CS/HB 995

1	A bill to be entitled
2	An act relating to community associations; amending s.
3	468.431, F.S.; defining the term "community association
4	management firm"; redefining the term "community
5	association manager" to apply only to natural persons;
6	amending s. 468.4315, F.S.; revising membership criteria
7	for members of the Regulatory Council of Community
8	Association Managers; requiring the council to establish a
9	public education program; providing for council members to
10	serve without compensation but be entitled to receive per
11	diem and travel expenses; providing responsibilities of
12	the council; amending s. 468.432, F.S.; providing for the
13	licensure of community association management firms;
14	providing application, licensure, and fee requirements;
15	providing for the cancellation of the license of a
16	community association management firm under certain
17	circumstances; providing that such firm or similar
18	organization agrees that, by being licensed, it shall
19	employ only licensed persons providing certain services;
20	amending s. 468.433, F.S.; providing for the refusal of an
21	applicant certification under certain circumstances;
22	amending s. 468.436, F.S.; requiring the Department of
23	Business and Professional Regulation to investigate
24	certain complaints and allegations; providing complaint
25	and investigation procedures; providing grounds for which
26	disciplinary action may be taken; amending s. 718.111,
27	F.S.; providing duties of officers, directors, and agents
28	of a condominium association and liability for monetary
29	damages under certain circumstances; providing that a
30	person who knowingly or intentionally fails to create or
31	maintain, or who defaces or destroys certain records, is
32	subject to civil penalties as prescribed by state law;
33	requiring that a copy of the inspection report be
34	maintained as an official record of the association;
35	requiring official records of the association to be
36	maintained for a specified minimum period and be made
37	available at certain locations and in specified formats;
38	providing that any person who knowingly or intentionally
39	defaces, destroys, or fails to create or maintain
40	accounting records is subject to civil and criminal
41	sanctions; prohibiting accessibility to certain personal
42	identifying information of unit owners by fellow unit
43	owners; requiring that the Division of Florida Land Sales,
44	Condominiums, and Mobile Homes of the Department of
45	Business and Professional Regulation adopt certain rules;
46	requiring certain audits and reports to be paid for by the
47	developer if done before control of the association is
48	turned over; restricting a condominium association from
49	waiving a financial report for more than a specified
50	period; amending s. 718.112, F.S.; prohibiting a voting
51	interest or a consent right allocated to a unit owner from
52	being exercised under certain circumstances; requiring the
53	board to address certain agenda items proposed by a
54	petition of a specified percentage of the unit owners;
55	providing requirements for the location of annual unit
56	owner meetings; revising terms of service for board
57	members; prohibiting certain persons from serving on the
58	board; requiring the association to provide a
59	certification form to unit owners for specified purposes;
60	authorizing an association consisting of a specified
61	maximum number of units to provide for different voting
62	and election procedures in its bylaws by affirmative vote
63	of a majority of the association's voting interests;
64	revising requirements related to the annual budget;
65	requiring proxy questions relating to reserves to contain
66	a specified statement; providing for the removal of board
67	members under certain circumstances; requiring that
68	directors who are delinquent in certain payments owed in
69	excess of certain periods of time be suspended from office
70	or deemed to have abandoned their offices; requiring that
71	directors charged with certain offenses involving an
72	association's funds or property be suspended from office
73	pending resolution of the charge; providing for the
74	reinstatement of such officers or directors under certain
75	circumstances; amending s. 718.1124, F.S.; providing that
76	any unit owner may give notice of his or her intent to
77	apply to the circuit court for the appointment of a
78	receiver to manage the affairs of the association under
79	certain circumstances; providing a form for such notice;
80	providing for the delivery of such notice; providing
81	procedures for resolving a petition submitted pursuant to
82	such notice; requiring that all unit owners be provided
83	written notice of the appointment of a receiver; amending
84	s. 718.113, F.S.; providing a statement of clarification;
85	authorizing the board to install certain hurricane
86	protection; prohibiting the board from installing
87	hurricane shutters under certain circumstances; requiring
88	that the board inspect certain condominium buildings and
89	issue a report thereupon; providing an exception;
90	prohibiting the board from refusing a request for
91	reasonable accommodation for the attachment to a unit of
92	religious objects meeting certain size specifications;
93	amending s. 718.117, F.S.; requiring that all unit owners
94	be provided written notice of the appointment of a
95	receiver; providing for the delivery of such notice;
96	amending s. 718.121, F.S.; providing requirements and
97	restrictions for liens filed by the association against a
98	condominium unit; providing for notice and delivery
99	thereof; creating s. 718.1224, F.S.; prohibiting strategic
100	lawsuits against public participation; providing
101	legislative findings and intent; prohibiting a
102	governmental entity, business organization, or individual
103	from filing certain lawsuits made upon specified bases
104	against a unit owner; providing rights of a unit owner who
105	has been served with such a lawsuit; providing procedures
106	for the resolution of claims that such suit violates
107	certain provisions of state law; providing for the award
108	of damages and attorney's fees; prohibiting associations
109	from expending association funds in prosecuting such a
110	suit against a unit owner; amending s. 718.1255, F.S.;
111	revising legislative intent concerning alternative dispute
112	resolution; creating s. 718.1265, F.S.; authorizing an
113	association to exercise certain powers in instances
114	involving damage caused by an event for which a state of
115	emergency has been declared; limiting the applicability of
116	such powers; creating s. 718.127, F.S.; requiring that all
117	unit owners be provided written notice of the appointment
118	of a receiver; providing for the delivery of such notice;
119	amending s. 718.301, F.S.; providing circumstances under
120	which unit owners other than a developer may elect not
121	fewer than a majority of the members of the board of
122	administration of an association; requiring a turnover
123	inspection report; requiring that the report contain
124	certain information; amending s. 718.3025, F.S.; requiring
125	that maintenance and management services contracts
126	disclose certain information; amending s. 718.3026, F.S.;
127	revising a provision authorizing certain associations to
128	opt out of provisions relating to contracts for products
129	and services; removing provisions relating to competitive
130	bid requirements for contracts executed before a specified
131	date; providing requirements for any contract or
132	transaction between an association and one or more of its
133	directors or any other entity in which one or more of its
134	directors are directors or officers or have a financial
135	interest; amending s. 718.303, F.S.; providing that
136	hearings regarding noncompliance with a declaration be
137	held before certain persons; amending s. 718.501, F.S.;
138	providing authority and responsibilities of the division;
139	providing for enforcement actions brought by the division
140	in its own name; providing for the imposition of penalties
141	by the division; requiring that the division issue a
142	subpoena requiring production of certain requested records
143	under certain circumstances; providing for the issuance of
144	notice of a declaratory statement with respect to
145	documents governing a condominium community; requiring
146	that the division provide training and education for
147	condominium association board members and unit owners;
148	authorizing the division to include certain training
149	components and review or approve training programs offered
150	by providers; requiring that certain individuals cooperate
151	with the division in any investigation conducted by the
152	division; amending s. 718.5012, F.S.; providing additional
153	powers of the ombudsman; amending s. 718.50151, F.S.;
154	redesignating the Advisory Council on Condominiums as the
155	"Community Association Living Study Council"; providing
156	for the creation of the council; providing functions of
157	the council; amending s. 718.503, F.S.; providing for
158	disclosure of certain information upon the sale of a unit
159	by a nondeveloper; requiring the provision of a governance
160	form by the seller to the prospective buyer; requiring
161	that such form contain certain information and a specified
162	statement; providing an effective date.
163
164	Be It Enacted by the Legislature of the State of Florida:
165
166	Section 1.  Section 468.431, Florida Statutes, is amended
167	to read:
168	468.431  Definitions.--As used in this part:
169	(1)  "Community association" means a residential
170	homeowners' association in which membership is a condition of
171	ownership of a unit in a planned unit development, or of a lot
172	for a home or a mobile home, or of a townhouse, villa,
173	condominium, cooperative, or other residential unit which is
174	part of a residential development scheme and which is authorized
175	to impose a fee which may become a lien on the parcel.
176	(2)  "Community association management" means any of the
177	following practices requiring substantial specialized knowledge,
178	judgment, and managerial skill when done for remuneration and
179	when the association or associations served contain more than 10
180	50 units or have an annual budget or budgets in excess of
181	$100,000: controlling or disbursing funds of a community
182	association, preparing budgets or other financial documents for
183	a community association, assisting in the noticing or conduct of
184	community association meetings, and coordinating maintenance for
185	the residential development and other day-to-day services
186	involved with the operation of a community association. A person
187	who performs clerical or ministerial functions under the direct
188	supervision and control of a licensed manager or who is charged
189	only with performing the maintenance of a community association
190	and who does not assist in any of the management services
191	described in this subsection is not required to be licensed
192	under this part.
193	(3)  "Community association management firm" means a
194	corporation, limited liability company, partnership, trust,
195	association, sole proprietorship, or other similar organization
196	engaging in the business of community association management for
197	the purpose of providing any of the services described in
198	subsection (2).
199	(4)(3)  "Community association manager" means a natural
200	person who is licensed pursuant to this part to perform
201	community association management services.
202	(5)(4)  "Council" means the Regulatory Council of Community
203	Association Managers.
204	(6)(5)  "Department" means the Department of Business and
205	Professional Regulation.
206	Section 2.  Section 468.4315, Florida Statutes, is amended
207	to read:
208	468.4315  Regulatory Council of Community Association
209	Managers.--
210	(1)  The Regulatory Council of Community Association
211	Managers is created within the department and shall consist of
212	seven members appointed by the Governor and confirmed by the
213	Senate.
214	(a)  Five members of the council shall be licensed
215	community association managers, one of whom may shall be a
216	community association manager employed by a timeshare managing
217	entity as described in ss. 468.438 and 721.13, who have held an
218	active license for at least 5 years. The remaining two council
219	members shall be residents of this state, and must not be or
220	ever have been connected with the business of community
221	association management, and shall not be prohibited from serving
222	because the member is or has been a resident or board member of
223	a community association.
224	(b)  The Governor shall appoint members for terms of 4
225	years. Such members shall serve until their successors are
226	appointed. Members' service on the council shall begin upon
227	appointment and shall continue until their successors are
228	appointed.
229	(2)  The council may adopt rules relating to the licensure
230	examination, continuing education requirements, continuing
231	education providers, fees, and professional practice standards
232	to assist the department in carrying out the duties and
233	authorities conferred upon the department by this part.
234	(3) To the extent the council is authorized to exercise
235	functions otherwise exercised by a board pursuant to chapter
236	455, the provisions of chapter 455 and s. 20.165 relating to
237	regulatory boards shall apply, including, but not limited to,
238	provisions relating to board rules and the accountability and
239	liability of board members. All proceedings and actions of the
240	council are subject to the provisions of chapter 120. In
241	addition, the provisions of chapter 455 and s. 20.165 shall
242	apply to the department in carrying out the duties and
243	authorities conferred upon the department by this part.
244	(4)  The council may establish a public education program
245	relating to professional community association management.
246	(5)  Members of the council shall serve without
247	compensation but are entitled to receive per diem and travel
248	expenses pursuant to s. 112.061 while carrying out business
249	approved by the council.
250	(6)  The responsibilities of the council shall include, but
251	not be limited to:
252	(a)  Receiving input regarding issues of concern with
253	respect to community association management and recommendations
254	for changes in applicable laws.
255	(b)  Reviewing, evaluating, and advising the division
256	concerning revisions and adoption of rules affecting community
257	association management.
258	(c)  Recommending improvements, if needed, in the education
259	programs offered by the division.
260	Section 3.  Section 468.432, Florida Statutes, is amended
261	to read:
262	468.432  Licensure of community association managers and
263	community association management firms; exceptions.--
264	(1)  A person shall not manage or hold herself or himself
265	out to the public as being able to manage a community
266	association in this state unless she or he is licensed by the
267	department in accordance with the provisions of this part.
268	However, nothing in this part prohibits any person licensed in
269	this state under any other law or court rule from engaging in
270	the profession for which she or he is licensed.
271	(2)  As of January 1, 2009, a community association
272	management firm or other similar organization responsible for
273	the management of more than 10 units or a budget of $100,000 or
274	greater shall not engage or hold itself out to the public as
275	being able to engage in the business of community association
276	management in this state unless it is licensed by the department
277	as a community association management firm in accordance with
278	the provisions of this part.
279	(a)  A community association management firm or other
280	similar organization desiring to be licensed as a community
281	association management firm shall apply to the department on a
282	form approved by the department together with the application
283	and licensure fees required by s. 468.435(1)(a) and (c). Each
284	community association management firm applying for licensure
285	under this subsection must be actively registered and authorized
286	to do business in this state.
287	(b)  Each applicant shall designate on its application a
288	licensed community association manager who shall be required to
289	respond to all inquires from and investigations by the
290	department or division.
291	(c)  Each licensed community association management firm
292	shall notify the department within 30 days after any change of
293	information contained in the application upon which licensure is
294	based.
295	(d)  Community association management firm licenses shall
296	expire on September 30 of odd-numbered years and shall be
297	renewed every 2 years. An application for renewal shall be
298	accompanied by the renewal fee as required by s. 468.435(1)(d).
299	(e)  The department shall license each applicant whom the
300	department certifies as meeting the requirements of this
301	subsection.
302	(f)  If the license of at least one individual active
303	community association manager member is not in force, the
304	license of the community association management firm or other
305	similar organization is canceled automatically during that time.
306	(g)  Any community association management firm or other
307	similar organization agrees by being licensed that it will
308	employ only licensed persons in the direct provision of
309	community association management services as described in s.
310	468.431(3).
311	(2)  Nothing in this part prohibits a corporation,
312	partnership, trust, association, or other like organization from
313	engaging in the business of community association management
314	without being licensed if it employs licensed natural persons in
315	the direct provision of community association management
316	services. Such corporation, partnership, trust, association, or
317	other organization shall also file with the department a
318	statement on a form approved by the department that it submits
319	itself to the rules of the council and the department and the
320	provisions of this part which the department deems applicable.
321	Section 4.  Subsections (2) and (4) of section 468.433,
322	Florida Statutes, are amended to read:
323	468.433  Licensure by examination.--
324	(2)  The department shall examine each applicant who is at
325	least 18 years of age, who has successfully completed all
326	prelicensure education requirements, and who the department
327	certifies is of good moral character.
328	(a)  Good moral character means a personal history of
329	honesty, fairness, and respect for the rights of others and for
330	the laws of this state and nation.
331	(b)  The department may refuse to certify an applicant only
332	if:
333	1.  There is a substantial connection between the lack of
334	good moral character of the applicant and the professional
335	responsibilities of a community association manager; and
336	2.  The finding by the department of lack of good moral
337	character is supported by clear and convincing evidence; or
338	3.  The applicant is found to have provided management
339	services requiring licensure without the requisite license.
340	(c)  When an applicant is found to be unqualified for a
341	license because of a lack of good moral character, the
342	department shall furnish the applicant a statement containing
343	its findings, a complete record of the evidence upon which the
344	determination was based, and a notice of the rights of the
345	applicant to a rehearing and appeal.
346	(d)  The council shall establish by rule the required
347	amount of prelicensure education, which shall consist of not
348	more than 24 hours of in-person instruction by a department-
349	approved provider and which shall cover all areas of the
350	examination specified in subsection (3). Such instruction shall
351	be completed within 12 months prior to the date of the
352	examination. Prelicensure education providers shall be
353	considered continuing education providers for purposes of
354	establishing provider approval fees. A licensee shall not be
355	required to comply with the continuing education requirements of
356	s. 468.4337 prior to the first license renewal. The department
357	shall, by rule, set standards for exceptions to the requirement
358	of in-person instruction in cases of hardship or disability.
359	(4)  The department shall issue a license to practice in
360	this state as a community association manager to any qualified
361	applicant who successfully completes the examination in
362	accordance with this section and pays the appropriate fee.
363	Section 5.  Section 468.436, Florida Statutes, is amended
364	to read:
365	468.436  Disciplinary proceedings.--
366	(1)  The department shall investigate complaints and
367	allegations of a violation of this part or chapter 455, or any
368	rule adopted thereunder, filed against community association
369	managers or firms and forwarded from other divisions under the
370	Department of Business and Professional Regulation. After a
371	complaint is received, the department shall conduct its inquiry
372	with due regard to the interests of the affected parties. Within
373	30 days after receipt of a complaint, the department shall
374	acknowledge the complaint in writing and notify the complainant
375	whether or not the complaint is within the jurisdiction of the
376	department and whether or not additional information is needed
377	by the department from the complainant. The department shall
378	conduct an investigation and shall, within 90 days after receipt
379	of the original complaint or of a timely request for additional
380	information, take action upon the complaint. However, the
381	failure to complete the investigation within 90 days does not
382	prevent the department from continuing the investigation,
383	accepting or considering evidence obtained or received after 90
384	days, or taking administrative action if reasonable cause exists
385	to believe that a violation of this part or chapter 455, or a
386	rule of the department has occurred. If an investigation is not
387	completed within the time limits established in this subsection,
388	the department shall, on a monthly basis, notify the complainant
389	in writing of the status of the investigation. When reporting
390	its action to the complainant, the department shall inform the
391	complainant of any right to a hearing pursuant to ss. 120.569
392	and 120.57.
393	(2)(1)  The following acts constitute grounds for which the
394	disciplinary actions in subsection (4) (3) may be taken:
395	(a)  Violation of any provision of s. 455.227(1).
396	(b)1.  Violation of any provision of this part.
397	2.  Violation of any lawful order or rule rendered or
398	adopted by the department or the council.
399	3.  Being convicted of or pleading nolo contendere to a
400	felony in any court in the United States.
401	4.  Obtaining a license or certification or any other
402	order, ruling, or authorization by means of fraud,
403	misrepresentation, or concealment of material facts.
404	5.  Committing acts of gross misconduct or gross negligence
405	in connection with the profession.
406	6.  Contracting, on behalf of an association, with any
407	entity in which the licensee has a financial interest that is
408	not disclosed.
409	(3)(2)  The council shall specify by rule the acts or
410	omissions that constitute a violation of subsection (2) (1).
411	(4)(3)  When the department finds any community association
412	manager or firm guilty of any of the grounds set forth in
413	subsection (2) (1), it may enter an order imposing one or more
414	of the following penalties:
415	(a)  Denial of an application for licensure.
416	(b)  Revocation or suspension of a license.
417	(c)  Imposition of an administrative fine not to exceed
418	$5,000 for each count or separate offense.
419	(d)  Issuance of a reprimand.
420	(e)  Placement of the community association manager on
421	probation for a period of time and subject to such conditions as
422	the department specifies.
423	(f)  Restriction of the authorized scope of practice by the
424	community association manager.
425	(5)(4)  The department may shall reissue the license of a
426	disciplined community association manager or firm upon
427	certification by the department that the disciplined person or
428	firm has complied with all of the terms and conditions set forth
429	in the final order.
430	Section 6.  Paragraph (d) is added to subsection (1) of
431	section 718.111, Florida Statutes, and subsections (12) and (13)
432	of that section are amended, to read:
433	718.111  The association.--
434	(1)  CORPORATE ENTITY.--
435	(d)  As required by s. 617.0830, an officer, director, or
436	agent shall discharge his or her duties in good faith, with the
437	care an ordinarily prudent person in a like position would
438	exercise under similar circumstances, and in a manner he or she
439	reasonably believes to be in the interests of the association.
440	Regardless of any indemnification provision in the documents or
441	contract, an officer, director, or agent shall be liable for
442	monetary damages as provided in s. 617.0834 if such officer,
443	director, or agent breached or failed to perform his or her
444	duties and the breach of, or failure to perform, his or her
445	duties constitutes a violation of criminal law as provided in s.
446	617.0834; constitutes a transaction from which the officer or
447	director derived an improper personal benefit, either directly
448	or indirectly; or constitutes recklessness or an act or omission
449	that was  in bad faith, with malicious purpose, or in a manner
450	exhibiting wanton and willful disregard of human rights, safety,
451	or property.
452	(12)  OFFICIAL RECORDS.--
453	(a)  From the inception of the association, the association
454	shall maintain each of the following items, when applicable,
455	which shall constitute the official records of the association:
456	1.  A copy of the plans, permits, warranties, and other
457	items provided by the developer pursuant to s. 718.301(4).
458	2.  A photocopy of the recorded declaration of condominium
459	of each condominium operated by the association and of each
460	amendment to each declaration.
461	3.  A photocopy of the recorded bylaws of the association
462	and of each amendment to the bylaws.
463	4.  A certified copy of the articles of incorporation of
464	the association, or other documents creating the association,
465	and of each amendment thereto.
466	5.  A copy of the current rules of the association.
467	6.  A book or books which contain the minutes of all
468	meetings of the association, of the board of administration
469	directors, and of unit owners, which minutes shall be retained
470	for a period of not less than 7 years.
471	7.  A current roster of all unit owners and their mailing
472	addresses, unit identifications, voting certifications, and, if
473	known, telephone numbers. The association shall also maintain
474	the electronic mailing addresses and the numbers designated by
475	unit owners for receiving notice sent by electronic transmission
476	of those unit owners consenting to receive notice by electronic
477	transmission. The electronic mailing addresses and numbers
478	provided by unit owners to receive notice by electronic
479	transmission shall be removed from association records when
480	consent to receive notice by electronic transmission is revoked.
481	However, the association is not liable for an erroneous
482	disclosure of the electronic mail address or the number for
483	receiving electronic transmission of notices.
484	8.  All current insurance policies of the association and
485	condominiums operated by the association.
486	9.  A current copy of any management agreement, lease, or
487	other contract to which the association is a party or under
488	which the association or the unit owners have an obligation or
489	responsibility.
490	10.  Bills of sale or transfer for all property owned by
491	the association.
492	11.  Accounting records for the association and separate
493	accounting records for each condominium which the association
494	operates. All accounting records shall be maintained for a
495	period of not less than 7 years. Any person who knowingly or
496	intentionally defaces or destroys accounting records required to
497	be maintained by this chapter, or who knowingly or intentionally
498	fails to create or maintain accounting records required to be
499	maintained by this chapter, is personally subject to a civil
500	penalty pursuant to s. 718.501(1)(d). The accounting records
501	shall include, but are not limited to:
502	a.  Accurate, itemized, and detailed records of all
503	receipts and expenditures.
504	b.  A current account and a monthly, bimonthly, or
505	quarterly statement of the account for each unit designating the
506	name of the unit owner, the due date and amount of each
507	assessment, the amount paid upon the account, and the balance
508	due.
509	c.  All audits, reviews, accounting statements, and
510	financial reports of the association or condominium.
511	d.  All contracts for work to be performed. Bids for work
512	to be performed shall also be considered official records and
513	shall be maintained by the association for a period of 1 year.
514	12.  Ballots, sign-in sheets, voting proxies, and all other
515	papers relating to voting by unit owners, which shall be
516	maintained for a period of 1 year from the date of the election,
517	vote, or meeting to which the document relates, notwithstanding
518	paragraph (b).
519	13.  All rental records, when the association is acting as
520	agent for the rental of condominium units.
521	14.  A copy of the current question and answer sheet as
522	described by s. 718.504.
523	15.  All other records of the association not specifically
524	included in the foregoing which are related to the operation of
525	the association.
526	16.  A copy of the inspection report as provided for in s.
527	718.301(4)(p).
528	(b)  The official records of the association shall be
529	maintained within the state for at least 7 years. The records of
530	the association shall be made available to a unit owner within
531	45 miles of the condominium property within 5 working days after
532	receipt of written request by the board or its designee.
533	However, such distance requirement does not apply to an
534	association governing a timeshare condominium. This paragraph
535	may be complied with by having a copy of the official records of
536	the association available for inspection or copying on the
537	condominium property or association property. The association
538	may offer the option of making the records of the association
539	available to a unit owner either electronically via the Internet
540	or by allowing the records to be viewed in electronic format on
541	a computer screen and printed upon request.
542	(c)  The official records of the association are open to
543	inspection by any association member or the authorized
544	representative of such member at all reasonable times. The right
545	to inspect the records includes the right to make or obtain
546	copies, at the reasonable expense, if any, of the association
547	member. The association may adopt reasonable rules regarding the
548	frequency, time, location, notice, and manner of record
549	inspections and copying. The failure of an association to
550	provide the records within 10 working days after receipt of a
551	written request shall create a rebuttable presumption that the
552	association willfully failed to comply with this paragraph. A
553	unit owner who is denied access to official records is entitled
554	to the actual damages or minimum damages for the association's
555	willful failure to comply with this paragraph. The minimum
556	damages shall be $50 per calendar day up to 10 days, the
557	calculation to begin on the 11th working day after receipt of
558	the written request. The failure to permit inspection of the
559	association records as provided herein entitles any person
560	prevailing in an enforcement action to recover reasonable
561	attorney's fees from the person in control of the records who,
562	directly or indirectly, knowingly denied access to the records
563	for inspection. Any person who knowingly or intentionally
564	defaces or destroys accounting records that are required by this
565	chapter, or knowingly or intentionally fails to create or
566	maintain accounting records that are required by this chapter,
567	is personally subject to a civil penalty pursuant to s.
568	718.501(1)(d). The association shall maintain an adequate number
569	of copies of the declaration, articles of incorporation, bylaws,
570	and rules, and all amendments to each of the foregoing, as well
571	as the question and answer sheet provided for in s. 718.504 and
572	year-end financial information required in this section on the
573	condominium property to ensure their availability to unit owners
574	and prospective purchasers, and may charge its actual costs for
575	preparing and furnishing these documents to those requesting the
576	same. Notwithstanding the provisions of this paragraph, the
577	following records shall not be accessible to unit owners:
578	1.  Any record protected by the lawyer-client privilege as
579	described in s. 90.502; and any record protected by the work-
580	product privilege, including any record prepared by an
581	association attorney or prepared at the attorney's express
582	direction; which reflects a mental impression, conclusion,
583	litigation strategy, or legal theory of the attorney or the
584	association, and which was prepared exclusively for civil or
585	criminal litigation or for adversarial administrative
586	proceedings, or which was prepared in anticipation of imminent
587	civil or criminal litigation or imminent adversarial
588	administrative proceedings until the conclusion of the
589	litigation or adversarial administrative proceedings.
590	2.  Information obtained by an association in connection
591	with the approval of the lease, sale, or other transfer of a
592	unit.
593	3.  Medical records of unit owners.
594	4.  Social security numbers, driver's license numbers,
595	credit card numbers, and other personal identifying information
596	of any person.
597	(d)  The association shall prepare a question and answer
598	sheet as described in s. 718.504, and shall update it annually.
599	(e)1.  The association or its authorized agent is not
600	required to provide a prospective purchaser or lienholder with
601	information about the condominium or the association other than
602	information or documents required by this chapter to be made
603	available or disclosed. The association or its authorized agent
604	may charge a reasonable fee to the prospective purchaser,
605	lienholder, or the current unit owner for providing good faith
606	responses to requests for information by or on behalf of a
607	prospective purchaser or lienholder, other than that required by
608	law, if the fee does not exceed $150 plus the reasonable cost of
609	photocopying and any attorney's fees incurred by the association
610	in connection with the response.
611	2.  An association and its authorized agent are not liable
612	for providing such information in good faith pursuant to a
613	written request if the person providing the information includes
614	a written statement in substantially the following form: "The
615	responses herein are made in good faith and to the best of my
616	ability as to their accuracy."
617	(13)  FINANCIAL REPORTING.--Within 90 days after the end of
618	the fiscal year, or annually on a date provided in the bylaws,
619	the association shall prepare and complete, or contract for the
620	preparation and completion of, a financial report for the
621	preceding fiscal year. Within 21 days after the final financial
622	report is completed by the association or received from the
623	third party, but not later than 120 days after the end of the
624	fiscal year or other date as provided in the bylaws, the
625	association shall mail to each unit owner at the address last
626	furnished to the association by the unit owner, or hand deliver
627	to each unit owner, a copy of the financial report or a notice
628	that a copy of the financial report will be mailed or hand
629	delivered to the unit owner, without charge, upon receipt of a
630	written request from the unit owner. The division shall adopt
631	rules setting forth uniform accounting principles and standards
632	to be used by all associations and shall adopt rules addressing
633	financial reporting requirements for multicondominium
634	associations. The rules shall include, but not be limited to,
635	uniform accounting principles and standards for stating the
636	disclosure of at least a summary of the reserves, including
637	information as to whether such reserves are being funded at a
638	level sufficient to prevent the need for a special assessment
639	and, if not, the amount of assessments necessary to bring the
640	reserves up to the level necessary to avoid a special
641	assessment. The person preparing the financial reports shall be
642	entitled to rely on an inspection report prepared for or
643	provided to the association to meet the fiscal and fiduciary
644	standards of this chapter. In adopting such rules, the division
645	shall consider the number of members and annual revenues of an
646	association. Financial reports shall be prepared as follows:
647	(a)  An association that meets the criteria of this
648	paragraph shall prepare or cause to be prepared a complete set
649	of financial statements in accordance with generally accepted
650	accounting principles. The financial statements shall be based
651	upon the association's total annual revenues, as follows:
652	1.  An association with total annual revenues of $100,000
653	or more, but less than $200,000, shall prepare compiled
654	financial statements.
655	2.  An association with total annual revenues of at least
656	$200,000, but less than $400,000, shall prepare reviewed
657	financial statements.
658	3.  An association with total annual revenues of $400,000
659	or more shall prepare audited financial statements.
660	(b)1.  An association with total annual revenues of less
661	than $100,000 shall prepare a report of cash receipts and
662	expenditures.
663	2.  An association which operates less than 50 units,
664	regardless of the association's annual revenues, shall prepare a
665	report of cash receipts and expenditures in lieu of financial
666	statements required by paragraph (a).
667	3.  A report of cash receipts and disbursements must
668	disclose the amount of receipts by accounts and receipt
669	classifications and the amount of expenses by accounts and
670	expense classifications, including, but not limited to, the
671	following, as applicable: costs for security, professional and
672	management fees and expenses, taxes, costs for recreation
673	facilities, expenses for refuse collection and utility services,
674	expenses for lawn care, costs for building maintenance and
675	repair, insurance costs, administration and salary expenses, and
676	reserves accumulated and expended for capital expenditures,
677	deferred maintenance, and any other category for which the
678	association maintains reserves.
679	(c)  An association may prepare or cause to be prepared,
680	without a meeting of or approval by the unit owners:
681	1.  Compiled, reviewed, or audited financial statements, if
682	the association is required to prepare a report of cash receipts
683	and expenditures;
684	2.  Reviewed or audited financial statements, if the
685	association is required to prepare compiled financial
686	statements; or
687	3.  Audited financial statements if the association is
688	required to prepare reviewed financial statements.
689	(d)  If approved by a majority of the voting interests
690	present at a properly called meeting of the association, an
691	association may prepare or cause to be prepared:
692	1.  A report of cash receipts and expenditures in lieu of a
693	compiled, reviewed, or audited financial statement;
694	2.  A report of cash receipts and expenditures or a
695	compiled financial statement in lieu of a reviewed or audited
696	financial statement; or
697	3.  A report of cash receipts and expenditures, a compiled
698	financial statement, or a reviewed financial statement in lieu
699	of an audited financial statement.
700
701	Such meeting and approval must occur prior to the end of the
702	fiscal year and is effective only for the fiscal year in which
703	the vote is taken, except that the approval also may be
704	effective for the following fiscal year. With respect to an
705	association to which the developer has not turned over control
706	of the association, all unit owners, including the developer,
707	may vote on issues related to the preparation of financial
708	reports for the first 2 fiscal years of the association's
709	operation, beginning with the fiscal year in which the
710	declaration is recorded. Thereafter, all unit owners except the
711	developer may vote on such issues until control is turned over
712	to the association by the developer. Any audit or review
713	prepared under this section shall be paid for by the developer
714	if done prior to turnover of control of the association. An
715	association may not waive the financial reporting requirements
716	of this section for more than 4 consecutive years.
717	Section 7.  Subsection (2) of section 718.112, Florida
718	Statutes, is amended to read:
719	718.112  Bylaws.--
720	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
721	following and, if they do not do so, shall be deemed to include
722	the following:
723	(a)  Administration.--
724	1.  The form of administration of the association shall be
725	described indicating the title of the officers and board of
726	administration and specifying the powers, duties, manner of
727	selection and removal, and compensation, if any, of officers and
728	boards. In the absence of such a provision, the board of
729	administration shall be composed of five members, except in the
730	case of a condominium which has five or fewer units, in which
731	case in a not-for-profit corporation the board shall consist of
732	not fewer than three members. In the absence of provisions to
733	the contrary in the bylaws, the board of administration shall
734	have a president, a secretary, and a treasurer, who shall
735	perform the duties of such officers customarily performed by
736	officers of corporations. Unless prohibited in the bylaws, the
737	board of administration may appoint other officers and grant
738	them the duties it deems appropriate. Unless otherwise provided
739	in the bylaws, the officers shall serve without compensation and
740	at the pleasure of the board of administration. Unless otherwise
741	provided in the bylaws, the members of the board shall serve
742	without compensation.
743	2.  When a unit owner files a written inquiry by certified
744	mail with the board of administration, the board shall respond
745	in writing to the unit owner within 30 days of receipt of the
746	inquiry. The board's response shall either give a substantive
747	response to the inquirer, notify the inquirer that a legal
748	opinion has been requested, or notify the inquirer that advice
749	has been requested from the division. If the board requests
750	advice from the division, the board shall, within 10 days of its
751	receipt of the advice, provide in writing a substantive response
752	to the inquirer. If a legal opinion is requested, the board
753	shall, within 60 days after the receipt of the inquiry, provide
754	in writing a substantive response to the inquiry. The failure to
755	provide a substantive response to the inquiry as provided herein
756	precludes the board from recovering attorney's fees and costs in
757	any subsequent litigation, administrative proceeding, or
758	arbitration arising out of the inquiry. The association may
759	through its board of administration adopt reasonable rules and
760	regulations regarding the frequency and manner of responding to
761	unit owner inquiries, one of which may be that the association
762	is only obligated to respond to one written inquiry per unit in
763	any given 30-day period. In such a case, any additional inquiry
764	or inquiries must be responded to in the subsequent 30-day
765	period, or periods, as applicable.
766	(b)  Quorum; voting requirements; proxies.--
767	1.  Unless a lower number is provided in the bylaws, the
768	percentage of voting interests required to constitute a quorum
769	at a meeting of the members shall be a majority of the voting
770	interests. Unless otherwise provided in this chapter or in the
771	declaration, articles of incorporation, or bylaws, and except as
772	provided in subparagraph (d)3., decisions shall be made by
773	owners of a majority of the voting interests represented at a
774	meeting at which a quorum is present.
775	2.  Except as specifically otherwise provided herein, after
776	January 1, 1992, unit owners may not vote by general proxy, but
777	may vote by limited proxies substantially conforming to a
778	limited proxy form adopted by the division. No voting interest
779	or consent right allocated to a unit owned by the association
780	shall be exercised or considered for any purpose, whether for a
781	quorum, an election, or otherwise. Limited proxies and general
782	proxies may be used to establish a quorum. Limited proxies shall
783	be used for votes taken to waive or reduce reserves in
784	accordance with subparagraph (f)2.; for votes taken to waive the
785	financial reporting requirements of s. 718.111(13); for votes
786	taken to amend the declaration pursuant to s. 718.110; for votes
787	taken to amend the articles of incorporation or bylaws pursuant
788	to this section; and for any other matter for which this chapter
789	requires or permits a vote of the unit owners. Except as
790	provided in paragraph (d), after January 1, 1992, no proxy,
791	limited or general, shall be used in the election of board
792	members. General proxies may be used for other matters for which
793	limited proxies are not required, and may also be used in voting
794	for nonsubstantive changes to items for which a limited proxy is
795	required and given. Notwithstanding the provisions of this
796	subparagraph, unit owners may vote in person at unit owner
797	meetings. Nothing contained herein shall limit the use of
798	general proxies or require the use of limited proxies for any
799	agenda item or election at any meeting of a timeshare
800	condominium association.
801	3.  Any proxy given shall be effective only for the
802	specific meeting for which originally given and any lawfully
803	adjourned meetings thereof. In no event shall any proxy be valid
804	for a period longer than 90 days after the date of the first
805	meeting for which it was given. Every proxy is revocable at any
806	time at the pleasure of the unit owner executing it.
807	4.  A member of the board of administration or a committee
808	may submit in writing his or her agreement or disagreement with
809	any action taken at a meeting that the member did not attend.
810	This agreement or disagreement may not be used as a vote for or
811	against the action taken and may not be used for the purposes of
812	creating a quorum.
813	5.  When any of the board or committee members meet by
814	telephone conference, those board or committee members attending
815	by telephone conference may be counted toward obtaining a quorum
816	and may vote by telephone. A telephone speaker must be used so
817	that the conversation of those board or committee members
818	attending by telephone may be heard by the board or committee
819	members attending in person as well as by any unit owners
820	present at a meeting.
821	(c)  Board of administration meetings.--Meetings of the
822	board of administration at which a quorum of the members is
823	present shall be open to all unit owners. Any unit owner may
824	tape record or videotape meetings of the board of
825	administration. The right to attend such meetings includes the
826	right to speak at such meetings with reference to all designated
827	agenda items. The division shall adopt reasonable rules
828	governing the tape recording and videotaping of the meeting. The
829	association may adopt written reasonable rules governing the
830	frequency, duration, and manner of unit owner statements.
831	Adequate notice of all meetings, which notice shall specifically
832	incorporate an identification of agenda items, shall be posted
833	conspicuously on the condominium property at least 48 continuous
834	hours preceding the meeting except in an emergency. If 20
835	percent of the voting interests petition the board to address an
836	item of business, the board shall at its next regular board
837	meeting or at a special meeting of the board, but not later than
838	60 days after the receipt of the petition, place the item on the
839	agenda. Any item not included on the notice may be taken up on
840	an emergency basis by at least a majority plus one of the
841	members of the board. Such emergency action shall be noticed and
842	ratified at the next regular meeting of the board. However,
843	written notice of any meeting at which nonemergency special
844	assessments, or at which amendment to rules regarding unit use,
845	will be considered shall be mailed, delivered, or electronically
846	transmitted to the unit owners and posted conspicuously on the
847	condominium property not less than 14 days prior to the meeting.
848	Evidence of compliance with this 14-day notice shall be made by
849	an affidavit executed by the person providing the notice and
850	filed among the official records of the association. Upon notice
851	to the unit owners, the board shall by duly adopted rule
852	designate a specific location on the condominium property or
853	association property upon which all notices of board meetings
854	shall be posted. If there is no condominium property or
855	association property upon which notices can be posted, notices
856	of board meetings shall be mailed, delivered, or electronically
857	transmitted at least 14 days before the meeting to the owner of
858	each unit. In lieu of or in addition to the physical posting of
859	notice of any meeting of the board of administration on the
860	condominium property, the association may, by reasonable rule,
861	adopt a procedure for conspicuously posting and repeatedly
862	broadcasting the notice and the agenda on a closed-circuit cable
863	television system serving the condominium association. However,
864	if broadcast notice is used in lieu of a notice posted
865	physically on the condominium property, the notice and agenda
866	must be broadcast at least four times every broadcast hour of
867	each day that a posted notice is otherwise required under this
868	section. When broadcast notice is provided, the notice and
869	agenda must be broadcast in a manner and for a sufficient
870	continuous length of time so as to allow an average reader to
871	observe the notice and read and comprehend the entire content of
872	the notice and the agenda. Notice of any meeting in which
873	regular or special assessments against unit owners are to be
874	considered for any reason shall specifically state contain a
875	statement that assessments will be considered and the nature,
876	estimated cost, and description of the purposes for any such
877	assessments. Meetings of a committee to take final action on
878	behalf of the board or make recommendations to the board
879	regarding the association budget are subject to the provisions
880	of this paragraph. Meetings of a committee that does not take
881	final action on behalf of the board or make recommendations to
882	the board regarding the association budget are subject to the
883	provisions of this section, unless those meetings are exempted
884	from this section by the bylaws of the association.
885	Notwithstanding any other law, the requirement that board
886	meetings and committee meetings be open to the unit owners is
887	inapplicable to meetings between the board or a committee and
888	the association's attorney, with respect to proposed or pending
889	litigation, when the meeting is held for the purpose of seeking
890	or rendering legal advice.
891	(d)  Unit owner meetings.--
892	1.  There shall be an annual meeting of the unit owners
893	held at the location provided in the association bylaws and, if
894	the bylaws are silent as to the location, the meeting shall be
895	held within 45 miles of the condominium property. However, such
896	distance requirement does not apply to an association governing
897	a timeshare condominium. Unless the bylaws provide otherwise, a
898	vacancy on the board caused by the expiration of a director's
899	term shall be filled by electing a new board member, and the
900	election shall be by secret ballot; however, if the number of
901	vacancies equals or exceeds the number of candidates, no
902	election is required. If there is no provision in the bylaws for
903	terms of the members of the board, The terms of all members of
904	the board shall expire upon the election of their successors at
905	the annual meeting and such board members may stand for
906	reelection. However, if no person is interested in or
907	demonstrates an intention to run for the position of a board
908	member whose term has expired according to the provisions of
909	this subparagraph, such board member whose term has expired
910	shall be automatically reappointed to the board of
911	administration and need not stand for reelection. In a
912	condominium association of more than 10 units, coowners of a
913	unit may not serve as members of the board of directors at the
914	same time. Any unit owner desiring to be a candidate for board
915	membership shall comply with subparagraph 3. A person who has
916	been suspended or removed by the division under this chapter, or
917	who is delinquent in the payment of any fee or assessment as
918	provided in paragraph (n), is not eligible for board membership.
919	A person who has been convicted of any felony in this state or
920	by any court of record in a the United States District or
921	Territorial Court, or who has been convicted of any offense in
922	another jurisdiction that would be considered a felony if
923	committed in this state, and who has not had his or her right to
924	vote restored pursuant to law in the jurisdiction of his or her
925	residence is not eligible for board membership unless such
926	felon's civil rights have been restored for a period of no less
927	than 5 years as of the date on which such person seeks election
928	to the board. The validity of an action by the board is not
929	affected if it is later determined that a member of the board is
930	ineligible for board membership due to having been convicted of
931	a felony.
932	2.  The bylaws shall provide the method of calling meetings
933	of unit owners, including annual meetings. Written notice, which
934	notice must include an agenda, shall be mailed, hand delivered,
935	or electronically transmitted to each unit owner at least 14
936	days prior to the annual meeting and shall be posted in a
937	conspicuous place on the condominium property at least 14
938	continuous days preceding the annual meeting. Upon notice to the
939	unit owners, the board shall by duly adopted rule designate a
940	specific location on the condominium property or association
941	property upon which all notices of unit owner meetings shall be
942	posted; however, if there is no condominium property or
943	association property upon which notices can be posted, this
944	requirement does not apply. In lieu of or in addition to the
945	physical posting of notice of any meeting of the unit owners on
946	the condominium property, the association may, by reasonable
947	rule, adopt a procedure for conspicuously posting and repeatedly
948	broadcasting the notice and the agenda on a closed-circuit cable
949	television system serving the condominium association. However,
950	if broadcast notice is used in lieu of a notice posted
951	physically on the condominium property, the notice and agenda
952	must be broadcast at least four times every broadcast hour of
953	each day that a posted notice is otherwise required under this
954	section. When broadcast notice is provided, the notice and
955	agenda must be broadcast in a manner and for a sufficient
956	continuous length of time so as to allow an average reader to
957	observe the notice and read and comprehend the entire content of
958	the notice and the agenda. Unless a unit owner waives in writing
959	the right to receive notice of the annual meeting, such notice
960	shall be hand delivered, mailed, or electronically transmitted
961	to each unit owner. Notice for meetings and notice for all other
962	purposes shall be mailed to each unit owner at the address last
963	furnished to the association by the unit owner, or hand
964	delivered to each unit owner. However, if a unit is owned by
965	more than one person, the association shall provide notice, for
966	meetings and all other purposes, to that one address which the
967	developer initially identifies for that purpose and thereafter
968	as one or more of the owners of the unit shall so advise the
969	association in writing, or if no address is given or the owners
970	of the unit do not agree, to the address provided on the deed of
971	record. An officer of the association, or the manager or other
972	person providing notice of the association meeting, shall
973	provide an affidavit or United States Postal Service certificate
974	of mailing, to be included in the official records of the
975	association affirming that the notice was mailed or hand
976	delivered, in accordance with this provision.
977	3.  The members of the board shall be elected by written
978	ballot or voting machine. Proxies shall in no event be used in
979	electing the board, either in general elections or elections to
980	fill vacancies caused by recall, resignation, or otherwise,
981	unless otherwise provided in this chapter. Not less than 60 days
982	before a scheduled election, the association shall mail,
983	deliver, or electronically transmit, whether by separate
984	association mailing or included in another association mailing,
985	delivery, or transmission, including regularly published
986	newsletters, to each unit owner entitled to a vote, a first
987	notice of the date of the election along with a certification
988	form provided by the division attesting that he or she has read
989	and understands, to the best of his or her ability, the
990	governing documents of the association and the provisions of
991	this chapter and any applicable rules. Any unit owner or other
992	eligible person desiring to be a candidate for the board must
993	give written notice to the association not less than 40 days
994	before a scheduled election. Together with the written notice
995	and agenda as set forth in subparagraph 2., the association
996	shall mail, deliver, or electronically transmit a second notice
997	of the election to all unit owners entitled to vote therein,
998	together with a ballot which shall list all candidates. Upon
999	request of a candidate, the association shall include an
1000	information sheet, no larger than 81/2 inches by 11 inches,
1001	which must be furnished by the candidate not less than 35 days
1002	before the election, along with the signed certification form
1003	provided for in this subparagraph, to be included with the
1004	mailing, delivery, or transmission of the ballot, with the costs
1005	of mailing, delivery, or electronic transmission and copying to
1006	be borne by the association. The association is not liable for
1007	the contents of the information sheets prepared by the
1008	candidates. In order to reduce costs, the association may print
1009	or duplicate the information sheets on both sides of the paper.
1010	The division shall by rule establish voting procedures
1011	consistent with the provisions contained herein, including rules
1012	establishing procedures for giving notice by electronic
1013	transmission and rules providing for the secrecy of ballots.
1014	Elections shall be decided by a plurality of those ballots cast.
1015	There shall be no quorum requirement; however, at least 20
1016	percent of the eligible voters must cast a ballot in order to
1017	have a valid election of members of the board. No unit owner
1018	shall permit any other person to vote his or her ballot, and any
1019	such ballots improperly cast shall be deemed invalid, provided
1020	any unit owner who violates this provision may be fined by the
1021	association in accordance with s. 718.303. A unit owner who
1022	needs assistance in casting the ballot for the reasons stated in
1023	s. 101.051 may obtain assistance in casting the ballot. The
1024	regular election shall occur on the date of the annual meeting.
1025	The provisions of this subparagraph shall not apply to timeshare
1026	condominium associations. Notwithstanding the provisions of this
1027	subparagraph, an election is not required unless more candidates
1028	file notices of intent to run or are nominated than board
1029	vacancies exist.
1030	4.  Any approval by unit owners called for by this chapter
1031	or the applicable declaration or bylaws, including, but not
1032	limited to, the approval requirement in s. 718.111(8), shall be
1033	made at a duly noticed meeting of unit owners and shall be
1034	subject to all requirements of this chapter or the applicable
1035	condominium documents relating to unit owner decisionmaking,
1036	except that unit owners may take action by written agreement,
1037	without meetings, on matters for which action by written
1038	agreement without meetings is expressly allowed by the
1039	applicable bylaws or declaration or any statute that provides
1040	for such action.
1041	5.  Unit owners may waive notice of specific meetings if
1042	allowed by the applicable bylaws or declaration or any statute.
1043	If authorized by the bylaws, notice of meetings of the board of
1044	administration, unit owner meetings, except unit owner meetings
1045	called to recall board members under paragraph (j), and
1046	committee meetings may be given by electronic transmission to
1047	unit owners who consent to receive notice by electronic
1048	transmission.
1049	6.  Unit owners shall have the right to participate in
1050	meetings of unit owners with reference to all designated agenda
1051	items. However, the association may adopt reasonable rules
1052	governing the frequency, duration, and manner of unit owner
1053	participation.
1054	7.  Any unit owner may tape record or videotape a meeting
1055	of the unit owners subject to reasonable rules adopted by the
1056	division.
1057	8.  Unless otherwise provided in the bylaws, any vacancy
1058	occurring on the board before the expiration of a term may be
1059	filled by the affirmative vote of the majority of the remaining
1060	directors, even if the remaining directors constitute less than
1061	a quorum, or by the sole remaining director. In the alternative,
1062	a board may hold an election to fill the vacancy, in which case
1063	the election procedures must conform to the requirements of
1064	subparagraph 3. unless the association governs 10 units or less
1065	and has opted out of the statutory election process, in which
1066	case the bylaws of the association control. Unless otherwise
1067	provided in the bylaws, a board member appointed or elected
1068	under this section shall fill the vacancy for the unexpired term
1069	of the seat being filled. Filling vacancies created by recall is
1070	governed by paragraph (j) and rules adopted by the division.
1071
1072	Notwithstanding subparagraphs (b)2. and (d)3., an association of
1073	10 or fewer units may, by the affirmative vote of a majority of
1074	the total voting interests, provide for different voting and
1075	election procedures in its bylaws, which vote may be by a proxy
1076	specifically delineating the different voting and election
1077	procedures. The different voting and election procedures may
1078	provide for elections to be conducted by limited or general
1079	proxy.
1080	(e)  Budget meeting.--
1081	1.  Any meeting at which a proposed annual budget of an
1082	association will be considered by the board or unit owners shall
1083	be open to all unit owners. At least 14 days prior to such a
1084	meeting, the board shall hand deliver to each unit owner, mail
1085	to each unit owner at the address last furnished to the
1086	association by the unit owner, or electronically transmit to the
1087	location furnished by the unit owner for that purpose a notice
1088	of such meeting and a copy of the proposed annual budget. An
1089	officer or manager of the association, or other person providing
1090	notice of such meeting, shall execute an affidavit evidencing
1091	compliance with such notice requirement, and such affidavit
1092	shall be filed among the official records of the association.
1093	2.a.  If a board adopts in any fiscal year an annual budget
1094	which requires assessments against unit owners which exceed 115
1095	percent of assessments for the preceding fiscal year, the board
1096	shall conduct a special meeting of the unit owners to consider a
1097	substitute budget if the board receives, within 21 days after
1098	adoption of the annual budget, a written request for a special
1099	meeting from at least 10 percent of all voting interests. The
1100	special meeting shall be conducted within 60 days after adoption
1101	of the annual budget. At least 14 days prior to such special
1102	meeting, the board shall hand deliver to each unit owner, or
1103	mail to each unit owner at the address last furnished to the
1104	association, a notice of the meeting. An officer or manager of
1105	the association, or other person providing notice of such
1106	meeting shall execute an affidavit evidencing compliance with
1107	this notice requirement, and such affidavit shall be filed among
1108	the official records of the association. Unit owners may
1109	consider and adopt a substitute budget at the special meeting. A
1110	substitute budget is adopted if approved by a majority of all
1111	voting interests unless the bylaws require adoption by a greater
1112	percentage of voting interests. If there is not a quorum at the
1113	special meeting or a substitute budget is not adopted, the
1114	annual budget previously adopted by the board shall take effect
1115	as scheduled.
1116	b.  Any determination of whether assessments exceed 115
1117	percent of assessments for the prior fiscal year shall exclude
1118	any authorized provision for reasonable reserves for repair or
1119	replacement of the condominium property, anticipated expenses of
1120	the association which the board does not expect to be incurred
1121	on a regular or annual basis, or assessments for betterments to
1122	the condominium property.
1123	c.  If the developer controls the board, assessments shall
1124	not exceed 115 percent of assessments for the prior fiscal year
1125	unless approved by a majority of all voting interests.
1126	(f)  Annual budget.--
1127	1.  The proposed annual budget of estimated revenues and
1128	common expenses shall be detailed and shall show the amounts
1129	budgeted by accounts and expense classifications, including, if
1130	applicable, but not limited to, those expenses listed in s.
1131	718.504(21). A multicondominium association shall adopt a
1132	separate budget of common expenses for each condominium the
1133	association operates and shall adopt a separate budget of common
1134	expenses for the association. In addition, if the association
1135	maintains limited common elements with the cost to be shared
1136	only by those entitled to use the limited common elements as
1137	provided for in s. 718.113(1), the budget or a schedule attached
1138	thereto shall show amounts budgeted therefor. If, after turnover
1139	of control of the association to the unit owners, any of the
1140	expenses listed in s. 718.504(21) are not applicable, they need
1141	not be listed.
1142	2.  In addition to annual operating expenses, the budget
1143	shall include reserve accounts for capital expenditures and
1144	deferred maintenance. These accounts shall include, but are not
1145	limited to, roof replacement, building painting, and pavement
1146	resurfacing, regardless of the amount of deferred maintenance
1147	expense or replacement cost, and for any other item for which
1148	the deferred maintenance expense or replacement cost exceeds
1149	$10,000. The amount to be reserved shall be computed by means of
1150	a formula which is based upon estimated remaining useful life
1151	and estimated replacement cost or deferred maintenance expense
1152	of each reserve item. The association may adjust replacement
1153	reserve assessments annually to take into account any changes in
1154	estimates or extension of the useful life of a reserve item
1155	caused by deferred maintenance. This subsection does not apply
1156	to an adopted budget in which the members of an association have
1157	determined, by a majority vote at a duly called meeting of the
1158	association, to provide no reserves or less reserves than
1159	required by this subsection. However, prior to turnover of
1160	control of an association by a developer to unit owners other
1161	than a developer pursuant to s. 718.301, the developer may vote
1162	to waive the reserves or reduce the funding of reserves for the
1163	first 2 fiscal years of the association's operation, beginning
1164	with the fiscal year in which the initial declaration is
1165	recorded, after which time reserves may be waived or reduced
1166	only upon the vote of a majority of all nondeveloper voting
1167	interests voting in person or by limited proxy at a duly called
1168	meeting of the association. If a meeting of the unit owners has
1169	been called to determine whether to waive or reduce the funding
1170	of reserves, and no such result is achieved or a quorum is not
1171	attained, the reserves as included in the budget shall go into
1172	effect. After the turnover, the developer may vote its voting
1173	interest to waive or reduce the funding of reserves.
1174	3.  Reserve funds and any interest accruing thereon shall
1175	remain in the reserve account or accounts, and shall be used
1176	only for authorized reserve expenditures unless their use for
1177	other purposes is approved in advance by a majority vote at a
1178	duly called meeting of the association. Prior to turnover of
1179	control of an association by a developer to unit owners other
1180	than the developer pursuant to s. 718.301, the developer-
1181	controlled association shall not vote to use reserves for
1182	purposes other than that for which they were intended without
1183	the approval of a majority of all nondeveloper voting interests,
1184	voting in person or by limited proxy at a duly called meeting of
1185	the association.
1186	4.  The only voting interests which are eligible to vote on
1187	questions that involve waiving or reducing the funding of
1188	reserves, or using existing reserve funds for purposes other
1189	than purposes for which the reserves were intended, are the
1190	voting interests of the units subject to assessment to fund the
1191	reserves in question. Proxy questions relating to waiving or
1192	reducing the funding of reserves or using existing reserve funds
1193	for purposes other than purposes for which the reserves were
1194	intended shall contain the following statement in capitalized,
1195	bold letters in a font size larger than any other used on the
1196	face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1197	PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
1198	RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
1199	SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
1200	(g)  Assessments.--The manner of collecting from the unit
1201	owners their shares of the common expenses shall be stated in
1202	the bylaws. Assessments shall be made against units not less
1203	frequently than quarterly in an amount which is not less than
1204	that required to provide funds in advance for payment of all of
1205	the anticipated current operating expenses and for all of the
1206	unpaid operating expenses previously incurred. Nothing in this
1207	paragraph shall preclude the right of an association to
1208	accelerate assessments of an owner delinquent in payment of
1209	common expenses. Accelerated assessments shall be due and
1210	payable on the date the claim of lien is filed. Such accelerated
1211	assessments shall include the amounts due for the remainder of
1212	the budget year in which the claim of lien was filed.
1213	(h)  Amendment of bylaws.--
1214	1.  The method by which the bylaws may be amended
1215	consistent with the provisions of this chapter shall be stated.
1216	If the bylaws fail to provide a method of amendment, the bylaws
1217	may be amended if the amendment is approved by the owners of not
1218	less than two-thirds of the voting interests.
1219	2.  No bylaw shall be revised or amended by reference to
1220	its title or number only. Proposals to amend existing bylaws
1221	shall contain the full text of the bylaws to be amended; new
1222	words shall be inserted in the text underlined, and words to be
1223	deleted shall be lined through with hyphens. However, if the
1224	proposed change is so extensive that this procedure would
1225	hinder, rather than assist, the understanding of the proposed
1226	amendment, it is not necessary to use underlining and hyphens as
1227	indicators of words added or deleted, but, instead, a notation
1228	must be inserted immediately preceding the proposed amendment in
1229	substantially the following language: "Substantial rewording of
1230	bylaw. See bylaw _____ for present text."
1231	3.  Nonmaterial errors or omissions in the bylaw process
1232	will not invalidate an otherwise properly promulgated amendment.
1233	(i)  Transfer fees.--No charge shall be made by the
1234	association or any body thereof in connection with the sale,
1235	mortgage, lease, sublease, or other transfer of a unit unless
1236	the association is required to approve such transfer and a fee
1237	for such approval is provided for in the declaration, articles,
1238	or bylaws. Any such fee may be preset, but in no event may such
1239	fee exceed $100 per applicant other than husband/wife or
1240	parent/dependent child, which are considered one applicant.
1241	However, if the lease or sublease is a renewal of a lease or
1242	sublease with the same lessee or sublessee, no charge shall be
1243	made. The foregoing notwithstanding, an association may, if the
1244	authority to do so appears in the declaration or bylaws, require
1245	that a prospective lessee place a security deposit, in an amount
1246	not to exceed the equivalent of 1 month's rent, into an escrow
1247	account maintained by the association. The security deposit
1248	shall protect against damages to the common elements or
1249	association property. Payment of interest, claims against the
1250	deposit, refunds, and disputes under this paragraph shall be
1251	handled in the same fashion as provided in part II of chapter
1252	83.
1253	(j)  Recall of board members.--Subject to the provisions of
1254	s. 718.301, any member of the board of administration may be
1255	recalled and removed from office with or without cause by the
1256	vote or agreement in writing by a majority of all the voting
1257	interests. A special meeting of the unit owners to recall a
1258	member or members of the board of administration may be called
1259	by 10 percent of the voting interests giving notice of the
1260	meeting as required for a meeting of unit owners, and the notice
1261	shall state the purpose of the meeting. Electronic transmission
1262	may not be used as a method of giving notice of a meeting called
1263	in whole or in part for this purpose.
1264	1.  If the recall is approved by a majority of all voting
1265	interests by a vote at a meeting, the recall will be effective
1266	as provided herein. The board shall duly notice and hold a board
1267	meeting within 5 full business days of the adjournment of the
1268	unit owner meeting to recall one or more board members. At the
1269	meeting, the board shall either certify the recall, in which
1270	case such member or members shall be recalled effective
1271	immediately and shall turn over to the board within 5 full
1272	business days any and all records and property of the
1273	association in their possession, or shall proceed as set forth
1274	in subparagraph 3.
1275	2.  If the proposed recall is by an agreement in writing by
1276	a majority of all voting interests, the agreement in writing or
1277	a copy thereof shall be served on the association by certified
1278	mail or by personal service in the manner authorized by chapter
1279	48 and the Florida Rules of Civil Procedure. The board of
1280	administration shall duly notice and hold a meeting of the board
1281	within 5 full business days after receipt of the agreement in
1282	writing. At the meeting, the board shall either certify the
1283	written agreement to recall a member or members of the board, in
1284	which case such member or members shall be recalled effective
1285	immediately and shall turn over to the board within 5 full
1286	business days any and all records and property of the
1287	association in their possession, or proceed as described in
1288	subparagraph 3.
1289	3.  If the board determines not to certify the written
1290	agreement to recall a member or members of the board, or does
1291	not certify the recall by a vote at a meeting, the board shall,
1292	within 5 full business days after the meeting, file with the
1293	division a petition for arbitration pursuant to the procedures
1294	in s. 718.1255. For the purposes of this section, the unit
1295	owners who voted at the meeting or who executed the agreement in
1296	writing shall constitute one party under the petition for
1297	arbitration. If the arbitrator certifies the recall as to any
1298	member or members of the board, the recall will be effective
1299	upon mailing of the final order of arbitration to the
1300	association. If the association fails to comply with the order
1301	of the arbitrator, the division may take action pursuant to s.
1302	718.501. Any member or members so recalled shall deliver to the
1303	board any and all records of the association in their possession
1304	within 5 full business days of the effective date of the recall.
1305	4.  If the board fails to duly notice and hold a board
1306	meeting within 5 full business days of service of an agreement
1307	in writing or within 5 full business days of the adjournment of
1308	the unit owner recall meeting, the recall shall be deemed
1309	effective and the board members so recalled shall immediately
1310	turn over to the board any and all records and property of the
1311	association.
1312	5.  If a vacancy occurs on the board as a result of a
1313	recall or removal and less than a majority of the board members
1314	are removed, the vacancy may be filled by the affirmative vote
1315	of a majority of the remaining directors, notwithstanding any
1316	provision to the contrary contained in this subsection. If
1317	vacancies occur on the board as a result of a recall and a
1318	majority or more of the board members are removed, the vacancies
1319	shall be filled in accordance with procedural rules to be
1320	adopted by the division, which rules need not be consistent with
1321	this subsection. The rules must provide procedures governing the
1322	conduct of the recall election as well as the operation of the
1323	association during the period after a recall but prior to the
1324	recall election.
1325	(k)  Arbitration.--There shall be a provision for mandatory
1326	nonbinding arbitration as provided for in s. 718.1255.
1327	(l)  Certificate of compliance.--There shall be a provision
1328	that a certificate of compliance from a licensed electrical
1329	contractor or electrician may be accepted by the association's
1330	board as evidence of compliance of the condominium units with
1331	the applicable fire and life safety code. Notwithstanding the
1332	provisions of chapter 633 or of any other code, statute,
1333	ordinance, administrative rule, or regulation, or any
1334	interpretation of the foregoing, an association, condominium, or
1335	unit owner is not obligated to retrofit the common elements or
1336	units of a residential condominium with a fire sprinkler system
1337	or other engineered lifesafety system in a building that has
1338	been certified for occupancy by the applicable governmental
1339	entity, if the unit owners have voted to forego such
1340	retrofitting and engineered lifesafety system by the affirmative
1341	vote of two-thirds of all voting interests in the affected
1342	condominium. However, a condominium association may not vote to
1343	forego the retrofitting with a fire sprinkler system of common
1344	areas in a high-rise building. For purposes of this subsection,
1345	the term "high-rise building" means a building that is greater
1346	than 75 feet in height where the building height is measured
1347	from the lowest level of fire department access to the floor of
1348	the highest occupiable story. For purposes of this subsection,
1349	the term "common areas" means any enclosed hallway, corridor,
1350	lobby, stairwell, or entryway. In no event shall the local
1351	authority having jurisdiction require completion of retrofitting
1352	of common areas with a sprinkler system before the end of 2014.
1353	1.  A vote to forego retrofitting may be obtained by
1354	limited proxy or by a ballot personally cast at a duly called
1355	membership meeting, or by execution of a written consent by the
1356	member, and shall be effective upon the recording of a
1357	certificate attesting to such vote in the public records of the
1358	county where the condominium is located. The association shall
1359	mail, hand deliver, or electronically transmit to each unit
1360	owner written notice at least 14 days prior to such membership
1361	meeting in which the vote to forego retrofitting of the required
1362	fire sprinkler system is to take place. Within 30 days after the
1363	association's opt-out vote, notice of the results of the opt-out
1364	vote shall be mailed, hand delivered, or electronically
1365	transmitted to all unit owners. Evidence of compliance with this
1366	30-day notice shall be made by an affidavit executed by the
1367	person providing the notice and filed among the official records
1368	of the association. After such notice is provided to each owner,
1369	a copy of such notice shall be provided by the current owner to
1370	a new owner prior to closing and shall be provided by a unit
1371	owner to a renter prior to signing a lease.
1372	2.  As part of the information collected annually from
1373	condominiums, the division shall require condominium
1374	associations to report the membership vote and recording of a
1375	certificate under this subsection and, if retrofitting has been
1376	undertaken, the per-unit cost of such work. The division shall
1377	annually report to the Division of State Fire Marshal of the
1378	Department of Financial Services the number of condominiums that
1379	have elected to forego retrofitting.
1380	(m)  Common elements; limited power to convey.--
1381	1.  With respect to condominiums created on or after
1382	October 1, 1994, the bylaws shall include a provision granting
1383	the association a limited power to convey a portion of the
1384	common elements to a condemning authority for the purpose of
1385	providing utility easements, right-of-way expansion, or other
1386	public purposes, whether negotiated or as a result of eminent
1387	domain proceedings.
1388	2.  In any case where the bylaws are silent as to the
1389	association's power to convey common elements as described in
1390	subparagraph 1., the bylaws shall be deemed to include the
1391	provision described in subparagraph 1.
1392	(n)  Director or officer delinquencies.--A director or
1393	officer more than 90 days delinquent in the payment of regular
1394	assessments shall be deemed to have abandoned the office,
1395	creating a vacancy in the office to be filled according to law.
1396	(o)  Director and officer offenses.--A director or officer
1397	charged with a felony theft or embezzlement offense involving
1398	the association's funds or property shall be removed from
1399	office, creating a vacancy in the office to be filled according
1400	to law. While such director or officer has such criminal charge
1401	pending, he or she may not be appointed or elected to a position
1402	as a director or officer. However, should the charges be
1403	resolved without a finding of guilt, the director of officer
1404	shall be reinstated for the remainder of his or her term of
1405	office, if any.
1406	Section 8.  Section 718.1124, Florida Statutes, is amended
1407	to read:
1408	718.1124  Failure to fill vacancies on board of
1409	administration sufficient to constitute a quorum; appointment of
1410	receiver upon petition of unit owner.--
1411	(1)  If an association fails to fill vacancies on the board
1412	of administration sufficient to constitute a quorum in
1413	accordance with the bylaws, any unit owner may give notice of
1414	his or her intent to apply to the circuit court within whose
1415	jurisdiction the condominium lies for the appointment of a
1416	receiver to manage the affairs of the association. The form of
1417	the notice shall be as follows:
1418
1419	NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP
1420
1421	YOU ARE HEREBY NOTIFIED that the undersigned owner of
1422	a condominium unit in (name of condominium) intends to
1423	file a petition in the circuit court for appointment
1424	of a receiver to manage the affairs of the association
1425	on the grounds that the association has failed to fill
1426	vacancies on the board of administration sufficient to
1427	constitute a quorum. This petition will not be filed
1428	if the vacancies are filled within 30 days after the
1429	date on which this notice was sent or posted,
1430	whichever is later. If a receiver is appointed, the
1431	receiver shall have all of the powers of the board and
1432	shall be entitled to receive a salary and
1433	reimbursement of all costs and attorney's fees payable
1434	from association funds.
1435
1436	(name and address of petitioning unit owner)
1437
1438	(2)  The notice required by subsection (1) must be provided
1439	by At least 30 days prior to applying to the circuit court, the
1440	unit owner shall mail to the association by certified mail or
1441	personal delivery, must be posted and post in a conspicuous
1442	place on the condominium property, and must be provided by the
1443	unit owner to every other unit owner of the association by
1444	certified mail or personal delivery. The a notice must be posted
1445	and mailed or delivered at least 30 days prior to the filing of
1446	a petition seeking receivership. Notice by mail to a unit owner
1447	shall be sent to the address used by the county property
1448	appraiser for notice to the unit owner, except that where a unit
1449	owner's address is not publicly available the notice shall be
1450	mailed to the unit describing the intended action, giving the
1451	association the opportunity to fill the vacancies.
1452	(3)  If during such time the association fails to fill the
1453	vacancies within 30 days after the notice required by subsection
1454	(1) is posted and mailed or delivered, the unit owner may
1455	proceed with the petition.
1456	(4)  If a receiver is appointed, all unit owners shall be
1457	given written notice of such appointment as provided in s.
1458	718.127.
1459	(5)  The association shall be responsible for the salary of
1460	the receiver, court costs, and attorney's fees. The receiver
1461	shall have all powers and duties of a duly constituted board of
1462	administration and shall serve until the association fills
1463	vacancies on the board sufficient to constitute a quorum and the
1464	court relieves the receiver of the appointment.
1465	Section 9.  Paragraph (a) of subsection (2) and subsection
1466	(5) of section 718.113, Florida Statutes, are amended, and
1467	subsections (6) and (7) are added to that section, to read:
1468	718.113  Maintenance; limitation upon improvement; display
1469	of flag; hurricane shutters; display of religious decorations.--
1470	(2)(a)  Except as otherwise provided in this section, there
1471	shall be no material alteration or substantial additions to the
1472	common elements or to real property which is association
1473	property, except in a manner provided in the declaration as
1474	originally recorded or as amended under the procedures provided
1475	therein. If the declaration as originally recorded or as amended
1476	under the procedures provided therein does not specify the
1477	procedure for approval of material alterations or substantial
1478	additions, 75 percent of the total voting interests of the
1479	association must approve the alterations or additions. This
1480	paragraph is intended to clarify existing law and applies to
1481	associations existing on October 1, 2008.
1482	(5)  Each board of administration shall adopt hurricane
1483	shutter specifications for each building within each condominium
1484	operated by the association which shall include color, style,
1485	and other factors deemed relevant by the board. All
1486	specifications adopted by the board shall comply with the
1487	applicable building code. Notwithstanding any provision to the
1488	contrary in the condominium documents, if approval is required
1489	by the documents, a board shall not refuse to approve the
1490	installation or replacement of hurricane shutters conforming to
1491	the specifications adopted by the board. The board may, subject
1492	to the provisions of s. 718.3026, and the approval of a majority
1493	of voting interests of the condominium, install hurricane
1494	shutters or hurricane protection that complies with or exceeds
1495	the applicable building code, or both, and may maintain, repair,
1496	or replace such approved hurricane shutters, whether on or
1497	within common elements, limited common elements, units, or
1498	association property. However, where hurricane protection that
1499	complies with or exceeds the applicable building code or
1500	laminated glass or window film architecturally designed to
1501	function as hurricane protection which complies with the
1502	applicable building code has been installed, the board may not
1503	install hurricane shutters. The board may operate shutters
1504	installed pursuant to this subsection without permission of the
1505	unit owners only where such operation is necessary to preserve
1506	and protect the condominium property and association property.
1507	The installation, replacement, operation, repair, and
1508	maintenance of such shutters in accordance with the procedures
1509	set forth herein shall not be deemed a material alteration to
1510	the common elements or association property within the meaning
1511	of this section.
1512	(6)  As to any condominium building greater than three
1513	stories in height, at least every 5 years, and within 5 years if
1514	not available for inspection on October 1, 2008, the board shall
1515	have the condominium building inspected to provide a report
1516	under seal of an architect or engineer authorized to practice in
1517	this state attesting to required maintenance, useful life, and
1518	replacement costs of the common elements. However, if approved
1519	by a majority of the voting interests present at a properly
1520	called meeting of the association, an association may waive this
1521	requirement. Such meeting and approval must occur prior to the
1522	end of the 5-year period and is effective only for that 5-year
1523	period.
1524	(7)  An association may not refuse the request of a unit
1525	owner for a reasonable accommodation for the attachment on the
1526	mantle or frame of the door of the unit owner a religious object
1527	not to exceed 3 inches wide, 6 inches high, and 1.5 inches deep.
1528	Section 10.  Paragraph (a) of subsection (7) of section
1529	718.117, Florida Statutes, is amended to read:
1530	718.117  Termination of condominium.--
1531	(7)  NATURAL DISASTERS.--
1532	(a)  If, after a natural disaster, the identity of the
1533	directors or their right to hold office is in doubt, if they are
1534	deceased or unable to act, if they fail or refuse to act, or if
1535	they cannot be located, any interested person may petition the
1536	circuit court to determine the identity of the directors or, if
1537	found to be in the best interests of the unit owners, to appoint
1538	a receiver to conclude the affairs of the association after a
1539	hearing following notice to such persons as the court directs.
1540	Lienholders shall be given notice of the petition and have the
1541	right to propose persons for the consideration by the court as
1542	receiver. If a receiver is appointed, the court shall direct the
1543	receiver to provide to all unit owners written notice of his or
1544	her appointment as receiver. Such notice shall be mailed or
1545	delivered within 10 days after the appointment. Notice by mail
1546	to a unit owner shall be sent to the address used by the county
1547	property appraiser for notice to the unit owner.
1548	Section 11.  Subsection (4) is added to section 718.121,
1549	Florida Statutes, to read:
1550	718.121  Liens.--
1551	(4)  Except as otherwise provided in this chapter, no lien
1552	may be filed by the association against a condominium unit until
1553	30 days after the date on which a notice of intent to file a
1554	lien has been delivered to the owner by certified mail, return
1555	receipt requested, and by first-class United States mail to the
1556	owner at his or her last known address as reflected in the
1557	records of the association. However, if the address reflected in
1558	the records is outside the United States, then the notice must
1559	be sent by first-class United States mail to the unit and to the
1560	last known address by regular mail with international postage,
1561	which shall be deemed sufficient. Delivery of the notice shall
1562	be deemed given upon mailing as required by this subsection.
1563	Alternatively, notice shall be complete if served on the unit
1564	owner in the manner authorized by chapter 48 and the Florida
1565	Rules of Civil Procedure.
1566	Section 12.  Section 718.1224, Florida Statutes, is created
1567	to read:
1568	718.1224  Prohibition against SLAPP suits.--
1569	(1)  It is the intent of the Legislature to protect the
1570	right of condominium unit owners to exercise their rights to
1571	instruct their representatives and petition for redress of
1572	grievances before the various governmental entities of this
1573	state as protected by the First Amendment to the United States
1574	Constitution and s. 5, Art. I of the State Constitution. The
1575	Legislature recognizes that strategic lawsuits against public
1576	participation, or "SLAPP suits," as they are typically referred
1577	to, have occurred when association members are sued by
1578	individuals, business entities, or governmental entities arising
1579	out of a condominium unit owner's appearance and presentation
1580	before a governmental entity on matters related to the
1581	condominium association. However, it is the public policy of
1582	this state that governmental entities, business organizations,
1583	and individuals not engage in SLAPP suits, because such actions
1584	are inconsistent with the right of condominium unit owners to
1585	participate in the state's institutions of government.
1586	Therefore, the Legislature finds and declares that prohibiting
1587	such lawsuits by governmental entities, business entities, and
1588	individuals against condominium unit owners who address matters
1589	concerning their condominium association will preserve this
1590	fundamental state policy, preserve the constitutional rights of
1591	condominium unit owners, and ensure the continuation of
1592	representative government in this state. It is the intent of the
1593	Legislature that such lawsuits be expeditiously disposed of by
1594	the courts. As used in this subsection, the term "governmental
1595	entity" means the state, including the executive, legislative,
1596	and judicial branches of government; the independent
1597	establishments of the state, counties, municipalities,
1598	districts, authorities, boards, or commissions; or any agencies
1599	of these branches that are subject to chapter 286.
1600	(2)  A governmental entity, business organization, or
1601	individual in this state may not file or cause to be filed
1602	through its employees or agents any lawsuit, cause of action,
1603	claim, cross-claim, or counterclaim against a condominium unit
1604	owner without merit and solely because such condominium unit
1605	owner has exercised the right to instruct his or her
1606	representatives or the right to petition for redress of
1607	grievances before the various governmental entities of this
1608	state, as protected by the First Amendment to the United States
1609	Constitution and s. 5, Art. I of the State Constitution.
1610	(3)  A condominium unit owner sued by a governmental
1611	entity, business organization, or individual in violation of
1612	this section has a right to an expeditious resolution of a claim
1613	that the suit is in violation of this section. A condominium
1614	unit owner may petition the court for an order dismissing the
1615	action or granting final judgment in favor of that condominium
1616	unit owner. The petitioner may file a motion for summary
1617	judgment, together with supplemental affidavits, seeking a
1618	determination that the governmental entity's, business
1619	organization's, or individual's lawsuit has been brought in
1620	violation of this section. The governmental entity, business
1621	organization, or individual shall thereafter file its response
1622	and any supplemental affidavits. As soon as practicable, the
1623	court shall set a hearing on the petitioner's motion, which
1624	shall be held at the earliest possible time after the filing of
1625	the governmental entity's, business organization's, or
1626	individual's response. The court may award the condominium unit
1627	owner sued by the governmental entity, business organization, or
1628	individual actual damages arising from the governmental
1629	entity's, individual's, or business organization's violation of
1630	this section. A court may treble the damages awarded to a
1631	prevailing condominium unit owner and shall state the basis for
1632	the treble damages award in its judgment. The court shall award
1633	the prevailing party reasonable attorney's fees and costs
1634	incurred in connection with a claim that an action was filed in
1635	violation of this section.
1636	(4)  Condominium associations may not expend association
1637	funds in prosecuting a SLAPP suit against a condominium unit
1638	owner.
1639	Section 13.  Paragraph (b) of subsection (3) of section
1640	718.1255, Florida Statutes, is amended to read:
1641	718.1255  Alternative dispute resolution; voluntary
1642	mediation; mandatory nonbinding arbitration; legislative
1643	findings.--
1644	(3)  LEGISLATIVE FINDINGS.--
1645	(b)  The Legislature finds that the courts are becoming
1646	overcrowded with condominium and other disputes, and further
1647	finds that alternative dispute resolution has been making
1648	progress in reducing court dockets and trials and in offering a
1649	more efficient, cost-effective option to court litigation.
1650	However, the Legislature also finds that alternative dispute
1651	resolution should not be used as a mechanism to encourage the
1652	filing of frivolous or nuisance suits.
1653	Section 14.  Section 718.1265, Florida Statutes, is created
1654	to read:
1655	718.1265  Association emergency powers.--
1656	(1)  To the extent allowed by law and unless specifically
1657	prohibited by the declaration of condominium, the articles, or
1658	the bylaws of an association, and consistent with the provisions
1659	of s. 617.0830, the board of administration, in response to
1660	damage caused by an event for which a state of emergency is
1661	declared pursuant to s. 252.36 in the locale in which the
1662	condominium is located, may, but is not required to, exercise
1663	the following powers:
1664	(a)  Conduct board meetings and membership meetings with
1665	notice given as is practicable. Such notice may be given in any
1666	practicable manner, including publication, radio, United States
1667	mail, the Internet, public service announcements, and
1668	conspicuous posting on the condominium property or any other
1669	means the board deems reasonable under the circumstances. Notice
1670	of board decisions may be communicated as provided in this
1671	paragraph.
1672	(b)  Cancel and reschedule any association meeting.
1673	(c)  Name as assistant officers persons who are not
1674	directors, which assistant officers shall have the same
1675	authority as the executive officers to whom they are assistants
1676	during the state of emergency to accommodate the incapacity or
1677	unavailability of any officer of the association.
1678	(d)  Relocate the association's principal office or
1679	designate alternative principal offices.
1680	(e)  Enter into agreements with local counties and
1681	municipalities to assist counties and municipalities with debris
1682	removal.
1683	(f)  Implement a disaster plan before or immediately
1684	following the event for which a state of emergency is declared
1685	which may include, but is not limited to, shutting down or off
1686	elevators; electricity; water, sewer, or security systems; or
1687	air conditioners.
1688	(g)  Declare any portion of the condominium property
1689	unavailable for entry or occupancy by unit owners, family
1690	members, tenants, guests, agents, or invitees to protect the
1691	health, safety, or welfare of such persons.
1692	(h)  Require the evacuation of the condominium property in
1693	the event of a mandatory evacuation order in the locale in which
1694	the condominium is located. Should any unit owner or other
1695	occupant of a condominium fail or refuse to evacuate the
1696	condominium property where the board has required evacuation,
1697	the association shall be immune from liability or injury to
1698	persons or property arising from such failure or refusal.
1699	(i)  Determine whether the condominium property can be
1700	safely inhabited or occupied. However, such determination is not
1701	conclusive as to any determination of habitability pursuant to
1702	the declaration.
1703	(j)  Mitigate further damage, including taking action to
1704	contract for the removal of debris and to prevent or mitigate
1705	the spread of fungus, including, but not limited to, mold or
1706	mildew, by removing and disposing of wet drywall, insulation,
1707	carpet, cabinetry, or other fixtures on or within the
1708	condominium property, even if the unit owner is obligated by the
1709	declaration or law to insure or replace those fixtures and to
1710	remove personal property from a unit.
1711	(k)  Contract, on behalf of any unit owner or owners, for
1712	items or services for which the owners are otherwise
1713	individually responsible for, but which are necessary to prevent
1714	further damage to the condominium property. In such event, the
1715	unit owner or owners on whose behalf the board has contracted
1716	are responsible for reimbursing the association for the actual
1717	costs of the items or services, and the association may use its
1718	lien authority provided by s. 718.116 to enforce collection of
1719	the charges. Without limitation, such items or services may
1720	include the drying of units, the boarding of broken windows or
1721	doors, and the replacement of damaged air conditioners or air
1722	handlers to provide climate control in the units or other
1723	portions of the property.
1724	(l)  Regardless of any provision to the contrary and even
1725	if such authority does not specifically appear in the
1726	declaration of condominium, articles, or bylaws of the
1727	association, levy special assessments without a vote of the
1728	owners.
1729	(m)  Without unit owners' approval, borrow money and pledge
1730	association assets as collateral to fund emergency repairs and
1731	carry out the duties of the association when operating funds are
1732	insufficient. This paragraph does not limit the general
1733	authority of the association to borrow money, subject to such
1734	restrictions as are contained in the declaration of condominium,
1735	articles, or bylaws of the association.
1736	(2)  The special powers authorized under subsection (1)
1737	shall be limited to that time reasonably necessary to protect
1738	the health, safety, and welfare of the association and the unit
1739	owners and the unit owners' family members, tenants, guests,
1740	agents, or invitees and shall be reasonably necessary to
1741	mitigate further damage and make emergency repairs.
1742	Section 15.  Section 718.127, Florida Statutes, is created
1743	to read:
1744	718.127  Receivership notification.--Upon the appointment
1745	of a receiver by a court for any reason relating to a
1746	condominium association, the court shall direct the receiver to
1747	provide to all unit owners written notice of his or her
1748	appointment as receiver. Such notice shall be mailed or
1749	delivered within 10 days after the appointment. Notice by mail
1750	to a unit owner shall be sent to the address used by the county
1751	property appraiser for notice to the unit owner.
1752	Section 16.  Subsection (1) of section 718.301, Florida
1753	Statutes, is amended, and paragraph (p) is added to subsection
1754	(4) of that section, to read:
1755	718.301  Transfer of association control; claims of defect
1756	by association.--
1757	(1)  When unit owners other than the developer own 15
1758	percent or more of the units in a condominium that will be
1759	operated ultimately by an association, the unit owners other
1760	than the developer shall be entitled to elect no less than one-
1761	third of the members of the board of administration of the
1762	association. Unit owners other than the developer are entitled
1763	to elect not less than a majority of the members of the board of
1764	administration of an association:
1765	(a)  Three years after 50 percent of the units that will be
1766	operated ultimately by the association have been conveyed to
1767	purchasers;
1768	(b)  Three months after 90 percent of the units that will
1769	be operated ultimately by the association have been conveyed to
1770	purchasers;
1771	(c)  When all the units that will be operated ultimately by
1772	the association have been completed, some of them have been
1773	conveyed to purchasers, and none of the others are being offered
1774	for sale by the developer in the ordinary course of business;
1775	(d)  When some of the units have been conveyed to
1776	purchasers and none of the others are being constructed or
1777	offered for sale by the developer in the ordinary course of
1778	business; or
1779	(e)  When the developer files a petition seeking protection
1780	in bankruptcy;
1781	(f)  When a receiver for the developer is appointed by a
1782	circuit court and is not discharged within 30 days after such
1783	appointment; or
1784	(g)(e)  Seven years after recordation of the declaration of
1785	condominium; or, in the case of an association which may
1786	ultimately operate more than one condominium, 7 years after
1787	recordation of the declaration for the first condominium it
1788	operates; or, in the case of an association operating a phase
1789	condominium created pursuant to s. 718.403, 7 years after
1790	recordation of the declaration creating the initial phase,
1791
1792	whichever occurs first. The developer is entitled to elect at
1793	least one member of the board of administration of an
1794	association as long as the developer holds for sale in the
1795	ordinary course of business at least 5 percent, in condominiums
1796	with fewer than 500 units, and 2 percent, in condominiums with
1797	more than 500 units, of the units in a condominium operated by
1798	the association. Following the time the developer relinquishes
1799	control of the association, the developer may exercise the right
1800	to vote any developer-owned units in the same manner as any
1801	other unit owner except for purposes of reacquiring control of
1802	the association or selecting the majority members of the board
1803	of administration.
1804	(4)  At the time that unit owners other than the developer
1805	elect a majority of the members of the board of administration
1806	of an association, the developer shall relinquish control of the
1807	association, and the unit owners shall accept control.
1808	Simultaneously, or for the purposes of paragraph (c) not more
1809	than 90 days thereafter, the developer shall deliver to the
1810	association, at the developer's expense, all property of the
1811	unit owners and of the association which is held or controlled
1812	by the developer, including, but not limited to, the following
1813	items, if applicable, as to each condominium operated by the
1814	association:
1815	(p)  A report included in the official records, under seal
1816	of an architect or engineer authorized to practice in this
1817	state, attesting to required maintenance, useful life, and
1818	replacement costs of the following applicable common elements
1819	comprising a turnover inspection report:
1820	1.  Roof.
1821	2.  Structure.
1822	3.  Fireproofing and fire protection systems.
1823	4.  Elevators.
1824	5.  Heating and cooling systems.
1825	6.  Plumbing.
1826	7.  Electrical systems.
1827	8.  Swimming pool or spa and equipment.
1828	9.  Seawalls.
1829	10.  Pavement and parking areas.
1830	11.  Drainage systems.
1831	12.  Painting.
1832	13.  Irrigation systems.
1833	Section 17.  Paragraph (f) is added to subsection (1) of
1834	section 718.3025, Florida Statutes, to read:
1835	718.3025  Agreements for operation, maintenance, or
1836	management of condominiums; specific requirements.--
1837	(1)  No written contract between a party contracting to
1838	provide maintenance or management services and an association
1839	which contract provides for operation, maintenance, or
1840	management of a condominium association or property serving the
1841	unit owners of a condominium shall be valid or enforceable
1842	unless the contract:
1843	(f)  Discloses any financial or ownership interest a board
1844	member or any party providing maintenance or management services
1845	to the association holds with the contracting party.
1846	Section 18.  Section 718.3026, Florida Statutes, is amended
1847	to read:
1848	718.3026  Contracts for products and services; in writing;
1849	bids; exceptions.--Associations with 10 or fewer with less than
1850	100 units may opt out of the provisions of this section if two-
1851	thirds of the unit owners vote to do so, which opt-out may be
1852	accomplished by a proxy specifically setting forth the exception
1853	from this section.
1854	(1)  All contracts as further described herein or any
1855	contract that is not to be fully performed within 1 year after
1856	the making thereof, for the purchase, lease, or renting of
1857	materials or equipment to be used by the association in
1858	accomplishing its purposes under this chapter, and all contracts
1859	for the provision of services, shall be in writing. If a
1860	contract for the purchase, lease, or renting of materials or
1861	equipment, or for the provision of services, requires payment by
1862	the association on behalf of any condominium operated by the
1863	association in the aggregate that exceeds 5 percent of the total
1864	annual budget of the association, including reserves, the
1865	association shall obtain competitive bids for the materials,
1866	equipment, or services. Nothing contained herein shall be
1867	construed to require the association to accept the lowest bid.
1868	(2)(a)1.  Notwithstanding the foregoing, contracts with
1869	employees of the association, and contracts for attorney,
1870	accountant, architect, community association manager, timeshare
1871	management firm, engineering, and landscape architect services
1872	are not subject to the provisions of this section.
1873	2.  A contract executed before January 1, 1992, and any
1874	renewal thereof, is not subject to the competitive bid
1875	requirements of this section. If a contract was awarded under
1876	the competitive bid procedures of this section, any renewal of
1877	that contract is not subject to such competitive bid
1878	requirements if the contract contains a provision that allows
1879	the board to cancel the contract on 30 days' notice. Materials,
1880	equipment, or services provided to a condominium under a local
1881	government franchise agreement by a franchise holder are not
1882	subject to the competitive bid requirements of this section. A
1883	contract with a manager, if made by a competitive bid, may be
1884	made for up to 3 years. A condominium whose declaration or
1885	bylaws provides for competitive bidding for services may operate
1886	under the provisions of that declaration or bylaws in lieu of
1887	this section if those provisions are not less stringent than the
1888	requirements of this section.
1889	(b)  Nothing contained herein is intended to limit the
1890	ability of an association to obtain needed products and services
1891	in an emergency.
1892	(c)  This section shall not apply if the business entity
1893	with which the association desires to enter into a contract is
1894	the only source of supply within the county serving the
1895	association.
1896	(d)  Nothing contained herein shall excuse a party
1897	contracting to provide maintenance or management services from
1898	compliance with s. 718.3025.
1899	(3)  As to any contract or other transaction between an
1900	association and one or more of its directors or any other
1901	corporation, firm, association, or entity in which one or more
1902	of its directors are directors or officers or are financially
1903	interested:
1904	(a)  The association shall comply with the requirements of
1905	s. 617.0832.
1906	(b)  The disclosures required by s. 617.0832 shall be
1907	entered into the written minutes of the meeting.
1908	(c)  Approval of the contract or other transaction shall
1909	require an affirmative vote of two-thirds of the directors
1910	present.
1911	(d)  At the next regular or special meeting of the members,
1912	the existence of the contract or other transaction shall be
1913	disclosed to the members. Upon motion of any member, the
1914	contract or transaction shall be brought up for a vote and may
1915	be canceled by a majority vote of the members present. Should
1916	the members cancel the contract, the association shall only be
1917	liable for the reasonable value of goods and services provided
1918	up to the time of cancellation and shall not be liable for any
1919	termination fee, liquidated damages, or other form of penalty
1920	for such cancellation.
1921	Section 19.  Subsection (3) of section 718.303, Florida
1922	Statutes, is amended to read:
1923	718.303  Obligations of owners; waiver; levy of fine
1924	against unit by association.--
1925	(3)  If the declaration or bylaws so provide, the
1926	association may levy reasonable fines against a unit for the
1927	failure of the owner of the unit, or its occupant, licensee, or
1928	invitee, to comply with any provision of the declaration, the
1929	association bylaws, or reasonable rules of the association. No
1930	fine will become a lien against a unit. No fine may exceed $100
1931	per violation. However, a fine may be levied on the basis of
1932	each day of a continuing violation, with a single notice and
1933	opportunity for hearing, provided that no such fine shall in the
1934	aggregate exceed $1,000. No fine may be levied except after
1935	giving reasonable notice and opportunity for a hearing to the
1936	unit owner and, if applicable, its licensee or invitee. The
1937	hearing must be held before a committee of other unit owners who
1938	are neither board members nor persons residing in a board
1939	member's household. If the committee does not agree with the
1940	fine, the fine may not be levied. The provisions of this
1941	subsection do not apply to unoccupied units.
1942	Section 20.  Section 718.501, Florida Statutes, is amended
1943	to read:
1944	718.501  Authority, responsibility, Powers and duties of
1945	Division of Florida Land Sales, Condominiums, and Mobile
1946	Homes.--
1947	(1)  The Division of Florida Land Sales, Condominiums, and
1948	Mobile Homes of the Department of Business and Professional
1949	Regulation, referred to as the "division" in this part, in
1950	addition to other powers and duties prescribed by chapter 498,
1951	has the power to enforce and ensure compliance with the
1952	provisions of this chapter and rules promulgated pursuant hereto
1953	relating to the development, construction, sale, lease,
1954	ownership, operation, and management of residential condominium
1955	units. In performing its duties, the division has complete
1956	jurisdiction to investigate complaints and enforce compliance
1957	with the provisions of this chapter with respect to associations
1958	that are still under developer control and complaints against
1959	developers involving improper turnover or failure to turnover,
1960	pursuant to s. 718.301. However, after turnover has occurred,
1961	the division shall only have jurisdiction to investigate
1962	complaints related to financial issues, elections, and unit
1963	owner access to association records pursuant to s. 718.111(12).
1964	the following powers and duties:
1965	(a)  The division may make necessary public or private
1966	investigations within or outside this state to determine whether
1967	any person has violated this chapter or any rule or order
1968	hereunder, to aid in the enforcement of this chapter, or to aid
1969	in the adoption of rules or forms hereunder.
1970	(b)  The division may require or permit any person to file
1971	a statement in writing, under oath or otherwise, as the division
1972	determines, as to the facts and circumstances concerning a
1973	matter to be investigated.
1974	(c)  For the purpose of any investigation under this
1975	chapter, the division director or any officer or employee
1976	designated by the division director may administer oaths or
1977	affirmations, subpoena witnesses and compel their attendance,
1978	take evidence, and require the production of any matter which is
1979	relevant to the investigation, including the existence,
1980	description, nature, custody, condition, and location of any
1981	books, documents, or other tangible things and the identity and
1982	location of persons having knowledge of relevant facts or any
1983	other matter reasonably calculated to lead to the discovery of
1984	material evidence. Upon the failure by a person to obey a
1985	subpoena or to answer questions propounded by the investigating
1986	officer and upon reasonable notice to all persons affected
1987	thereby, the division may apply to the circuit court for an
1988	order compelling compliance.
1989	(d)  Notwithstanding any remedies available to unit owners
1990	and associations, if the division has reasonable cause to
1991	believe that a violation of any provision of this chapter or
1992	rule promulgated pursuant hereto has occurred, the division may
1993	institute enforcement proceedings in its own name against any
1994	developer, association, officer, or member of the board of
1995	administration, or its assignees or agents, as follows:
1996	1.  The division may permit a person whose conduct or
1997	actions may be under investigation to waive formal proceedings
1998	and enter into a consent proceeding whereby orders, rules, or
1999	letters of censure or warning, whether formal or informal, may
2000	be entered against the person.
2001	2.  The division may issue an order requiring the
2002	developer, association, developer-designated officer, or
2003	developer-designated member of the board of administration, or
2004	developer-designated its assignees or agents, community
2005	association manager, or community association management firm to
2006	cease and desist from the unlawful practice and take such
2007	affirmative action as in the judgment of the division will carry
2008	out the purposes of this chapter. Such affirmative action may
2009	include, but is not limited to, an order requiring a developer
2010	to pay moneys determined to be owed to a condominium
2011	association.
2012	3.  If a developer fails to pay any restitution determined
2013	by the division to be owed, plus any accrued interest at the
2014	highest rate permitted by law, within 30 days after expiration
2015	of any appellate time period of a final order requiring payment
2016	of restitution or the conclusion of any appeal thereof,
2017	whichever is later, the division shall bring an action in
2018	circuit or county court on behalf of any association, class of
2019	unit owners, lessees, or purchasers for restitution, declaratory
2020	relief, injunctive relief, or any other available remedy. The
2021	division may also temporarily revoke its acceptance of the
2022	filing for the developer to which the restitution relates until
2023	payment of restitution is made. The division may bring an action
2024	in circuit court on behalf of a class of unit owners, lessees,
2025	or purchasers for declaratory relief, injunctive relief, or
2026	restitution.
2027	4.  The division may impose a civil penalty against a
2028	developer or association, or its assignee or agent, for any
2029	violation of this chapter or a rule promulgated pursuant hereto.
2030	The division may impose a civil penalty individually against any
2031	officer or board member who willfully and knowingly violates a
2032	provision of this chapter, a rule adopted pursuant hereto, or a
2033	final order of the division; may order the removal of such
2034	individual as an officer or from the board of administration or
2035	as an officer of the association; and may prohibit such
2036	individual from serving as an officer or on the board of a
2037	community association for a period of time. The term "willfully
2038	and knowingly" means that the division informed the officer or
2039	board member that his or her action or intended action violates
2040	this chapter, a rule adopted under this chapter, or a final
2041	order of the division and that the officer or board member
2042	refused to comply with the requirements of this chapter, a rule
2043	adopted under this chapter, or a final order of the division.
2044	The division, prior to initiating formal agency action under
2045	chapter 120, shall afford the officer or board member an
2046	opportunity to voluntarily comply with this chapter, a rule
2047	adopted under this chapter, or a final order of the division. An
2048	officer or board member who complies within 10 days is not
2049	subject to a civil penalty. A penalty may be imposed on the
2050	basis of each day of continuing violation, but in no event shall
2051	the penalty for any offense exceed $5,000. By January 1, 1998,
2052	the division shall adopt, by rule, penalty guidelines applicable
2053	to possible violations or to categories of violations of this
2054	chapter or rules adopted by the division. The guidelines must
2055	specify a meaningful range of civil penalties for each such
2056	violation of the statute and rules and must be based upon the
2057	harm caused by the violation, the repetition of the violation,
2058	and upon such other factors deemed relevant by the division. For
2059	example, the division may consider whether the violations were
2060	committed by a developer or owner-controlled association, the
2061	size of the association, and other factors. The guidelines must
2062	designate the possible mitigating or aggravating circumstances
2063	that justify a departure from the range of penalties provided by
2064	the rules. It is the legislative intent that minor violations be
2065	distinguished from those which endanger the health, safety, or
2066	welfare of the condominium residents or other persons and that
2067	such guidelines provide reasonable and meaningful notice to the
2068	public of likely penalties that may be imposed for proscribed
2069	conduct. This subsection does not limit the ability of the
2070	division to informally dispose of administrative actions or
2071	complaints by stipulation, agreed settlement, or consent order.
2072	All amounts collected shall be deposited with the Chief
2073	Financial Officer to the credit of the Division of Florida Land
2074	Sales, Condominiums, and Mobile Homes Trust Fund. If a developer
2075	fails to pay the civil penalty and the amount deemed to be owed
2076	to the association, the division shall thereupon issue an order
2077	directing that such developer cease and desist from further
2078	operation until such time as the civil penalty is paid or may
2079	pursue enforcement of the penalty in a court of competent
2080	jurisdiction. If an association fails to pay the civil penalty,
2081	the division shall thereupon pursue enforcement in a court of
2082	competent jurisdiction, and the order imposing the civil penalty
2083	or the cease and desist order will not become effective until 20
2084	days after the date of such order. Any action commenced by the
2085	division shall be brought in the county in which the division
2086	has its executive offices or in the county where the violation
2087	occurred.
2088	5.  If a unit owner presents the division with proof that
2089	the unit owner has requested access to official records in
2090	writing by certified mail, and that after 10 days the unit owner
2091	again made the same request for access to official records in
2092	writing by certified mail, and that more than 10 days has
2093	elapsed since the second request and the association has still
2094	failed or refused to provide access to official records as
2095	required by this chapter, the division shall issue a subpoena
2096	requiring production of the requested records where the records
2097	are kept pursuant to s. 718.112.
2098	(e)  The division is authorized to prepare and disseminate
2099	a prospectus and other information to assist prospective owners,
2100	purchasers, lessees, and developers of residential condominiums
2101	in assessing the rights, privileges, and duties pertaining
2102	thereto.
2103	(f)  The division has authority to adopt rules pursuant to
2104	ss. 120.536(1) and 120.54 to implement and enforce the
2105	provisions of this chapter.
2106	(g)  The division shall establish procedures for providing
2107	notice to an association and the developer during the period
2108	where the developer controls the association when the division
2109	is considering the issuance of a declaratory statement with
2110	respect to the declaration of condominium or any related
2111	document governing in such condominium community.
2112	(h)  The division shall furnish each association which pays
2113	the fees required by paragraph (2)(a) a copy of this act,
2114	subsequent changes to this act on an annual basis, an amended
2115	version of this act as it becomes available from the Secretary
2116	of State's office on a biennial basis, and the rules promulgated
2117	pursuant thereto on an annual basis.
2118	(i)  The division shall annually provide each association
2119	with a summary of declaratory statements and formal legal
2120	opinions relating to the operations of condominiums which were
2121	rendered by the division during the previous year.
2122	(j)  The division shall provide training and educational
2123	programs for condominium association board members and unit
2124	owners. The training may, in the division's discretion, include
2125	web-based electronic media, and live training and seminars in
2126	various locations throughout the state. The division shall have
2127	the authority to review and approve education and training
2128	programs for board members and unit owners offered by providers
2129	and shall maintain a current list of approved programs and
2130	providers and shall make such list available to board members
2131	and unit owners in a reasonable and cost-effective manner.
2132	(k)  The division shall maintain a toll-free telephone
2133	number accessible to condominium unit owners.
2134	(l)  The division shall develop a program to certify both
2135	volunteer and paid mediators to provide mediation of condominium
2136	disputes. The division shall provide, upon request, a list of
2137	such mediators to any association, unit owner, or other
2138	participant in arbitration proceedings under s. 718.1255
2139	requesting a copy of the list. The division shall include on the
2140	list of volunteer mediators only the names of persons who have
2141	received at least 20 hours of training in mediation techniques
2142	or who have mediated at least 20 disputes. In order to become
2143	initially certified by the division, paid mediators must be
2144	certified by the Supreme Court to mediate court cases in either
2145	county or circuit courts. However, the division may adopt, by
2146	rule, additional factors for the certification of paid
2147	mediators, which factors must be related to experience,
2148	education, or background. Any person initially certified as a
2149	paid mediator by the division must, in order to continue to be
2150	certified, comply with the factors or requirements imposed by
2151	rules adopted by the division.
2152	(m)  When a complaint is made, the division shall conduct
2153	its inquiry with due regard to the interests of the affected
2154	parties. Within 30 days after receipt of a complaint, the
2155	division shall acknowledge the complaint in writing and notify
2156	the complainant whether the complaint is within the jurisdiction
2157	of the division and whether additional information is needed by
2158	the division from the complainant. The division shall conduct
2159	its investigation and shall, within 90 days after receipt of the
2160	original complaint or of timely requested additional
2161	information, take action upon the complaint. However, the
2162	failure to complete the investigation within 90 days does not
2163	prevent the division from continuing the investigation,
2164	accepting or considering evidence obtained or received after 90
2165	days, or taking administrative action if reasonable cause exists
2166	to believe that a violation of this chapter or a rule of the
2167	division has occurred. If an investigation is not completed
2168	within the time limits established in this paragraph, the
2169	division shall, on a monthly basis, notify the complainant in
2170	writing of the status of the investigation. When reporting its
2171	action to the complainant, the division shall inform the
2172	complainant of any right to a hearing pursuant to ss. 120.569
2173	and 120.57.
2174	(n)  Condominium association directors, officers, and
2175	employees; condominium developers; community association
2176	managers; and community association management firms have an
2177	ongoing duty to reasonably cooperate with the division in any
2178	investigation pursuant to this section. The division shall refer
2179	to local law enforcement authorities any person whom the
2180	division believes has altered, destroyed, concealed, or removed
2181	any record, document, or thing required to be kept or maintained
2182	by this chapter with the purpose to impair its verity or
2183	availability in the department's investigation.
2184	(2)(a)  Effective January 1, 1992, Each condominium
2185	association which operates more than two units shall pay to the
2186	division an annual fee in the amount of $4 for each residential
2187	unit in condominiums operated by the association. If the fee is
2188	not paid by March 1, then the association shall be assessed a
2189	penalty of 10 percent of the amount due, and the association
2190	will not have standing to maintain or defend any action in the
2191	courts of this state until the amount due, plus any penalty, is
2192	paid.
2193	(b)  All fees shall be deposited in the Division of Florida
2194	Land Sales, Condominiums, and Mobile Homes Trust Fund as
2195	provided by law.
2196	Section 21.  Subsection (9) of section 718.5012, Florida
2197	Statutes, is renumbered as subsection (10), and a new subsection
2198	(9) is added to that section to read:
2199	718.5012  Ombudsman; powers and duties.--The ombudsman
2200	shall have the powers that are necessary to carry out the duties
2201	of his or her office, including the following specific powers:
2202	(9)  To assist with the resolution of disputes between unit
2203	owners and the association or between unit owner when the
2204	dispute in not within the jurisdiction of the division to
2205	resolve.
2206	Section 22.  Section 718.50151, Florida Statutes, is
2207	amended to read:
2208	718.50151  Community Association Living Study Advisory
2209	Council; membership functions.--
2210	(1)  There is created the Community Association Living
2211	Study Advisory Council on Condominiums. The council shall
2212	consist of seven appointed members. Two members shall be
2213	appointed by the President of the Senate, two members shall be
2214	appointed by the Speaker of the House of Representatives, and
2215	three members shall be appointed by the Governor. At least One
2216	member that is appointed by the Governor may shall represent
2217	timeshare condominiums. The council shall be created as of
2218	October 1 every 5 years, commencing October 1, 2008, and shall
2219	exist for a 6-month term. Members shall be appointed to 2-year
2220	terms; however, one of the persons initially appointed by the
2221	Governor, by the President of the Senate, and by the Speaker of
2222	the House of Representatives shall be appointed to a 1-year
2223	term. The director of the division shall appoint serve as an ex
2224	officio nonvoting member. The Legislature intends that the
2225	persons appointed represent a cross-section of persons
2226	interested in condominium issues. The council shall be located
2227	within the division for administrative purposes. Members of the
2228	council shall serve without compensation but are entitled to
2229	receive per diem and travel expenses pursuant to s. 112.061
2230	while on official business.
2231	(2)  The functions of the advisory council shall be to:
2232	(a)  Receive, from the public, input regarding issues of
2233	concern with respect to community association living, including
2234	living in condominiums, cooperatives, and homeowners'
2235	associations. The council shall make and recommendations for
2236	changes in the condominium law related to community association
2237	living. The issues that the council shall consider include, but
2238	are not limited to, the rights and responsibilities of the unit
2239	owners in relation to the rights and responsibilities of the
2240	association.
2241	(b)  Review, evaluate, and advise the division concerning
2242	revisions and adoption of rules affecting condominiums and
2243	cooperatives.
2244	(c)  Recommend improvements, if needed, in the education
2245	programs offered by the division.
2246	(d)  Review, evaluate, and advise the Legislature
2247	concerning revisions and improvements to the laws relating to
2248	condominiums, cooperatives, and homeowners' associations.
2249	(3)  The council may elect a chair and vice chair and such
2250	other officers as it may deem advisable. The council shall meet
2251	at the call of its chair, at the request of a majority of its
2252	membership, at the request of the division, or at such times as
2253	it may prescribe. A majority of the members of the council shall
2254	constitute a quorum. Council action may be taken by vote of a
2255	majority of the voting members who are present at a meeting
2256	where there is a quorum.
2257	Section 23.  Paragraph (a) of subsection (2) of section
2258	718.503, Florida Statutes, is amended to read:
2259	718.503  Developer disclosure prior to sale; nondeveloper
2260	unit owner disclosure prior to sale; voidability.--
2261	(2)  NONDEVELOPER DISCLOSURE.--
2262	(a)  Each unit owner who is not a developer as defined by
2263	this chapter shall comply with the provisions of this subsection
2264	prior to the sale of his or her unit. Each prospective purchaser
2265	who has entered into a contract for the purchase of a
2266	condominium unit is entitled, at the seller's expense, to a
2267	current copy of the declaration of condominium, articles of
2268	incorporation of the association, bylaws and rules of the
2269	association, financial information required by s. 718.111, and
2270	the document entitled "Frequently Asked Questions and Answers"
2271	required by s. 718.504. On and after January 1, 2009, the
2272	prospective purchaser shall also be entitled to receive from the
2273	seller a copy of a governance form. Such form shall be provided
2274	by the division summarizing governance of condominium
2275	associations. In addition to such other information as the
2276	division considers helpful to a prospective purchaser in
2277	understanding association governance, the governance form shall
2278	address the following subjects:
2279	1.  The role of the board in conducting the day-to-day
2280	affairs of the association on behalf of, and in the best
2281	interests of, the owners.
2282	2.  The board's responsibility to provide advance notice of
2283	board and membership meetings.
2284	3.  The rights of owners to attend and speak at board and
2285	membership meetings.
2286	4.  The responsibility of the board and of owners with
2287	respect to maintenance of the condominium property.
2288	5.  The responsibility of the board and owners to abide by
2289	the condominium documents, this chapter, rules adopted by the
2290	division, and reasonable rules adopted by the board.
2291	6.  Owners' rights to inspect and copy association records
2292	and the limitations on such rights.
2293	7.  Remedies available to owners with respect to actions by
2294	the board which may be abusive or beyond the board's power and
2295	authority.
2296	8.  The right of the board to hire a property management
2297	firm, subject to its own primary responsibility for such
2298	management.
2299	9.  The responsibility of owners with regard to payment of
2300	regular or special assessments necessary for the operation of
2301	the property and the potential consequences of failure to pay
2302	such assessments.
2303	10.  The voting rights of owners.
2304	11.  Rights and obligations of the board in enforcement of
2305	rules in the condominium documents and rules adopted by the
2306	board.
2307
2308	The governance form shall also include the following statement
2309	in conspicuous type: "This publication is intended as an
2310	informal educational overview of condominium governance. In the
2311	event of a conflict, the provisions of chapter 718, Florida
2312	Statutes, rules adopted by the Division of Florida Land Sales,
2313	Condominiums, and Mobile Homes of the Department of Business and
2314	Professional Regulation, the provisions of the condominium
2315	documents, and reasonable rules adopted by the condominium
2316	association's board of administration prevail over the contents
2317	of this publication."
2318	Section 24.  This act shall take effect October 1, 2008.

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