HB 1229

1	A bill to be entitled
2	An act relating to homeowners' and condominium
3	associations; amending s. 20.165, F.S.; redesignating the
4	Division of Florida Land Sales, Condominiums, and Mobile
5	Homes as the Division of Florida Land Sales, Condominiums,
6	Homeowners' Associations, Community Association
7	Management, and Mobile Homes; amending s. 468.431, F.S.;
8	providing a definition; amending s. 468.4315, F.S.;
9	providing that the Regulatory Council of Community
10	Association Managers shall be within the Division of
11	Florida Land Sales, Condominiums, Homeowners'
12	Associations, Community Association Management, and Mobile
13	Homes; amending s. 468.436, F.S.; providing that community
14	association managers are subject to disciplinary action
15	upon a finding by the division; requiring the division to
16	refer its findings to the Department of Business and
17	Professional Regulation; providing penalties; amending s.
18	718.111, F.S.; providing condominium associations
19	guidelines for the designation of disabled parking;
20	amending s. 718.112, F.S.; requiring association bylaws to
21	mandate a specified reserve minimum; amending s. 718.501,
22	F.S.; providing powers of the division to include
23	homeowners' associations and community association
24	management; requiring training of condominium association
25	board members; requiring notice of violations; providing
26	criteria for notice, including a response deadline;
27	amending s. 718.5012, F.S.; providing the ombudsman with
28	certain powers concerning homeowners' associations;
29	amending s. 719.104, F.S.; providing that an association
30	or board may not waive its audit for more than 2
31	consecutive years; amending s. 719.1055, F.S.; including
32	cooperative units in rental rights grandfathered clause;
33	creating s. 720.3015, F.S.; providing the division with
34	certain powers and duties relating to homeowners'
35	associations; creating s. 720.3071, F.S.; requiring
36	training of homeowners' association board members;
37	amending ss. 73.073, 190.009, 192.037, 213.053, 215.20,
38	326.002, 326.006, 380.0651, 455.116, 475.455, 498.005,
39	498.019, 498.047, 498.049, 509.512, 559.935, 718.103,
40	718.105, 718.1255, 718.5011, 718.502, 718.504, 718.508,
41	718.509, 718.608, 719.103, 719.1255, 719.501, 719.502,
42	719.504, 719.508, 719.608, 720.301, 721.05, 721.07,
43	721.08, 721.26, 721.28, 721.301, 721.50, 723.003, 723.006,
44	723.009, and 723.0611, F.S., to conform references;
45	providing an effective date.
46
47	Be It Enacted by the Legislature of the State of Florida:
48
49	Section 1.  Paragraph (d) of subsection (2) of section
50	20.165, Florida Statutes, is amended to read:
51	20.165  Department of Business and Professional
52	Regulation.--There is created a Department of Business and
53	Professional Regulation.
54	(2)  The following divisions of the Department of Business
55	and Professional Regulation are established:
56	(d)  Division of Florida Land Sales, Condominiums,
57	Homeowners' Associations, Community Association Management, and
58	Mobile Homes.
59	Section 2.  Subsection (5) of section 468.431, Florida
60	Statutes, is renumbered as subsection (6), and a new subsection
61	(5) is added to said section, to read:
62	468.431  Definitions.--
63	(5)  "Division" means the Division of Florida Land Sales,
64	Condominiums, Homeowners' Associations, Community Association
65	Management, and Mobile Homes of the Department of Business and
66	Professional Regulation.
67	Section 3.  Subsection (1) of section 468.4315, Florida
68	Statutes, is amended to read:
69	468.4315  Regulatory Council of Community Association
70	Managers.--
71	(1)  The Regulatory Council of Community Association
72	Managers is created within the division department and shall
73	consist of seven members appointed by the Governor and confirmed
74	by the Senate.
75	(a)  Five members of the council shall be licensed
76	community association managers, one of whom shall be a community
77	association manager employed by a timeshare managing entity as
78	described in ss. 468.438 and 721.13, who have held an active
79	license for 5 years. The remaining two council members shall be
80	residents of this state and must not be or ever have been
81	connected with the business of community association management.
82	(b)  The Governor shall appoint members for terms of 4
83	years. Such members shall serve until their successors are
84	appointed. Members' service on the council shall begin upon
85	appointment and shall continue until their successors are
86	appointed.
87	Section 4.  Section 468.436, Florida Statutes, is amended
88	to read:
89	468.436  Disciplinary proceedings.--
90	(1)  Upon a finding by the division, the following acts
91	constitute grounds for which the disciplinary actions in
92	subsection (3) may be taken:
93	(a)  Violation of any provision of s. 455.227(1).
94	(b)1.  Violation of any provision of this part.
95	2.  Violation of any lawful order or rule rendered or
96	adopted by the department or the council.
97	3.  Being convicted of or pleading nolo contendere to a
98	felony in any court in the United States.
99	4.  Obtaining a license or certification or any other
100	order, ruling, or authorization by means of fraud,
101	misrepresentation, or concealment of material facts.
102	5.  Committing acts of gross misconduct or gross negligence
103	in connection with the profession.
104	(2)  The council shall specify by rule the acts or
105	omissions that constitute a violation of subsection (1).
106	(3)  When the division department finds any community
107	association manager guilty of any of the grounds set forth in
108	subsection (1), it shall refer the matter to the department,
109	which may enter an order imposing one or more of the following
110	penalties:
111	(a)  Denial of an application for licensure.
112	(b)  Revocation or suspension of a license.
113	(c)  Imposition of an administrative fine not to exceed
114	$5,000 for each count or separate offense.
115	(d)  Issuance of a reprimand.
116	(e)  Placement of the community association manager on
117	probation for a period of time and subject to such conditions as
118	the department specifies.
119	(f)  Restriction of the authorized scope of practice by the
120	community association manager.
121	(4)  The department shall reissue the license of a
122	disciplined community association manager upon certification by
123	the department that the disciplined person has complied with all
124	of the terms and conditions set forth in the final order.
125	Section 5.  Subsection (15) is added to section 718.111,
126	Florida Statutes, to read:
127	718.111  The association.--
128	(15)  PARKING SPACES FOR PERSONS WHO HAVE
129	DISABILITIES.--Where guest parking is provided, guest parking
130	spaces shall be configured and assigned pursuant to s. 553.5041.
131	The association may increase the number of guest parking spaces,
132	if needed. Residents with disabilities shall not park in a
133	disabled guest parking space unless their assigned parking space
134	is in use illegally. Resident disabled parking shall be by
135	assignment from available spaces by the association, pursuant to
136	local fair housing law. When a resident has two vehicles, one
137	equipped with a lift, the association shall assign a second
138	parking space that satisfies the needs of the vehicle's lift
139	operation, if an additional parking space is available and
140	unassigned.
141	Section 6.  Paragraph (f) of subsection (2) of section
142	718.112, Florida Statutes, is amended to read:
143	718.112  Bylaws.--
144	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
145	following and, if they do not do so, shall be deemed to include
146	the following:
147	(f)  Annual budget.--
148	1.  The proposed annual budget of common expenses shall be
149	detailed and shall show the amounts budgeted by accounts and
150	expense classifications, including, if applicable, but not
151	limited to, those expenses listed in s. 718.504(21). A
152	multicondominium association shall adopt a separate budget of
153	common expenses for each condominium the association operates
154	and shall adopt a separate budget of common expenses for the
155	association. In addition, if the association maintains limited
156	common elements with the cost to be shared only by those
157	entitled to use the limited common elements as provided for in
158	s. 718.113(1), the budget or a schedule attached thereto shall
159	show amounts budgeted therefor. If, after turnover of control of
160	the association to the unit owners, any of the expenses listed
161	in s. 718.504(21) are not applicable, they need not be listed.
162	2.  In addition to annual operating expenses, the budget
163	shall include reserve accounts for capital expenditures and
164	deferred maintenance. These accounts shall include, but are not
165	limited to, roof replacement, building painting, and pavement
166	resurfacing, regardless of the amount of deferred maintenance
167	expense or replacement cost, and for any other item for which
168	the deferred maintenance expense or replacement cost exceeds
169	$10,000. The amount to be reserved shall be computed by means of
170	a formula which is based upon estimated remaining useful life
171	and estimated replacement cost or deferred maintenance expense
172	of each reserve item. The association may adjust replacement
173	reserve assessments annually to take into account any changes in
174	estimates or extension of the useful life of a reserve item
175	caused by deferred maintenance. Reserves shall maintain a
176	minimum level of at least 10 percent of the yearly operating
177	budget. This subsection does not apply to an adopted budget in
178	which the members of an association have determined, by a
179	majority vote at a duly called meeting of the association, to
180	provide no reserves or less reserves than required by this
181	subsection. However, prior to turnover of control of an
182	association by a developer to unit owners other than a developer
183	pursuant to s. 718.301, the developer may vote to waive the
184	reserves or reduce the funding of reserves for the first 2
185	fiscal years of the association's operation, beginning with the
186	fiscal year in which the initial declaration is recorded, after
187	which time reserves may be waived or reduced only upon the vote
188	of a majority of all nondeveloper voting interests voting in
189	person or by limited proxy at a duly called meeting of the
190	association. If a meeting of the unit owners has been called to
191	determine whether to waive or reduce the funding of reserves,
192	and no such result is achieved or a quorum is not attained, the
193	reserves as included in the budget shall go into effect. After
194	the turnover, the developer may vote its voting interest to
195	waive or reduce the funding of reserves.
196	3.  Reserve funds and any interest accruing thereon shall
197	remain in the reserve account or accounts, and shall be used
198	only for authorized reserve expenditures unless their use for
199	other purposes is approved in advance by a majority vote at a
200	duly called meeting of the association. Prior to turnover of
201	control of an association by a developer to unit owners other
202	than the developer pursuant to s. 718.301, the developer-
203	controlled association shall not vote to use reserves for
204	purposes other than that for which they were intended without
205	the approval of a majority of all nondeveloper voting interests,
206	voting in person or by limited proxy at a duly called meeting of
207	the association.
208	4.  The only voting interests which are eligible to vote on
209	questions that involve waiving or reducing the funding of
210	reserves, or using existing reserve funds for purposes other
211	than purposes for which the reserves were intended, are the
212	voting interests of the units subject to assessment to fund the
213	reserves in question.
214	Section 7.  Section 718.501, Florida Statutes, is amended,
215	to read:
216	718.501  Powers and duties of Division of Florida Land
217	Sales, Condominiums, Homeowners' Associations, Community
218	Association Management, and Mobile Homes.--
219	(1)  The Division of Florida Land Sales, Condominiums,
220	Homeowners' Associations, Community Association Management, and
221	Mobile Homes of the Department of Business and Professional
222	Regulation, referred to as the "division" in this part, in
223	addition to other powers and duties prescribed by chapter 498,
224	has the power to enforce and ensure compliance with the
225	provisions of this chapter and rules promulgated pursuant hereto
226	relating to the development, construction, sale, lease,
227	ownership, operation, and management of residential condominium
228	units. In performing its duties, the division has the following
229	powers and duties:
230	(a)  The division may make necessary public or private
231	investigations within or outside this state to determine whether
232	any person or association has violated this chapter or any rule
233	or order hereunder, to aid in the enforcement of this chapter,
234	or to aid in the adoption of rules or forms hereunder.
235	(b)  The division may require or permit any person to file
236	a statement in writing, under oath or otherwise, as the division
237	determines, as to the facts and circumstances concerning a
238	matter to be investigated.
239	(c)  For the purpose of any investigation under this
240	chapter, the division director or any officer or employee
241	designated by the division director may administer oaths or
242	affirmations, subpoena witnesses and compel their attendance,
243	take evidence, and require the production of any matter which is
244	relevant to the investigation, including the existence,
245	description, nature, custody, condition, and location of any
246	books, documents, or other tangible things and the identity and
247	location of persons having knowledge of relevant facts or any
248	other matter reasonably calculated to lead to the discovery of
249	material evidence. Upon the failure by a person to obey a
250	subpoena or to answer questions propounded by the investigating
251	officer and upon reasonable notice to all persons affected
252	thereby, the division may apply to the circuit court for an
253	order compelling compliance.
254	(d)  Notwithstanding any remedies available to unit owners
255	and associations, if the division has reasonable cause to
256	believe that a violation of any provision of this chapter or
257	rule promulgated pursuant hereto has occurred, the division may
258	institute enforcement proceedings in its own name against any
259	developer, association, officer, or member of the board of
260	administration, or its assignees or agents, as follows:
261	1.  The division may permit a person whose conduct or
262	actions may be under investigation to waive formal proceedings
263	and enter into a consent proceeding whereby orders, rules, or
264	letters of censure or warning, whether formal or informal, may
265	be entered against the person.
266	2.  The division may issue an order requiring the
267	developer, association, officer, or member of the board of
268	administration, or its assignees or agents, to cease and desist
269	from the unlawful practice and take such affirmative action as
270	in the judgment of the division will carry out the purposes of
271	this chapter. Such affirmative action may include, but is not
272	limited to, an order requiring a developer to pay moneys
273	determined to be owed to a condominium association.
274	3.  The division may bring an action in circuit court on
275	behalf of a class of unit owners, lessees, or purchasers for
276	declaratory relief, injunctive relief, or restitution.
277	4.  The division may impose a civil penalty against a
278	developer or association, or its assignee or agent, for any
279	violation of this chapter or a rule promulgated pursuant hereto.
280	The division may impose a civil penalty individually against any
281	officer or board member who willfully and knowingly violates a
282	provision of this chapter, a rule adopted pursuant hereto, or a
283	final order of the division. The term "willfully and knowingly"
284	means that the division informed the officer or board member
285	that his or her action or intended action violates this chapter,
286	a rule adopted under this chapter, or a final order of the
287	division and that the officer or board member refused to comply
288	with the requirements of this chapter, a rule adopted under this
289	chapter, or a final order of the division. The division, prior
290	to initiating formal agency action under chapter 120, shall
291	afford the officer or board member an opportunity to voluntarily
292	comply with this chapter, a rule adopted under this chapter, or
293	a final order of the division. An officer or board member who
294	complies within 10 days is not subject to a civil penalty. A
295	penalty may be imposed on the basis of each day of continuing
296	violation, but in no event shall the penalty for any offense
297	exceed $5,000. By January 1, 1998, the division shall adopt, by
298	rule, penalty guidelines applicable to possible violations or to
299	categories of violations of this chapter or rules adopted by the
300	division. The guidelines must specify a meaningful range of
301	civil penalties for each such violation of the statute and rules
302	and must be based upon the harm caused by the violation, the
303	repetition of the violation, and upon such other factors deemed
304	relevant by the division. For example, the division may consider
305	whether the violations were committed by a developer or owner-
306	controlled association, the size of the association, and other
307	factors. The guidelines must designate the possible mitigating
308	or aggravating circumstances that justify a departure from the
309	range of penalties provided by the rules. It is the legislative
310	intent that minor violations be distinguished from those which
311	endanger the health, safety, or welfare of the condominium
312	residents or other persons and that such guidelines provide
313	reasonable and meaningful notice to the public of likely
314	penalties that may be imposed for proscribed conduct. This
315	subsection does not limit the ability of the division to
316	informally dispose of administrative actions or complaints by
317	stipulation, agreed settlement, or consent order. All amounts
318	collected shall be deposited with the Chief Financial Officer to
319	the credit of the Division of Florida Land Sales, Condominiums,
320	Homeowners' Associations, Community Association Management, and
321	Mobile Homes Trust Fund. If a developer fails to pay the civil
322	penalty, the division shall thereupon issue an order directing
323	that such developer cease and desist from further operation
324	until such time as the civil penalty is paid or may pursue
325	enforcement of the penalty in a court of competent jurisdiction.
326	If an association fails to pay the civil penalty, the division
327	shall thereupon pursue enforcement in a court of competent
328	jurisdiction, and the order imposing the civil penalty or the
329	cease and desist order will not become effective until 20 days
330	after the date of such order. Any action commenced by the
331	division shall be brought in the county in which the division
332	has its executive offices or in the county where the violation
333	occurred.
334	(e)  The division is authorized to prepare and disseminate
335	a prospectus and other information to assist prospective owners,
336	purchasers, lessees, and developers of residential condominiums
337	in assessing the rights, privileges, and duties pertaining
338	thereto.
339	(f)  The division has authority to adopt rules pursuant to
340	ss. 120.536(1) and 120.54 to implement and enforce the
341	provisions of this chapter.
342	(g)  The division shall establish procedures for providing
343	notice to an association when the division is considering the
344	issuance of a declaratory statement with respect to the
345	declaration of condominium or any related document governing in
346	such condominium community.
347	(h)  The division shall furnish each association which pays
348	the fees required by paragraph (2)(a) a copy of this act,
349	subsequent changes to this act on an annual basis, an amended
350	version of this act as it becomes available from the Secretary
351	of State's office on a biennial basis, and the rules promulgated
352	pursuant thereto on an annual basis.
353	(i)  The division shall annually provide each association
354	with a summary of declaratory statements and formal legal
355	opinions relating to the operations of condominiums which were
356	rendered by the division during the previous year.
357	(j)  The division shall provide training programs for
358	condominium association board members and unit owners. Training
359	shall be mandatory for newly elected board members and members
360	currently serving on a board who have not previously voluntarily
361	attended training.
362	(k)  The division shall maintain a toll-free telephone
363	number accessible to condominium unit owners.
364	(l)  The division shall develop a program to certify both
365	volunteer and paid mediators to provide mediation of condominium
366	disputes. The division shall provide, upon request, a list of
367	such mediators to any association, unit owner, or other
368	participant in arbitration proceedings under s. 718.1255
369	requesting a copy of the list. The division shall include on the
370	list of volunteer mediators only the names of persons who have
371	received at least 20 hours of training in mediation techniques
372	or who have mediated at least 20 disputes. In order to become
373	initially certified by the division, paid mediators must be
374	certified by the Supreme Court to mediate court cases in either
375	county or circuit courts. However, the division may adopt, by
376	rule, additional factors for the certification of paid
377	mediators, which factors must be related to experience,
378	education, or background. Any person initially certified as a
379	paid mediator by the division must, in order to continue to be
380	certified, comply with the factors or requirements imposed by
381	rules adopted by the division.
382	(m)  When a complaint is made, the division shall conduct
383	its inquiry with due regard to the interests of the affected
384	parties. Within 30 days after receipt of a complaint, the
385	division shall acknowledge the complaint in writing and notify
386	the complainant whether the complaint is within the jurisdiction
387	of the division and whether additional information is needed by
388	the division from the complainant. The division shall conduct
389	its investigation and shall, within 90 days after receipt of the
390	original complaint or of timely requested additional
391	information, take action upon the complaint. However, the
392	failure to complete the investigation within 90 days does not
393	prevent the division from continuing the investigation,
394	accepting or considering evidence obtained or received after 90
395	days, or taking administrative action if reasonable cause exists
396	to believe that a violation of this chapter or a rule of the
397	division has occurred. If an investigation is not completed
398	within the time limits established in this paragraph, the
399	division shall, on a monthly basis, notify the complainant in
400	writing of the status of the investigation. When reporting its
401	action to the complainant, the division shall inform the
402	complainant of any right to a hearing pursuant to ss. 120.569
403	and 120.57.
404	(n)  Any condominium owner found to be in violation of this
405	chapter shall be notified by the department by certified mail,
406	return receipt requested, at which time the condominium owner
407	will have 30 days in which to respond in writing.
408	(2)(a)  Effective January 1, 1992, each condominium
409	association which operates more than two units shall pay to the
410	division an annual fee in the amount of $4 for each residential
411	unit in condominiums operated by the association. If the fee is
412	not paid by March 1, then the association shall be assessed a
413	penalty of 10 percent of the amount due, and the association
414	will not have standing to maintain or defend any action in the
415	courts of this state until the amount due, plus any penalty, is
416	paid.
417	(b)  All fees shall be deposited in the Division of Florida
418	Land Sales, Condominiums, Homeowners' Associations, Community
419	Association Management, and Mobile Homes Trust Fund as provided
420	by law.
421	Section 8.  Subsection (10) is added to section 718.5012,
422	Florida Statutes, to read:
423	718.5012  Ombudsman; powers and duties.--The ombudsman
424	shall have the powers that are necessary to carry out the duties
425	of his or her office, including the following specific powers:
426	(10)  To monitor and review procedures and disputes
427	concerning homeowners' associations.
428	Section 9.  Paragraph (b) of subsection (4) of section
429	719.104, Florida Statutes, is amended to read:
430	719.104  Cooperatives; access to units; records; financial
431	reports; assessments; purchase of leases.--
432	(4)  FINANCIAL REPORT.--
433	(b)  The division shall adopt rules that may require that
434	the association deliver to the unit owners, in lieu of the
435	financial report required by this section, a complete set of
436	financial statements for the preceding fiscal year. The
437	financial statements shall be delivered within 90 days following
438	the end of the previous fiscal year or annually on such other
439	date as provided in the bylaws. The rules of the division may
440	require that the financial statements be compiled, reviewed, or
441	audited, and the rules shall take into consideration the
442	criteria set forth in s. 719.501(1)(j). The requirement to have
443	the financial statements compiled, reviewed, or audited does not
444	apply to associations if a majority of the voting interests of
445	the association present at a duly called meeting of the
446	association have determined for a fiscal year to waive this
447	requirement. In an association in which turnover of control by
448	the developer has not occurred, the developer may vote to waive
449	the audit requirement for the first 2 years of the operation of
450	the association, after which time waiver of an applicable audit
451	requirement shall be by a majority of voting interests other
452	than the developer. Under no circumstance may an association or
453	board waive its audit for more than 2 consecutive years. The
454	meeting shall be held prior to the end of the fiscal year, and
455	the waiver shall be effective for only one fiscal year. This
456	subsection does not apply to a cooperative that consists of 50
457	or fewer units.
458	Section 10.  Subsection (7) is added to section 719.1055,
459	Florida Statutes, to read:
460	719.1055  Amendment of cooperative documents; alteration
461	and acquisition of property.--
462	(7)  Any amendment restricting cooperative unit owners'
463	rights relating to the rental of units applies only to unit
464	owners who consent to the amendment and unit owners who purchase
465	their units after the effective date of that amendment.
466	Section 11.  Section 720.3015, Florida Statutes, is created
467	to read:
468	720.3015  Powers and duties of Division of Florida Land
469	Sales, Condominiums, Homeowners' Associations, Community
470	Association Management, and Mobile Homes.--The Division of
471	Florida Land Sales, Condominiums, Homeowners' Associations,
472	Community Association Management, and Mobile Homes of the
473	Department of Business and Professional Regulation in addition
474	to other powers and duties prescribed by chapter 498, has the
475	power to enforce and ensure compliance with the provisions of
476	this chapter and rules adopted pursuant hereto relating to
477	homeowners' associations as defined in s. 720.301:
478	(1)  The division may make necessary public or private
479	investigations within or outside this state to determine whether
480	any person or association has violated this chapter or any rule
481	or order hereunder, to aid in the enforcement of this chapter,
482	or to aid in the adoption of rules or forms hereunder.
483	(2)  The division may require or permit any person to file
484	a statement in writing, under oath or otherwise, as the division
485	determines, as to the facts and circumstances concerning a
486	matter to be investigated.
487	(3)  For the purpose of any investigation under this
488	chapter, the division director or any officer or employee
489	designated by the division director may administer oaths or
490	affirmations, subpoena witnesses and compel their attendance,
491	take evidence, and require the production of any matter which is
492	relevant to the investigation, including the existence,
493	description, nature, custody, condition, and location of any
494	books, documents, or other tangible things, and the identity and
495	location of persons having knowledge of relevant facts or any
496	other matter reasonably calculated to lead to the discovery of
497	material evidence. Upon the failure by a person to obey a
498	subpoena or to answer questions propounded by the investigating
499	officer and upon reasonable notice to all persons affected
500	thereby, the division may apply to the circuit court for an
501	order compelling compliance.
502	(4)  Notwithstanding any remedies available to homeowners'
503	associations, if the division has reasonable cause to believe
504	that a violation of any provision of this chapter or rule
505	adopted pursuant hereto has occurred, the division may institute
506	enforcement proceedings in its own name against any association,
507	officer, or member of the board, or its assignees or agents, as
508	follows:
509	(a)  The division may permit a person whose conduct or
510	actions may be under investigation to waive formal proceedings
511	and enter into a consent proceeding whereby orders, rules, or
512	letters of censure or warning, whether formal or informal, may
513	be entered against the person.
514	(b)  The division may issue an order requiring the
515	homeowners' association to cease and desist from the unlawful
516	practice and take such affirmative action as in the judgment of
517	the division will carry out the purposes of this chapter.
518	(c)  The division may bring an action in circuit court on
519	behalf of a class of homeowners, lessees, or purchasers for
520	declaratory relief, injunctive relief, or restitution.
521	(d)  The division may impose a civil penalty against an
522	association, or its assignee or agent, for any violation of this
523	chapter or a rule adopted pursuant hereto. The division may
524	impose a civil penalty individually against any officer or board
525	member who willfully and knowingly violates a provision of this
526	chapter, a rule adopted pursuant hereto, or a final order of the
527	division. The term "willfully and knowingly" means that the
528	division informed the officer or board member that his or her
529	action or intended action violates this chapter, a rule adopted
530	under this chapter, or a final order of the division and that
531	the officer or board member refused to comply with the
532	requirements of this chapter, a rule adopted under this chapter,
533	or a final order of the division. The division, prior to
534	initiating formal agency action under chapter 120, shall afford
535	the officer or board member an opportunity to voluntarily comply
536	with this chapter, a rule adopted under this chapter, or a final
537	order of the division. An officer or board member who complies
538	within 10 days is not subject to a civil penalty. A penalty may
539	be imposed on the basis of each day of continuing violation, but
540	in no event shall the penalty for any offense exceed $5,000. By
541	January 1, 2006, the division shall adopt, by rule, penalty
542	guidelines applicable to possible violations or to categories of
543	violations of this chapter or rules adopted by the division. The
544	guidelines must specify a meaningful range of civil penalties
545	for each such violation of the statute and rules and must be
546	based upon the harm caused by the violation, the repetition of
547	the violation, and such other factors deemed relevant by the
548	division. For example, the division may consider whether the
549	violations were committed by a association, the size of the
550	association, and other factors. The guidelines must designate
551	the possible mitigating or aggravating circumstances that
552	justify a departure from the range of penalties provided by the
553	rules. It is the legislative intent that minor violations be
554	distinguished from those which endanger the health, safety, or
555	welfare of the homeowners' association members or other persons
556	and that such guidelines provide reasonable and meaningful
557	notice to the public of likely penalties that may be imposed for
558	proscribed conduct. This paragraph does not limit the ability of
559	the division to informally dispose of administrative actions or
560	complaints by stipulation, agreed settlement, or consent order.
561	All amounts collected shall be deposited with the Chief
562	Financial Officer to the credit of the Division of Florida Land
563	Sales, Condominiums, Homeowners' Associations, Community
564	Association Management, and Mobile Homes Trust Fund. If an
565	association fails to pay the civil penalty, the division shall
566	thereupon pursue enforcement in a court of competent
567	jurisdiction, and the order imposing the civil penalty or the
568	cease and desist order will not become effective until 20 days
569	after the date of such order. Any action commenced by the
570	division shall be brought in the county in which the division
571	has its executive offices or in the county in which the
572	violation occurred.
573	(5)  The division is authorized to prepare and disseminate
574	a prospectus and other information to assist prospective owners,
575	purchasers, lessees, and developers of communities with
576	homeowners' associations in assessing the rights, privileges,
577	and duties pertaining thereto.
578	(6)  The division has authority to adopt rules pursuant to
579	ss. 120.536(1) and 120.54 to implement and enforce the
580	provisions of this chapter.
581	(7)  The division shall establish procedures for providing
582	notice to an association when the division is considering the
583	issuance of a declaratory statement with respect to the
584	homeowners' association documents governing such communities.
585	(8)  The division shall furnish each association a copy of
586	this act, subsequent changes to this act on an annual basis, an
587	amended version of this act as it becomes available from the
588	Secretary of State's office on a biennial basis, and the rules
589	adopted pursuant thereto on an annual basis.
590	(9)  The division shall annually provide each association
591	with a summary of declaratory statements and formal legal
592	opinions relating to the operations of homeowners' associations
593	which were rendered by the division during the previous year.
594	(10)  The division shall provide training programs for
595	homeowners' association board members. Training shall be
596	mandatory for newly elected board members and members currently
597	serving on a board who have not previously voluntarily attended
598	training.
599	(11)  The division shall maintain a toll-free telephone
600	number accessible to homeowners' association members.
601	(12)  The division shall develop a program to certify both
602	volunteer and paid mediators to provide mediation of homeowners'
603	association disputes. The division shall provide, upon request,
604	a list of such mediators to any association, unit owner, or
605	other participant in arbitration proceedings under s. 718.1255.
606	The division shall include on the list of volunteer mediators
607	only the names of persons who have received at least 20 hours of
608	training in mediation techniques or who have mediated at least
609	20 disputes. In order to become initially certified by the
610	division, paid mediators must be certified by the Supreme Court
611	to mediate court cases in either county or circuit courts.
612	However, the division may adopt, by rule, additional factors for
613	the certification of paid mediators, which factors must be
614	related to experience, education, or background. Any person
615	initially certified as a paid mediator by the division must, in
616	order to remain certified, comply with the factors or
617	requirements imposed by rules adopted by the division.
618	(13)  When a complaint is made, the division shall conduct
619	its inquiry with due regard to the interests of the affected
620	parties. Within 30 days after receipt of a complaint, the
621	division shall acknowledge the complaint in writing and notify
622	the complainant whether the complaint is within the jurisdiction
623	of the division and whether additional information is needed by
624	the division from the complainant. The division shall conduct
625	its investigation and shall, within 90 days after receipt of the
626	original complaint or of timely requested additional
627	information, take action upon the complaint. However, the
628	failure to complete the investigation within 90 days does not
629	prevent the division from continuing the investigation,
630	accepting or considering evidence obtained or received after 90
631	days, or taking administrative action if reasonable cause exists
632	to believe that a violation of this chapter or a rule of the
633	division has occurred. If an investigation is not completed
634	within the time limits established in this subsection, the
635	division shall, on a monthly basis, notify the complainant in
636	writing of the status of the investigation. When reporting its
637	action to the complainant, the division shall inform the
638	complainant of any right to a hearing pursuant to ss. 120.569
639	and 120.57.
640	(14)  Any homeowner's association member found to be in
641	violation of this chapter shall be notified by the department by
642	certified mail, return receipt requested, at which time the
643	homeowners' association member will have 30 days in which to
644	respond in writing.
645	Section 12.  Section 720.3071, Florida Statutes, is created
646	to read:
647	720.3071  Board member training.--The division shall
648	provide training programs for homeowners' association board
649	members and unit owners. Training shall be mandatory for newly
650	elected board members and members currently serving on a board
651	who have not previously voluntarily attended training.
652	Section 13.  Subsection (2) of section 73.073, Florida
653	Statutes, is amended to read:
654	73.073  Eminent domain procedure with respect to
655	condominium common elements.--
656	(2)  With respect to the exercise of eminent domain or a
657	negotiated sale for the purchase or taking of a portion of the
658	common elements of a condominium, the condemning authority shall
659	have the responsibility of contacting the condominium
660	association and acquiring the most recent rolls indicating the
661	names of the unit owners or contacting the appropriate taxing
662	authority to obtain the names of the owners of record on the tax
663	rolls. Notification shall thereupon be sent by certified mail,
664	return receipt requested, to the unit owners of record of the
665	condominium units by the condemning authority indicating the
666	intent to purchase or take the required property and requesting
667	a response from the unit owner. The condemning authority shall
668	be responsible for the expense of sending notification pursuant
669	to this section. Such notice shall, at a minimum, include:
670	(a)  The name and address of the condemning authority.
671	(b)  A written or visual description of the property.
672	(c)  The public purpose for which the property is needed.
673	(d)  The appraisal value of the property.
674	(e)  A clear, concise statement relating to the unit
675	owner's right to object to the taking or appraisal value and the
676	procedures and effects of exercising that right.
677	(f)  A clear, concise statement relating to the power of
678	the association to convey the property on behalf of the unit
679	owners if no objection to the taking or appraisal value is
680	raised, and the effects of this alternative on the unit owner.
681
682	The Division of Florida Land Sales, Condominiums, Homeowners'
683	Associations, Community Association Management, and Mobile Homes
684	of the Department of Business and Professional Regulation may
685	adopt, by rule, a standard form for such notice and may require
686	the notice to include any additional relevant information.
687	Section 14.  Subsection (2) of section 190.009, Florida
688	Statutes, is amended to read:
689	190.009  Disclosure of public financing.--
690	(2)  The Division of Florida Land Sales, Condominiums,
691	Homeowners' Associations, Community Association Management, and
692	Mobile Homes of the Department of Business and Professional
693	Regulation shall ensure that disclosures made by developers
694	pursuant to chapter 498 meet the requirements of subsection (1).
695	Section 15.  Paragraph (e) of subsection (6) of section
696	192.037, Florida Statutes, is amended to read:
697	192.037  Fee timeshare real property; taxes and
698	assessments; escrow.--
699	(6)
700	(e)  On or before May 1 of each year, a statement of
701	receipts and disbursements of the escrow account must be filed
702	with the Division of Florida Land Sales, Condominiums,
703	Homeowners' Associations, Community Association Management, and
704	Mobile Homes of the Department of Business and Professional
705	Regulation, which may enforce this paragraph pursuant to s.
706	721.26. This statement must appropriately show the amount of
707	principal and interest in such account.
708	Section 16.  Paragraph (i) of subsection (7) of section
709	213.053, Florida Statutes, is amended to read:
710	213.053  Confidentiality and information sharing.--
711	(7)  Notwithstanding any other provision of this section,
712	the department may provide:
713	(i)  Information relative to chapters 212 and 326 to the
714	Division of Florida Land Sales, Condominiums, Homeowners'
715	Associations, Community Association Management, and Mobile Homes
716	of the Department of Business and Professional Regulation in the
717	conduct of its official duties.
718
719	Disclosure of information under this subsection shall be
720	pursuant to a written agreement between the executive director
721	and the agency. Such agencies, governmental or nongovernmental,
722	shall be bound by the same requirements of confidentiality as
723	the Department of Revenue. Breach of confidentiality is a
724	misdemeanor of the first degree, punishable as provided by s.
725	775.082 or s. 775.083.
726	Section 17.  Paragraph (d) of subsection (4) of section
727	215.20, Florida Statutes, is amended to read:
728	215.20  Certain income and certain trust funds to
729	contribute to the General Revenue Fund.--
730	(4)  The income of a revenue nature deposited in the
731	following described trust funds, by whatever name designated, is
732	that from which the appropriations authorized by subsection (3)
733	shall be made:
734	(d)  Within the Department of Business and Professional
735	Regulation:
736	1.  The Administrative Trust Fund.
737	2.  The Alcoholic Beverage and Tobacco Trust Fund.
738	3.  The Cigarette Tax Collection Trust Fund.
739	4.  The Division of Florida Land Sales, Condominiums,
740	Homeowners' Associations, Community Association Management, and
741	Mobile Homes Trust Fund.
742	5.  The Hotel and Restaurant Trust Fund, with the exception
743	of those fees collected for the purpose of funding of the
744	hospitality education program as stated in s. 509.302.
745	6.  The Professional Regulation Trust Fund.
746	7.  The trust funds administered by the Division of Pari-
747	mutuel Wagering.
748
749	The enumeration of the foregoing moneys or trust funds shall not
750	prohibit the applicability thereto of s. 215.24 should the
751	Governor determine that for the reasons mentioned in s. 215.24
752	the money or trust funds should be exempt herefrom, as it is the
753	purpose of this law to exempt income from its force and effect
754	when, by the operation of this law, federal matching funds or
755	contributions or private grants to any trust fund would be lost
756	to the state.
757	Section 18.  Subsection (2) of section 326.002, Florida
758	Statutes, is amended to read:
759	326.002  Definitions.--As used in ss. 326.001-326.006, the
760	term:
761	(2)  "Division" means the Division of Florida Land Sales,
762	Condominiums, Homeowners' Associations, Community Association
763	Management, and Mobile Homes of the Department of Business and
764	Professional Regulation.
765	Section 19.  Paragraph (d) of subsection (2) and subsection
766	(3) of section 326.006, Florida Statutes, are amended to read:
767	326.006  Powers and duties of division.--
768	(2)  The division has the power to enforce and ensure
769	compliance with the provisions of this chapter and rules adopted
770	under this chapter relating to the sale and ownership of yachts
771	and ships. In performing its duties, the division has the
772	following powers and duties:
773	(d)  Notwithstanding any remedies available to a yacht or
774	ship purchaser, if the division has reasonable cause to believe
775	that a violation of any provision of this chapter or rule
776	adopted under this chapter has occurred, the division may
777	institute enforcement proceedings in its own name against any
778	broker or salesperson or any of his or her assignees or agents,
779	or against any unlicensed person or any of his or her assignees
780	or agents, as follows:
781	1.  The division may permit a person whose conduct or
782	actions are under investigation to waive formal proceedings and
783	enter into a consent proceeding whereby orders, rules, or
784	letters of censure or warning, whether formal or informal, may
785	be entered against the person.
786	2.  The division may issue an order requiring the broker or
787	salesperson or any of his or her assignees or agents, or
788	requiring any unlicensed person or any of his or her assignees
789	or agents, to cease and desist from the unlawful practice and
790	take such affirmative action as in the judgment of the division
791	will carry out the purposes of this chapter.
792	3.  The division may bring an action in circuit court on
793	behalf of a class of yacht or ship purchasers for declaratory
794	relief, injunctive relief, or restitution.
795	4.  The division may impose a civil penalty against a
796	broker or salesperson or any of his or her assignees or agents,
797	or against an unlicensed person or any of his or her assignees
798	or agents, for any violation of this chapter or a rule adopted
799	under this chapter. A penalty may be imposed for each day of
800	continuing violation, but in no event may the penalty for any
801	offense exceed $10,000. All amounts collected must be deposited
802	with the Chief Financial Officer to the credit of the Division
803	of Florida Land Sales, Condominiums, Homeowners' Associations,
804	Community Association Management, and Mobile Homes Trust Fund.
805	If a broker, salesperson, or unlicensed person working for a
806	broker, fails to pay the civil penalty, the division shall
807	thereupon issue an order suspending the broker's license until
808	such time as the civil penalty is paid or may pursue enforcement
809	of the penalty in a court of competent jurisdiction. The order
810	imposing the civil penalty or the order of suspension may not
811	become effective until 20 days after the date of such order. Any
812	action commenced by the division must be brought in the county
813	in which the division has its executive offices or in the county
814	where the violation occurred.
815	(3)  All fees must be deposited in the Division of Florida
816	Land Sales, Condominiums, Homeowners' Associations, Community
817	Association Management, and Mobile Homes Trust Fund as provided
818	by law.
819	Section 20.  Paragraph (a) of subsection (4) of section
820	380.0651, Florida Statutes, is amended to read:
821	380.0651  Statewide guidelines and standards.--
822	(4)  Two or more developments, represented by their owners
823	or developers to be separate developments, shall be aggregated
824	and treated as a single development under this chapter when they
825	are determined to be part of a unified plan of development and
826	are physically proximate to one other.
827	(a)  The criteria of two of the following subparagraphs
828	must be met in order for the state land planning agency to
829	determine that there is a unified plan of development:
830	1.a.  The same person has retained or shared control of the
831	developments;
832	b.  The same person has ownership or a significant legal or
833	equitable interest in the developments; or
834	c.  There is common management of the developments
835	controlling the form of physical development or disposition of
836	parcels of the development.
837	2.  There is a reasonable closeness in time between the
838	completion of 80 percent or less of one development and the
839	submission to a governmental agency of a master plan or series
840	of plans or drawings for the other development which is
841	indicative of a common development effort.
842	3.  A master plan or series of plans or drawings exists
843	covering the developments sought to be aggregated which have
844	been submitted to a local general-purpose government, water
845	management district, the Florida Department of Environmental
846	Protection, or the Division of Florida Land Sales, Condominiums,
847	Homeowners' Associations, Community Association Management, and
848	Mobile Homes for authorization to commence development. The
849	existence or implementation of a utility's master utility plan
850	required by the Public Service Commission or general-purpose
851	local government or a master drainage plan shall not be the sole
852	determinant of the existence of a master plan.
853	4.  The voluntary sharing of infrastructure that is
854	indicative of a common development effort or is designated
855	specifically to accommodate the developments sought to be
856	aggregated, except that which was implemented because it was
857	required by a local general-purpose government; water management
858	district; the Department of Environmental Protection; the
859	Division of Florida Land Sales, Condominiums, Homeowners'
860	Associations, Community Association Management, and Mobile
861	Homes; or the Public Service Commission.
862	5.  There is a common advertising scheme or promotional
863	plan in effect for the developments sought to be aggregated.
864	Section 21.  Subsection (5) of section 455.116, Florida
865	Statutes, is amended to read:
866	455.116  Regulation trust funds.--The following trust funds
867	shall be placed in the department:
868	(5)  Division of Florida Land Sales, Condominiums,
869	Homeowners' Associations, Community Association Management, and
870	Mobile Homes Trust Fund.
871	Section 22.  Section 475.455, Florida Statutes, is amended
872	to read:
873	475.455  Exchange of disciplinary information.--The
874	commission shall inform the Division of Florida Land Sales,
875	Condominiums, Homeowners' Associations, Community Association
876	Management, and Mobile Homes of the Department of Business and
877	Professional Regulation of any disciplinary action the
878	commission has taken against any of its licensees. The division
879	shall inform the commission of any disciplinary action the
880	division has taken against any broker or sales associate
881	registered with the division.
882	Section 23.  Subsection (5) of section 498.005, Florida
883	Statutes, is amended to read:
884	498.005  Definitions.--As used in this chapter, unless the
885	context otherwise requires, the term:
886	(5)  "Division" means the Division of Florida Land Sales,
887	Condominiums, Homeowners' Associations, Community Association
888	Management, and Mobile Homes of the Department of Business and
889	Professional Regulation.
890	Section 24.  Section 498.019, Florida Statutes, is amended
891	to read:
892	498.019  Division of Florida Land Sales, Condominiums,
893	Homeowners' Associations, Community Association Management, and
894	Mobile Homes Trust Fund.--
895	(1)  There is created within the State Treasury the
896	Division of Florida Land Sales, Condominiums, Homeowners'
897	Associations, Community Association Management, and Mobile Homes
898	Trust Fund to be used for the administration and operation of
899	this chapter, part VIII of chapter 468, and chapters 718, 719,
900	720, 721, and 723 by the division.
901	(2)  All moneys collected by the division from fees, fines,
902	or penalties or from costs awarded to the division by a court
903	shall be paid into the Division of Florida Land Sales,
904	Condominiums, Homeowners' Associations, Community Association
905	Management, and Mobile Homes Trust Fund. The Legislature shall
906	appropriate funds from this trust fund sufficient to carry out
907	the provisions of this chapter and the provisions of law with
908	respect to each category of business covered by this trust fund.
909	The division shall maintain separate revenue accounts in the
910	trust fund for each of the businesses regulated by the division.
911	The division shall provide for the proportionate allocation
912	among the accounts of expenses incurred by the division in the
913	performance of its duties with respect to each of these
914	businesses. As part of its normal budgetary process, the
915	division shall prepare an annual report of revenue and allocated
916	expenses related to the operation of each of these businesses
917	which may be used to determine fees charged by the division.
918	This subsection shall operate pursuant to the provisions of s.
919	215.20.
920	Section 25.  Paragraph (a) of subsection (8) of section
921	498.047, Florida Statutes, is amended to read:
922	498.047  Investigations.--
923	(8)(a)  Information held by the Division of Florida Land
924	Sales, Condominiums, Homeowners' Associations, Community
925	Association Management, and Mobile Homes relative to an
926	investigation pursuant to this chapter, including any consumer
927	complaint, is confidential and exempt from s. 119.07(1) and s.
928	24(a), Art. I of the State Constitution, until 10 days after a
929	notice to show cause has been filed by the division, or, in the
930	case in which no notice to show cause is filed, the
931	investigation is completed or ceases to be active. For purposes
932	of this section, an investigation shall be considered "active"
933	so long as the division or any law enforcement or administrative
934	agency or regulatory organization is proceeding with reasonable
935	dispatch and has a reasonable good faith belief that the
936	investigation may lead to the filing of an administrative,
937	civil, or criminal proceeding or to the denial or conditional
938	grant of a license or registration. However, in response to a
939	specific inquiry about the registration status of a registered
940	or unregistered subdivider, the division may disclose the
941	existence and the status of an active investigation. This
942	subsection shall not be construed to prohibit disclosure of
943	information which is required by law to be filed with the
944	division and which, but for the investigation, would be subject
945	to s. 119.07(1).
946	Section 26.  Subsection (5) of section 498.049, Florida
947	Statutes, is amended to read:
948	498.049  Suspension; revocation; civil penalties.--
949	(5)  Each person who materially participates in any offer
950	or disposition of any interest in subdivided lands in violation
951	of this chapter or relevant rules involving fraud, deception,
952	false pretenses, misrepresentation, or false advertising or the
953	disposition, concealment, or diversion of any funds or assets of
954	any person which adversely affects the interests of a purchaser
955	of any interest in subdivided lands, and who directly or
956	indirectly controls a subdivider or is a general partner,
957	officer, director, agent, or employee of a subdivider shall also
958	be liable under this subsection jointly and severally with and
959	to the same extent as the subdivider, unless that person did not
960	know, and in the exercise of reasonable care could not have
961	known, of the existence of the facts creating the alleged
962	liability. Among these persons a right of contribution shall
963	exist, except that a creditor of a subdivider shall not be
964	jointly and severally liable unless the creditor has assumed
965	managerial or fiduciary responsibility in a manner related to
966	the basis for the liability of the subdivider under this
967	subsection. Civil penalties shall be limited to $10,000 for each
968	offense, and all amounts collected shall be deposited with the
969	Chief Financial Officer to the credit of the Division of Florida
970	Land Sales, Condominiums, Homeowners' Associations, Community
971	Association Management, and Mobile Homes Trust Fund. No order
972	requiring the payment of a civil penalty shall become effective
973	until 20 days after the date of the order, unless otherwise
974	agreed in writing by the person on whom the penalty is imposed.
975	Section 27.  Section 509.512, Florida Statutes, is amended
976	to read:
977	509.512  Timeshare plan developer and exchange company
978	exemption.--Sections 509.501-509.511 do not apply to a developer
979	of a timeshare plan or an exchange company approved by the
980	Division of Florida Land Sales, Condominiums, Homeowners'
981	Associations, Community Association Management, and Mobile Homes
982	pursuant to chapter 721, but only to the extent that the
983	developer or exchange company engages in conduct regulated under
984	chapter 721.
985	Section 28.  Paragraph (h) of subsection (1) of section
986	559.935, Florida Statutes, is amended to read:
987	559.935  Exemptions.--
988	(1)  This part does not apply to:
989	(h)  A developer of a timeshare plan or an exchange company
990	approved by the Division of Florida Land Sales, Condominiums,
991	Homeowners' Associations, Community Association Management, and
992	Mobile Homes pursuant to chapter 721, but only to the extent
993	that the developer or exchange company engages in conduct
994	regulated under chapter 721; or
995	Section 29.  Subsection (17) of section 718.103, Florida
996	Statutes, is amended to read:
997	718.103  Definitions.--As used in this chapter, the term:
998	(17)  "Division" means the Division of Florida Land Sales,
999	Condominiums, Homeowners' Associations, Community Association
1000	Management, and Mobile Homes of the Department of Business and
1001	Professional Regulation.
1002	Section 30.  Paragraph (c) of subsection (4) of section
1003	718.105, Florida Statutes, is amended to read:
1004	718.105  Recording of declaration.--
1005	(4)
1006	(c)  If the sum of money held by the clerk has not been
1007	paid to the developer or association as provided in paragraph
1008	(b) by 3 years after the date the declaration was originally
1009	recorded, the clerk in his or her discretion may notify, in
1010	writing, the registered agent of the association that the sum is
1011	still available and the purpose for which it was deposited. If
1012	the association does not record the certificate within 90 days
1013	after the clerk has given the notice, the clerk may disburse the
1014	money to the developer. If the developer cannot be located, the
1015	clerk shall disburse the money to the Division of Florida Land
1016	Sales, Condominiums, Homeowners' Associations, Community
1017	Association Management, and Mobile Homes for deposit in the
1018	Division of Florida Land Sales, Condominiums, Homeowners'
1019	Associations, Community Association Management, and Mobile Homes
1020	Trust Fund.
1021	Section 31.  Subsection (4) of section 718.1255, Florida
1022	Statutes, is amended to read:
1023	718.1255  Alternative dispute resolution; voluntary
1024	mediation; mandatory nonbinding arbitration; legislative
1025	findings.--
1026	(4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF
1027	DISPUTES.--The Division of Florida Land Sales, Condominiums,
1028	Homeowners' Associations, Community Association Management, and
1029	Mobile Homes of the Department of Business and Professional
1030	Regulation shall employ full-time attorneys to act as
1031	arbitrators to conduct the arbitration hearings provided by this
1032	chapter. The division may also certify attorneys who are not
1033	employed by the division to act as arbitrators to conduct the
1034	arbitration hearings provided by this section. No person may be
1035	employed by the department as a full-time arbitrator unless he
1036	or she is a member in good standing of The Florida Bar. The
1037	department shall promulgate rules of procedure to govern such
1038	arbitration hearings including mediation incident thereto. The
1039	decision of an arbitrator shall be final; however, such a
1040	decision shall not be deemed final agency action. Nothing in
1041	this provision shall be construed to foreclose parties from
1042	proceeding in a trial de novo unless the parties have agreed
1043	that the arbitration is binding. If such judicial proceedings
1044	are initiated, the final decision of the arbitrator shall be
1045	admissible in evidence in the trial de novo.
1046	(a)  Prior to the institution of court litigation, a party
1047	to a dispute shall petition the division for nonbinding
1048	arbitration. The petition must be accompanied by a filing fee in
1049	the amount of $50. Filing fees collected under this section must
1050	be used to defray the expenses of the alternative dispute
1051	resolution program.
1052	(b)  The petition must recite, and have attached thereto,
1053	supporting proof that the petitioner gave the respondents:
1054	1.  Advance written notice of the specific nature of the
1055	dispute;
1056	2.  A demand for relief, and a reasonable opportunity to
1057	comply or to provide the relief; and
1058	3.  Notice of the intention to file an arbitration petition
1059	or other legal action in the absence of a resolution of the
1060	dispute.
1061
1062	Failure to include the allegations or proof of compliance with
1063	these prerequisites requires dismissal of the petition without
1064	prejudice.
1065	(c)  Upon receipt, the petition shall be promptly reviewed
1066	by the division to determine the existence of a dispute and
1067	compliance with the requirements of paragraphs (a) and (b). If
1068	emergency relief is required and is not available through
1069	arbitration, a motion to stay the arbitration may be filed. The
1070	motion must be accompanied by a verified petition alleging facts
1071	that, if proven, would support entry of a temporary injunction,
1072	and if an appropriate motion and supporting papers are filed,
1073	the division may abate the arbitration pending a court hearing
1074	and disposition of a motion for temporary injunction.
1075	(d)  Upon determination by the division that a dispute
1076	exists and that the petition substantially meets the
1077	requirements of paragraphs (a) and (b) and any other applicable
1078	rules, a copy of the petition shall forthwith be served by the
1079	division upon all respondents.
1080	(e)  Either before or after the filing of the respondents'
1081	answer to the petition, any party may request that the
1082	arbitrator refer the case to mediation under this section and
1083	any rules adopted by the division. Upon receipt of a request for
1084	mediation, the division shall promptly contact the parties to
1085	determine if there is agreement that mediation would be
1086	appropriate. If all parties agree, the dispute must be referred
1087	to mediation. Notwithstanding a lack of an agreement by all
1088	parties, the arbitrator may refer a dispute to mediation at any
1089	time.
1090	(f)  Upon referral of a case to mediation, the parties must
1091	select a mutually acceptable mediator. To assist in the
1092	selection, the arbitrator shall provide the parties with a list
1093	of both volunteer and paid mediators that have been certified by
1094	the division under s. 718.501. If the parties are unable to
1095	agree on a mediator within the time allowed by the arbitrator,
1096	the arbitrator shall appoint a mediator from the list of
1097	certified mediators. If a case is referred to mediation, the
1098	parties shall attend a mediation conference, as scheduled by the
1099	parties and the mediator. If any party fails to attend a duly
1100	noticed mediation conference, without the permission or approval
1101	of the arbitrator or mediator, the arbitrator must impose
1102	sanctions against the party, including the striking of any
1103	pleadings filed, the entry of an order of dismissal or default
1104	if appropriate, and the award of costs and attorneys' fees
1105	incurred by the other parties. Unless otherwise agreed to by the
1106	parties or as provided by order of the arbitrator, a party is
1107	deemed to have appeared at a mediation conference by the
1108	physical presence of the party or its representative having full
1109	authority to settle without further consultation, provided that
1110	an association may comply by having one or more representatives
1111	present with full authority to negotiate a settlement and
1112	recommend that the board of administration ratify and approve
1113	such a settlement within 5 days from the date of the mediation
1114	conference. The parties shall share equally the expense of
1115	mediation, unless they agree otherwise.
1116	(g)  The purpose of mediation as provided for by this
1117	section is to present the parties with an opportunity to resolve
1118	the underlying dispute in good faith, and with a minimum
1119	expenditure of time and resources.
1120	(h)  Mediation proceedings must generally be conducted in
1121	accordance with the Florida Rules of Civil Procedure, and these
1122	proceedings are privileged and confidential to the same extent
1123	as court-ordered mediation. Persons who are not parties to the
1124	dispute are not allowed to attend the mediation conference
1125	without the consent of all parties, with the exception of
1126	counsel for the parties and corporate representatives designated
1127	to appear for a party. If the mediator declares an impasse after
1128	a mediation conference has been held, the arbitration proceeding
1129	terminates, unless all parties agree in writing to continue the
1130	arbitration proceeding, in which case the arbitrator's decision
1131	shall be either binding or nonbinding, as agreed upon by the
1132	parties; in the arbitration proceeding, the arbitrator shall not
1133	consider any evidence relating to the unsuccessful mediation
1134	except in a proceeding to impose sanctions for failure to appear
1135	at the mediation conference. If the parties do not agree to
1136	continue arbitration, the arbitrator shall enter an order of
1137	dismissal, and either party may institute a suit in a court of
1138	competent jurisdiction. The parties may seek to recover any
1139	costs and attorneys' fees incurred in connection with
1140	arbitration and mediation proceedings under this section as part
1141	of the costs and fees that may be recovered by the prevailing
1142	party in any subsequent litigation.
1143	(i)  Arbitration shall be conducted according to rules
1144	promulgated by the division. The filing of a petition for
1145	arbitration shall toll the applicable statute of limitations.
1146	(j)  At the request of any party to the arbitration, such
1147	arbitrator shall issue subpoenas for the attendance of witnesses
1148	and the production of books, records, documents, and other
1149	evidence and any party on whose behalf a subpoena is issued may
1150	apply to the court for orders compelling such attendance and
1151	production. Subpoenas shall be served and shall be enforceable
1152	in the manner provided by the Florida Rules of Civil Procedure.
1153	Discovery may, in the discretion of the arbitrator, be permitted
1154	in the manner provided by the Florida Rules of Civil Procedure.
1155	Rules adopted by the division may authorize any reasonable
1156	sanctions except contempt for a violation of the arbitration
1157	procedural rules of the division or for the failure of a party
1158	to comply with a reasonable nonfinal order issued by an
1159	arbitrator which is not under judicial review.
1160	(k)  The arbitration decision shall be presented to the
1161	parties in writing. An arbitration decision is final in those
1162	disputes in which the parties have agreed to be bound. An
1163	arbitration decision is also final if a complaint for a trial de
1164	novo is not filed in a court of competent jurisdiction in which
1165	the condominium is located within 30 days. The right to file for
1166	a trial de novo entitles the parties to file a complaint in the
1167	appropriate trial court for a judicial resolution of the
1168	dispute. The prevailing party in an arbitration proceeding shall
1169	be awarded the costs of the arbitration and reasonable
1170	attorney's fees in an amount determined by the arbitrator. Such
1171	an award shall include the costs and reasonable attorney's fees
1172	incurred in the arbitration proceeding as well as the costs and
1173	reasonable attorney's fees incurred in preparing for and
1174	attending any scheduled mediation.
1175	(l)  The party who files a complaint for a trial de novo
1176	shall be assessed the other party's arbitration costs, court
1177	costs, and other reasonable costs, including attorney's fees,
1178	investigation expenses, and expenses for expert or other
1179	testimony or evidence incurred after the arbitration hearing if
1180	the judgment upon the trial de novo is not more favorable than
1181	the arbitration decision. If the judgment is more favorable, the
1182	party who filed a complaint for trial de novo shall be awarded
1183	reasonable court costs and attorney's fees.
1184	(m)  Any party to an arbitration proceeding may enforce an
1185	arbitration award by filing a petition in a court of competent
1186	jurisdiction in which the condominium is located. A petition may
1187	not be granted unless the time for appeal by the filing of a
1188	complaint for trial de novo has expired. If a complaint for a
1189	trial de novo has been filed, a petition may not be granted with
1190	respect to an arbitration award that has been stayed. If the
1191	petition for enforcement is granted, the petitioner shall
1192	recover reasonable attorney's fees and costs incurred in
1193	enforcing the arbitration award. A mediation settlement may also
1194	be enforced through the county or circuit court, as applicable,
1195	and any costs and fees incurred in the enforcement of a
1196	settlement agreement reached at mediation must be awarded to the
1197	prevailing party in any enforcement action.
1198	Section 32.  Subsection (1) of section 718.5011, Florida
1199	Statutes, is amended to read:
1200	718.5011  Ombudsman; appointment; administration.--
1201	(1)  There is created an Office of the Condominium
1202	Ombudsman, to be located for administrative purposes within the
1203	Division of Florida Land Sales, Condominiums, Homeowners'
1204	Associations, Community Association Management, and Mobile
1205	Homes. The functions of the office shall be funded by the
1206	Division of Florida Land Sales, Condominiums, Homeowners'
1207	Associations, Community Association Management, and Mobile Homes
1208	Trust Fund. The ombudsman shall be a bureau chief of the
1209	division, and the office shall be set within the division in the
1210	same manner as any other bureau is staffed and funded.
1211	Section 33.  Paragraph (a) of subsection (2) of section
1212	718.502, Florida Statutes, is amended to read:
1213	718.502  Filing prior to sale or lease.--
1214	(2)(a)  Prior to filing as required by subsection (1), and
1215	prior to acquiring an ownership, leasehold, or contractual
1216	interest in the land upon which the condominium is to be
1217	developed, a developer shall not offer a contract for purchase
1218	of a unit or lease of a unit for more than 5 years. However, the
1219	developer may accept deposits for reservations upon the approval
1220	of a fully executed escrow agreement and reservation agreement
1221	form properly filed with the Division of Florida Land Sales,
1222	Condominiums, Homeowners' Associations, Community Association
1223	Management, and Mobile Homes. Each filing of a proposed
1224	reservation program shall be accompanied by a filing fee of
1225	$250. Reservations shall not be taken on a proposed condominium
1226	unless the developer has an ownership, leasehold, or contractual
1227	interest in the land upon which the condominium is to be
1228	developed. The division shall notify the developer within 20
1229	days of receipt of the reservation filing of any deficiencies
1230	contained therein. Such notification shall not preclude the
1231	determination of reservation filing deficiencies at a later
1232	date, nor shall it relieve the developer of any responsibility
1233	under the law. The escrow agreement and the reservation
1234	agreement form shall include a statement of the right of the
1235	prospective purchaser to an immediate unqualified refund of the
1236	reservation deposit moneys upon written request to the escrow
1237	agent by the prospective purchaser or the developer.
1238	Section 34.  Section 718.504, Florida Statutes, is amended
1239	to read:
1240	718.504  Prospectus or offering circular.--Every developer
1241	of a residential condominium which contains more than 20
1242	residential units, or which is part of a group of residential
1243	condominiums which will be served by property to be used in
1244	common by unit owners of more than 20 residential units, shall
1245	prepare a prospectus or offering circular and file it with the
1246	Division of Florida Land Sales, Condominiums, Homeowners'
1247	Associations, Community Association Management, and Mobile Homes
1248	prior to entering into an enforceable contract of purchase and
1249	sale of any unit or lease of a unit for more than 5 years and
1250	shall furnish a copy of the prospectus or offering circular to
1251	each buyer. In addition to the prospectus or offering circular,
1252	each buyer shall be furnished a separate page entitled
1253	"Frequently Asked Questions and Answers," which shall be in
1254	accordance with a format approved by the division and a copy of
1255	the financial information required by s. 718.111. This page
1256	shall, in readable language, inform prospective purchasers
1257	regarding their voting rights and unit use restrictions,
1258	including restrictions on the leasing of a unit; shall indicate
1259	whether and in what amount the unit owners or the association is
1260	obligated to pay rent or land use fees for recreational or other
1261	commonly used facilities; shall contain a statement identifying
1262	that amount of assessment which, pursuant to the budget, would
1263	be levied upon each unit type, exclusive of any special
1264	assessments, and which shall further identify the basis upon
1265	which assessments are levied, whether monthly, quarterly, or
1266	otherwise; shall state and identify any court cases in which the
1267	association is currently a party of record in which the
1268	association may face liability in excess of $100,000; and which
1269	shall further state whether membership in a recreational
1270	facilities association is mandatory, and if so, shall identify
1271	the fees currently charged per unit type. The division shall by
1272	rule require such other disclosure as in its judgment will
1273	assist prospective purchasers. The prospectus or offering
1274	circular may include more than one condominium, although not all
1275	such units are being offered for sale as of the date of the
1276	prospectus or offering circular. The prospectus or offering
1277	circular must contain the following information:
1278	(1)  The front cover or the first page must contain only:
1279	(a)  The name of the condominium.
1280	(b)  The following statements in conspicuous type:
1281	1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
1282	MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
1283	2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
1284	NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
1285	ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
1286	MATERIALS.
1287	3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
1288	STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
1289	PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
1290	REPRESENTATIONS.
1291	(2)  Summary: The next page must contain all statements
1292	required to be in conspicuous type in the prospectus or offering
1293	circular.
1294	(3)  A separate index of the contents and exhibits of the
1295	prospectus.
1296	(4)  Beginning on the first page of the text (not including
1297	the summary and index), a description of the condominium,
1298	including, but not limited to, the following information:
1299	(a)  Its name and location.
1300	(b)  A description of the condominium property, including,
1301	without limitation:
1302	1.  The number of buildings, the number of units in each
1303	building, the number of bathrooms and bedrooms in each unit, and
1304	the total number of units, if the condominium is not a phase
1305	condominium, or the maximum number of buildings that may be
1306	contained within the condominium, the minimum and maximum
1307	numbers of units in each building, the minimum and maximum
1308	numbers of bathrooms and bedrooms that may be contained in each
1309	unit, and the maximum number of units that may be contained
1310	within the condominium, if the condominium is a phase
1311	condominium.
1312	2.  The page in the condominium documents where a copy of
1313	the plot plan and survey of the condominium is located.
1314	3.  The estimated latest date of completion of
1315	constructing, finishing, and equipping. In lieu of a date, the
1316	description shall include a statement that the estimated date of
1317	completion of the condominium is in the purchase agreement and a
1318	reference to the article or paragraph containing that
1319	information.
1320	(c)  The maximum number of units that will use facilities
1321	in common with the condominium. If the maximum number of units
1322	will vary, a description of the basis for variation and the
1323	minimum amount of dollars per unit to be spent for additional
1324	recreational facilities or enlargement of such facilities. If
1325	the addition or enlargement of facilities will result in a
1326	material increase of a unit owner's maintenance expense or
1327	rental expense, if any, the maximum increase and limitations
1328	thereon shall be stated.
1329	(5)(a)  A statement in conspicuous type describing whether
1330	the condominium is created and being sold as fee simple
1331	interests or as leasehold interests. If the condominium is
1332	created or being sold on a leasehold, the location of the lease
1333	in the disclosure materials shall be stated.
1334	(b)  If timeshare estates are or may be created with
1335	respect to any unit in the condominium, a statement in
1336	conspicuous type stating that timeshare estates are created and
1337	being sold in units in the condominium.
1338	(6)  A description of the recreational and other commonly
1339	used facilities that will be used only by unit owners of the
1340	condominium, including, but not limited to, the following:
1341	(a)  Each room and its intended purposes, location,
1342	approximate floor area, and capacity in numbers of people.
1343	(b)  Each swimming pool, as to its general location,
1344	approximate size and depths, approximate deck size and capacity,
1345	and whether heated.
1346	(c)  Additional facilities, as to the number of each
1347	facility, its approximate location, approximate size, and
1348	approximate capacity.
1349	(d)  A general description of the items of personal
1350	property and the approximate number of each item of personal
1351	property that the developer is committing to furnish for each
1352	room or other facility or, in the alternative, a representation
1353	as to the minimum amount of expenditure that will be made to
1354	purchase the personal property for the facility.
1355	(e)  The estimated date when each room or other facility
1356	will be available for use by the unit owners.
1357	(f)1.  An identification of each room or other facility to
1358	be used by unit owners that will not be owned by the unit owners
1359	or the association;
1360	2.  A reference to the location in the disclosure materials
1361	of the lease or other agreements providing for the use of those
1362	facilities; and
1363	3.  A description of the terms of the lease or other
1364	agreements, including the length of the term; the rent payable,
1365	directly or indirectly, by each unit owner, and the total rent
1366	payable to the lessor, stated in monthly and annual amounts for
1367	the entire term of the lease; and a description of any option to
1368	purchase the property leased under any such lease, including the
1369	time the option may be exercised, the purchase price or how it
1370	is to be determined, the manner of payment, and whether the
1371	option may be exercised for a unit owner's share or only as to
1372	the entire leased property.
1373	(g)  A statement as to whether the developer may provide
1374	additional facilities not described above; their general
1375	locations and types; improvements or changes that may be made;
1376	the approximate dollar amount to be expended; and the maximum
1377	additional common expense or cost to the individual unit owners
1378	that may be charged during the first annual period of operation
1379	of the modified or added facilities.
1380
1381	Descriptions as to locations, areas, capacities, numbers,
1382	volumes, or sizes may be stated as approximations or minimums.
1383	(7)  A description of the recreational and other facilities
1384	that will be used in common with other condominiums, community
1385	associations, or planned developments which require the payment
1386	of the maintenance and expenses of such facilities, either
1387	directly or indirectly, by the unit owners. The description
1388	shall include, but not be limited to, the following:
1389	(a)  Each building and facility committed to be built.
1390	(b)  Facilities not committed to be built except under
1391	certain conditions, and a statement of those conditions or
1392	contingencies.
1393	(c)  As to each facility committed to be built, or which
1394	will be committed to be built upon the happening of one of the
1395	conditions in paragraph (b), a statement of whether it will be
1396	owned by the unit owners having the use thereof or by an
1397	association or other entity which will be controlled by them, or
1398	others, and the location in the exhibits of the lease or other
1399	document providing for use of those facilities.
1400	(d)  The year in which each facility will be available for
1401	use by the unit owners or, in the alternative, the maximum
1402	number of unit owners in the project at the time each of all of
1403	the facilities is committed to be completed.
1404	(e)  A general description of the items of personal
1405	property, and the approximate number of each item of personal
1406	property, that the developer is committing to furnish for each
1407	room or other facility or, in the alternative, a representation
1408	as to the minimum amount of expenditure that will be made to
1409	purchase the personal property for the facility.
1410	(f)  If there are leases, a description thereof, including
1411	the length of the term, the rent payable, and a description of
1412	any option to purchase.
1413
1414	Descriptions shall include location, areas, capacities, numbers,
1415	volumes, or sizes and may be stated as approximations or
1416	minimums.
1417	(8)  Recreation lease or associated club membership:
1418	(a)  If any recreational facilities or other facilities
1419	offered by the developer and available to, or to be used by,
1420	unit owners are to be leased or have club membership associated,
1421	the following statement in conspicuous type shall be included:
1422	THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
1423	CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
1424	CONDOMINIUM. There shall be a reference to the location in the
1425	disclosure materials where the recreation lease or club
1426	membership is described in detail.
1427	(b)  If it is mandatory that unit owners pay a fee, rent,
1428	dues, or other charges under a recreational facilities lease or
1429	club membership for the use of facilities, there shall be in
1430	conspicuous type the applicable statement:
1431	1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
1432	MANDATORY FOR UNIT OWNERS; or
1433	2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
1434	TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
1435	3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
1436	COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
1437	REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
1438	LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
1439	4.  A similar statement of the nature of the organization
1440	or the manner in which the use rights are created, and that unit
1441	owners are required to pay.
1442
1443	Immediately following the applicable statement, the location in
1444	the disclosure materials where the development is described in
1445	detail shall be stated.
1446	(c)  If the developer, or any other person other than the
1447	unit owners and other persons having use rights in the
1448	facilities, reserves, or is entitled to receive, any rent, fee,
1449	or other payment for the use of the facilities, then there shall
1450	be the following statement in conspicuous type: THE UNIT OWNERS
1451	OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
1452	RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately
1453	following this statement, the location in the disclosure
1454	materials where the rent or land use fees are described in
1455	detail shall be stated.
1456	(d)  If, in any recreation format, whether leasehold, club,
1457	or other, any person other than the association has the right to
1458	a lien on the units to secure the payment of assessments, rent,
1459	or other exactions, there shall appear a statement in
1460	conspicuous type in substantially the following form:
1461	1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
1462	SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
1463	RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
1464	PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
1465	2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
1466	SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
1467	FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
1468	OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE
1469	THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
1470
1471	Immediately following the applicable statement, the location in
1472	the disclosure materials where the lien or lien right is
1473	described in detail shall be stated.
1474	(9)  If the developer or any other person has the right to
1475	increase or add to the recreational facilities at any time after
1476	the establishment of the condominium whose unit owners have use
1477	rights therein, without the consent of the unit owners or
1478	associations being required, there shall appear a statement in
1479	conspicuous type in substantially the following form:
1480	RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
1481	OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
1482	statement, the location in the disclosure materials where such
1483	reserved rights are described shall be stated.
1484	(10)  A statement of whether the developer's plan includes
1485	a program of leasing units rather than selling them, or leasing
1486	units and selling them subject to such leases. If so, there
1487	shall be a description of the plan, including the number and
1488	identification of the units and the provisions and term of the
1489	proposed leases, and a statement in boldfaced type that: THE
1490	UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
1491	(11)  The arrangements for management of the association
1492	and maintenance and operation of the condominium property and of
1493	other property that will serve the unit owners of the
1494	condominium property, and a description of the management
1495	contract and all other contracts for these purposes having a
1496	term in excess of 1 year, including the following:
1497	(a)  The names of contracting parties.
1498	(b)  The term of the contract.
1499	(c)  The nature of the services included.
1500	(d)  The compensation, stated on a monthly and annual
1501	basis, and provisions for increases in the compensation.
1502	(e)  A reference to the volumes and pages of the
1503	condominium documents and of the exhibits containing copies of
1504	such contracts.
1505
1506	Copies of all described contracts shall be attached as exhibits.
1507	If there is a contract for the management of the condominium
1508	property, then a statement in conspicuous type in substantially
1509	the following form shall appear, identifying the proposed or
1510	existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
1511	THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
1512	CONTRACT MANAGER). Immediately following this statement, the
1513	location in the disclosure materials of the contract for
1514	management of the condominium property shall be stated.
1515	(12)  If the developer or any other person or persons other
1516	than the unit owners has the right to retain control of the
1517	board of administration of the association for a period of time
1518	which can exceed 1 year after the closing of the sale of a
1519	majority of the units in that condominium to persons other than
1520	successors or alternate developers, then a statement in
1521	conspicuous type in substantially the following form shall be
1522	included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
1523	RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
1524	HAVE BEEN SOLD. Immediately following this statement, the
1525	location in the disclosure materials where this right to control
1526	is described in detail shall be stated.
1527	(13)  If there are any restrictions upon the sale,
1528	transfer, conveyance, or leasing of a unit, then a statement in
1529	conspicuous type in substantially the following form shall be
1530	included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
1531	CONTROLLED. Immediately following this statement, the location
1532	in the disclosure materials where the restriction, limitation,
1533	or control on the sale, lease, or transfer of units is described
1534	in detail shall be stated.
1535	(14)  If the condominium is part of a phase project, the
1536	following information shall be stated:
1537	(a)  A statement in conspicuous type in substantially the
1538	following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND
1539	UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following
1540	this statement, the location in the disclosure materials where
1541	the phasing is described shall be stated.
1542	(b)  A summary of the provisions of the declaration which
1543	provide for the phasing.
1544	(c)  A statement as to whether or not residential buildings
1545	and units which are added to the condominium may be
1546	substantially different from the residential buildings and units
1547	originally in the condominium. If the added residential
1548	buildings and units may be substantially different, there shall
1549	be a general description of the extent to which such added
1550	residential buildings and units may differ, and a statement in
1551	conspicuous type in substantially the following form shall be
1552	included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM
1553	MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
1554	UNITS IN THE CONDOMINIUM. Immediately following this statement,
1555	the location in the disclosure materials where the extent to
1556	which added residential buildings and units may substantially
1557	differ is described shall be stated.
1558	(d)  A statement of the maximum number of buildings
1559	containing units, the maximum and minimum numbers of units in
1560	each building, the maximum number of units, and the minimum and
1561	maximum square footage of the units that may be contained within
1562	each parcel of land which may be added to the condominium.
1563	(15)  If a condominium created on or after July 1, 2000, is
1564	or may become part of a multicondominium, the following
1565	information must be provided:
1566	(a)  A statement in conspicuous type in substantially the
1567	following form: THIS CONDOMINIUM IS (MAY BE) PART OF A
1568	MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
1569	(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following
1570	this statement, the location in the prospectus or offering
1571	circular and its exhibits where the multicondominium aspects of
1572	the offering are described must be stated.
1573	(b)  A summary of the provisions in the declaration,
1574	articles of incorporation, and bylaws which establish and
1575	provide for the operation of the multicondominium, including a
1576	statement as to whether unit owners in the condominium will have
1577	the right to use recreational or other facilities located or
1578	planned to be located in other condominiums operated by the same
1579	association, and the manner of sharing the common expenses
1580	related to such facilities.
1581	(c)  A statement of the minimum and maximum number of
1582	condominiums, and the minimum and maximum number of units in
1583	each of those condominiums, which will or may be operated by the
1584	association, and the latest date by which the exact number will
1585	be finally determined.
1586	(d)  A statement as to whether any of the condominiums in
1587	the multicondominium may include units intended to be used for
1588	nonresidential purposes and the purpose or purposes permitted
1589	for such use.
1590	(e)  A general description of the location and approximate
1591	acreage of any land on which any additional condominiums to be
1592	operated by the association may be located.
1593	(16)  If the condominium is created by conversion of
1594	existing improvements, the following information shall be
1595	stated:
1596	(a)  The information required by s. 718.616.
1597	(b)  A caveat that there are no express warranties unless
1598	they are stated in writing by the developer.
1599	(17)  A summary of the restrictions, if any, to be imposed
1600	on units concerning the use of any of the condominium property,
1601	including statements as to whether there are restrictions upon
1602	children and pets, and reference to the volumes and pages of the
1603	condominium documents where such restrictions are found, or if
1604	such restrictions are contained elsewhere, then a copy of the
1605	documents containing the restrictions shall be attached as an
1606	exhibit.
1607	(18)  If there is any land that is offered by the developer
1608	for use by the unit owners and that is neither owned by them nor
1609	leased to them, the association, or any entity controlled by
1610	unit owners and other persons having the use rights to such
1611	land, a statement shall be made as to how such land will serve
1612	the condominium. If any part of such land will serve the
1613	condominium, the statement shall describe the land and the
1614	nature and term of service, and the declaration or other
1615	instrument creating such servitude shall be included as an
1616	exhibit.
1617	(19)  The manner in which utility and other services,
1618	including, but not limited to, sewage and waste disposal, water
1619	supply, and storm drainage, will be provided and the person or
1620	entity furnishing them.
1621	(20)  An explanation of the manner in which the
1622	apportionment of common expenses and ownership of the common
1623	elements has been determined.
1624	(21)  An estimated operating budget for the condominium and
1625	the association, and a schedule of the unit owner's expenses
1626	shall be attached as an exhibit and shall contain the following
1627	information:
1628	(a)  The estimated monthly and annual expenses of the
1629	condominium and the association that are collected from unit
1630	owners by assessments.
1631	(b)  The estimated monthly and annual expenses of each unit
1632	owner for a unit, other than common expenses paid by all unit
1633	owners, payable by the unit owner to persons or entities other
1634	than the association, as well as to the association, including
1635	fees assessed pursuant to s. 718.113(1) for maintenance of
1636	limited common elements where such costs are shared only by
1637	those entitled to use the limited common element, and the total
1638	estimated monthly and annual expense. There may be excluded from
1639	this estimate expenses which are not provided for or
1640	contemplated by the condominium documents, including, but not
1641	limited to, the costs of private telephone; maintenance of the
1642	interior of condominium units, which is not the obligation of
1643	the association; maid or janitorial services privately
1644	contracted for by the unit owners; utility bills billed directly
1645	to each unit owner for utility services to his or her unit;
1646	insurance premiums other than those incurred for policies
1647	obtained by the condominium; and similar personal expenses of
1648	the unit owner. A unit owner's estimated payments for
1649	assessments shall also be stated in the estimated amounts for
1650	the times when they will be due.
1651	(c)  The estimated items of expenses of the condominium and
1652	the association, except as excluded under paragraph (b),
1653	including, but not limited to, the following items, which shall
1654	be stated either as an association expense collectible by
1655	assessments or as unit owners' expenses payable to persons other
1656	than the association:
1657	1.  Expenses for the association and condominium:
1658	a.  Administration of the association.
1659	b.  Management fees.
1660	c.  Maintenance.
1661	d.  Rent for recreational and other commonly used
1662	facilities.
1663	e.  Taxes upon association property.
1664	f.  Taxes upon leased areas.
1665	g.  Insurance.
1666	h.  Security provisions.
1667	i.  Other expenses.
1668	j.  Operating capital.
1669	k.  Reserves.
1670	l.  Fees payable to the division.
1671	2.  Expenses for a unit owner:
1672	a.  Rent for the unit, if subject to a lease.
1673	b.  Rent payable by the unit owner directly to the lessor
1674	or agent under any recreational lease or lease for the use of
1675	commonly used facilities, which use and payment is a mandatory
1676	condition of ownership and is not included in the common expense
1677	or assessments for common maintenance paid by the unit owners to
1678	the association.
1679	(d)  The estimated amounts shall be stated for a period of
1680	at least 12 months and may distinguish between the period prior
1681	to the time unit owners other than the developer elect a
1682	majority of the board of administration and the period after
1683	that date.
1684	(22)  A schedule of estimated closing expenses to be paid
1685	by a buyer or lessee of a unit and a statement of whether title
1686	opinion or title insurance policy is available to the buyer and,
1687	if so, at whose expense.
1688	(23)  The identity of the developer and the chief operating
1689	officer or principal directing the creation and sale of the
1690	condominium and a statement of its and his or her experience in
1691	this field.
1692	(24)  Copies of the following, to the extent they are
1693	applicable, shall be included as exhibits:
1694	(a)  The declaration of condominium, or the proposed
1695	declaration if the declaration has not been recorded.
1696	(b)  The articles of incorporation creating the
1697	association.
1698	(c)  The bylaws of the association.
1699	(d)  The ground lease or other underlying lease of the
1700	condominium.
1701	(e)  The management agreement and all maintenance and other
1702	contracts for management of the association and operation of the
1703	condominium and facilities used by the unit owners having a
1704	service term in excess of 1 year.
1705	(f)  The estimated operating budget for the condominium and
1706	the required schedule of unit owners' expenses.
1707	(g)  A copy of the floor plan of the unit and the plot plan
1708	showing the location of the residential buildings and the
1709	recreation and other common areas.
1710	(h)  The lease of recreational and other facilities that
1711	will be used only by unit owners of the subject condominium.
1712	(i)  The lease of facilities used by owners and others.
1713	(j)  The form of unit lease, if the offer is of a
1714	leasehold.
1715	(k)  A declaration of servitude of properties serving the
1716	condominium but not owned by unit owners or leased to them or
1717	the association.
1718	(l)  The statement of condition of the existing building or
1719	buildings, if the offering is of units in an operation being
1720	converted to condominium ownership.
1721	(m)  The statement of inspection for termite damage and
1722	treatment of the existing improvements, if the condominium is a
1723	conversion.
1724	(n)  The form of agreement for sale or lease of units.
1725	(o)  A copy of the agreement for escrow of payments made to
1726	the developer prior to closing.
1727	(p)  A copy of the documents containing any restrictions on
1728	use of the property required by subsection (17).
1729	(25)  Any prospectus or offering circular complying, prior
1730	to the effective date of this act, with the provisions of former
1731	ss. 711.69 and 711.802 may continue to be used without amendment
1732	or may be amended to comply with the provisions of this chapter.
1733	(26)  A brief narrative description of the location and
1734	effect of all existing and intended easements located or to be
1735	located on the condominium property other than those described
1736	in the declaration.
1737	(27)  If the developer is required by state or local
1738	authorities to obtain acceptance or approval of any dock or
1739	marina facilities intended to serve the condominium, a copy of
1740	any such acceptance or approval acquired by the time of filing
1741	with the division under s. 718.502(1) or a statement that such
1742	acceptance or approval has not been acquired or received.
1743	(28)  Evidence demonstrating that the developer has an
1744	ownership, leasehold, or contractual interest in the land upon
1745	which the condominium is to be developed.
1746	Section 35.  Section 718.508, Florida Statutes, is amended
1747	to read:
1748	718.508  Regulation by Division of Hotels and
1749	Restaurants.--In addition to the authority, regulation, or
1750	control exercised by the Division of Florida Land Sales,
1751	Condominiums, Homeowners' Associations, Community Association
1752	Management, and Mobile Homes pursuant to this act with respect
1753	to condominiums, buildings included in a condominium property
1754	shall be subject to the authority, regulation, or control of the
1755	Division of Hotels and Restaurants of the Department of Business
1756	and Professional Regulation, to the extent provided for in
1757	chapter 399.
1758	Section 36.  Section 718.509, Florida Statutes, is amended
1759	to read:
1760	718.509  Division of Florida Land Sales, Condominiums,
1761	Homeowners' Associations, Community Association Management, and
1762	Mobile Homes Trust Fund.--All funds collected by the division
1763	and any amount paid for a fee or penalty under this chapter
1764	shall be deposited in the State Treasury to the credit of the
1765	Division of Florida Land Sales, Condominiums, Homeowners'
1766	Associations, Community Association Management, and Mobile Homes
1767	Trust Fund created by s. 498.019.
1768	Section 37.  Paragraph (a) of subsection (2) of section
1769	718.608, Florida Statutes, is amended to read:
1770	718.608  Notice of intended conversion; time of delivery;
1771	content.--
1772	(2)(a)  Each notice of intended conversion shall be dated
1773	and in writing. The notice shall contain the following
1774	statement, with the phrases of the following statement which
1775	appear in upper case printed in conspicuous type:
1776
1777	These apartments are being converted to condominium by
1778	(name of developer)  , the developer.
1779	1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
1780	YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL
1781	AGREEMENT AS FOLLOWS:
1782	a.  If you have continuously been a resident of these
1783	apartments during the last 180 days and your rental agreement
1784	expires during the next 270 days, you may extend your rental
1785	agreement for up to 270 days after the date of this notice.
1786	b.  If you have not been a continuous resident of these
1787	apartments for the last 180 days and your rental agreement
1788	expires during the next 180 days, you may extend your rental
1789	agreement for up to 180 days after the date of this notice.
1790	c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
1791	MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
1792	DATE OF THIS NOTICE.
1793	2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
1794	you may extend your rental agreement for up to 45 days after the
1795	date of this notice while you decide whether to extend your
1796	rental agreement as explained above. To do so, you must notify
1797	the developer in writing. You will then have the full 45 days to
1798	decide whether to extend your rental agreement as explained
1799	above.
1800	3.  During the extension of your rental agreement you will
1801	be charged the same rent that you are now paying.
1802	4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
1803	OF THE RENTAL AGREEMENT AS FOLLOWS:
1804	a.  If your rental agreement began or was extended or
1805	renewed after May 1, 1980, and your rental agreement, including
1806	extensions and renewals, has an unexpired term of 180 days or
1807	less, you may cancel your rental agreement upon 30 days' written
1808	notice and move. Also, upon 30 days' written notice, you may
1809	cancel any extension of the rental agreement.
1810	b.  If your rental agreement was not begun or was not
1811	extended or renewed after May 1, 1980, you may not cancel the
1812	rental agreement without the consent of the developer. If your
1813	rental agreement, including extensions and renewals, has an
1814	unexpired term of 180 days or less, you may, however, upon 30
1815	days' written notice cancel any extension of the rental
1816	agreement.
1817	5.  All notices must be given in writing and sent by mail,
1818	return receipt requested, or delivered in person to the
1819	developer at this address:   (name and address of developer)  .
1820	6.  If you have continuously been a resident of these
1821	apartments during the last 180 days:
1822	a.  You have the right to purchase your apartment and will
1823	have 45 days to decide whether to purchase. If you do not buy
1824	the unit at that price and the unit is later offered at a lower
1825	price, you will have the opportunity to buy the unit at the
1826	lower price. However, in all events your right to purchase the
1827	unit ends when the rental agreement or any extension of the
1828	rental agreement ends or when you waive this right in writing.
1829	b.  Within 90 days you will be provided purchase
1830	information relating to your apartment, including the price of
1831	your unit and the condition of the building. If you do not
1832	receive this information within 90 days, your rental agreement
1833	and any extension will be extended 1 day for each day over 90
1834	days until you are given the purchase information. If you do not
1835	want this rental agreement extension, you must notify the
1836	developer in writing.
1837	7.  If you have any questions regarding this conversion or
1838	the Condominium Act, you may contact the developer or the state
1839	agency which regulates condominiums: The Division of Florida
1840	Land Sales, Condominiums, Homeowners' Associations, Community
1841	Association Management, and Mobile Homes,   (Tallahassee address
1842	and telephone number of division).
1843	Section 38.  Subsection (17) of section 719.103, Florida
1844	Statutes, is amended to read:
1845	719.103  Definitions.--As used in this chapter:
1846	(17)  "Division" means the Division of Florida Land Sales,
1847	Condominiums, Homeowners' Associations, Community Association
1848	Management, and Mobile Homes of the Department of Business and
1849	Professional Regulation.
1850	Section 39.  Section 719.1255, Florida Statutes, is amended
1851	to read:
1852	719.1255  Alternative resolution of disputes.--The Division
1853	of Florida Land Sales, Condominiums, Homeowners' Associations,
1854	Community Association Management, and Mobile Homes of the
1855	Department of Business and Professional Regulation shall provide
1856	for alternative dispute resolution in accordance with s.
1857	718.1255.
1858	Section 40.  Section 719.501, Florida Statutes, is amended
1859	to read:
1860	719.501  Powers and duties of Division of Florida Land
1861	Sales, Condominiums, Homeowners' Associations, Community
1862	Association Management, and Mobile Homes.--
1863	(1)  The Division of Florida Land Sales, Condominiums,
1864	Homeowners' Associations, Community Association Management, and
1865	Mobile Homes of the Department of Business and Professional
1866	Regulation, referred to as the "division" in this part, in
1867	addition to other powers and duties prescribed by chapter 498,
1868	has the power to enforce and ensure compliance with the
1869	provisions of this chapter and rules promulgated pursuant hereto
1870	relating to the development, construction, sale, lease,
1871	ownership, operation, and management of residential cooperative
1872	units. In performing its duties, the division shall have the
1873	following powers and duties:
1874	(a)  The division may make necessary public or private
1875	investigations within or outside this state to determine whether
1876	any person has violated this chapter or any rule or order
1877	hereunder, to aid in the enforcement of this chapter, or to aid
1878	in the adoption of rules or forms hereunder.
1879	(b)  The division may require or permit any person to file
1880	a statement in writing, under oath or otherwise, as the division
1881	determines, as to the facts and circumstances concerning a
1882	matter to be investigated.
1883	(c)  For the purpose of any investigation under this
1884	chapter, the division director or any officer or employee
1885	designated by the division director may administer oaths or
1886	affirmations, subpoena witnesses and compel their attendance,
1887	take evidence, and require the production of any matter which is
1888	relevant to the investigation, including the existence,
1889	description, nature, custody, condition, and location of any
1890	books, documents, or other tangible things and the identity and
1891	location of persons having knowledge of relevant facts or any
1892	other matter reasonably calculated to lead to the discovery of
1893	material evidence. Upon failure by a person to obey a subpoena
1894	or to answer questions propounded by the investigating officer
1895	and upon reasonable notice to all persons affected thereby, the
1896	division may apply to the circuit court for an order compelling
1897	compliance.
1898	(d)  Notwithstanding any remedies available to unit owners
1899	and associations, if the division has reasonable cause to
1900	believe that a violation of any provision of this chapter or
1901	rule promulgated pursuant hereto has occurred, the division may
1902	institute enforcement proceedings in its own name against a
1903	developer, association, officer, or member of the board, or its
1904	assignees or agents, as follows:
1905	1.  The division may permit a person whose conduct or
1906	actions may be under investigation to waive formal proceedings
1907	and enter into a consent proceeding whereby orders, rules, or
1908	letters of censure or warning, whether formal or informal, may
1909	be entered against the person.
1910	2.  The division may issue an order requiring the
1911	developer, association, officer, or member of the board, or its
1912	assignees or agents, to cease and desist from the unlawful
1913	practice and take such affirmative action as in the judgment of
1914	the division will carry out the purposes of this chapter. Such
1915	affirmative action may include, but is not limited to, an order
1916	requiring a developer to pay moneys determined to be owed to a
1917	condominium association.
1918	3.  The division may bring an action in circuit court on
1919	behalf of a class of unit owners, lessees, or purchasers for
1920	declaratory relief, injunctive relief, or restitution.
1921	4.  The division may impose a civil penalty against a
1922	developer or association, or its assignees or agents, for any
1923	violation of this chapter or a rule promulgated pursuant hereto.
1924	The division may impose a civil penalty individually against any
1925	officer or board member who willfully and knowingly violates a
1926	provision of this chapter, a rule adopted pursuant to this
1927	chapter, or a final order of the division. The term "willfully
1928	and knowingly" means that the division informed the officer or
1929	board member that his or her action or intended action violates
1930	this chapter, a rule adopted under this chapter, or a final
1931	order of the division, and that the officer or board member
1932	refused to comply with the requirements of this chapter, a rule
1933	adopted under this chapter, or a final order of the division.
1934	The division, prior to initiating formal agency action under
1935	chapter 120, shall afford the officer or board member an
1936	opportunity to voluntarily comply with this chapter, a rule
1937	adopted under this chapter, or a final order of the division. An
1938	officer or board member who complies within 10 days is not
1939	subject to a civil penalty. A penalty may be imposed on the
1940	basis of each day of continuing violation, but in no event shall
1941	the penalty for any offense exceed $5,000. By January 1, 1998,
1942	the division shall adopt, by rule, penalty guidelines applicable
1943	to possible violations or to categories of violations of this
1944	chapter or rules adopted by the division. The guidelines must
1945	specify a meaningful range of civil penalties for each such
1946	violation of the statute and rules and must be based upon the
1947	harm caused by the violation, the repetition of the violation,
1948	and upon such other factors deemed relevant by the division. For
1949	example, the division may consider whether the violations were
1950	committed by a developer or owner-controlled association, the
1951	size of the association, and other factors. The guidelines must
1952	designate the possible mitigating or aggravating circumstances
1953	that justify a departure from the range of penalties provided by
1954	the rules. It is the legislative intent that minor violations be
1955	distinguished from those which endanger the health, safety, or
1956	welfare of the cooperative residents or other persons and that
1957	such guidelines provide reasonable and meaningful notice to the
1958	public of likely penalties that may be imposed for proscribed
1959	conduct. This subsection does not limit the ability of the
1960	division to informally dispose of administrative actions or
1961	complaints by stipulation, agreed settlement, or consent order.
1962	All amounts collected shall be deposited with the Chief
1963	Financial Officer to the credit of the Division of Florida Land
1964	Sales, Condominiums, Homeowners' Associations, Community
1965	Association Management, and Mobile Homes Trust Fund. If a
1966	developer fails to pay the civil penalty, the division shall
1967	thereupon issue an order directing that such developer cease and
1968	desist from further operation until such time as the civil
1969	penalty is paid or may pursue enforcement of the penalty in a
1970	court of competent jurisdiction. If an association fails to pay
1971	the civil penalty, the division shall thereupon pursue
1972	enforcement in a court of competent jurisdiction, and the order
1973	imposing the civil penalty or the cease and desist order shall
1974	not become effective until 20 days after the date of such order.
1975	Any action commenced by the division shall be brought in the
1976	county in which the division has its executive offices or in the
1977	county where the violation occurred.
1978	(e)  The division is authorized to prepare and disseminate
1979	a prospectus and other information to assist prospective owners,
1980	purchasers, lessees, and developers of residential cooperatives
1981	in assessing the rights, privileges, and duties pertaining
1982	thereto.
1983	(f)  The division has authority to adopt rules pursuant to
1984	ss. 120.536(1) and 120.54 to implement and enforce the
1985	provisions of this chapter.
1986	(g)  The division shall establish procedures for providing
1987	notice to an association when the division is considering the
1988	issuance of a declaratory statement with respect to the
1989	cooperative documents governing such cooperative community.
1990	(h)  The division shall furnish each association which pays
1991	the fees required by paragraph (2)(a) a copy of this act,
1992	subsequent changes to this act on an annual basis, an amended
1993	version of this act as it becomes available from the Secretary
1994	of State's office on a biennial basis, and the rules promulgated
1995	pursuant thereto on an annual basis.
1996	(i)  The division shall annually provide each association
1997	with a summary of declaratory statements and formal legal
1998	opinions relating to the operations of cooperatives which were
1999	rendered by the division during the previous year.
2000	(j)  The division shall adopt uniform accounting
2001	principles, policies, and standards to be used by all
2002	associations in the preparation and presentation of all
2003	financial statements required by this chapter. The principles,
2004	policies, and standards shall take into consideration the size
2005	of the association and the total revenue collected by the
2006	association.
2007	(k)  The division shall provide training programs for
2008	cooperative association board members and unit owners.
2009	(l)  The division shall maintain a toll-free telephone
2010	number accessible to cooperative unit owners.
2011	(m)  When a complaint is made to the division, the division
2012	shall conduct its inquiry with reasonable dispatch and with due
2013	regard to the interests of the affected parties. Within 30 days
2014	after receipt of a complaint, the division shall acknowledge the
2015	complaint in writing and notify the complainant whether the
2016	complaint is within the jurisdiction of the division and whether
2017	additional information is needed by the division from the
2018	complainant. The division shall conduct its investigation and
2019	shall, within 90 days after receipt of the original complaint or
2020	timely requested additional information, take action upon the
2021	complaint. However, the failure to complete the investigation
2022	within 90 days does not prevent the division from continuing the
2023	investigation, accepting or considering evidence obtained or
2024	received after 90 days, or taking administrative action if
2025	reasonable cause exists to believe that a violation of this
2026	chapter or a rule of the division has occurred. If an
2027	investigation is not completed within the time limits
2028	established in this paragraph, the division shall, on a monthly
2029	basis, notify the complainant in writing of the status of the
2030	investigation. When reporting its action to the complainant, the
2031	division shall inform the complainant of any right to a hearing
2032	pursuant to ss. 120.569 and 120.57.
2033	(n)  The division shall develop a program to certify both
2034	volunteer and paid mediators to provide mediation of cooperative
2035	disputes. The division shall provide, upon request, a list of
2036	such mediators to any association, unit owner, or other
2037	participant in arbitration proceedings under s. 718.1255
2038	requesting a copy of the list. The division shall include on the
2039	list of voluntary mediators only persons who have received at
2040	least 20 hours of training in mediation techniques or have
2041	mediated at least 20 disputes. In order to become initially
2042	certified by the division, paid mediators must be certified by
2043	the Supreme Court to mediate court cases in either county or
2044	circuit courts. However, the division may adopt, by rule,
2045	additional factors for the certification of paid mediators,
2046	which factors must be related to experience, education, or
2047	background. Any person initially certified as a paid mediator by
2048	the division must, in order to continue to be certified, comply
2049	with the factors or requirements imposed by rules adopted by the
2050	division.
2051	(2)(a)  Each cooperative association shall pay to the
2052	division, on or before January 1 of each year, an annual fee in
2053	the amount of $4 for each residential unit in cooperatives
2054	operated by the association. If the fee is not paid by March 1,
2055	then the association shall be assessed a penalty of 10 percent
2056	of the amount due, and the association shall not have the
2057	standing to maintain or defend any action in the courts of this
2058	state until the amount due is paid.
2059	(b)  All fees shall be deposited in the Division of Florida
2060	Land Sales, Condominiums, Homeowners' Associations, Community
2061	Association Management, and Mobile Homes Trust Fund as provided
2062	by law.
2063	Section 41.  Paragraph (a) of subsection (2) of section
2064	719.502, Florida Statutes, is amended to read:
2065	719.502  Filing prior to sale or lease.--
2066	(2)(a)  Prior to filing as required by subsection (1), and
2067	prior to acquiring an ownership, leasehold, or contractual
2068	interest in the land upon which the cooperative is to be
2069	developed, a developer shall not offer a contract for purchase
2070	or lease of a unit for more than 5 years. However, the developer
2071	may accept deposits for reservations upon the approval of a
2072	fully executed escrow agreement and reservation agreement form
2073	properly filed with the Division of Florida Land Sales,
2074	Condominiums, Homeowners' Associations, Community Association
2075	Management, and Mobile Homes. Each filing of a proposed
2076	reservation program shall be accompanied by a filing fee of
2077	$250. Reservations shall not be taken on a proposed cooperative
2078	unless the developer has an ownership, leasehold, or contractual
2079	interest in the land upon which the cooperative is to be
2080	developed. The division shall notify the developer within 20
2081	days of receipt of the reservation filing of any deficiencies
2082	contained therein. Such notification shall not preclude the
2083	determination of reservation filing deficiencies at a later
2084	date, nor shall it relieve the developer of any responsibility
2085	under the law. The escrow agreement and the reservation
2086	agreement form shall include a statement of the right of the
2087	prospective purchaser to an immediate unqualified refund of the
2088	reservation deposit moneys upon written request to the escrow
2089	agent by the prospective purchaser or the developer.
2090	Section 42.  Section 719.504, Florida Statutes, is amended
2091	to read:
2092	719.504  Prospectus or offering circular.--Every developer
2093	of a residential cooperative which contains more than 20
2094	residential units, or which is part of a group of residential
2095	cooperatives which will be served by property to be used in
2096	common by unit owners of more than 20 residential units, shall
2097	prepare a prospectus or offering circular and file it with the
2098	Division of Florida Land Sales, Condominiums, Homeowners'
2099	Associations, Community Association Management, and Mobile Homes
2100	prior to entering into an enforceable contract of purchase and
2101	sale of any unit or lease of a unit for more than 5 years and
2102	shall furnish a copy of the prospectus or offering circular to
2103	each buyer. In addition to the prospectus or offering circular,
2104	each buyer shall be furnished a separate page entitled
2105	"Frequently Asked Questions and Answers," which must be in
2106	accordance with a format approved by the division. This page
2107	must, in readable language: inform prospective purchasers
2108	regarding their voting rights and unit use restrictions,
2109	including restrictions on the leasing of a unit; indicate
2110	whether and in what amount the unit owners or the association is
2111	obligated to pay rent or land use fees for recreational or other
2112	commonly used facilities; contain a statement identifying that
2113	amount of assessment which, pursuant to the budget, would be
2114	levied upon each unit type, exclusive of any special
2115	assessments, and which identifies the basis upon which
2116	assessments are levied, whether monthly, quarterly, or
2117	otherwise; state and identify any court cases in which the
2118	association is currently a party of record in which the
2119	association may face liability in excess of $100,000; and state
2120	whether membership in a recreational facilities association is
2121	mandatory and, if so, identify the fees currently charged per
2122	unit type. The division shall by rule require such other
2123	disclosure as in its judgment will assist prospective
2124	purchasers. The prospectus or offering circular may include more
2125	than one cooperative, although not all such units are being
2126	offered for sale as of the date of the prospectus or offering
2127	circular. The prospectus or offering circular must contain the
2128	following information:
2129	(1)  The front cover or the first page must contain only:
2130	(a)  The name of the cooperative.
2131	(b)  The following statements in conspicuous type:
2132	1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
2133	MATTERS TO BE CONSIDERED IN ACQUIRING A COOPERATIVE UNIT.
2134	2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
2135	NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
2136	ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
2137	MATERIALS.
2138	3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
2139	STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
2140	PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
2141	REPRESENTATIONS.
2142	(2)  Summary: The next page must contain all statements
2143	required to be in conspicuous type in the prospectus or offering
2144	circular.
2145	(3)  A separate index of the contents and exhibits of the
2146	prospectus.
2147	(4)  Beginning on the first page of the text (not including
2148	the summary and index), a description of the cooperative,
2149	including, but not limited to, the following information:
2150	(a)  Its name and location.
2151	(b)  A description of the cooperative property, including,
2152	without limitation:
2153	1.  The number of buildings, the number of units in each
2154	building, the number of bathrooms and bedrooms in each unit, and
2155	the total number of units, if the cooperative is not a phase
2156	cooperative; or, if the cooperative is a phase cooperative, the
2157	maximum number of buildings that may be contained within the
2158	cooperative, the minimum and maximum number of units in each
2159	building, the minimum and maximum number of bathrooms and
2160	bedrooms that may be contained in each unit, and the maximum
2161	number of units that may be contained within the cooperative.
2162	2.  The page in the cooperative documents where a copy of
2163	the survey and plot plan of the cooperative is located.
2164	3.  The estimated latest date of completion of
2165	constructing, finishing, and equipping. In lieu of a date, a
2166	statement that the estimated date of completion of the
2167	cooperative is in the purchase agreement and a reference to the
2168	article or paragraph containing that information.
2169	(c)  The maximum number of units that will use facilities
2170	in common with the cooperative. If the maximum number of units
2171	will vary, a description of the basis for variation and the
2172	minimum amount of dollars per unit to be spent for additional
2173	recreational facilities or enlargement of such facilities. If
2174	the addition or enlargement of facilities will result in a
2175	material increase of a unit owner's maintenance expense or
2176	rental expense, if any, the maximum increase and limitations
2177	thereon shall be stated.
2178	(5)(a)  A statement in conspicuous type describing whether
2179	the cooperative is created and being sold as fee simple
2180	interests or as leasehold interests. If the cooperative is
2181	created or being sold on a leasehold, the location of the lease
2182	in the disclosure materials shall be stated.
2183	(b)  If timeshare estates are or may be created with
2184	respect to any unit in the cooperative, a statement in
2185	conspicuous type stating that timeshare estates are created and
2186	being sold in such specified units in the cooperative.
2187	(6)  A description of the recreational and other common
2188	areas that will be used only by unit owners of the cooperative,
2189	including, but not limited to, the following:
2190	(a)  Each room and its intended purposes, location,
2191	approximate floor area, and capacity in numbers of people.
2192	(b)  Each swimming pool, as to its general location,
2193	approximate size and depths, approximate deck size and capacity,
2194	and whether heated.
2195	(c)  Additional facilities, as to the number of each
2196	facility, its approximate location, approximate size, and
2197	approximate capacity.
2198	(d)  A general description of the items of personal
2199	property and the approximate number of each item of personal
2200	property that the developer is committing to furnish for each
2201	room or other facility or, in the alternative, a representation
2202	as to the minimum amount of expenditure that will be made to
2203	purchase the personal property for the facility.
2204	(e)  The estimated date when each room or other facility
2205	will be available for use by the unit owners.
2206	(f)1.  An identification of each room or other facility to
2207	be used by unit owners that will not be owned by the unit owners
2208	or the association;
2209	2.  A reference to the location in the disclosure materials
2210	of the lease or other agreements providing for the use of those
2211	facilities; and
2212	3.  A description of the terms of the lease or other
2213	agreements, including the length of the term; the rent payable,
2214	directly or indirectly, by each unit owner, and the total rent
2215	payable to the lessor, stated in monthly and annual amounts for
2216	the entire term of the lease; and a description of any option to
2217	purchase the property leased under any such lease, including the
2218	time the option may be exercised, the purchase price or how it
2219	is to be determined, the manner of payment, and whether the
2220	option may be exercised for a unit owner's share or only as to
2221	the entire leased property.
2222	(g)  A statement as to whether the developer may provide
2223	additional facilities not described above, their general
2224	locations and types, improvements or changes that may be made,
2225	the approximate dollar amount to be expended, and the maximum
2226	additional common expense or cost to the individual unit owners
2227	that may be charged during the first annual period of operation
2228	of the modified or added facilities.
2229
2230	Descriptions as to locations, areas, capacities, numbers,
2231	volumes, or sizes may be stated as approximations or minimums.
2232	(7)  A description of the recreational and other facilities
2233	that will be used in common with other cooperatives, community
2234	associations, or planned developments which require the payment
2235	of the maintenance and expenses of such facilities, either
2236	directly or indirectly, by the unit owners. The description
2237	shall include, but not be limited to, the following:
2238	(a)  Each building and facility committed to be built.
2239	(b)  Facilities not committed to be built except under
2240	certain conditions, and a statement of those conditions or
2241	contingencies.
2242	(c)  As to each facility committed to be built, or which
2243	will be committed to be built upon the happening of one of the
2244	conditions in paragraph (b), a statement of whether it will be
2245	owned by the unit owners having the use thereof or by an
2246	association or other entity which will be controlled by them, or
2247	others, and the location in the exhibits of the lease or other
2248	document providing for use of those facilities.
2249	(d)  The year in which each facility will be available for
2250	use by the unit owners or, in the alternative, the maximum
2251	number of unit owners in the project at the time each of all of
2252	the facilities is committed to be completed.
2253	(e)  A general description of the items of personal
2254	property, and the approximate number of each item of personal
2255	property, that the developer is committing to furnish for each
2256	room or other facility or, in the alternative, a representation
2257	as to the minimum amount of expenditure that will be made to
2258	purchase the personal property for the facility.
2259	(f)  If there are leases, a description thereof, including
2260	the length of the term, the rent payable, and a description of
2261	any option to purchase.
2262
2263	Descriptions shall include location, areas, capacities, numbers,
2264	volumes, or sizes and may be stated as approximations or
2265	minimums.
2266	(8)  Recreation lease or associated club membership:
2267	(a)  If any recreational facilities or other common areas
2268	offered by the developer and available to, or to be used by,
2269	unit owners are to be leased or have club membership associated,
2270	the following statement in conspicuous type shall be included:
2271	THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
2272	COOPERATIVE; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
2273	COOPERATIVE. There shall be a reference to the location in the
2274	disclosure materials where the recreation lease or club
2275	membership is described in detail.
2276	(b)  If it is mandatory that unit owners pay a fee, rent,
2277	dues, or other charges under a recreational facilities lease or
2278	club membership for the use of facilities, there shall be in
2279	conspicuous type the applicable statement:
2280	1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
2281	MANDATORY FOR UNIT OWNERS; or
2282	2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
2283	TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
2284	3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
2285	COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
2286	REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
2287	LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
2288	4.  A similar statement of the nature of the organization
2289	or manner in which the use rights are created, and that unit
2290	owners are required to pay.
2291
2292	Immediately following the applicable statement, the location in
2293	the disclosure materials where the development is described in
2294	detail shall be stated.
2295	(c)  If the developer, or any other person other than the
2296	unit owners and other persons having use rights in the
2297	facilities, reserves, or is entitled to receive, any rent, fee,
2298	or other payment for the use of the facilities, then there shall
2299	be the following statement in conspicuous type: THE UNIT OWNERS
2300	OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
2301	RECREATIONAL OR OTHER COMMON AREAS. Immediately following this
2302	statement, the location in the disclosure materials where the
2303	rent or land use fees are described in detail shall be stated.
2304	(d)  If, in any recreation format, whether leasehold, club,
2305	or other, any person other than the association has the right to
2306	a lien on the units to secure the payment of assessments, rent,
2307	or other exactions, there shall appear a statement in
2308	conspicuous type in substantially the following form:
2309	1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
2310	SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
2311	RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
2312	PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
2313	2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
2314	SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
2315	FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
2316	OR COMMONLY USED AREAS. THE UNIT OWNER'S FAILURE TO MAKE THESE
2317	PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
2318
2319	Immediately following the applicable statement, the location in
2320	the disclosure materials where the lien or lien right is
2321	described in detail shall be stated.
2322	(9)  If the developer or any other person has the right to
2323	increase or add to the recreational facilities at any time after
2324	the establishment of the cooperative whose unit owners have use
2325	rights therein, without the consent of the unit owners or
2326	associations being required, there shall appear a statement in
2327	conspicuous type in substantially the following form:
2328	RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
2329	OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
2330	statement, the location in the disclosure materials where such
2331	reserved rights are described shall be stated.
2332	(10)  A statement of whether the developer's plan includes
2333	a program of leasing units rather than selling them, or leasing
2334	units and selling them subject to such leases. If so, there
2335	shall be a description of the plan, including the number and
2336	identification of the units and the provisions and term of the
2337	proposed leases, and a statement in boldfaced type that: THE
2338	UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
2339	(11)  The arrangements for management of the association
2340	and maintenance and operation of the cooperative property and of
2341	other property that will serve the unit owners of the
2342	cooperative property, and a description of the management
2343	contract and all other contracts for these purposes having a
2344	term in excess of 1 year, including the following:
2345	(a)  The names of contracting parties.
2346	(b)  The term of the contract.
2347	(c)  The nature of the services included.
2348	(d)  The compensation, stated on a monthly and annual
2349	basis, and provisions for increases in the compensation.
2350	(e)  A reference to the volumes and pages of the
2351	cooperative documents and of the exhibits containing copies of
2352	such contracts.
2353
2354	Copies of all described contracts shall be attached as exhibits.
2355	If there is a contract for the management of the cooperative
2356	property, then a statement in conspicuous type in substantially
2357	the following form shall appear, identifying the proposed or
2358	existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
2359	THE MANAGEMENT OF THE COOPERATIVE PROPERTY WITH (NAME OF THE
2360	CONTRACT MANAGER). Immediately following this statement, the
2361	location in the disclosure materials of the contract for
2362	management of the cooperative property shall be stated.
2363	(12)  If the developer or any other person or persons other
2364	than the unit owners has the right to retain control of the
2365	board of administration of the association for a period of time
2366	which can exceed 1 year after the closing of the sale of a
2367	majority of the units in that cooperative to persons other than
2368	successors or alternate developers, then a statement in
2369	conspicuous type in substantially the following form shall be
2370	included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
2371	RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
2372	HAVE BEEN SOLD. Immediately following this statement, the
2373	location in the disclosure materials where this right to control
2374	is described in detail shall be stated.
2375	(13)  If there are any restrictions upon the sale,
2376	transfer, conveyance, or leasing of a unit, then a statement in
2377	conspicuous type in substantially the following form shall be
2378	included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
2379	CONTROLLED. Immediately following this statement, the location
2380	in the disclosure materials where the restriction, limitation,
2381	or control on the sale, lease, or transfer of units is described
2382	in detail shall be stated.
2383	(14)  If the cooperative is part of a phase project, the
2384	following shall be stated:
2385	(a)  A statement in conspicuous type in substantially the
2386	following form shall be included: THIS IS A PHASE COOPERATIVE.
2387	ADDITIONAL LAND AND UNITS MAY BE ADDED TO THIS COOPERATIVE.
2388	Immediately following this statement, the location in the
2389	disclosure materials where the phasing is described shall be
2390	stated.
2391	(b)  A summary of the provisions of the declaration
2392	providing for the phasing.
2393	(c)  A statement as to whether or not residential buildings
2394	and units which are added to the cooperative may be
2395	substantially different from the residential buildings and units
2396	originally in the cooperative, and, if the added residential
2397	buildings and units may be substantially different, there shall
2398	be a general description of the extent to which such added
2399	residential buildings and units may differ, and a statement in
2400	conspicuous type in substantially the following form shall be
2401	included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE COOPERATIVE
2402	MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
2403	UNITS IN THE COOPERATIVE. Immediately following this statement,
2404	the location in the disclosure materials where the extent to
2405	which added residential buildings and units may substantially
2406	differ is described shall be stated.
2407	(d)  A statement of the maximum number of buildings
2408	containing units, the maximum and minimum number of units in
2409	each building, the maximum number of units, and the minimum and
2410	maximum square footage of the units that may be contained within
2411	each parcel of land which may be added to the cooperative.
2412	(15)  If the cooperative is created by conversion of
2413	existing improvements, the following information shall be
2414	stated:
2415	(a)  The information required by s. 719.616.
2416	(b)  A caveat that there are no express warranties unless
2417	they are stated in writing by the developer.
2418	(16)  A summary of the restrictions, if any, to be imposed
2419	on units concerning the use of any of the cooperative property,
2420	including statements as to whether there are restrictions upon
2421	children and pets, and reference to the volumes and pages of the
2422	cooperative documents where such restrictions are found, or if
2423	such restrictions are contained elsewhere, then a copy of the
2424	documents containing the restrictions shall be attached as an
2425	exhibit.
2426	(17)  If there is any land that is offered by the developer
2427	for use by the unit owners and that is neither owned by them nor
2428	leased to them, the association, or any entity controlled by
2429	unit owners and other persons having the use rights to such
2430	land, a statement shall be made as to how such land will serve
2431	the cooperative. If any part of such land will serve the
2432	cooperative, the statement shall describe the land and the
2433	nature and term of service, and the cooperative documents or
2434	other instrument creating such servitude shall be included as an
2435	exhibit.
2436	(18)  The manner in which utility and other services,
2437	including, but not limited to, sewage and waste disposal, water
2438	supply, and storm drainage, will be provided and the person or
2439	entity furnishing them.
2440	(19)  An explanation of the manner in which the
2441	apportionment of common expenses and ownership of the common
2442	areas have been determined.
2443	(20)  An estimated operating budget for the cooperative and
2444	the association, and a schedule of the unit owner's expenses
2445	shall be attached as an exhibit and shall contain the following
2446	information:
2447	(a)  The estimated monthly and annual expenses of the
2448	cooperative and the association that are collected from unit
2449	owners by assessments.
2450	(b)  The estimated monthly and annual expenses of each unit
2451	owner for a unit, other than assessments payable to the
2452	association, payable by the unit owner to persons or entities
2453	other than the association, and the total estimated monthly and
2454	annual expense. There may be excluded from this estimate
2455	expenses that are personal to unit owners, which are not
2456	uniformly incurred by all unit owners, or which are not provided
2457	for or contemplated by the cooperative documents, including, but
2458	not limited to, the costs of private telephone; maintenance of
2459	the interior of cooperative units, which is not the obligation
2460	of the association; maid or janitorial services privately
2461	contracted for by the unit owners; utility bills billed directly
2462	to each unit owner for utility services to his or her unit;
2463	insurance premiums other than those incurred for policies
2464	obtained by the cooperative; and similar personal expenses of
2465	the unit owner. A unit owner's estimated payments for
2466	assessments shall also be stated in the estimated amounts for
2467	the times when they will be due.
2468	(c)  The estimated items of expenses of the cooperative and
2469	the association, except as excluded under paragraph (b),
2470	including, but not limited to, the following items, which shall
2471	be stated either as an association expense collectible by
2472	assessments or as unit owners' expenses payable to persons other
2473	than the association:
2474	1.  Expenses for the association and cooperative:
2475	a.  Administration of the association.
2476	b.  Management fees.
2477	c.  Maintenance.
2478	d.  Rent for recreational and other commonly used areas.
2479	e.  Taxes upon association property.
2480	f.  Taxes upon leased areas.
2481	g.  Insurance.
2482	h.  Security provisions.
2483	i.  Other expenses.
2484	j.  Operating capital.
2485	k.  Reserves.
2486	l.  Fee payable to the division.
2487	2.  Expenses for a unit owner:
2488	a.  Rent for the unit, if subject to a lease.
2489	b.  Rent payable by the unit owner directly to the lessor
2490	or agent under any recreational lease or lease for the use of
2491	commonly used areas, which use and payment are a mandatory
2492	condition of ownership and are not included in the common
2493	expense or assessments for common maintenance paid by the unit
2494	owners to the association.
2495	(d)  The estimated amounts shall be stated for a period of
2496	at least 12 months and may distinguish between the period prior
2497	to the time unit owners other than the developer elect a
2498	majority of the board of administration and the period after
2499	that date.
2500	(21)  A schedule of estimated closing expenses to be paid
2501	by a buyer or lessee of a unit and a statement of whether title
2502	opinion or title insurance policy is available to the buyer and,
2503	if so, at whose expense.
2504	(22)  The identity of the developer and the chief operating
2505	officer or principal directing the creation and sale of the
2506	cooperative and a statement of its and his or her experience in
2507	this field.
2508	(23)  Copies of the following, to the extent they are
2509	applicable, shall be included as exhibits:
2510	(a)  The cooperative documents, or the proposed cooperative
2511	documents if the documents have not been recorded.
2512	(b)  The articles of incorporation creating the
2513	association.
2514	(c)  The bylaws of the association.
2515	(d)  The ground lease or other underlying lease of the
2516	cooperative.
2517	(e)  The management agreement and all maintenance and other
2518	contracts for management of the association and operation of the
2519	cooperative and facilities used by the unit owners having a
2520	service term in excess of 1 year.
2521	(f)  The estimated operating budget for the cooperative and
2522	the required schedule of unit owners' expenses.
2523	(g)  A copy of the floor plan of the unit and the plot plan
2524	showing the location of the residential buildings and the
2525	recreation and other common areas.
2526	(h)  The lease of recreational and other facilities that
2527	will be used only by unit owners of the subject cooperative.
2528	(i)  The lease of facilities used by owners and others.
2529	(j)  The form of unit lease, if the offer is of a
2530	leasehold.
2531	(k)  A declaration of servitude of properties serving the
2532	cooperative but not owned by unit owners or leased to them or
2533	the association.
2534	(l)  The statement of condition of the existing building or
2535	buildings, if the offering is of units in an operation being
2536	converted to cooperative ownership.
2537	(m)  The statement of inspection for termite damage and
2538	treatment of the existing improvements, if the cooperative is a
2539	conversion.
2540	(n)  The form of agreement for sale or lease of units.
2541	(o)  A copy of the agreement for escrow of payments made to
2542	the developer prior to closing.
2543	(p)  A copy of the documents containing any restrictions on
2544	use of the property required by subsection (16).
2545	(24)  Any prospectus or offering circular complying with
2546	the provisions of former ss. 711.69 and 711.802 may continue to
2547	be used without amendment, or may be amended to comply with the
2548	provisions of this chapter.
2549	(25)  A brief narrative description of the location and
2550	effect of all existing and intended easements located or to be
2551	located on the cooperative property other than those in the
2552	declaration.
2553	(26)  If the developer is required by state or local
2554	authorities to obtain acceptance or approval of any dock or
2555	marina facility intended to serve the cooperative, a copy of
2556	such acceptance or approval acquired by the time of filing with
2557	the division pursuant to s. 719.502 or a statement that such
2558	acceptance has not been acquired or received.
2559	(27)  Evidence demonstrating that the developer has an
2560	ownership, leasehold, or contractual interest in the land upon
2561	which the cooperative is to be developed.
2562	Section 43.  Section 719.508, Florida Statutes, is amended
2563	to read:
2564	719.508  Regulation by Division of Hotels and
2565	Restaurants.--In addition to the authority, regulation, or
2566	control exercised by the Division of Florida Land Sales,
2567	Condominiums, Homeowners' Associations, Community Association
2568	Management, and Mobile Homes pursuant to this act with respect
2569	to cooperatives, buildings included in a cooperative property
2570	shall be subject to the authority, regulation, or control of the
2571	Division of Hotels and Restaurants of the Department of Business
2572	and Professional Regulation, to the extent provided for in
2573	chapters 399 and 509.
2574	Section 44.  Paragraph (a) of subsection (2) of section
2575	719.608, Florida Statutes, is amended to read:
2576	719.608  Notice of intended conversion; time of delivery;
2577	content.--
2578	(2)(a)  Each notice of intended conversion shall be dated
2579	and in writing. The notice shall contain the following
2580	statement, with the phrases of the following statement which
2581	appear in upper case printed in conspicuous type:
2582
2583	These apartments are being converted to cooperative by
2584	(name of developer)  , the developer.
2585	1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
2586	YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL
2587	AGREEMENT AS FOLLOWS:
2588	a.  If you have continuously been a resident of these
2589	apartments during the last 180 days and your rental agreement
2590	expires during the next 270 days, you may extend your rental
2591	agreement for up to 270 days after the date of this notice.
2592	b.  If you have not been a continuous resident of these
2593	apartments for the last 180 days and your rental agreement
2594	expires during the next 180 days, you may extend your rental
2595	agreement for up to 180 days after the date of this notice.
2596	c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
2597	MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
2598	DATE OF THIS NOTICE.
2599	2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
2600	you may extend your rental agreement for up to 45 days after the
2601	date of this notice while you decide whether to extend your
2602	rental agreement as explained above. To do so, you must notify
2603	the developer in writing. You will then have the full 45 days to
2604	decide whether to extend your rental agreement as explained
2605	above.
2606	3.  During the extension of your rental agreement you will
2607	be charged the same rent that you are now paying.
2608	4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
2609	OF THE RENTAL AGREEMENT AS FOLLOWS:
2610	a.  If your rental agreement began or was extended or
2611	renewed after May 1, 1980, and your rental agreement, including
2612	extensions and renewals, has an unexpired term of 180 days or
2613	less, you may cancel your rental agreement upon 30 days' written
2614	notice and move. Also, upon 30 days' written notice, you may
2615	cancel any extension of the rental agreement.
2616	b.  If your rental agreement was not begun or was not
2617	extended or renewed after May 1, 1980, you may not cancel the
2618	rental agreement without the consent of the developer. If your
2619	rental agreement, including extensions and renewals, has an
2620	unexpired term of 180 days or less, you may, however, upon 30
2621	days' written notice cancel any extension of the rental
2622	agreement.
2623	5.  All notices must be given in writing and sent by mail,
2624	return receipt requested, or delivered in person to the
2625	developer at this address:   (name and address of developer)  .
2626	6.  If you have continuously been a resident of these
2627	apartments during the last 180 days:
2628	a.  You have the right to purchase your apartment and will
2629	have 45 days to decide whether to purchase. If you do not buy
2630	the unit at that price and the unit is later offered at a lower
2631	price, you will have the opportunity to buy the unit at the
2632	lower price. However, in all events your right to purchase the
2633	unit ends when the rental agreement or any extension of the
2634	rental agreement ends or when you waive this right in writing.
2635	b.  Within 90 days you will be provided purchase
2636	information relating to your apartment, including the price of
2637	your unit and the condition of the building. If you do not
2638	receive this information within 90 days, your rental agreement
2639	and any extension will be extended 1 day for each day over 90
2640	days until you are given the purchase information. If you do not
2641	want this rental agreement extension, you must notify the
2642	developer in writing.
2643	7.  If you have any questions regarding this conversion or
2644	the Cooperative Act, you may contact the developer or the state
2645	agency which regulates cooperatives: The Division of Florida
2646	Land Sales, Condominiums, Homeowners' Associations, Community
2647	Association Management, and Mobile Homes,   (Tallahassee address
2648	and telephone number of division).
2649	Section 45.  Subsection (7) of section 720.301, Florida
2650	Statutes, is amended to read:
2651	720.301  Definitions.--As used in this chapter, the term:
2652	(7)  "Division" means the Division of Florida Land Sales,
2653	Condominiums, Homeowners' Associations, Community Association
2654	Management, and Mobile Homes in the Department of Business and
2655	Professional Regulation.
2656	Section 46.  Subsection (11) of section 721.05, Florida
2657	Statutes, is amended to read:
2658	721.05  Definitions.--As used in this chapter, the term:
2659	(11)  "Division" means the Division of Florida Land Sales,
2660	Condominiums, Homeowners' Associations, Community Association
2661	Management, and Mobile Homes of the Department of Business and
2662	Professional Regulation.
2663	Section 47.  Paragraph (d) of subsection (2) of section
2664	721.07, Florida Statutes, is amended to read:
2665	721.07  Public offering statement.--Prior to offering any
2666	timeshare plan, the developer must submit a filed public
2667	offering statement to the division for approval as prescribed by
2668	s. 721.03, s. 721.55, or this section. Until the division
2669	approves such filing, any contract regarding the sale of that
2670	timeshare plan is subject to cancellation by the purchaser
2671	pursuant to s. 721.10.
2672	(2)
2673	(d)  A developer shall have the authority to deliver to
2674	purchasers any purchaser public offering statement that is not
2675	yet approved by the division, provided that the following shall
2676	apply:
2677	1.  At the time the developer delivers an unapproved
2678	purchaser public offering statement to a purchaser pursuant to
2679	this paragraph, the developer shall deliver a fully completed
2680	and executed copy of the purchase contract required by s. 721.06
2681	that contains the following statement in conspicuous type in
2682	substantially the following form which shall replace the
2683	statements required by s. 721.06(1)(g):
2684
2685	The developer is delivering to you a public offering statement
2686	that has been filed with but not yet approved by the Division of
2687	Florida Land Sales, Condominiums, Homeowners' Associations,
2688	Community Association Management, and Mobile Homes. Any
2689	revisions to the unapproved public offering statement you have
2690	received must be delivered to you, but only if the revisions
2691	materially alter or modify the offering in a manner adverse to
2692	you. After the division approves the public offering statement,
2693	you will receive notice of the approval from the developer and
2694	the required revisions, if any.
2695
2696	Your statutory right to cancel this transaction without any
2697	penalty or obligation expires 10 calendar days after the date
2698	you signed your purchase contract or the date on which you
2699	receive the last of all documents required to be given to you
2700	pursuant to section 721.07(6), Florida Statutes, or 10 calendar
2701	days after you receive revisions required to be delivered to
2702	you, if any, whichever is later. If you decide to cancel this
2703	contract, you must notify the seller in writing of your intent
2704	to cancel. Your notice of cancellation shall be effective upon
2705	the date sent and shall be sent to   (Name of Seller)   at
2706	(Address of Seller)  . Any attempt to obtain a waiver of your
2707	cancellation right is void and of no effect. While you may
2708	execute all closing documents in advance, the closing, as
2709	evidenced by delivery of the deed or other document, before
2710	expiration of your 10-day cancellation period, is prohibited.
2711
2712	2.  After receipt of approval from the division and prior
2713	to closing, if any revisions made to the documents contained in
2714	the purchaser public offering statement materially alter or
2715	modify the offering in a manner adverse to a purchaser, the
2716	developer shall send the purchaser such revisions together with
2717	a notice containing a statement in conspicuous type in
2718	substantially the following form:
2719
2720	The unapproved public offering statement previously delivered to
2721	you, together with the enclosed revisions, has been approved by
2722	the Division of Florida Land Sales, Condominiums, Homeowners'
2723	Associations, Community Association Management, and Mobile
2724	Homes. Accordingly, your cancellation right expires 10 calendar
2725	days after you sign your purchase contract or 10 calendar days
2726	after you receive these revisions, whichever is later. If you
2727	have any questions regarding your cancellation rights, you may
2728	contact the division at [insert division's current address].
2729
2730	3.  After receipt of approval from the division and prior
2731	to closing, if no revisions have been made to the documents
2732	contained in the unapproved purchaser public offering statement,
2733	or if such revisions do not materially alter or modify the
2734	offering in a manner adverse to a purchaser, the developer shall
2735	send the purchaser a notice containing a statement in
2736	conspicuous type in substantially the following form:
2737
2738	The unapproved public offering statement previously delivered to
2739	you has been approved by the Division of Florida Land Sales,
2740	Condominiums, Homeowners' Associations, Community Association
2741	Management, and Mobile Homes. Revisions made to the unapproved
2742	public offering statement, if any, are either not required to be
2743	delivered to you or are not deemed by the developer, in its
2744	opinion, to materially alter or modify the offering in a manner
2745	that is adverse to you. Accordingly, your cancellation right
2746	expired 10 days after you signed your purchase contract. A
2747	complete copy of the approved public offering statement is
2748	available through the managing entity for inspection as part of
2749	the books and records of the plan. If you have any questions
2750	regarding your cancellation rights, you may contact the division
2751	at [insert division's current address].
2752	Section 48.  Subsection (8) of section 721.08, Florida
2753	Statutes, is amended to read:
2754	721.08  Escrow accounts; nondisturbance instruments;
2755	alternate security arrangements; transfer of legal title.--
2756	(8)  An escrow agent holding escrowed funds pursuant to
2757	this chapter that have not been claimed for a period of 5 years
2758	after the date of deposit shall make at least one reasonable
2759	attempt to deliver such unclaimed funds to the purchaser who
2760	submitted such funds to escrow. In making such attempt, an
2761	escrow agent is entitled to rely on a purchaser's last known
2762	address as set forth in the books and records of the escrow
2763	agent and is not required to conduct any further search for the
2764	purchaser. If an escrow agent's attempt to deliver unclaimed
2765	funds to any purchaser is unsuccessful, the escrow agent may
2766	deliver such unclaimed funds to the division and the division
2767	shall deposit such unclaimed funds in the Division of Florida
2768	Land Sales, Condominiums, Homeowners' Associations, Community
2769	Association Management, and Mobile Homes Trust Fund, 30 days
2770	after giving notice in a publication of general circulation in
2771	the county in which the timeshare property containing the
2772	purchaser's timeshare interest is located. The purchaser may
2773	claim the same at any time prior to the delivery of such funds
2774	to the division. After delivery of such funds to the division,
2775	the purchaser shall have no more rights to the unclaimed funds.
2776	The escrow agent shall not be liable for any claims from any
2777	party arising out of the escrow agent's delivery of the
2778	unclaimed funds to the division pursuant to this section.
2779	Section 49.  Paragraph (e) of subsection (5) of section
2780	721.26, Florida Statutes, is amended to read:
2781	721.26  Regulation by division.--The division has the power
2782	to enforce and ensure compliance with the provisions of this
2783	chapter, except for parts III and IV, using the powers provided
2784	in this chapter, as well as the powers prescribed in chapters
2785	498, 718, and 719. In performing its duties, the division shall
2786	have the following powers and duties:
2787	(5)  Notwithstanding any remedies available to purchasers,
2788	if the division has reasonable cause to believe that a violation
2789	of this chapter, or of any division rule or order promulgated or
2790	issued pursuant to this chapter, has occurred, the division may
2791	institute enforcement proceedings in its own name against any
2792	regulated party, as such term is defined in this subsection:
2793	(e)1.  The division may impose a penalty against any
2794	regulated party for a violation of this chapter or any rule
2795	adopted thereunder. A penalty may be imposed on the basis of
2796	each day of continuing violation, but in no event may the
2797	penalty for any offense exceed $10,000. All accounts collected
2798	shall be deposited with the Chief Financial Officer to the
2799	credit of the Division of Florida Land Sales, Condominiums,
2800	Homeowners' Associations, Community Association Management, and
2801	Mobile Homes Trust Fund.
2802	2.a.  If a regulated party fails to pay a penalty, the
2803	division shall thereupon issue an order directing that such
2804	regulated party cease and desist from further operation until
2805	such time as the penalty is paid; or the division may pursue
2806	enforcement of the penalty in a court of competent jurisdiction.
2807	b.  If an owners' association or managing entity fails to
2808	pay a civil penalty, the division may pursue enforcement in a
2809	court of competent jurisdiction.
2810	Section 50.  Section 721.28, Florida Statutes, is amended
2811	to read:
2812	721.28  Division of Florida Land Sales, Condominiums,
2813	Homeowners' Associations, Community Association Management, and
2814	Mobile Homes Trust Fund.--All funds collected by the division
2815	and any amounts paid as fees or penalties under this chapter
2816	shall be deposited in the State Treasury to the credit of the
2817	Division of Florida Land Sales, Condominiums, Homeowners'
2818	Associations, Community Association Management, and Mobile Homes
2819	Trust Fund created by s. 498.019.
2820	Section 51.  Paragraph (c) of subsection (1) of section
2821	721.301, Florida Statutes, is amended to read:
2822	721.301  Florida Timesharing, Vacation Club, and
2823	Hospitality Program.--
2824	(1)
2825	(c)  The director may designate funds from the Division of
2826	Florida Land Sales, Condominiums, Homeowners' Associations,
2827	Community Association Management, and Mobile Homes Trust Fund,
2828	not to exceed $50,000 annually, to support the projects and
2829	proposals undertaken pursuant to paragraph (b). All state trust
2830	funds to be expended pursuant to this section must be matched
2831	equally with private moneys and shall comprise no more than half
2832	of the total moneys expended annually.
2833	Section 52.  Section 721.50, Florida Statutes, is amended
2834	to read:
2835	721.50  Short title.--This part may be cited as the
2836	"McAllister Act" in recognition and appreciation for the years
2837	of extraordinary and insightful contributions by Mr. Bryan C.
2838	McAllister, Examinations Supervisor, Division of Florida Land
2839	Sales, Condominiums, Homeowners' Associations, Community
2840	Association Management, and Mobile Homes.
2841	Section 53.  Subsection (1) of section 723.003, Florida
2842	Statutes, is amended to read:
2843	723.003  Definitions.--As used in this chapter, the
2844	following words and terms have the following meanings unless
2845	clearly indicated otherwise:
2846	(1)  The term "division" means the Division of Florida Land
2847	Sales, Condominiums, Homeowners' Associations, Community
2848	Association Management, and Mobile Homes of the Department of
2849	Business and Professional Regulation.
2850	Section 54.  Paragraph (e) of subsection (5) of section
2851	723.006, Florida Statutes, is amended to read:
2852	723.006  Powers and duties of division.--In performing its
2853	duties, the division has the following powers and duties:
2854	(5)  Notwithstanding any remedies available to mobile home
2855	owners, mobile home park owners, and homeowners' associations,
2856	if the division has reasonable cause to believe that a violation
2857	of any provision of this chapter or any rule promulgated
2858	pursuant hereto has occurred, the division may institute
2859	enforcement proceedings in its own name against a developer,
2860	mobile home park owner, or homeowners' association, or its
2861	assignee or agent, as follows:
2862	(e)1.  The division may impose a civil penalty against a
2863	mobile home park owner or homeowners' association, or its
2864	assignee or agent, for any violation of this chapter, a properly
2865	promulgated park rule or regulation, or a rule or regulation
2866	promulgated pursuant hereto. A penalty may be imposed on the
2867	basis of each separate violation and, if the violation is a
2868	continuing one, for each day of continuing violation, but in no
2869	event may the penalty for each separate violation or for each
2870	day of continuing violation exceed $5,000. All amounts collected
2871	shall be deposited with the Chief Financial Officer to the
2872	credit of the Division of Florida Land Sales, Condominiums,
2873	Homeowners' Associations, Community Association Management, and
2874	Mobile Homes Trust Fund.
2875	2.  If a violator fails to pay the civil penalty, the
2876	division shall thereupon issue an order directing that such
2877	violator cease and desist from further violation until such time
2878	as the civil penalty is paid or may pursue enforcement of the
2879	penalty in a court of competent jurisdiction. If a homeowners'
2880	association fails to pay the civil penalty, the division shall
2881	thereupon pursue enforcement in a court of competent
2882	jurisdiction, and the order imposing the civil penalty or the
2883	cease and desist order shall not become effective until 20 days
2884	after the date of such order. Any action commenced by the
2885	division shall be brought in the county in which the division
2886	has its executive offices or in which the violation occurred.
2887	Section 55.  Section 723.009, Florida Statutes, is amended
2888	to read:
2889	723.009  Division of Florida Land Sales, Condominiums,
2890	Homeowners' Associations, Community Association Management, and
2891	Mobile Homes Trust Fund.--All proceeds from the fees, penalties,
2892	and fines imposed pursuant to this chapter shall be deposited
2893	into the Division of Florida Land Sales, Condominiums,
2894	Homeowners' Associations, Community Association Management, and
2895	Mobile Homes Trust Fund created by s. 498.019. Moneys in this
2896	fund, as appropriated by the Legislature pursuant to chapter
2897	216, may be used to defray the expenses incurred by the division
2898	in administering the provisions of this chapter.
2899	Section 56.  Paragraph (c) of subsection (2) of section
2900	723.0611, Florida Statutes, is amended to read:
2901	723.0611  Florida Mobile Home Relocation Corporation.--
2902	(2)
2903	(c)  There shall be no liability on the part of, and no
2904	cause of action of any nature shall arise against, agents or
2905	employees of the corporation, members of the board of directors
2906	of the corporation, or representatives of the Division of
2907	Florida Land Sales, Condominiums, Homeowners' Associations,
2908	Community Association Management, and Mobile Homes for any act
2909	or omission of the board of directors in the performance of
2910	their powers and duties under this section, unless such act or
2911	omission by such person is in intentional disregard of the
2912	rights of the claimant.
2913	Section 57.  This act shall take effect July 1, 2005.

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