver upon petition of
1439any member.--
1440     (2)  If the governing documents so provide, an association
1441may suspend, for a reasonable period of time, the rights of a
1442member or a member's tenants, guests, or invitees, or both, to
1443use common areas and facilities and may levy reasonable fines,
1444not to exceed $100 per violation, against any member or any
1445tenant, guest, or invitee. A fine may be levied on the basis of
1446each day of a continuing violation, with a single notice and
1447opportunity for hearing, except that no such fine shall exceed
1448$1,000 in the aggregate unless otherwise provided in the
1449governing documents. A fine shall not become a lien against a
1450parcel. In any action to recover a fine, the prevailing party is
1451entitled to collect its reasonable attorney's fees and costs
1452from the nonprevailing party as determined by the court.
1453     (a)  A fine or suspension may not be imposed without notice
1454of at least 14 days to the person sought to be fined or
1455suspended and an opportunity for a hearing before a committee of
1456at least three members appointed by the board who are not
1457officers, directors, or employees of the association, or the
1458spouse, parent, child, brother, or sister of an officer,
1459director, or employee.  If the committee, by majority vote, does
1460not approve a proposed fine or suspension, it may not be
1461imposed.
1462     (b)  The requirements of this subsection do not apply to
1463the imposition of suspensions or fines upon any member because
1464of the failure of the member to pay assessments or other charges
1465when due if such action is authorized by the governing
1466documents.
1467     (c)  Suspension of common-area-use rights shall not impair
1468the right of an owner or tenant of a parcel to have vehicular
1469and pedestrian ingress to and egress from the parcel, including,
1470but not limited to, the right to park.
1471     Section 21.  Section 720.3055, Florida Statutes, is created
1472to read:
1473     720.3055  Contracts for products and services; in writing;
1474bids; exceptions.--
1475     (1)  All contracts as further described in this section or
1476any contract that is not to be fully performed within 1 year
1477after the making thereof for the purchase, lease, or renting of
1478materials or equipment to be used by the association in
1479accomplishing its purposes under this chapter or the governing
1480documents, and all contracts for the provision of services,
1481shall be in writing. If a contract for the purchase, lease, or
1482renting of materials or equipment, or for the provision of
1483services, requires payment by the association that exceeds 10
1484percent of the total annual budget of the association, including
1485reserves, the association must obtain competitive bids for the
1486materials, equipment, or services. Nothing contained in this
1487section shall be construed to require the association to accept
1488the lowest bid.
1489     (2)(a)1.  Notwithstanding the foregoing, contracts with
1490employees of the association, and contracts for attorney,
1491accountant, architect, community association manager,
1492engineering, and landscape architect services are not subject to
1493the provisions of this section.
1494     2.  A contract executed before October 1, 2004, and any
1495renewal thereof, is not subject to the competitive bid
1496requirements of this section. If a contract was awarded under
1497the competitive bid procedures of this section, any renewal of
1498that contract is not subject to such competitive bid
1499requirements if the contract contains a provision that allows
1500the board to cancel the contract on 30 days' notice. Materials,
1501equipment, or services provided to an association under a local
1502government franchise agreement by a franchise holder are not
1503subject to the competitive bid requirements of this section. A
1504contract with a manager, if made by a competitive bid, may be
1505made for up to 3 years. An association whose declaration or
1506bylaws provide for competitive bidding for services may operate
1507under the provisions of that declaration or bylaws in lieu of
1508this section if those provisions are not less stringent than the
1509requirements of this section.
1510     (b)  Nothing contained in this section is intended to limit
1511the ability of an association to obtain needed products and
1512services in an emergency.
1513     (c)  This section does not apply if the business entity
1514with which the association desires to enter into a contract is
1515the only source of supply within the county serving the
1516association.
1517     (d)  Nothing contained in this section shall excuse a party
1518contracting to provide maintenance or management services from
1519compliance with s. 720.309.
1520     Section 22.  Present subsections (5) through (8) of section
1521720.306, Florida Statutes, are renumbered as subsections (7)
1522through (10), respectively, present subsection (7) is amended,
1523and new subsections (5) and (6) are added to said section, to
1524read:
1525     720.306  Meetings of members; voting and election
1526procedures; amendments.--
1527     (5)  NOTICE OF MEETINGS.--The bylaws shall provide for
1528giving notice to members of all member meetings, and if they do
1529not do so shall be deemed to provide the following: The
1530association shall give all parcel owners and members actual
1531notice of all membership meetings, which shall be mailed,
1532delivered, or electronically transmitted to the members not less
1533than 14 days prior to the meeting. Evidence of compliance with
1534this 14-day notice shall be made by an affidavit executed by the
1535person providing the notice and filed upon execution among the
1536official records of the association. In addition to mailing,
1537delivering, or electronically transmitting the notice of any
1538meeting, the association may, by reasonable rule, adopt a
1539procedure for conspicuously posting and repeatedly broadcasting
1540the notice and the agenda on a closed-circuit cable television
1541system serving the association. When broadcast notice is
1542provided, the notice and agenda must be broadcast in a manner
1543and for a sufficient continuous length of time so as to allow an
1544average reader to observe the notice and read and comprehend the
1545entire content of the notice and the agenda.
1546     (6)  RIGHT TO SPEAK.--Members and parcel owners have the
1547right to attend all membership meetings and to speak at any
1548meeting with reference to all items opened for discussion or
1549included on the agenda. Notwithstanding any provision to the
1550contrary in the governing documents or any rules adopted by the
1551board or by the membership, a member and a parcel owner have the
1552right to speak for at least 3 minutes on any item, provided that
1553the member or parcel owner submits a written request to speak
1554prior to the meeting. The association may adopt written
1555reasonable rules governing the frequency, duration, and other
1556manner of member and parcel owner statements, which rules must
1557be consistent with this paragraph.
1558     (9)(7)  ELECTIONS.--Elections of directors must be
1559conducted in accordance with the procedures set forth in the
1560governing documents of the association.  All members of the
1561association shall be eligible to serve on the board of
1562directors, and a member may nominate himself or herself as a
1563candidate for the board at a meeting where the election is to be
1564held.  Except as otherwise provided in the governing documents,
1565boards of directors must be elected by a plurality of the votes
1566cast by eligible voters. Any election dispute between a member
1567and an association must be submitted to mandatory binding
1568arbitration with the division. Such proceedings shall be
1569conducted in the manner provided by s. 718.1255 and the
1570procedural rules adopted by the division.
1571     Section 23.  Section 720.311, Florida Statutes, is amended
1572to read:
1573     720.311  Dispute resolution.--
1574     (1)  The Legislature finds that alternative dispute
1575resolution has made progress in reducing court dockets and
1576trials and in offering a more efficient, cost-effective option
1577to litigation. The filing of any petition for mediation or
1578arbitration provided for in this section shall toll the
1579applicable statute of limitations. Any recall dispute filed with
1580the department pursuant to s. 720.303(10) shall be conducted by
1581the department in accordance with the provisions of ss. 718.1255
1582and 718.112(2)(j) and the rules adopted by the division. In
1583addition, the department shall conduct mandatory binding
1584arbitration of election disputes between a member and an
1585association pursuant to s. 718.1255 and rules adopted by the
1586division. Neither election disputes nor recall disputes are
1587eligible for mediation; these disputes shall be arbitrated by
1588the department. At the conclusion of the proceeding, the
1589department shall charge the parties a fee in an amount adequate
1590to cover all costs and expenses incurred by the department in
1591conducting the proceeding. Initially, the petitioner shall remit
1592a filing fee of at least $200 to the department. The fees paid
1593to the department shall become a recoverable cost in the
1594arbitration proceeding and the prevailing party in an
1595arbitration proceeding shall recover its reasonable costs and
1596attorney's fees in an amount found reasonable by the arbitrator.
1597The department shall adopt rules to effectuate the purposes of
1598this section.
1599     (2)(a)  Disputes between an association and a parcel owner
1600regarding use of or changes to the parcel or the common areas
1601and other covenant enforcement disputes, disputes regarding
1602amendments to the association documents, disputes regarding
1603meetings of the board and committees appointed by the board,
1604membership meetings not including election meetings, and access
1605to the official records of the association shall be filed with
1606the department for mandatory mediation before the dispute is
1607filed in court. Mediation proceedings must be conducted in
1608accordance with the applicable Florida Rules of Civil Procedure,
1609and these proceedings are privileged and confidential to the
1610same extent as court-ordered mediation. An arbitrator or judge
1611may not consider any information or evidence arising from the
1612mediation proceeding except in a proceeding to impose sanctions
1613for failure to attend a mediation session. Persons who are not
1614parties to the dispute may not attend the mediation conference
1615without the consent of all parties, except for counsel for the
1616parties and a corporate representative designated by the
1617association. When mediation is attended by a quorum of the
1618board, such mediation is not a board meeting for purposes of
1619notice and participation set forth in s. 720.303. The department
1620shall conduct the proceedings through the use of department
1621mediators or refer the disputes to private mediators who have
1622been duly certified by the department as provided in paragraph
1623(c). The parties shall share the costs of mediation equally,
1624including the fee charged by the mediator, if any, unless the
1625parties agree otherwise. If a department mediator is used, the
1626department may charge such fee as is necessary to pay expenses
1627of the mediation, including, but not limited to, the salary and
1628benefits of the mediator and any travel expenses incurred. The
1629petitioner shall initially file with the department upon filing
1630the disputes, a filing fee of $200, which shall be used to
1631defray the costs of the mediation. At the conclusion of the
1632mediation, the department shall charge to the parties, to be
1633shared equally unless otherwise agreed by the parties, such
1634further fees as are necessary to fully reimburse the department
1635for all expenses incurred in the mediation.
1636     (b)  If mediation as described in paragraph (a) is not
1637successful in resolving all issues between the parties, the
1638parties may file the unresolved dispute in a court of competent
1639jurisdiction or elect to enter into binding or nonbinding
1640arbitration pursuant to the procedures set forth in s. 718.1255
1641and rules adopted by the division, with the arbitration
1642proceeding to be conducted by a department arbitrator or by a
1643private arbitrator certified by the department. If all parties
1644do not agree to arbitration proceedings following an
1645unsuccessful mediation, any party may file the dispute in court.
1646A final order resulting from nonbinding arbitration is final and
1647enforceable in the courts if a complaint for trial de novo is
1648not filed in a court of competent jurisdiction within 30 days
1649after entry of the order.
1650     (c)  The department shall develop a certification and
1651training program for private mediators and private arbitrators
1652which shall emphasize experience and expertise in the area of
1653the operation of community associations. A mediator or
1654arbitrator shall be certified by the department only if he or
1655she has attended at least 20 hours of training in mediation or
1656arbitration, as appropriate, and only if the applicant has
1657mediated or arbitrated at least 10 disputes involving community
1658associations within 5 years prior to the date of the
1659application, or has mediated or arbitrated 10 disputes in any
1660area within 5 years prior to the date of application and has
1661completed 20 hours of training in community association
1662disputes. In order to be certified by the department, any
1663mediator must also be certified by the Florida Supreme Court.
1664The department may conduct the training and certification
1665program within the department or may contract with an outside
1666vendor to perform the training or certification. The expenses of
1667operating the training and certification and training program
1668shall be paid by the moneys and filing fees generated by the
1669arbitration of recall and election disputes and by the mediation
1670of those disputes referred to in this subsection and by the
1671training fees.
1672     (d)  The mediation procedures provided by this subsection
1673may be used by a Florida corporation responsible for the
1674operation of a community in which the voting members are parcel
1675owners or their representatives, in which membership in the
1676corporation is not a mandatory condition of parcel ownership, or
1677which is not authorized to impose an assessment that may become
1678a lien on the parcel.
1679     (3)  The department shall develop an education program to
1680assist homeowners, associations, board members, and managers in
1681understanding and increasing awareness of the operation of
1682homeowners' associations pursuant to chapter 720 and in
1683understanding the use of alternative dispute resolution
1684techniques in resolving disputes between parcel owners and
1685associations or between owners. Such education program may
1686include the development of pamphlets and other written
1687instructional guides, the holding of classes and meetings by
1688department employees or outside vendors, as the department
1689determines, and the creation and maintenance of a website
1690containing instructional materials. The expenses of operating
1691the education program shall be initially paid by the moneys and
1692filing fees generated by the arbitration of recall and election
1693disputes and by the mediation of those disputes referred to in
1694this subsection. At any time after the filing in a court of
1695competent jurisdiction of a complaint relating to a dispute
1696under ss. 720.301-720.312, the court may order that the parties
1697enter mediation or arbitration procedures.
1698     Section 24.  Subsection (13) is added to section 718.110,
1699Florida Statutes, to read:
1700     718.110  Amendment of declaration; correction of error or
1701omission in declaration by circuit court.--
1702     (13)  Any amendment restricting unit owners' rights
1703relating to the rental of units applies only to unit owners who
1704consent to the amendment and unit owners who purchase their
1705units after the effective date of that amendment.
1706     Section 25.  Section 689.26, Florida Statutes, is
1707transferred, renumbered as section 720.601, Florida Statutes,
1708and amended to read:
1709     720.601 689.26  Prospective purchasers subject to
1710association membership requirement; disclosure required;
1711covenants; assessments; contract cancellation voidability.--
1712     (1)(a)  A prospective parcel owner in a community must be
1713presented a disclosure summary before executing the contract for
1714sale.  The disclosure summary must be in a form substantially
1715similar to the following form:
1716
DISCLOSURE SUMMARY
1717  FOR
1718  (NAME OF COMMUNITY)
1719
1720      1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
1721(WILL) (WILL NOT) BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS'
1722ASSOCIATION.
1723      2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
1724COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
1725COMMUNITY.
1726      3.  YOU WILL (WILL) (WILL NOT) BE OBLIGATED TO PAY
1727ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO
1728PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $______
1729PER ______. YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL
1730ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL ASSESSMENTS
1731MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS
1732$______ PER ______.
1733     4.  YOU MAY (WILL) (WILL NOT) BE OBLIGATED TO PAY SPECIAL
1734ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL
1735DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
1736     5.4.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR
1737ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION COULD
1738RESULT IN A LIEN ON YOUR PROPERTY.
1739     6.5.  THERE MAY BE (IS) (IS NOT) AN OBLIGATION TO PAY RENT
1740OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED
1741FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS'
1742ASSOCIATION. IF APPLICABLE, THE CURRENT AMOUNT IS $______ PER
1743______. (If such obligation exists, then the amount of the
1744current obligation shall be set forth.)
1745     7.6.  THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
1746RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED WITHOUT THE
1747APPROVAL OF THE ASSOCIATION MEMBERSHIP OR THE APPROVAL OF THE,
1748IF NO MANDATORY ASSOCIATION EXISTS, PARCEL OWNERS.
1749     8.7.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
1750ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
1751SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
1752DOCUMENTS BEFORE PURCHASING PROPERTY.
1753     9.8.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD
1754AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE
1755THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED
1756FROM THE DEVELOPER.
1757 DATE: PURCHASER:
1758 PURCHASER:
1759
1760The disclosure must be supplied by the developer, or by the
1761parcel owner if the sale is by an owner that is not the
1762developer.  Any contract or agreement for sale shall refer to
1763and incorporate the disclosure summary and shall include, in
1764prominent language, a statement that the potential buyer should
1765not execute the contract or agreement until they have received
1766and read the disclosure summary required by this section.
1767     (b)  Each contract entered into for the sale of property
1768governed by covenants subject to disclosure required by this
1769section must contain in conspicuous type a clause that states:
1770
1771IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.601 689.26,
1772FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE
1773PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT
1774IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER'S AGENT
1775OR REPRESENTATIVE WRITTEN NOTICE OF THE BUYER'S INTENTION TO
1776CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR
1777PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER
1778OF THIS VOIDABILITY RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID
1779THIS CONTRACT SHALL TERMINATE AT CLOSING.
1780
1781     (c)  If the disclosure summary is not provided to a
1782prospective purchaser before the purchaser executes a contract
1783for the sale of property governed by covenants that are subject
1784to disclosure pursuant to this section, the purchaser may void
1785the contract by delivering to the seller or the seller's agent
1786or representative written notice canceling the contract within 3
1787days after receipt of the disclosure summary or prior to
1788closing, whichever occurs first. This right may not be waived by
1789the purchaser but terminates at closing. A contract that does
1790not conform to the requirements of this subsection is voidable
1791at the option of the purchaser prior to closing.
1792     (2)  This section does not apply to any association
1793regulated under chapter 718, chapter 719, chapter 721, or
1794chapter 723 or to a subdivider registered under chapter 498; and
1795also does not apply if disclosure regarding the association is
1796otherwise made in connection with the requirements of chapter
1797718, chapter 719, chapter 721, or chapter 723.
1798     Section 26.  Section 689.265, Florida Statutes, is
1799transferred and renumbered as section 720.3086, Florida
1800Statutes, to read:
1801     720.3086 689.265  Financial report.--In a residential
1802subdivision in which the owners of lots or parcels must pay
1803mandatory maintenance or amenity fees to the subdivision
1804developer or to the owners of the common areas, recreational
1805facilities, and other properties serving the lots or parcels,
1806the developer or owner of such areas, facilities, or properties
1807shall make public, within 60 days following the end of each
1808fiscal year, a complete financial report of the actual, total
1809receipts of mandatory maintenance or amenity fees received by
1810it, and an itemized listing of the expenditures made by it from
1811such fees, for that year.  Such report shall be made public by
1812mailing it to each lot or parcel owner in the subdivision, by
1813publishing it in a publication regularly distributed within the
1814subdivision, or by posting it in prominent locations in the
1815subdivision.  This section does not apply to amounts paid to
1816homeowner associations pursuant to chapter 617, chapter 718,
1817chapter 719, chapter 721, or chapter 723, or to amounts paid to
1818local governmental entities, including special districts.
1819     Section 27.  Paragraphs (g) and (h) of subsection (2) of
1820section 498.025, Florida Statutes, are amended to read:
1821     498.025  Exemptions.--
1822     (2)  Except as provided in s. 498.022, the provisions of
1823this chapter do not apply to offers or dispositions of interests
1824in lots, parcels, or units contained in a recorded subdivision
1825plat, or resulting from the subdivision of land in accordance
1826with applicable local land development laws and regulations
1827pursuant to part II of chapter 163, including lots, parcels,
1828units, or interest vested under such part, if all of the
1829following conditions exist:
1830     (g)  The contract for purchase or lease contains, and the
1831subdivider complies with, the following provisions:
1832     1.  The purchaser must inspect the subdivided land prior to
1833the execution of the contract or lease.
1834     2.  The purchaser shall have an absolute right to cancel
1835the contract or lease for any reason whatsoever for a period of
18367 business days following the date on which the contract or
1837lease was executed by the purchaser.
1838     3.  In the event the purchaser elects to cancel within the
1839period provided, all funds or other property paid by the
1840purchaser shall be refunded without penalty or obligation within
184120 days of the receipt of the notice of cancellation by the
1842developer.
1843     4.  All funds or property paid by the purchaser shall be
1844put in escrow until closing has occurred and the lease or deed
1845has been recorded.
1846     5.  Unless otherwise timely canceled, closing shall occur
1847within 180 days of the date of execution of the contract by the
1848purchaser.
1849     6.  When title is conveyed, said title shall be conveyed by
1850statutory warranty deed unencumbered by any lien or mortgage
1851except for any first purchase money mortgage given by the
1852purchaser and restrictions, covenants, or easements of record.
1853     7.  The subdivider presents to the purchaser the disclosure
1854required by s. 720.601 s. 689.26 prior to the execution of the
1855contract or lease.
1856     (h)  The agreement for deed contains, and the subdivider
1857complies with, the following provisions:
1858     1.  The purchaser must inspect the subdivided land prior to
1859the execution of the agreement for deed.
1860     2.  The purchaser shall have an absolute right to cancel
1861the agreement for deed for any reason whatsoever for a period of
18627 business days following the date on which the agreement for
1863deed was executed by the purchaser.
1864     3.  If the purchaser elects to cancel within the period
1865provided, all funds or other property paid by the purchaser
1866shall be refunded without penalty or obligation within 20 days
1867after the receipt of the notice of cancellation by the
1868developer.
1869     4.  All funds or for property paid by the purchaser shall
1870be put in escrow until the agreement for deed has been recorded
1871in the county in which the subdivision is located.
1872     5.  Unless otherwise timely canceled, the agreement for
1873deed shall be recorded within 180 days after its execution by
1874the purchaser.
1875     6.  Sale of lots in the subdivision shall be restricted
1876solely to residents of the state.
1877     7.  The underlying mortgage or other ancillary documents
1878shall contain release provisions for the individual lot
1879purchased.
1880     8.  The subdivider presents to the purchaser the disclosure
1881required by s. 720.601 s. 689.26 prior to the execution of the
1882agreement for deed.
1883     Section 28.  Section 720.602, Florida Statutes, is created
1884to read:
1885     720.602  Publication of false and misleading information.--
1886     (1)  Any person who, in reasonable reliance upon any
1887material statement or information that is false or misleading
1888and published by or under authority from the developer in
1889advertising and promotional materials, including, but not
1890limited to, a contract of purchaser, the declaration of
1891covenants, exhibits to a declaration of covenants, brochures,
1892and newspaper advertising, pays anything of value toward the
1893purchase of a parcel in a community located in this state has a
1894cause of action to rescind the contract or collect damages from
1895the developer for his or her loss before the closing of the
1896transaction. After the closing of the transaction, the purchaser
1897has a cause of action against the developer for damages under
1898this section from the time of closing until 1 year after the
1899date upon which the last of the events described in paragraphs
1900(a) through (d) occur:
1901     (a)  The closing of the transaction;
1902     (b)  The issuance by the applicable governmental authority
1903of a certificate of occupancy or other evidence of sufficient
1904completion of construction of the purchaser's residence to allow
1905lawful occupancy of the residence by the purchaser. In counties
1906or municipalities in which certificates of occupancy or other
1907evidences of completion sufficient to allow lawful occupancy are
1908not customarily issued, for the purpose of this section,
1909evidence of lawful occupancy shall be deemed to be given or
1910issued upon the date that such lawful occupancy of the residence
1911may be allowed under prevailing applicable laws, ordinances, or
1912statutes;
1913     (c)  The completion by the developer of the common areas
1914and such recreational facilities, whether or not the same are
1915common areas, which the developer is obligated to complete or
1916provide under the terms of the written contract, governing
1917documents, or written agreement for purchase or lease of the
1918parcel; or
1919     (d)  In the event there is not a written contract or
1920agreement for sale or lease of the parcel, then the completion
1921by the developer of the common areas and such recreational
1922facilities, whether or not they are common areas, which the
1923developer would be obligated to complete under any rule of law
1924applicable to the developer's obligation.
1925
1926Under no circumstances may a cause of action created or
1927recognized under this section survive for a period of more than
19285 years after the closing of the transaction.
1929     (2)  In any action for relief under this section, the
1930prevailing party may recover reasonable attorney's fees. A
1931developer may not expend association funds in the defense of any
1932suit under this section.
1933     Section 29.  Subsection (1) of section 34.01, Florida
1934Statutes, is amended to read:
1935     34.01  Jurisdiction of county court.--
1936     (1)  County courts shall have original jurisdiction:
1937     (a)  In all misdemeanor cases not cognizable by the circuit
1938courts.;
1939     (b)  Of all violations of municipal and county ordinances.;
1940and
1941     (c)  Of all actions at law in which the matter in
1942controversy does not exceed the sum of $15,000, exclusive of
1943interest, costs, and attorney's fees, except those within the
1944exclusive jurisdiction of the circuit courts. The party
1945instituting any civil action, suit, or proceeding pursuant to
1946this paragraph where the amount in controversy is in excess of
1947$5,000 shall pay to the clerk of the county court the filing
1948fees and service charges in the same amounts and in the same
1949manner as provided in s. 28.241.
1950     (d)  Of disputes occurring in the homeowners' associations
1951as described in s. 720.311(2)(a), which shall be concurrent with
1952jurisdiction of the circuit courts.
1953     Section 30.  Paragraph (a) of subsection (1) of section
1954316.00825, Florida Statutes, is amended to read:
1955     316.00825  Closing and abandonment of roads; optional
1956conveyance to homeowners' association; traffic control
1957jurisdiction.--
1958     (1)(a)  In addition to the authority provided in s. 336.12,
1959the governing body of the county may abandon the roads and
1960rights-of-way dedicated in a recorded residential subdivision
1961plat and simultaneously convey the county's interest in such
1962roads, rights-of-way, and appurtenant drainage facilities to a
1963homeowners' association for the subdivision, if the following
1964conditions have been met:
1965     1.  The homeowners' association has requested the
1966abandonment and conveyance in writing for the purpose of
1967converting the subdivision to a gated neighborhood with
1968restricted public access.
1969     2.  No fewer than four-fifths of the owners of record of
1970property located in the subdivision have consented in writing to
1971the abandonment and simultaneous conveyance to the homeowners'
1972association.
1973     3.  The homeowners' association is both a corporation not
1974for profit organized and in good standing under chapter 617, and
1975a "homeowners' association" as  defined in s. 720.301(8) s.
1976720.301(7) with the power to levy and collect assessments for
1977routine and periodic major maintenance and operation of street
1978lighting, drainage, sidewalks, and pavement in the subdivision.
1979     4.  The homeowners' association has entered into and
1980executed such agreements, covenants, warranties, and other
1981instruments; has provided, or has provided assurance of, such
1982funds, reserve funds, and funding sources; and has satisfied
1983such other requirements and conditions as may be established or
1984imposed by the county with respect to the ongoing operation,
1985maintenance, and repair and the periodic reconstruction or
1986replacement of the roads, drainage, street lighting, and
1987sidewalks in the subdivision after the abandonment by the
1988county.
1989     Section 31.  Subsection (2) of section 558.002, Florida
1990Statutes, is amended to read:
1991     558.002  Definitions.--As used in this act, the term:
1992     (2)  "Association" has the same meaning as in s.
1993718.103(2), s. 719.103(2), s. 720.301(8) s. 720.301(7), or s.
1994723.025.
1995     Section 32.  The Division of Statutory Revision is
1996requested to designate ss. 720.301-720.312, Florida Statutes, as
1997part I of chapter 720, Florida Statutes; to designate ss.
1998720.401-720.405, Florida Statutes, as part II of chapter 720,
1999Florida Statutes, and entitle that part as "Covenant
2000Revitalization"; to designate ss. 720.601 and 720.602, Florida
2001Statutes, as part III of chapter 720, Florida Statutes, and
2002entitle that part "Disclosure Prior to Sale of Residential
2003Parcels"; and to designate s. 720.501, Florida Statutes, as part
2004IV of chapter 720, Florida Statutes, and entitle that part
2005"Rights and Obligations of Developers."
2006     Section 33.  Subsection (4) is added to section 190.012,
2007Florida Statutes, to read:
2008     190.012  Special powers; public improvements and community
2009facilities.--The district shall have, and the board may
2010exercise, subject to the regulatory jurisdiction and permitting
2011authority of all applicable governmental bodies, agencies, and
2012special districts having authority with respect to any area
2013included therein, any or all of the following special powers
2014relating to public improvements and community facilities
2015authorized by this act:
2016     (4)(a)  To adopt rules necessary for the district to
2017enforce certain deed restrictions pertaining to the use and
2018operation of real property within the district. For the purpose
2019of this subsection, "deed restrictions" are those covenants,
2020conditions, and restrictions contained in any applicable
2021declarations of covenants and restrictions that govern the use
2022and operation of real property within the district and, for
2023which covenants, conditions, and restrictions, there is no
2024homeowners' association or property owner's association having
2025respective enforcement powers. The district may adopt by rule
2026all or certain portions of the deed restrictions that:
2027     1.  Relate to limitations or prohibitions that apply only
2028to external structures and are deemed by the district to be
2029generally beneficial for the district's landowners and for which
2030enforcement by the district is appropriate, as determined by the
2031district's board of supervisors; or
2032     2.  Are consistent with the requirements of a development
2033order or regulatory agency permit.
2034     (b)  The board may vote to adopt such rules only when all
2035of the following conditions exist:
2036     1.  The district's geographic area contains no homeowners'
2037associations as defined in s. 720.301(7);
2038     2.  The district was in existence on the effective date of
2039this subsection, or is located within a development that
2040consists of multiple developments of regional impact and a
2041Florida Quality Development;
2042     3.  The majority of the board has been elected by qualified
2043electors pursuant to the provisions of s. 190.006; and
2044     4.  The declarant in any applicable declarations of
2045covenants and restrictions has provided the board with a written
2046agreement that such rules may be adopted. A memorandum of the
2047agreement shall be recorded in the public records.
2048     (c)  Within 60 days after such rules taking effect, the
2049district shall record a notice of rule adoption stating
2050generally what rules were adopted and where a copy of the rules
2051may be obtained. Districts may impose fines for violations of
2052such rules and enforce such rules and fines in circuit court
2053through injunctive relief.
2054     Section 34.  Section 190.046, Florida Statutes, is amended
2055to read:
2056     190.046  Termination, contraction, or expansion of
2057district.--
2058     (1)  The board may petition to contract or expand the
2059boundaries of a community development district in the following
2060manner:
2061     (a)  The petition shall contain the same information
2062required by s. 190.005(1)(a)1. and 8.  In addition, if the
2063petitioner seeks to expand the district, the petition shall
2064describe the proposed timetable for construction of any district
2065services to the area, the estimated cost of constructing the
2066proposed services, and the designation of the future general
2067distribution, location, and extent of public and private uses of
2068land proposed for the area by the future land use plan element
2069of the adopted local government local comprehensive plan.  If
2070the petitioner seeks to contract the district, the petition
2071shall describe what services and facilities are currently
2072provided by the district to the area being removed, and the
2073designation of the future general distribution, location, and
2074extent of public and private uses of land proposed for the area
2075by the future land element of the adopted local government
2076comprehensive plan.
2077     (b)  For those districts initially established by county
2078ordinance, the petition for ordinance amendment shall be filed
2079with the county commission.  If the land to be included or
2080excluded is, in whole or in part, within the boundaries of a
2081municipality, then the county commission shall not amend the
2082ordinance without municipal approval.  A public hearing shall be
2083held in the same manner and with the same public notice as other
2084ordinance amendments.  The county commission shall consider the
2085record of the public hearing and the factors set forth in s.
2086190.005(1)(e) in making its determination to grant or deny the
2087petition for ordinance amendment.
2088     (c)  For those districts initially established by municipal
2089ordinance pursuant to s. 190.005(2)(e), the municipality shall
2090assume the duties of the county commission set forth in
2091paragraph (b); however, if any of the land to be included or
2092excluded, in whole or in part, is outside the boundaries of the
2093municipality, then the municipality shall not amend its
2094ordinance without county commission approval.
2095     (d)1.  For those districts initially established by
2096administrative rule pursuant to s. 190.005(1), the petition
2097shall be filed with the Florida Land and Water Adjudicatory
2098Commission.
2099     2.  Prior to filing the petition, the petitioner shall pay
2100a filing fee of $1,500 to the county and to each municipality
2101the boundaries of which are contiguous with or contain all or a
2102portion of the land within the district or the proposed
2103amendment, and submit a copy of the petition to the county and
2104to each such municipality.  In addition, if the district is not
2105the petitioner, the petitioner shall file the petition with the
2106district board of supervisors.
2107     3.  The county and each municipality shall have the option
2108of holding a public hearing as provided by s. 190.005(1)(c).
2109However, such public hearing shall be limited to consideration
2110of the contents of the petition and whether the petition for
2111amendment should be supported by the county or municipality.
2112     4.  The district board of supervisors shall, in lieu of a
2113hearing officer, hold the local public hearing provided for by
2114s. 190.005(1)(d).  This local public hearing shall be noticed in
2115the same manner as provided in s. 190.005(1)(d). Within 45 days
2116of the conclusion of the hearing, the district board of
2117supervisors shall transmit to the Florida Land and Water
2118Adjudicatory Commission the full record of the local hearing,
2119the transcript of the hearing, any resolutions adopted by the
2120local general-purpose governments, and its recommendation
2121whether to grant the petition for amendment. The commission
2122shall then proceed in accordance with s. 190.005(1)(e).
2123     5.  A rule amending a district boundary shall describe the
2124land to be added or deleted.
2125     (e)  In all cases, written consent of all the landowners
2126whose land is to be added to or deleted from the district shall
2127be required. The filing of the petition for expansion or
2128contraction by the district board of supervisors shall
2129constitute consent of the landowners within the district other
2130than of landowners whose land is proposed to be added to or
2131removed from the district.
2132     (f)1.  During the existence of a district initially
2133established by administrative rule, petitions to amend the
2134boundaries of the district pursuant to paragraphs (a)-(e) shall
2135be limited to a cumulative total of no more than 10 percent of
2136the land in the initial district, and in no event shall all such
2137petitions to amend the boundaries ever encompass more than a
2138total of 250 acres.
2139     2.  For districts initially established by county or
2140municipal ordinance, the limitation provided by this paragraph
2141shall be a cumulative total of no more than 50 percent of the
2142land in the initial district, and in no event shall all such
2143petitions to amend the boundaries ever encompass more than a
2144total of 500 acres.
2145     3.  Boundary expansions for districts initially established
2146by county or municipal ordinance shall follow the procedure set
2147forth in paragraph (b) or paragraph (c).
2148     (g)  Petitions to amend the boundaries of the district
2149which exceed the amount of land specified in paragraph (f) shall
2150be considered petitions to establish a new district and shall
2151follow all of the procedures specified in s. 190.005.
2152     (2)  The district shall remain in existence unless:
2153     (a)  The district is merged with another district as
2154provided in subsection (3);
2155     (b)  All of the specific community development systems,
2156facilities, and services that it is authorized to perform have
2157been transferred to a general-purpose unit of local government
2158in the manner provided in subsections (4), (5), and (6); or
2159     (c)  The district is dissolved as provided in subsection
2160(7), or subsection (8), or subsection (9).
2161     (3)  The district may merge with other community
2162development districts upon filing a petition for establishment
2163of a community development district pursuant to s. 190.005 or
2164may merge with any other special districts upon filing a
2165petition for establishment of a community development district
2166pursuant to s. 190.005.  The government formed by a merger
2167involving a community development district pursuant to this
2168section shall assume all indebtedness of, and receive title to,
2169all property owned by the preexisting special districts.  Prior
2170to filing said petition, the districts desiring to merge shall
2171enter into a merger agreement and shall provide for the proper
2172allocation of the indebtedness so assumed and the manner in
2173which said debt shall be retired. The approval of the merger
2174agreement by the board of supervisors elected by the electors of
2175the district shall constitute consent of the landowners within
2176the district.
2177     (4)  The local general-purpose government within the
2178geographical boundaries of which the district lies may adopt a
2179nonemergency ordinance providing for a plan for the transfer of
2180a specific community development service from a district to the
2181local general-purpose government.  The plan must provide for the
2182assumption and guarantee of the district debt that is related to
2183the service by the local general-purpose government and must
2184demonstrate the ability of the local general-purpose government
2185to provide such service:
2186     (a)  As efficiently as the district.
2187     (b)  At a level of quality equal to or higher than the
2188level of quality actually delivered by the district to the users
2189of the service.
2190     (c)  At a charge equal to or lower than the actual charge
2191by the district to the users of the service.
2192     (5)  No later than 30 days following the adoption of a
2193transfer plan ordinance, the board of supervisors may file, in
2194the circuit court for the county in which the local general-
2195purpose government that adopted the ordinance is located, a
2196petition seeking review by certiorari of the factual and legal
2197basis for the adoption of the transfer plan ordinance.
2198     (6)  Upon the transfer of all of the community development
2199services of the district to a general-purpose unit of local
2200government, the district shall be terminated in accordance with
2201a plan of termination which shall be adopted by the board of
2202supervisors and filed with the clerk of the circuit court.
2203     (7)  If, within 5 years after the effective date of the
2204rule or ordinance establishing creating the district, a
2205landowner has not received a development permit, as defined in
2206chapter 380, on some part or all of the area covered by the
2207district, then the district will be automatically dissolved and
2208a judge of the circuit court shall cause a statement to that
2209effect to be filed in the public records.
2210     (8)  In the event the district has become inactive pursuant
2211to s. 189.4044, the respective board of county commissioners or
2212city commission shall be informed and it shall take appropriate
2213action.
2214     (9)  If a district has no outstanding financial obligations
2215and no operating or maintenance responsibilities, upon the
2216petition of the district, the district may be dissolved by a
2217nonemergency ordinance of the general-purpose local governmental
2218entity that established the district or, if the district was
2219established by rule of the Florida Land and Water Adjudicatory
2220Commission, the district may be dissolved by repeal of such rule
2221of the commission.
2222     Section 35.  Section 190.006, Florida Statutes, is amended
2223to read:
2224     190.006  Board of supervisors; members and meetings.--
2225     (1)  The board of the district shall exercise the powers
2226granted to the district pursuant to this act. The board shall
2227consist of five members; except as otherwise provided herein,
2228each member shall hold office for a term of 2 years or 4 years,
2229as provided in this section, and until a successor is chosen and
2230qualifies.  The members of the board must be residents of the
2231state and citizens of the United States.
2232     (2)(a)  Within 90 days following the effective date of the
2233rule or ordinance establishing the district, there shall be held
2234a meeting of the landowners of the district for the purpose of
2235electing five supervisors for the district.  Notice of the
2236landowners' meeting shall be published once a week for 2
2237consecutive weeks in a newspaper which is in general circulation
2238in the area of the district, the last day of such publication to
2239be not fewer than 14 days or more than 28 days before the date
2240of the election.  The landowners, when assembled at such
2241meeting, shall organize by electing a chair who shall conduct
2242the meeting. The chair may be any person present at the meeting.
2243If the chair is a landowner or proxy holder of a landowner, he
2244or she may nominate candidates and make and second motions.
2245     (b)  At such meeting, each landowner shall be entitled to
2246cast one vote per acre of land owned by him or her and located
2247within the district for each person to be elected.  A landowner
2248may vote in person or by proxy in writing. Each proxy must be
2249signed by one of the legal owners of the property for which the
2250vote is cast and must contain the typed or printed name of the
2251individual who signed the proxy; the street address, legal
2252description of the property, or tax parcel identification
2253number; and the number of authorized votes. If the proxy
2254authorizes more than one vote, each property must be listed and
2255the number of acres of each property must be included. The
2256signature on a proxy need not be notarized. A fraction of an
2257acre shall be treated as 1 acre, entitling the landowner to one
2258vote with respect thereto.  The two candidates receiving the
2259highest number of votes shall be elected for a period of 4
2260years, and the three candidates receiving the next largest
2261number of votes shall be elected for a period of 2 years, with
2262the term of office for each successful candidate commencing upon
2263election. The members of the first board elected by landowners
2264shall serve their respective 4-year or 2-year terms; however,
2265the next election by landowners shall be held on the first
2266Tuesday in November. Thereafter, there shall be an election of
2267supervisors for the district every 2 years in November on a date
2268established by the board and noticed pursuant to paragraph (a).
2269The second and subsequent landowners' election shall be
2270announced at a public meeting of the board at least 90 days
2271prior to the date of the landowners' meeting and shall also be
2272noticed pursuant to paragraph (a). Instructions on how all
2273landowners may participate in the election, along with sample
2274proxies, shall be provided during the board meeting that
2275announces the landowners' meeting. The two candidates receiving
2276the highest number of votes shall be elected to serve for a 4-
2277year period, and the remaining candidate elected shall serve for
2278a 2-year period.
2279     (3)(a)1.  If the board proposes to exercise the ad valorem
2280taxing power authorized by s. 190.021, the district board shall
2281call an election at which the members of the board of
2282supervisors will be elected.  Such election shall be held in
2283conjunction with a primary or general election unless the
2284district bears the cost of a special election.  Each member
2285shall be elected by the qualified electors of the district for a
2286term of 4 years, except that, at the first such election, three
2287members shall be elected for a period of 4 years and two members
2288shall be elected for a period of 2 years.  All elected board
2289members must be qualified electors of the district.
2290     2.a.  Regardless of whether a district has proposed to levy
2291ad valorem taxes, commencing 6 years after the initial
2292appointment of members or, for a district exceeding 5,000 acres
2293in area, 10 years after the initial appointment of members, the
2294position of each member whose term has expired shall be filled
2295by a qualified elector of the district, elected by the qualified
2296electors of the district.  However, for those districts
2297established after June 21, 1991, and for those existing
2298districts established after December 31, 1983, which have less
2299than 50 qualified electors on June 21, 1991, sub-subparagraphs
2300b. and d. c. shall apply.
2301     b.  For those districts to which this sub-subparagraph
2302applies If, in the 6th year after the initial appointment of
2303members, or 10 years after such initial appointment for
2304districts exceeding 5,000 acres in area, there are not at least
2305250 qualified electors in the district, or for a district
2306exceeding 5,000 acres, there are not at least 500 qualified
2307electors, members of the board shall continue to be elected by
2308landowners.
2309     b.  After the 6th or 10th year, once a district reaches 250
2310or 500 qualified electors, respectively, then the positions
2311position of two board members whose terms are expiring shall be
2312filled by qualified electors of the district, elected by the
2313qualified electors of the district for 4-year terms.  One of
2314these board members shall serve a 2-year term, and the other a
23154-year term.  The remaining board member whose term is expiring
2316shall be elected for a 4-year term by the landowners and is not
2317required to be a qualified elector. Thereafter, as terms expire,
2318board members shall be qualified electors elected by qualified
2319electors of the district for a term of 4 years.
2320     c.  Once a district qualifies to have any of its board
2321members elected by the qualified electors of the district, the
2322initial and all subsequent elections by the qualified electors
2323of the district shall be held at the general election in
2324November. The board shall adopt a resolution if necessary to
2325implement this requirement when the board determines the number
2326of qualified electors as required by sub-subparagraph d., to
2327extend or reduce the terms of current board members.
2328     d.c.  On or before June 1 July 15 of each year, the board
2329shall determine the number of qualified electors in the district
2330as of the immediately preceding April 15 June 1.  The board
2331shall use and rely upon the official records maintained by the
2332supervisor of elections and property appraiser or tax collector
2333in each county in making this determination.  Such determination
2334shall be made at a properly noticed meeting of the board and
2335shall become a part of the official minutes of the district.
2336     (b)  Elections of board members by qualified electors held
2337pursuant to this subsection shall be nonpartisan and shall be
2338conducted in the manner prescribed by law for holding general
2339elections. Board members shall assume the office on the second
2340Tuesday following their election.
2341     (c)  Candidates seeking election to office by qualified
2342electors under this subsection shall conduct their campaigns in
2343accordance with the provisions of chapter 106 and shall file
2344qualifying papers and qualify for individual seats in accordance
2345with s. 99.061. Candidates shall pay a qualifying fee, which
2346shall consist of a filing fee and an election assessment or, as
2347an alternative, shall file a petition signed by not less than 1
2348percent of the registered voters of the district, Candidates
2349shall file petitions, and take the oath required in s. 99.021,
2350with the supervisor of elections in the county affected by such
2351candidacy. The amount of the filing fee is 3 percent of $4,800;
2352however, if the electors have provided for compensation pursuant
2353to subsection (8), the amount of the filing fee is 3 percent of
2354the maximum annual compensation so provided. The amount of the
2355election assessment is 1 percent of $4,800; however, if the
2356electors have provided for compensation pursuant to subsection
2357(8), the amount of the election assessment is 1 percent of the
2358maximum annual compensation so provided. The filing fee and
2359election assessment shall be distributed as provided in s.
2360105.031(3).
2361     (d)  The supervisor of elections shall appoint the
2362inspectors and clerks of elections, prepare and furnish the
2363ballots, designate polling places, and canvass the returns of
2364the election of board members by qualified electors.  The county
2365canvassing board of county commissioners shall declare and
2366certify the results of the election.
2367     (4)  Members of the board shall be known as supervisors
2368and, upon entering into office, shall take and subscribe to the
2369oath of office as prescribed by s. 876.05.  They shall hold
2370office for the terms for which they were elected or appointed
2371and until their successors are chosen and qualified. If, during
2372the term of office, a vacancy occurs, the remaining members of
2373the board shall fill the vacancy by an appointment for the
2374remainder of the unexpired term.
2375     (5)  A majority of the members of the board constitutes a
2376quorum for the purposes of conducting its business and
2377exercising its powers and for all other purposes.  Action taken
2378by the district shall be upon a vote of a majority of the
2379members present unless general law or a rule of the district
2380requires a greater number.
2381     (6)  As soon as practicable after each election or
2382appointment, the board shall organize by electing one of its
2383members as chair and by electing a secretary, who need not be a
2384member of the board, and such other officers as the board may
2385deem necessary.
2386     (7)  The board shall keep a permanent record book entitled
2387"Record of Proceedings of  . . . (name of district) . . .  
2388Community Development District," in which shall be recorded
2389minutes of all meetings, resolutions, proceedings, certificates,
2390bonds given by all employees, and any and all corporate acts.  
2391The record book shall at reasonable times be opened to
2392inspection in the same manner as state, county, and municipal
2393records pursuant to chapter 119.  The record book shall be kept
2394at the office or other regular place of business maintained by
2395the board in the county or municipality in which the district is
2396located or within the boundaries of a development of regional
2397impact or Florida Quality Development, or combination of a
2398development of regional impact and Florida Quality Development,
2399which includes the district.
2400     (8)  Each supervisor shall be entitled to receive for his
2401or her services an amount not to exceed $200 per meeting of the
2402board of supervisors, not to exceed $4,800 per year per
2403supervisor, or an amount established by the electors at
2404referendum.  In addition, each supervisor shall receive travel
2405and per diem expenses as set forth in s. 112.061.
2406     (9)  All meetings of the board shall be open to the public
2407and governed by the provisions of chapter 286.
2408     Section 36.  This act shall take effect October 1, 2004.
2409
2410================= T I T L E  A M E N D M E N T =================
2411     Remove the entire title, and insert:
2412
A bill to be entitled
2413An act relating to condominium and community associations;
2414amending s. 718.111, F.S.; providing immunity from
2415liability for certain information provided by associations
2416to prospective purchasers or lienholders under certain
2417circumstances; amending s. 720.303, F.S.; requiring
2418specific notice to be given to association members before
2419certain assessments or rule changes may be considered at a
2420meeting; amending s. 768.1325, F.S.; providing immunity
2421from civil liability for community associations that
2422provide automated defibrillator devices under certain
2423circumstances; prohibiting insurers from requiring
2424associations to purchase medical malpractice coverage as a
2425condition of issuing other coverage; prohibiting insurers
2426from excluding from coverage under a general liability
2427policy damages resulting from the use of an automated
2428external defibrillator device; amending ss. 718.112 and
2429719.1055, F.S.; revising notification and voting
2430procedures with respect to any vote to forego retrofitting
2431of the common areas of condominiums and cooperatives with
2432fire sprinkler systems; creating s. 718.5011, F.S.;
2433creating the Office of the Condominium Ombudsman within
2434the Division of Florida Land Sales, Condominiums, and
2435Mobile Homes; directing the Secretary of Business and
2436Professional Regulation to appoint the ombudsman;
2437requiring the ombudsman to be an attorney; providing for
2438the filling of a vacant ombudsman position; prohibiting
2439the ombudsman and staff from engaging in any other
2440profession, serving as a representative or employee of any
2441political party, or receiving remuneration for activities
2442on behalf of political candidates; prohibiting the
2443ombudsman and staff from seeking public office unless
2444resigned from the Office of the Condominium Ombudsman;
2445providing requirements and limitations for office staff;
2446creating s. 718.5012, F.S.; providing for powers and
2447duties of the ombudsman; requiring the ombudsman to
2448prepare and issue reports and make recommendations to
2449specified persons; directing the ombudsman to be a liaison
2450between certain parties, to monitor condominium elections,
2451to assist unit owners and boards of directors, and to
2452encourage voluntary resolutions to disputes before filing
2453the matter as a formal complaint; creating s. 718.5014,
2454F.S.; providing for the principal location of the
2455ombudsman's office in Leon County; authorizing the
2456ombudsman to establish branch offices elsewhere in the
2457state under specified circumstances; creating s. 718.5015,
2458F.S.; creating the Advisory Council on Condominiums;
2459providing for appointments by the President of the Senate,
2460the Speaker of the House of Representatives, and the
2461Governor; providing limited compensation and other terms
2462of service; specifying functions; amending s. 718.503,
2463F.S.; requiring unit owners who are not developers to
2464provide a specific question and answer disclosure document
2465to certain prospective purchasers; creating s. 720.401,
2466F.S.; providing legislative intent relating to the revival
2467of governance of a community; creating s. 720.402, F.S.;
2468providing eligibility to revive governance documents;
2469specifying prerequisites to reviving governance documents;
2470creating s. 720.403, F.S.; requiring the formation of an
2471organizing committee; providing for membership; providing
2472duties and responsibilities of the organizing committee;
2473directing the organizing committee to prepare certain
2474documents; providing for the contents of the documents;
2475providing for a vote of the eligible parcel owners;
2476creating s. 720.404, F.S.; directing the organizing
2477committee to file certain documents with the Department of
2478Community Affairs; specifies the content of the submission
2479to the department; requiring the department to approve or
2480disapprove the request to revive the governance documents
2481within a specified time period; creating s. 720.405, F.S.;
2482requiring the organizing committee to file and record
2483certain documents within a specified time period;
2484directing the organizing committee to give all affected
2485parcel owners a copy of the documents filed and recorded;
2486amending ss. 720.301 and 720.302, F.S.; conforming
2487provisions to changes made by the act; providing
2488definitions; prescribing a legislative purpose of
2489providing alternative dispute resolution procedures for
2490disputes involving elections and recalls; amending s.
2491720.303, F.S.; prescribing the right of an association to
2492enforce deed restrictions; prescribing rights of members
2493and parcel owners to attend and address association board
2494meetings and to have items placed on an agenda;
2495prescribing additional requirements for notice of
2496meetings; providing for additional materials to be
2497maintained as records; providing additional requirements
2498and limitations with respect to inspecting and copying
2499records; providing requirements with respect to financial
2500statements; providing procedures for recall of directors;
2501amending s. 720.304, F.S.; prescribing owners' rights with
2502respect to flag display; prohibiting certain lawsuits
2503against parcel owners; providing penalties; allowing a
2504parcel owner to construct a ramp for a parcel resident who
2505has a medical need for a ramp; providing conditions;
2506allowing the display of a security-services sign; amending
2507s. 720.305, F.S.; providing that a fine by an association
2508cannot become a lien against a parcel; providing for
2509attorney's fees in actions to recover fines; creating s.
2510720.3055, F.S.; prescribing requirements for contracts for
2511products and services; amending s. 720.306, F.S.;
2512providing for notice of and right to speak at member
2513meetings; requiring election disputes between a member and
2514an association to be submitted to mandatory binding
2515arbitration; amending s. 720.311, F.S.; expanding
2516requirements and guidelines with respect to alternative
2517dispute resolution; providing requirements for mediation
2518and arbitration; providing for training and education
2519programs; amending s. 718.110, F.S.; restricting the
2520application of certain amendments restricting owners'
2521rental rights; transferring, renumbering, and amending s.
2522689.26, F.S.; modifying the disclosure form that a
2523prospective purchaser must receive before a contract for
2524sale; providing that certain contracts are voidable for a
2525specified period; requiring that a purchaser provide
2526written notice of cancellation; transferring and
2527renumbering s. 689.265, F.S., relating to required
2528financial reports of certain residential subdivision
2529developers; amending s. 498.025, F.S., relating to the
2530disposition of subdivided lands; conforming cross-
2531references; creating s. 720.602, F.S.; providing remedies
2532for publication of false and misleading information;
2533amending s. 34.01, F.S.; providing jurisdiction of
2534disputes involving homeowners' associations; amending ss.
2535316.00825 and 558.002, F.S.; conforming cross-references;
2536providing for internal organization of ch. 720, F.S.;
2537amending s. 190.012, F.S.; providing for the enforcement
2538of deed restrictions in certain circumstances; amending s.
2539190.046, F.S.; providing for additional dissolution
2540procedures; amending s. 190.006, F.S.; specifying
2541procedures for selecting a chair at the initial
2542landowners' meeting; specifying requirements for proxy
2543voting; requiring notice of landowners' elections;
2544specifying the terms of certain supervisors; providing for
2545nonpartisan elections; specifying the time that resident
2546supervisors assume office; authorizing the supervisor of
2547elections to designate seat numbers for resident
2548supervisors of the board; providing procedures for filing
2549qualifying papers; allowing candidates the option of
2550paying a filing fee to qualify for the election;
2551specifying payment requirements; specifying the number of
2552petition signatures required to qualify for the election;
2553requiring the county canvassing board to certify the
2554results of resident elections; providing an effective
2555date.


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