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; providing
88	for the maintenance, repair, and replacement of hurricane
89	shutters or other hurricane protection; prohibiting a
90	board from refusing to approve the installation or
91	replacement of hurricane shutters by a unit owner under
92	certain conditions; requiring that the board inspect
93	certain condominium buildings and issue a report
94	thereupon; providing an exception; prohibiting the board
95	from refusing a request for reasonable accommodation for
96	the attachment to a unit of religious objects meeting
97	certain size specifications; amending s. 718.115, F.S.;
98	providing the expense of installation, replacement,
99	operation, repair, and maintenance of hurricane shutters
100	or other hurricane protection shall constitute either a
101	common expense or shall be charged individually to the
102	unit owners under certain conditions; amending s. 718.117,
103	F.S.; requiring that all unit owners be provided written
104	notice of the appointment of a receiver; providing for the
105	delivery of such notice; amending s. 718.121, F.S.;
106	providing requirements and restrictions for liens filed by
107	the association against a condominium unit; providing for
108	notice and delivery thereof; creating s. 718.1224, F.S.;
109	prohibiting strategic lawsuits against public
110	participation; providing legislative findings and intent;
111	prohibiting a governmental entity, business organization,
112	or individual from filing certain lawsuits made upon
113	specified bases against a unit owner; providing rights of
114	a unit owner who has been served with such a lawsuit;
115	providing procedures for the resolution of claims that
116	such suit violates certain provisions of state law;
117	providing for the award of damages and attorney's fees;
118	prohibiting associations from expending association funds
119	in prosecuting such a suit against a unit owner; amending
120	s. 718.1255, F.S.; revising legislative intent concerning
121	alternative dispute resolution; creating s. 718.1265,
122	F.S.; authorizing an association to exercise certain
123	powers in instances involving damage caused by an event
124	for which a state of emergency has been declared; limiting
125	the applicability of such powers; creating s. 718.127,
126	F.S.; requiring that all unit owners be provided written
127	notice of the appointment of a receiver; providing for the
128	delivery of such notice; amending s. 718.301, F.S.;
129	providing circumstances under which unit owners other than
130	a developer may elect not fewer than a majority of the
131	members of the board of administration of an association;
132	requiring a turnover inspection report; requiring that the
133	report contain certain information; amending s. 718.3025,
134	F.S.; requiring that maintenance and management services
135	contracts disclose certain information; amending s.
136	718.3026, F.S.; revising a provision authorizing certain
137	associations to opt out of provisions relating to
138	contracts for products and services; removing provisions
139	relating to competitive bid requirements for contracts
140	executed before a specified date; providing requirements
141	for any contract or transaction between an association and
142	one or more of its directors or any other entity in which
143	one or more of its directors are directors or officers or
144	have a financial interest; amending s. 718.303, F.S.;
145	providing that hearings regarding noncompliance with a
146	declaration be held before certain persons; amending s.
147	718.501, F.S.; providing authority and responsibilities of
148	the division; providing for enforcement actions brought by
149	the division in its own name; providing for the imposition
150	of penalties by the division; requiring that the division
151	issue a subpoena requiring production of certain requested
152	records under certain circumstances; providing for the
153	issuance of notice of a declaratory statement with respect
154	to documents governing a condominium community; requiring
155	that the division provide training and education for
156	condominium association board members and unit owners;
157	authorizing the division to include certain training
158	components and review or approve training programs offered
159	by providers; requiring that certain individuals cooperate
160	with the division in any investigation conducted by the
161	division; amending s. 718.5012, F.S.; providing additional
162	powers of the ombudsman; amending s. 718.50151, F.S.;
163	redesignating the Advisory Council on Condominiums as the
164	"Community Association Living Study Council"; providing
165	for the creation of the council; revising legislative
166	intent with respect to the appointment of council members;
167	providing functions of the council; amending s. 718.503,
168	F.S.; providing for disclosure of certain information upon
169	the sale of a unit by a nondeveloper; requiring the
170	provision of a governance form by the seller to the
171	prospective buyer; requiring that such form contain
172	certain information and a specified statement; providing
173	an effective date.
174
175	Be It Enacted by the Legislature of the State of Florida:
176
177	Section 1.  Section 468.431, Florida Statutes, is amended
178	to read:
179	468.431  Definitions.--As used in this part:
180	(1)  "Community association" means a residential
181	homeowners' association in which membership is a condition of
182	ownership of a unit in a planned unit development, or of a lot
183	for a home or a mobile home, or of a townhouse, villa,
184	condominium, cooperative, or other residential unit which is
185	part of a residential development scheme and which is authorized
186	to impose a fee which may become a lien on the parcel.
187	(2)  "Community association management" means any of the
188	following practices requiring substantial specialized knowledge,
189	judgment, and managerial skill when done for remuneration and
190	when the association or associations served contain more than 10
191	50 units or have an annual budget or budgets in excess of
192	$100,000: controlling or disbursing funds of a community
193	association, preparing budgets or other financial documents for
194	a community association, assisting in the noticing or conduct of
195	community association meetings, and coordinating maintenance for
196	the residential development and other day-to-day services
197	involved with the operation of a community association. A person
198	who performs clerical or ministerial functions under the direct
199	supervision and control of a licensed manager or who is charged
200	only with performing the maintenance of a community association
201	and who does not assist in any of the management services
202	described in this subsection is not required to be licensed
203	under this part.
204	(3)  "Community association management firm" means a
205	corporation, limited liability company, partnership, trust,
206	association, sole proprietorship, or other similar organization
207	engaging in the business of community association management for
208	the purpose of providing any of the services described in
209	subsection (2).
210	(4)(3)  "Community association manager" means a natural
211	person who is licensed pursuant to this part to perform
212	community association management services.
213	(5)(4)  "Council" means the Regulatory Council of Community
214	Association Managers.
215	(6)(5)  "Department" means the Department of Business and
216	Professional Regulation.
217	Section 2.  Section 468.4315, Florida Statutes, is amended
218	to read:
219	468.4315  Regulatory Council of Community Association
220	Managers.--
221	(1)  The Regulatory Council of Community Association
222	Managers is created within the department and shall consist of
223	seven members appointed by the Governor and confirmed by the
224	Senate.
225	(a)  Five members of the council shall be licensed
226	community association managers, one of whom may shall be a
227	community association manager employed by a timeshare managing
228	entity as described in ss. 468.438 and 721.13, who have held an
229	active license for at least 5 years. The remaining two council
230	members shall be residents of this state, and must not be or
231	ever have been connected with the business of community
232	association management, and shall not be prohibited from serving
233	because the member is or has been a resident or board member of
234	a community association.
235	(b)  The Governor shall appoint members for terms of 4
236	years. Such members shall serve until their successors are
237	appointed. Members' service on the council shall begin upon
238	appointment and shall continue until their successors are
239	appointed.
240	(2)  The council may adopt rules relating to the licensure
241	examination, continuing education requirements, continuing
242	education providers, fees, and professional practice standards
243	to assist the department in carrying out the duties and
244	authorities conferred upon the department by this part.
245	(3) To the extent the council is authorized to exercise
246	functions otherwise exercised by a board pursuant to chapter
247	455, the provisions of chapter 455 and s. 20.165 relating to
248	regulatory boards shall apply, including, but not limited to,
249	provisions relating to board rules and the accountability and
250	liability of board members. All proceedings and actions of the
251	council are subject to the provisions of chapter 120. In
252	addition, the provisions of chapter 455 and s. 20.165 shall
253	apply to the department in carrying out the duties and
254	authorities conferred upon the department by this part.
255	(4)  The council may establish a public education program
256	relating to professional community association management.
257	(5)  Members of the council shall serve without
258	compensation but are entitled to receive per diem and travel
259	expenses pursuant to s. 112.061 while carrying out business
260	approved by the council.
261	(6)  The responsibilities of the council shall include, but
262	not be limited to:
263	(a)  Receiving input regarding issues of concern with
264	respect to community association management and recommendations
265	for changes in applicable laws.
266	(b)  Reviewing, evaluating, and advising the division
267	concerning revisions and adoption of rules affecting community
268	association management.
269	(c)  Recommending improvements, if needed, in the education
270	programs offered by the division.
271	Section 3.  Section 468.432, Florida Statutes, is amended
272	to read:
273	468.432  Licensure of community association managers and
274	community association management firms; exceptions.--
275	(1)  A person shall not manage or hold herself or himself
276	out to the public as being able to manage a community
277	association in this state unless she or he is licensed by the
278	department in accordance with the provisions of this part.
279	However, nothing in this part prohibits any person licensed in
280	this state under any other law or court rule from engaging in
281	the profession for which she or he is licensed.
282	(2)  As of January 1, 2009, a community association
283	management firm or other similar organization responsible for
284	the management of more than 10 units or a budget of $100,000 or
285	greater shall not engage or hold itself out to the public as
286	being able to engage in the business of community association
287	management in this state unless it is licensed by the department
288	as a community association management firm in accordance with
289	the provisions of this part.
290	(a)  A community association management firm or other
291	similar organization desiring to be licensed as a community
292	association management firm shall apply to the department on a
293	form approved by the department together with the application
294	and licensure fees required by s. 468.435(1)(a) and (c). Each
295	community association management firm applying for licensure
296	under this subsection must be actively registered and authorized
297	to do business in this state.
298	(b)  Each applicant shall designate on its application a
299	licensed community association manager who shall be required to
300	respond to all inquires from and investigations by the
301	department or division.
302	(c)  Each licensed community association management firm
303	shall notify the department within 30 days after any change of
304	information contained in the application upon which licensure is
305	based.
306	(d)  Community association management firm licenses shall
307	expire on September 30 of odd-numbered years and shall be
308	renewed every 2 years. An application for renewal shall be
309	accompanied by the renewal fee as required by s. 468.435(1)(d).
310	(e)  The department shall license each applicant whom the
311	department certifies as meeting the requirements of this
312	subsection.
313	(f)  If the license of at least one individual active
314	community association manager member is not in force, the
315	license of the community association management firm or other
316	similar organization is canceled automatically during that time.
317	(g)  Any community association management firm or other
318	similar organization agrees by being licensed that it will
319	employ only licensed persons in the direct provision of
320	community association management services as described in s.
321	468.431(3).
322	(2)  Nothing in this part prohibits a corporation,
323	partnership, trust, association, or other like organization from
324	engaging in the business of community association management
325	without being licensed if it employs licensed natural persons in
326	the direct provision of community association management
327	services. Such corporation, partnership, trust, association, or
328	other organization shall also file with the department a
329	statement on a form approved by the department that it submits
330	itself to the rules of the council and the department and the
331	provisions of this part which the department deems applicable.
332	Section 4.  Subsections (2) and (4) of section 468.433,
333	Florida Statutes, are amended to read:
334	468.433  Licensure by examination.--
335	(2)  The department shall examine each applicant who is at
336	least 18 years of age, who has successfully completed all
337	prelicensure education requirements, and who the department
338	certifies is of good moral character.
339	(a)  Good moral character means a personal history of
340	honesty, fairness, and respect for the rights of others and for
341	the laws of this state and nation.
342	(b)  The department may refuse to certify an applicant only
343	if:
344	1.  There is a substantial connection between the lack of
345	good moral character of the applicant and the professional
346	responsibilities of a community association manager; and
347	2.  The finding by the department of lack of good moral
348	character is supported by clear and convincing evidence; or
349	3.  The applicant is found to have provided management
350	services requiring licensure without the requisite license.
351	(c)  When an applicant is found to be unqualified for a
352	license because of a lack of good moral character, the
353	department shall furnish the applicant a statement containing
354	its findings, a complete record of the evidence upon which the
355	determination was based, and a notice of the rights of the
356	applicant to a rehearing and appeal.
357	(d)  The council shall establish by rule the required
358	amount of prelicensure education, which shall consist of not
359	more than 24 hours of in-person instruction by a department-
360	approved provider and which shall cover all areas of the
361	examination specified in subsection (3). Such instruction shall
362	be completed within 12 months prior to the date of the
363	examination. Prelicensure education providers shall be
364	considered continuing education providers for purposes of
365	establishing provider approval fees. A licensee shall not be
366	required to comply with the continuing education requirements of
367	s. 468.4337 prior to the first license renewal. The department
368	shall, by rule, set standards for exceptions to the requirement
369	of in-person instruction in cases of hardship or disability.
370	(4)  The department shall issue a license to practice in
371	this state as a community association manager to any qualified
372	applicant who successfully completes the examination in
373	accordance with this section and pays the appropriate fee.
374	Section 5.  Section 468.436, Florida Statutes, is amended
375	to read:
376	468.436  Disciplinary proceedings.--
377	(1)  The department shall investigate complaints and
378	allegations of a violation of this part or chapter 455, or any
379	rule adopted thereunder, filed against community association
380	managers or firms and forwarded from other divisions under the
381	Department of Business and Professional Regulation. After a
382	complaint is received, the department shall conduct its inquiry
383	with due regard to the interests of the affected parties. Within
384	30 days after receipt of a complaint, the department shall
385	acknowledge the complaint in writing and notify the complainant
386	whether or not the complaint is within the jurisdiction of the
387	department and whether or not additional information is needed
388	by the department from the complainant. The department shall
389	conduct an investigation and shall, within 90 days after receipt
390	of the original complaint or of a timely request for additional
391	information, take action upon the complaint. However, the
392	failure to complete the investigation within 90 days does not
393	prevent the department from continuing the investigation,
394	accepting or considering evidence obtained or received after 90
395	days, or taking administrative action if reasonable cause exists
396	to believe that a violation of this part or chapter 455, or a
397	rule of the department has occurred. If an investigation is not
398	completed within the time limits established in this subsection,
399	the department shall, on a monthly basis, notify the complainant
400	in writing of the status of the investigation. When reporting
401	its action to the complainant, the department shall inform the
402	complainant of any right to a hearing pursuant to ss. 120.569
403	and 120.57.
404	(2)(1)  The following acts constitute grounds for which the
405	disciplinary actions in subsection (4) (3) may be taken:
406	(a)  Violation of any provision of s. 455.227(1).
407	(b)1.  Violation of any provision of this part.
408	2.  Violation of any lawful order or rule rendered or
409	adopted by the department or the council.
410	3.  Being convicted of or pleading nolo contendere to a
411	felony in any court in the United States.
412	4.  Obtaining a license or certification or any other
413	order, ruling, or authorization by means of fraud,
414	misrepresentation, or concealment of material facts.
415	5.  Committing acts of gross misconduct or gross negligence
416	in connection with the profession.
417	6.  Contracting, on behalf of an association, with any
418	entity in which the licensee has a financial interest that is
419	not disclosed.
420	(3)(2)  The council shall specify by rule the acts or
421	omissions that constitute a violation of subsection (2) (1).
422	(4)(3)  When the department finds any community association
423	manager or firm guilty of any of the grounds set forth in
424	subsection (2) (1), it may enter an order imposing one or more
425	of the following penalties:
426	(a)  Denial of an application for licensure.
427	(b)  Revocation or suspension of a license.
428	(c)  Imposition of an administrative fine not to exceed
429	$5,000 for each count or separate offense.
430	(d)  Issuance of a reprimand.
431	(e)  Placement of the community association manager on
432	probation for a period of time and subject to such conditions as
433	the department specifies.
434	(f)  Restriction of the authorized scope of practice by the
435	community association manager.
436	(5)(4)  The department may shall reissue the license of a
437	disciplined community association manager or firm upon
438	certification by the department that the disciplined person or
439	firm has complied with all of the terms and conditions set forth
440	in the final order.
441	Section 6.  Paragraph (d) is added to subsection (1) of
442	section 718.111, Florida Statutes, and subsections (12) and (13)
443	of that section are amended, to read:
444	718.111  The association.--
445	(1)  CORPORATE ENTITY.--
446	(d)  As required by s. 617.0830, an officer, director, or
447	agent shall discharge his or her duties in good faith, with the
448	care an ordinarily prudent person in a like position would
449	exercise under similar circumstances, and in a manner he or she
450	reasonably believes to be in the interests of the association.
451	Regardless of any indemnification provision in the documents or
452	contract, an officer, director, or agent shall be liable for
453	monetary damages as provided in s. 617.0834 if such officer,
454	director, or agent breached or failed to perform his or her
455	duties and the breach of, or failure to perform, his or her
456	duties constitutes a violation of criminal law as provided in s.
457	617.0834; constitutes a transaction from which the officer or
458	director derived an improper personal benefit, either directly
459	or indirectly; or constitutes recklessness or an act or omission
460	that was  in bad faith, with malicious purpose, or in a manner
461	exhibiting wanton and willful disregard of human rights, safety,
462	or property.
463	(12)  OFFICIAL RECORDS.--
464	(a)  From the inception of the association, the association
465	shall maintain each of the following items, when applicable,
466	which shall constitute the official records of the association:
467	1.  A copy of the plans, permits, warranties, and other
468	items provided by the developer pursuant to s. 718.301(4).
469	2.  A photocopy of the recorded declaration of condominium
470	of each condominium operated by the association and of each
471	amendment to each declaration.
472	3.  A photocopy of the recorded bylaws of the association
473	and of each amendment to the bylaws.
474	4.  A certified copy of the articles of incorporation of
475	the association, or other documents creating the association,
476	and of each amendment thereto.
477	5.  A copy of the current rules of the association.
478	6.  A book or books which contain the minutes of all
479	meetings of the association, of the board of administration
480	directors, and of unit owners, which minutes shall be retained
481	for a period of not less than 7 years.
482	7.  A current roster of all unit owners and their mailing
483	addresses, unit identifications, voting certifications, and, if
484	known, telephone numbers. The association shall also maintain
485	the electronic mailing addresses and the numbers designated by
486	unit owners for receiving notice sent by electronic transmission
487	of those unit owners consenting to receive notice by electronic
488	transmission. The electronic mailing addresses and numbers
489	provided by unit owners to receive notice by electronic
490	transmission shall be removed from association records when
491	consent to receive notice by electronic transmission is revoked.
492	However, the association is not liable for an erroneous
493	disclosure of the electronic mail address or the number for
494	receiving electronic transmission of notices.
495	8.  All current insurance policies of the association and
496	condominiums operated by the association.
497	9.  A current copy of any management agreement, lease, or
498	other contract to which the association is a party or under
499	which the association or the unit owners have an obligation or
500	responsibility.
501	10.  Bills of sale or transfer for all property owned by
502	the association.
503	11.  Accounting records for the association and separate
504	accounting records for each condominium which the association
505	operates. All accounting records shall be maintained for a
506	period of not less than 7 years. Any person who knowingly or
507	intentionally defaces or destroys accounting records required to
508	be maintained by this chapter, or who knowingly or intentionally
509	fails to create or maintain accounting records required to be
510	maintained by this chapter, is personally subject to a civil
511	penalty pursuant to s. 718.501(1)(d). The accounting records
512	shall include, but are not limited to:
513	a.  Accurate, itemized, and detailed records of all
514	receipts and expenditures.
515	b.  A current account and a monthly, bimonthly, or
516	quarterly statement of the account for each unit designating the
517	name of the unit owner, the due date and amount of each
518	assessment, the amount paid upon the account, and the balance
519	due.
520	c.  All audits, reviews, accounting statements, and
521	financial reports of the association or condominium.
522	d.  All contracts for work to be performed. Bids for work
523	to be performed shall also be considered official records and
524	shall be maintained by the association for a period of 1 year.
525	12.  Ballots, sign-in sheets, voting proxies, and all other
526	papers relating to voting by unit owners, which shall be
527	maintained for a period of 1 year from the date of the election,
528	vote, or meeting to which the document relates, notwithstanding
529	paragraph (b).
530	13.  All rental records, when the association is acting as
531	agent for the rental of condominium units.
532	14.  A copy of the current question and answer sheet as
533	described by s. 718.504.
534	15.  All other records of the association not specifically
535	included in the foregoing which are related to the operation of
536	the association.
537	16.  A copy of the inspection report as provided for in s.
538	718.301(4)(p).
539	(b)  The official records of the association shall be
540	maintained within the state for at least 7 years. The records of
541	the association shall be made available to a unit owner within
542	45 miles of the condominium property or within the county in
543	which the condominium property is located within 5 working days
544	after receipt of written request by the board or its designee.
545	However, such distance requirement does not apply to an
546	association governing a timeshare condominium. This paragraph
547	may be complied with by having a copy of the official records of
548	the association available for inspection or copying on the
549	condominium property or association property. The association
550	may offer the option of making the records of the association
551	available to a unit owner either electronically via the Internet
552	or by allowing the records to be viewed in electronic format on
553	a computer screen and printed upon request.
554	(c)  The official records of the association are open to
555	inspection by any association member or the authorized
556	representative of such member at all reasonable times. The right
557	to inspect the records includes the right to make or obtain
558	copies, at the reasonable expense, if any, of the association
559	member. The association may adopt reasonable rules regarding the
560	frequency, time, location, notice, and manner of record
561	inspections and copying. The failure of an association to
562	provide the records within 10 working days after receipt of a
563	written request shall create a rebuttable presumption that the
564	association willfully failed to comply with this paragraph. A
565	unit owner who is denied access to official records is entitled
566	to the actual damages or minimum damages for the association's
567	willful failure to comply with this paragraph. The minimum
568	damages shall be $50 per calendar day up to 10 days, the
569	calculation to begin on the 11th working day after receipt of
570	the written request. The failure to permit inspection of the
571	association records as provided herein entitles any person
572	prevailing in an enforcement action to recover reasonable
573	attorney's fees from the person in control of the records who,
574	directly or indirectly, knowingly denied access to the records
575	for inspection. Any person who knowingly or intentionally
576	defaces or destroys accounting records that are required by this
577	chapter, or knowingly or intentionally fails to create or
578	maintain accounting records that are required by this chapter,
579	is personally subject to a civil penalty pursuant to s.
580	718.501(1)(d). The association shall maintain an adequate number
581	of copies of the declaration, articles of incorporation, bylaws,
582	and rules, and all amendments to each of the foregoing, as well
583	as the question and answer sheet provided for in s. 718.504 and
584	year-end financial information required in this section on the
585	condominium property to ensure their availability to unit owners
586	and prospective purchasers, and may charge its actual costs for
587	preparing and furnishing these documents to those requesting the
588	same. Notwithstanding the provisions of this paragraph, the
589	following records shall not be accessible to unit owners:
590	1.  Any record protected by the lawyer-client privilege as
591	described in s. 90.502; and any record protected by the work-
592	product privilege, including any record prepared by an
593	association attorney or prepared at the attorney's express
594	direction; which reflects a mental impression, conclusion,
595	litigation strategy, or legal theory of the attorney or the
596	association, and which was prepared exclusively for civil or
597	criminal litigation or for adversarial administrative
598	proceedings, or which was prepared in anticipation of imminent
599	civil or criminal litigation or imminent adversarial
600	administrative proceedings until the conclusion of the
601	litigation or adversarial administrative proceedings.
602	2.  Information obtained by an association in connection
603	with the approval of the lease, sale, or other transfer of a
604	unit.
605	3.  Medical records of unit owners.
606	4.  Social security numbers, driver's license numbers,
607	credit card numbers, and other personal identifying information
608	of any person.
609	(d)  The association shall prepare a question and answer
610	sheet as described in s. 718.504, and shall update it annually.
611	(e)1.  The association or its authorized agent is not
612	required to provide a prospective purchaser or lienholder with
613	information about the condominium or the association other than
614	information or documents required by this chapter to be made
615	available or disclosed. The association or its authorized agent
616	may charge a reasonable fee to the prospective purchaser,
617	lienholder, or the current unit owner for providing good faith
618	responses to requests for information by or on behalf of a
619	prospective purchaser or lienholder, other than that required by
620	law, if the fee does not exceed $150 plus the reasonable cost of
621	photocopying and any attorney's fees incurred by the association
622	in connection with the response.
623	2.  An association and its authorized agent are not liable
624	for providing such information in good faith pursuant to a
625	written request if the person providing the information includes
626	a written statement in substantially the following form: "The
627	responses herein are made in good faith and to the best of my
628	ability as to their accuracy."
629	(13)  FINANCIAL REPORTING.--Within 90 days after the end of
630	the fiscal year, or annually on a date provided in the bylaws,
631	the association shall prepare and complete, or contract for the
632	preparation and completion of, a financial report for the
633	preceding fiscal year. Within 21 days after the final financial
634	report is completed by the association or received from the
635	third party, but not later than 120 days after the end of the
636	fiscal year or other date as provided in the bylaws, the
637	association shall mail to each unit owner at the address last
638	furnished to the association by the unit owner, or hand deliver
639	to each unit owner, a copy of the financial report or a notice
640	that a copy of the financial report will be mailed or hand
641	delivered to the unit owner, without charge, upon receipt of a
642	written request from the unit owner. The division shall adopt
643	rules setting forth uniform accounting principles and standards
644	to be used by all associations and shall adopt rules addressing
645	financial reporting requirements for multicondominium
646	associations. The rules shall include, but not be limited to,
647	uniform accounting principles and standards for stating the
648	disclosure of at least a summary of the reserves, including
649	information as to whether such reserves are being funded at a
650	level sufficient to prevent the need for a special assessment
651	and, if not, the amount of assessments necessary to bring the
652	reserves up to the level necessary to avoid a special
653	assessment. The person preparing the financial reports shall be
654	entitled to rely on an inspection report prepared for or
655	provided to the association to meet the fiscal and fiduciary
656	standards of this chapter. In adopting such rules, the division
657	shall consider the number of members and annual revenues of an
658	association. Financial reports shall be prepared as follows:
659	(a)  An association that meets the criteria of this
660	paragraph shall prepare or cause to be prepared a complete set
661	of financial statements in accordance with generally accepted
662	accounting principles. The financial statements shall be based
663	upon the association's total annual revenues, as follows:
664	1.  An association with total annual revenues of $100,000
665	or more, but less than $200,000, shall prepare compiled
666	financial statements.
667	2.  An association with total annual revenues of at least
668	$200,000, but less than $400,000, shall prepare reviewed
669	financial statements.
670	3.  An association with total annual revenues of $400,000
671	or more shall prepare audited financial statements.
672	(b)1.  An association with total annual revenues of less
673	than $100,000 shall prepare a report of cash receipts and
674	expenditures.
675	2.  An association which operates less than 50 units,
676	regardless of the association's annual revenues, shall prepare a
677	report of cash receipts and expenditures in lieu of financial
678	statements required by paragraph (a).
679	3.  A report of cash receipts and disbursements must
680	disclose the amount of receipts by accounts and receipt
681	classifications and the amount of expenses by accounts and
682	expense classifications, including, but not limited to, the
683	following, as applicable: costs for security, professional and
684	management fees and expenses, taxes, costs for recreation
685	facilities, expenses for refuse collection and utility services,
686	expenses for lawn care, costs for building maintenance and
687	repair, insurance costs, administration and salary expenses, and
688	reserves accumulated and expended for capital expenditures,
689	deferred maintenance, and any other category for which the
690	association maintains reserves.
691	(c)  An association may prepare or cause to be prepared,
692	without a meeting of or approval by the unit owners:
693	1.  Compiled, reviewed, or audited financial statements, if
694	the association is required to prepare a report of cash receipts
695	and expenditures;
696	2.  Reviewed or audited financial statements, if the
697	association is required to prepare compiled financial
698	statements; or
699	3.  Audited financial statements if the association is
700	required to prepare reviewed financial statements.
701	(d)  If approved by a majority of the voting interests
702	present at a properly called meeting of the association, an
703	association may prepare or cause to be prepared:
704	1.  A report of cash receipts and expenditures in lieu of a
705	compiled, reviewed, or audited financial statement;
706	2.  A report of cash receipts and expenditures or a
707	compiled financial statement in lieu of a reviewed or audited
708	financial statement; or
709	3.  A report of cash receipts and expenditures, a compiled
710	financial statement, or a reviewed financial statement in lieu
711	of an audited financial statement.
712
713	Such meeting and approval must occur prior to the end of the
714	fiscal year and is effective only for the fiscal year in which
715	the vote is taken, except that the approval also may be
716	effective for the following fiscal year. With respect to an
717	association to which the developer has not turned over control
718	of the association, all unit owners, including the developer,
719	may vote on issues related to the preparation of financial
720	reports for the first 2 fiscal years of the association's
721	operation, beginning with the fiscal year in which the
722	declaration is recorded. Thereafter, all unit owners except the
723	developer may vote on such issues until control is turned over
724	to the association by the developer. Any audit or review
725	prepared under this section shall be paid for by the developer
726	if done prior to turnover of control of the association. An
727	association may not waive the financial reporting requirements
728	of this section for more than 3 consecutive years.
729	Section 7.  Subsection (2) of section 718.112, Florida
730	Statutes, is amended to read:
731	718.112  Bylaws.--
732	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
733	following and, if they do not do so, shall be deemed to include
734	the following:
735	(a)  Administration.--
736	1.  The form of administration of the association shall be
737	described indicating the title of the officers and board of
738	administration and specifying the powers, duties, manner of
739	selection and removal, and compensation, if any, of officers and
740	boards. In the absence of such a provision, the board of
741	administration shall be composed of five members, except in the
742	case of a condominium which has five or fewer units, in which
743	case in a not-for-profit corporation the board shall consist of
744	not fewer than three members. In the absence of provisions to
745	the contrary in the bylaws, the board of administration shall
746	have a president, a secretary, and a treasurer, who shall
747	perform the duties of such officers customarily performed by
748	officers of corporations. Unless prohibited in the bylaws, the
749	board of administration may appoint other officers and grant
750	them the duties it deems appropriate. Unless otherwise provided
751	in the bylaws, the officers shall serve without compensation and
752	at the pleasure of the board of administration. Unless otherwise
753	provided in the bylaws, the members of the board shall serve
754	without compensation.
755	2.  When a unit owner files a written inquiry by certified
756	mail with the board of administration, the board shall respond
757	in writing to the unit owner within 30 days of receipt of the
758	inquiry. The board's response shall either give a substantive
759	response to the inquirer, notify the inquirer that a legal
760	opinion has been requested, or notify the inquirer that advice
761	has been requested from the division. If the board requests
762	advice from the division, the board shall, within 10 days of its
763	receipt of the advice, provide in writing a substantive response
764	to the inquirer. If a legal opinion is requested, the board
765	shall, within 60 days after the receipt of the inquiry, provide
766	in writing a substantive response to the inquiry. The failure to
767	provide a substantive response to the inquiry as provided herein
768	precludes the board from recovering attorney's fees and costs in
769	any subsequent litigation, administrative proceeding, or
770	arbitration arising out of the inquiry. The association may
771	through its board of administration adopt reasonable rules and
772	regulations regarding the frequency and manner of responding to
773	unit owner inquiries, one of which may be that the association
774	is only obligated to respond to one written inquiry per unit in
775	any given 30-day period. In such a case, any additional inquiry
776	or inquiries must be responded to in the subsequent 30-day
777	period, or periods, as applicable.
778	(b)  Quorum; voting requirements; proxies.--
779	1.  Unless a lower number is provided in the bylaws, the
780	percentage of voting interests required to constitute a quorum
781	at a meeting of the members shall be a majority of the voting
782	interests. Unless otherwise provided in this chapter or in the
783	declaration, articles of incorporation, or bylaws, and except as
784	provided in subparagraph (d)3., decisions shall be made by
785	owners of a majority of the voting interests represented at a
786	meeting at which a quorum is present.
787	2.  Except as specifically otherwise provided herein, after
788	January 1, 1992, unit owners may not vote by general proxy, but
789	may vote by limited proxies substantially conforming to a
790	limited proxy form adopted by the division. No voting interest
791	or consent right allocated to a unit owned by the association
792	shall be exercised or considered for any purpose, whether for a
793	quorum, an election, or otherwise. Limited proxies and general
794	proxies may be used to establish a quorum. Limited proxies shall
795	be used for votes taken to waive or reduce reserves in
796	accordance with subparagraph (f)2.; for votes taken to waive the
797	financial reporting requirements of s. 718.111(13); for votes
798	taken to amend the declaration pursuant to s. 718.110; for votes
799	taken to amend the articles of incorporation or bylaws pursuant
800	to this section; and for any other matter for which this chapter
801	requires or permits a vote of the unit owners. Except as
802	provided in paragraph (d), after January 1, 1992, no proxy,
803	limited or general, shall be used in the election of board
804	members. General proxies may be used for other matters for which
805	limited proxies are not required, and may also be used in voting
806	for nonsubstantive changes to items for which a limited proxy is
807	required and given. Notwithstanding the provisions of this
808	subparagraph, unit owners may vote in person at unit owner
809	meetings. Nothing contained herein shall limit the use of
810	general proxies or require the use of limited proxies for any
811	agenda item or election at any meeting of a timeshare
812	condominium association.
813	3.  Any proxy given shall be effective only for the
814	specific meeting for which originally given and any lawfully
815	adjourned meetings thereof. In no event shall any proxy be valid
816	for a period longer than 90 days after the date of the first
817	meeting for which it was given. Every proxy is revocable at any
818	time at the pleasure of the unit owner executing it.
819	4.  A member of the board of administration or a committee
820	may submit in writing his or her agreement or disagreement with
821	any action taken at a meeting that the member did not attend.
822	This agreement or disagreement may not be used as a vote for or
823	against the action taken and may not be used for the purposes of
824	creating a quorum.
825	5.  When any of the board or committee members meet by
826	telephone conference, those board or committee members attending
827	by telephone conference may be counted toward obtaining a quorum
828	and may vote by telephone. A telephone speaker must be used so
829	that the conversation of those board or committee members
830	attending by telephone may be heard by the board or committee
831	members attending in person as well as by any unit owners
832	present at a meeting.
833	(c)  Board of administration meetings.--Meetings of the
834	board of administration at which a quorum of the members is
835	present shall be open to all unit owners. Any unit owner may
836	tape record or videotape meetings of the board of
837	administration. The right to attend such meetings includes the
838	right to speak at such meetings with reference to all designated
839	agenda items. The division shall adopt reasonable rules
840	governing the tape recording and videotaping of the meeting. The
841	association may adopt written reasonable rules governing the
842	frequency, duration, and manner of unit owner statements.
843	Adequate notice of all meetings, which notice shall specifically
844	incorporate an identification of agenda items, shall be posted
845	conspicuously on the condominium property at least 48 continuous
846	hours preceding the meeting except in an emergency. If 20
847	percent of the voting interests petition the board to address an
848	item of business, the board shall at its next regular board
849	meeting or at a special meeting of the board, but not later than
850	60 days after the receipt of the petition, place the item on the
851	agenda. Any item not included on the notice may be taken up on
852	an emergency basis by at least a majority plus one of the
853	members of the board. Such emergency action shall be noticed and
854	ratified at the next regular meeting of the board. However,
855	written notice of any meeting at which nonemergency special
856	assessments, or at which amendment to rules regarding unit use,
857	will be considered shall be mailed, delivered, or electronically
858	transmitted to the unit owners and posted conspicuously on the
859	condominium property not less than 14 days prior to the meeting.
860	Evidence of compliance with this 14-day notice shall be made by
861	an affidavit executed by the person providing the notice and
862	filed among the official records of the association. Upon notice
863	to the unit owners, the board shall by duly adopted rule
864	designate a specific location on the condominium property or
865	association property upon which all notices of board meetings
866	shall be posted. If there is no condominium property or
867	association property upon which notices can be posted, notices
868	of board meetings shall be mailed, delivered, or electronically
869	transmitted at least 14 days before the meeting to the owner of
870	each unit. In lieu of or in addition to the physical posting of
871	notice of any meeting of the board of administration on the
872	condominium property, the association may, by reasonable rule,
873	adopt a procedure for conspicuously posting and repeatedly
874	broadcasting the notice and the agenda on a closed-circuit cable
875	television system serving the condominium association. However,
876	if broadcast notice is used in lieu of a notice posted
877	physically on the condominium property, the notice and agenda
878	must be broadcast at least four times every broadcast hour of
879	each day that a posted notice is otherwise required under this
880	section. When broadcast notice is provided, the notice and
881	agenda must be broadcast in a manner and for a sufficient
882	continuous length of time so as to allow an average reader to
883	observe the notice and read and comprehend the entire content of
884	the notice and the agenda. Notice of any meeting in which
885	regular or special assessments against unit owners are to be
886	considered for any reason shall specifically state contain a
887	statement that assessments will be considered and the nature,
888	estimated cost, and description of the purposes for any such
889	assessments. Meetings of a committee to take final action on
890	behalf of the board or make recommendations to the board
891	regarding the association budget are subject to the provisions
892	of this paragraph. Meetings of a committee that does not take
893	final action on behalf of the board or make recommendations to
894	the board regarding the association budget are subject to the
895	provisions of this section, unless those meetings are exempted
896	from this section by the bylaws of the association.
897	Notwithstanding any other law, the requirement that board
898	meetings and committee meetings be open to the unit owners is
899	inapplicable to meetings between the board or a committee and
900	the association's attorney, with respect to proposed or pending
901	litigation, when the meeting is held for the purpose of seeking
902	or rendering legal advice.
903	(d)  Unit owner meetings.--
904	1.  There shall be an annual meeting of the unit owners
905	held at the location provided in the association bylaws and, if
906	the bylaws are silent as to the location, the meeting shall be
907	held within 45 miles of the condominium property. However, such
908	distance requirement does not apply to an association governing
909	a timeshare condominium. Unless the bylaws provide otherwise, a
910	vacancy on the board caused by the expiration of a director's
911	term shall be filled by electing a new board member, and the
912	election shall be by secret ballot; however, if the number of
913	vacancies equals or exceeds the number of candidates, no
914	election is required. If there is no provision in the bylaws for
915	terms of the members of the board, The terms of all members of
916	the board shall expire upon the election of their successors at
917	the annual meeting and such board members may stand for
918	reelection. However, if no person is interested in or
919	demonstrates an intention to run for the position of a board
920	member whose term has expired according to the provisions of
921	this subparagraph, such board member whose term has expired
922	shall be automatically reappointed to the board of
923	administration and need not stand for reelection. In a
924	condominium association of more than 10 units, coowners of a
925	unit may not serve as members of the board of directors at the
926	same time. Any unit owner desiring to be a candidate for board
927	membership shall comply with subparagraph 3. A person who has
928	been suspended or removed by the division under this chapter, or
929	who is delinquent in the payment of any fee or assessment as
930	provided in paragraph (n), is not eligible for board membership.
931	A person who has been convicted of any felony in this state or
932	by any court of record in a the United States District or
933	Territorial Court, or who has been convicted of any offense in
934	another jurisdiction that would be considered a felony if
935	committed in this state, and who has not had his or her right to
936	vote restored pursuant to law in the jurisdiction of his or her
937	residence is not eligible for board membership unless such
938	felon's civil rights have been restored for a period of no less
939	than 5 years as of the date on which such person seeks election
940	to the board. The validity of an action by the board is not
941	affected if it is later determined that a member of the board is
942	ineligible for board membership due to having been convicted of
943	a felony.
944	2.  The bylaws shall provide the method of calling meetings
945	of unit owners, including annual meetings. Written notice, which
946	notice must include an agenda, shall be mailed, hand delivered,
947	or electronically transmitted to each unit owner at least 14
948	days prior to the annual meeting and shall be posted in a
949	conspicuous place on the condominium property at least 14
950	continuous days preceding the annual meeting. Upon notice to the
951	unit owners, the board shall by duly adopted rule designate a
952	specific location on the condominium property or association
953	property upon which all notices of unit owner meetings shall be
954	posted; however, if there is no condominium property or
955	association property upon which notices can be posted, this
956	requirement does not apply. In lieu of or in addition to the
957	physical posting of notice of any meeting of the unit owners on
958	the condominium property, the association may, by reasonable
959	rule, adopt a procedure for conspicuously posting and repeatedly
960	broadcasting the notice and the agenda on a closed-circuit cable
961	television system serving the condominium association. However,
962	if broadcast notice is used in lieu of a notice posted
963	physically on the condominium property, the notice and agenda
964	must be broadcast at least four times every broadcast hour of
965	each day that a posted notice is otherwise required under this
966	section. When broadcast notice is provided, the notice and
967	agenda must be broadcast in a manner and for a sufficient
968	continuous length of time so as to allow an average reader to
969	observe the notice and read and comprehend the entire content of
970	the notice and the agenda. Unless a unit owner waives in writing
971	the right to receive notice of the annual meeting, such notice
972	shall be hand delivered, mailed, or electronically transmitted
973	to each unit owner. Notice for meetings and notice for all other
974	purposes shall be mailed to each unit owner at the address last
975	furnished to the association by the unit owner, or hand
976	delivered to each unit owner. However, if a unit is owned by
977	more than one person, the association shall provide notice, for
978	meetings and all other purposes, to that one address which the
979	developer initially identifies for that purpose and thereafter
980	as one or more of the owners of the unit shall so advise the
981	association in writing, or if no address is given or the owners
982	of the unit do not agree, to the address provided on the deed of
983	record. An officer of the association, or the manager or other
984	person providing notice of the association meeting, shall
985	provide an affidavit or United States Postal Service certificate
986	of mailing, to be included in the official records of the
987	association affirming that the notice was mailed or hand
988	delivered, in accordance with this provision.
989	3.  The members of the board shall be elected by written
990	ballot or voting machine. Proxies shall in no event be used in
991	electing the board, either in general elections or elections to
992	fill vacancies caused by recall, resignation, or otherwise,
993	unless otherwise provided in this chapter. Not less than 60 days
994	before a scheduled election, the association shall mail,
995	deliver, or electronically transmit, whether by separate
996	association mailing or included in another association mailing,
997	delivery, or transmission, including regularly published
998	newsletters, to each unit owner entitled to a vote, a first
999	notice of the date of the election along with a certification
1000	form provided by the division attesting that he or she has read
1001	and understands, to the best of his or her ability, the
1002	governing documents of the association and the provisions of
1003	this chapter and any applicable rules. Any unit owner or other
1004	eligible person desiring to be a candidate for the board must
1005	give written notice to the association not less than 40 days
1006	before a scheduled election. Together with the written notice
1007	and agenda as set forth in subparagraph 2., the association
1008	shall mail, deliver, or electronically transmit a second notice
1009	of the election to all unit owners entitled to vote therein,
1010	together with a ballot which shall list all candidates. Upon
1011	request of a candidate, the association shall include an
1012	information sheet, no larger than 81/2 inches by 11 inches,
1013	which must be furnished by the candidate not less than 35 days
1014	before the election, along with the signed certification form
1015	provided for in this subparagraph, to be included with the
1016	mailing, delivery, or transmission of the ballot, with the costs
1017	of mailing, delivery, or electronic transmission and copying to
1018	be borne by the association. The association is not liable for
1019	the contents of the information sheets prepared by the
1020	candidates. In order to reduce costs, the association may print
1021	or duplicate the information sheets on both sides of the paper.
1022	The division shall by rule establish voting procedures
1023	consistent with the provisions contained herein, including rules
1024	establishing procedures for giving notice by electronic
1025	transmission and rules providing for the secrecy of ballots.
1026	Elections shall be decided by a plurality of those ballots cast.
1027	There shall be no quorum requirement; however, at least 20
1028	percent of the eligible voters must cast a ballot in order to
1029	have a valid election of members of the board. No unit owner
1030	shall permit any other person to vote his or her ballot, and any
1031	such ballots improperly cast shall be deemed invalid, provided
1032	any unit owner who violates this provision may be fined by the
1033	association in accordance with s. 718.303. A unit owner who
1034	needs assistance in casting the ballot for the reasons stated in
1035	s. 101.051 may obtain assistance in casting the ballot. The
1036	regular election shall occur on the date of the annual meeting.
1037	The provisions of this subparagraph shall not apply to timeshare
1038	condominium associations. Notwithstanding the provisions of this
1039	subparagraph, an election is not required unless more candidates
1040	file notices of intent to run or are nominated than board
1041	vacancies exist.
1042	4.  Any approval by unit owners called for by this chapter
1043	or the applicable declaration or bylaws, including, but not
1044	limited to, the approval requirement in s. 718.111(8), shall be
1045	made at a duly noticed meeting of unit owners and shall be
1046	subject to all requirements of this chapter or the applicable
1047	condominium documents relating to unit owner decisionmaking,
1048	except that unit owners may take action by written agreement,
1049	without meetings, on matters for which action by written
1050	agreement without meetings is expressly allowed by the
1051	applicable bylaws or declaration or any statute that provides
1052	for such action.
1053	5.  Unit owners may waive notice of specific meetings if
1054	allowed by the applicable bylaws or declaration or any statute.
1055	If authorized by the bylaws, notice of meetings of the board of
1056	administration, unit owner meetings, except unit owner meetings
1057	called to recall board members under paragraph (j), and
1058	committee meetings may be given by electronic transmission to
1059	unit owners who consent to receive notice by electronic
1060	transmission.
1061	6.  Unit owners shall have the right to participate in
1062	meetings of unit owners with reference to all designated agenda
1063	items. However, the association may adopt reasonable rules
1064	governing the frequency, duration, and manner of unit owner
1065	participation.
1066	7.  Any unit owner may tape record or videotape a meeting
1067	of the unit owners subject to reasonable rules adopted by the
1068	division.
1069	8.  Unless otherwise provided in the bylaws, any vacancy
1070	occurring on the board before the expiration of a term may be
1071	filled by the affirmative vote of the majority of the remaining
1072	directors, even if the remaining directors constitute less than
1073	a quorum, or by the sole remaining director. In the alternative,
1074	a board may hold an election to fill the vacancy, in which case
1075	the election procedures must conform to the requirements of
1076	subparagraph 3. unless the association governs 10 units or less
1077	and has opted out of the statutory election process, in which
1078	case the bylaws of the association control. Unless otherwise
1079	provided in the bylaws, a board member appointed or elected
1080	under this section shall fill the vacancy for the unexpired term
1081	of the seat being filled. Filling vacancies created by recall is
1082	governed by paragraph (j) and rules adopted by the division.
1083
1084	Notwithstanding subparagraphs (b)2. and (d)3., an association of
1085	10 or fewer units may, by the affirmative vote of a majority of
1086	the total voting interests, provide for different voting and
1087	election procedures in its bylaws, which vote may be by a proxy
1088	specifically delineating the different voting and election
1089	procedures. The different voting and election procedures may
1090	provide for elections to be conducted by limited or general
1091	proxy.
1092	(e)  Budget meeting.--
1093	1.  Any meeting at which a proposed annual budget of an
1094	association will be considered by the board or unit owners shall
1095	be open to all unit owners. At least 14 days prior to such a
1096	meeting, the board shall hand deliver to each unit owner, mail
1097	to each unit owner at the address last furnished to the
1098	association by the unit owner, or electronically transmit to the
1099	location furnished by the unit owner for that purpose a notice
1100	of such meeting and a copy of the proposed annual budget. An
1101	officer or manager of the association, or other person providing
1102	notice of such meeting, shall execute an affidavit evidencing
1103	compliance with such notice requirement, and such affidavit
1104	shall be filed among the official records of the association.
1105	2.a.  If a board adopts in any fiscal year an annual budget
1106	which requires assessments against unit owners which exceed 115
1107	percent of assessments for the preceding fiscal year, the board
1108	shall conduct a special meeting of the unit owners to consider a
1109	substitute budget if the board receives, within 21 days after
1110	adoption of the annual budget, a written request for a special
1111	meeting from at least 10 percent of all voting interests. The
1112	special meeting shall be conducted within 60 days after adoption
1113	of the annual budget. At least 14 days prior to such special
1114	meeting, the board shall hand deliver to each unit owner, or
1115	mail to each unit owner at the address last furnished to the
1116	association, a notice of the meeting. An officer or manager of
1117	the association, or other person providing notice of such
1118	meeting shall execute an affidavit evidencing compliance with
1119	this notice requirement, and such affidavit shall be filed among
1120	the official records of the association. Unit owners may
1121	consider and adopt a substitute budget at the special meeting. A
1122	substitute budget is adopted if approved by a majority of all
1123	voting interests unless the bylaws require adoption by a greater
1124	percentage of voting interests. If there is not a quorum at the
1125	special meeting or a substitute budget is not adopted, the
1126	annual budget previously adopted by the board shall take effect
1127	as scheduled.
1128	b.  Any determination of whether assessments exceed 115
1129	percent of assessments for the prior fiscal year shall exclude
1130	any authorized provision for reasonable reserves for repair or
1131	replacement of the condominium property, anticipated expenses of
1132	the association which the board does not expect to be incurred
1133	on a regular or annual basis, or assessments for betterments to
1134	the condominium property.
1135	c.  If the developer controls the board, assessments shall
1136	not exceed 115 percent of assessments for the prior fiscal year
1137	unless approved by a majority of all voting interests.
1138	(f)  Annual budget.--
1139	1.  The proposed annual budget of estimated revenues and
1140	common expenses shall be detailed and shall show the amounts
1141	budgeted by accounts and expense classifications, including, if
1142	applicable, but not limited to, those expenses listed in s.
1143	718.504(21). A multicondominium association shall adopt a
1144	separate budget of common expenses for each condominium the
1145	association operates and shall adopt a separate budget of common
1146	expenses for the association. In addition, if the association
1147	maintains limited common elements with the cost to be shared
1148	only by those entitled to use the limited common elements as
1149	provided for in s. 718.113(1), the budget or a schedule attached
1150	thereto shall show amounts budgeted therefor. If, after turnover
1151	of control of the association to the unit owners, any of the
1152	expenses listed in s. 718.504(21) are not applicable, they need
1153	not be listed.
1154	2.  In addition to annual operating expenses, the budget
1155	shall include reserve accounts for capital expenditures and
1156	deferred maintenance. These accounts shall include, but are not
1157	limited to, roof replacement, building painting, and pavement
1158	resurfacing, regardless of the amount of deferred maintenance
1159	expense or replacement cost, and for any other item for which
1160	the deferred maintenance expense or replacement cost exceeds
1161	$10,000. The amount to be reserved shall be computed by means of
1162	a formula which is based upon estimated remaining useful life
1163	and estimated replacement cost or deferred maintenance expense
1164	of each reserve item. The association may adjust replacement
1165	reserve assessments annually to take into account any changes in
1166	estimates or extension of the useful life of a reserve item
1167	caused by deferred maintenance. This subsection does not apply
1168	to an adopted budget in which the members of an association have
1169	determined, by a majority vote at a duly called meeting of the
1170	association, to provide no reserves or less reserves than
1171	required by this subsection. However, prior to turnover of
1172	control of an association by a developer to unit owners other
1173	than a developer pursuant to s. 718.301, the developer may vote
1174	to waive the reserves or reduce the funding of reserves for the
1175	first 2 fiscal years of the association's operation, beginning
1176	with the fiscal year in which the initial declaration is
1177	recorded, after which time reserves may be waived or reduced
1178	only upon the vote of a majority of all nondeveloper voting
1179	interests voting in person or by limited proxy at a duly called
1180	meeting of the association. If a meeting of the unit owners has
1181	been called to determine whether to waive or reduce the funding
1182	of reserves, and no such result is achieved or a quorum is not
1183	attained, the reserves as included in the budget shall go into
1184	effect. After the turnover, the developer may vote its voting
1185	interest to waive or reduce the funding of reserves.
1186	3.  Reserve funds and any interest accruing thereon shall
1187	remain in the reserve account or accounts, and shall be used
1188	only for authorized reserve expenditures unless their use for
1189	other purposes is approved in advance by a majority vote at a
1190	duly called meeting of the association. Prior to turnover of
1191	control of an association by a developer to unit owners other
1192	than the developer pursuant to s. 718.301, the developer-
1193	controlled association shall not vote to use reserves for
1194	purposes other than that for which they were intended without
1195	the approval of a majority of all nondeveloper voting interests,
1196	voting in person or by limited proxy at a duly called meeting of
1197	the association.
1198	4.  The only voting interests which are eligible to vote on
1199	questions that involve waiving or reducing the funding of
1200	reserves, or using existing reserve funds for purposes other
1201	than purposes for which the reserves were intended, are the
1202	voting interests of the units subject to assessment to fund the
1203	reserves in question. Proxy questions relating to waiving or
1204	reducing the funding of reserves or using existing reserve funds
1205	for purposes other than purposes for which the reserves were
1206	intended shall contain the following statement in capitalized,
1207	bold letters in a font size larger than any other used on the
1208	face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1209	PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
1210	RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
1211	SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
1212	(g)  Assessments.--The manner of collecting from the unit
1213	owners their shares of the common expenses shall be stated in
1214	the bylaws. Assessments shall be made against units not less
1215	frequently than quarterly in an amount which is not less than
1216	that required to provide funds in advance for payment of all of
1217	the anticipated current operating expenses and for all of the
1218	unpaid operating expenses previously incurred. Nothing in this
1219	paragraph shall preclude the right of an association to
1220	accelerate assessments of an owner delinquent in payment of
1221	common expenses. Accelerated assessments shall be due and
1222	payable on the date the claim of lien is filed. Such accelerated
1223	assessments shall include the amounts due for the remainder of
1224	the budget year in which the claim of lien was filed.
1225	(h)  Amendment of bylaws.--
1226	1.  The method by which the bylaws may be amended
1227	consistent with the provisions of this chapter shall be stated.
1228	If the bylaws fail to provide a method of amendment, the bylaws
1229	may be amended if the amendment is approved by the owners of not
1230	less than two-thirds of the voting interests.
1231	2.  No bylaw shall be revised or amended by reference to
1232	its title or number only. Proposals to amend existing bylaws
1233	shall contain the full text of the bylaws to be amended; new
1234	words shall be inserted in the text underlined, and words to be
1235	deleted shall be lined through with hyphens. However, if the
1236	proposed change is so extensive that this procedure would
1237	hinder, rather than assist, the understanding of the proposed
1238	amendment, it is not necessary to use underlining and hyphens as
1239	indicators of words added or deleted, but, instead, a notation
1240	must be inserted immediately preceding the proposed amendment in
1241	substantially the following language: "Substantial rewording of
1242	bylaw. See bylaw _____ for present text."
1243	3.  Nonmaterial errors or omissions in the bylaw process
1244	will not invalidate an otherwise properly promulgated amendment.
1245	(i)  Transfer fees.--No charge shall be made by the
1246	association or any body thereof in connection with the sale,
1247	mortgage, lease, sublease, or other transfer of a unit unless
1248	the association is required to approve such transfer and a fee
1249	for such approval is provided for in the declaration, articles,
1250	or bylaws. Any such fee may be preset, but in no event may such
1251	fee exceed $100 per applicant other than husband/wife or
1252	parent/dependent child, which are considered one applicant.
1253	However, if the lease or sublease is a renewal of a lease or
1254	sublease with the same lessee or sublessee, no charge shall be
1255	made. The foregoing notwithstanding, an association may, if the
1256	authority to do so appears in the declaration or bylaws, require
1257	that a prospective lessee place a security deposit, in an amount
1258	not to exceed the equivalent of 1 month's rent, into an escrow
1259	account maintained by the association. The security deposit
1260	shall protect against damages to the common elements or
1261	association property. Payment of interest, claims against the
1262	deposit, refunds, and disputes under this paragraph shall be
1263	handled in the same fashion as provided in part II of chapter
1264	83.
1265	(j)  Recall of board members.--Subject to the provisions of
1266	s. 718.301, any member of the board of administration may be
1267	recalled and removed from office with or without cause by the
1268	vote or agreement in writing by a majority of all the voting
1269	interests. A special meeting of the unit owners to recall a
1270	member or members of the board of administration may be called
1271	by 10 percent of the voting interests giving notice of the
1272	meeting as required for a meeting of unit owners, and the notice
1273	shall state the purpose of the meeting. Electronic transmission
1274	may not be used as a method of giving notice of a meeting called
1275	in whole or in part for this purpose.
1276	1.  If the recall is approved by a majority of all voting
1277	interests by a vote at a meeting, the recall will be effective
1278	as provided herein. The board shall duly notice and hold a board
1279	meeting within 5 full business days of the adjournment of the
1280	unit owner meeting to recall one or more board members. At the
1281	meeting, the board shall either certify the recall, in which
1282	case such member or members shall be recalled effective
1283	immediately and shall turn over to the board within 5 full
1284	business days any and all records and property of the
1285	association in their possession, or shall proceed as set forth
1286	in subparagraph 3.
1287	2.  If the proposed recall is by an agreement in writing by
1288	a majority of all voting interests, the agreement in writing or
1289	a copy thereof shall be served on the association by certified
1290	mail or by personal service in the manner authorized by chapter
1291	48 and the Florida Rules of Civil Procedure. The board of
1292	administration shall duly notice and hold a meeting of the board
1293	within 5 full business days after receipt of the agreement in
1294	writing. At the meeting, the board shall either certify the
1295	written agreement to recall a member or members of the board, in
1296	which case such member or members shall be recalled effective
1297	immediately and shall turn over to the board within 5 full
1298	business days any and all records and property of the
1299	association in their possession, or proceed as described in
1300	subparagraph 3.
1301	3.  If the board determines not to certify the written
1302	agreement to recall a member or members of the board, or does
1303	not certify the recall by a vote at a meeting, the board shall,
1304	within 5 full business days after the meeting, file with the
1305	division a petition for arbitration pursuant to the procedures
1306	in s. 718.1255. For the purposes of this section, the unit
1307	owners who voted at the meeting or who executed the agreement in
1308	writing shall constitute one party under the petition for
1309	arbitration. If the arbitrator certifies the recall as to any
1310	member or members of the board, the recall will be effective
1311	upon mailing of the final order of arbitration to the
1312	association. If the association fails to comply with the order
1313	of the arbitrator, the division may take action pursuant to s.
1314	718.501. Any member or members so recalled shall deliver to the
1315	board any and all records of the association in their possession
1316	within 5 full business days of the effective date of the recall.
1317	4.  If the board fails to duly notice and hold a board
1318	meeting within 5 full business days of service of an agreement
1319	in writing or within 5 full business days of the adjournment of
1320	the unit owner recall meeting, the recall shall be deemed
1321	effective and the board members so recalled shall immediately
1322	turn over to the board any and all records and property of the
1323	association.
1324	5.  If a vacancy occurs on the board as a result of a
1325	recall or removal and less than a majority of the board members
1326	are removed, the vacancy may be filled by the affirmative vote
1327	of a majority of the remaining directors, notwithstanding any
1328	provision to the contrary contained in this subsection. If
1329	vacancies occur on the board as a result of a recall and a
1330	majority or more of the board members are removed, the vacancies
1331	shall be filled in accordance with procedural rules to be
1332	adopted by the division, which rules need not be consistent with
1333	this subsection. The rules must provide procedures governing the
1334	conduct of the recall election as well as the operation of the
1335	association during the period after a recall but prior to the
1336	recall election.
1337	(k)  Arbitration.--There shall be a provision for mandatory
1338	nonbinding arbitration as provided for in s. 718.1255.
1339	(l)  Certificate of compliance.--There shall be a provision
1340	that a certificate of compliance from a licensed electrical
1341	contractor or electrician may be accepted by the association's
1342	board as evidence of compliance of the condominium units with
1343	the applicable fire and life safety code. Notwithstanding the
1344	provisions of chapter 633 or of any other code, statute,
1345	ordinance, administrative rule, or regulation, or any
1346	interpretation of the foregoing, an association, condominium, or
1347	unit owner is not obligated to retrofit the common elements or
1348	units of a residential condominium with a fire sprinkler system
1349	or other engineered lifesafety system in a building that has
1350	been certified for occupancy by the applicable governmental
1351	entity, if the unit owners have voted to forego such
1352	retrofitting and engineered lifesafety system by the affirmative
1353	vote of two-thirds of all voting interests in the affected
1354	condominium. However, a condominium association may not vote to
1355	forego the retrofitting with a fire sprinkler system of common
1356	areas in a high-rise building. For purposes of this subsection,
1357	the term "high-rise building" means a building that is greater
1358	than 75 feet in height where the building height is measured
1359	from the lowest level of fire department access to the floor of
1360	the highest occupiable story. For purposes of this subsection,
1361	the term "common areas" means any enclosed hallway, corridor,
1362	lobby, stairwell, or entryway. In no event shall the local
1363	authority having jurisdiction require completion of retrofitting
1364	of common areas with a sprinkler system before the end of 2014.
1365	1.  A vote to forego retrofitting may be obtained by
1366	limited proxy or by a ballot personally cast at a duly called
1367	membership meeting, or by execution of a written consent by the
1368	member, and shall be effective upon the recording of a
1369	certificate attesting to such vote in the public records of the
1370	county where the condominium is located. The association shall
1371	mail, hand deliver, or electronically transmit to each unit
1372	owner written notice at least 14 days prior to such membership
1373	meeting in which the vote to forego retrofitting of the required
1374	fire sprinkler system is to take place. Within 30 days after the
1375	association's opt-out vote, notice of the results of the opt-out
1376	vote shall be mailed, hand delivered, or electronically
1377	transmitted to all unit owners. Evidence of compliance with this
1378	30-day notice shall be made by an affidavit executed by the
1379	person providing the notice and filed among the official records
1380	of the association. After such notice is provided to each owner,
1381	a copy of such notice shall be provided by the current owner to
1382	a new owner prior to closing and shall be provided by a unit
1383	owner to a renter prior to signing a lease.
1384	2.  As part of the information collected annually from
1385	condominiums, the division shall require condominium
1386	associations to report the membership vote and recording of a
1387	certificate under this subsection and, if retrofitting has been
1388	undertaken, the per-unit cost of such work. The division shall
1389	annually report to the Division of State Fire Marshal of the
1390	Department of Financial Services the number of condominiums that
1391	have elected to forego retrofitting.
1392	(m)  Common elements; limited power to convey.--
1393	1.  With respect to condominiums created on or after
1394	October 1, 1994, the bylaws shall include a provision granting
1395	the association a limited power to convey a portion of the
1396	common elements to a condemning authority for the purpose of
1397	providing utility easements, right-of-way expansion, or other
1398	public purposes, whether negotiated or as a result of eminent
1399	domain proceedings.
1400	2.  In any case where the bylaws are silent as to the
1401	association's power to convey common elements as described in
1402	subparagraph 1., the bylaws shall be deemed to include the
1403	provision described in subparagraph 1.
1404	(n)  Director or officer delinquencies.--A director or
1405	officer more than 90 days delinquent in the payment of regular
1406	assessments shall be deemed to have abandoned the office,
1407	creating a vacancy in the office to be filled according to law.
1408	(o)  Director and officer offenses.--A director or officer
1409	charged with a felony theft or embezzlement offense involving
1410	the association's funds or property shall be removed from
1411	office, creating a vacancy in the office to be filled according
1412	to law. While such director or officer has such criminal charge
1413	pending, he or she may not be appointed or elected to a position
1414	as a director or officer. However, should the charges be
1415	resolved without a finding of guilt, the director of officer
1416	shall be reinstated for the remainder of his or her term of
1417	office, if any.
1418	Section 8.  Section 718.1124, Florida Statutes, is amended
1419	to read:
1420	718.1124  Failure to fill vacancies on board of
1421	administration sufficient to constitute a quorum; appointment of
1422	receiver upon petition of unit owner.--
1423	(1)  If an association fails to fill vacancies on the board
1424	of administration sufficient to constitute a quorum in
1425	accordance with the bylaws, any unit owner may give notice of
1426	his or her intent to apply to the circuit court within whose
1427	jurisdiction the condominium lies for the appointment of a
1428	receiver to manage the affairs of the association. The form of
1429	the notice shall be as follows:
1430
1431	NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP
1432
1433	YOU ARE HEREBY NOTIFIED that the undersigned owner of
1434	a condominium unit in (name of condominium) intends to
1435	file a petition in the circuit court for appointment
1436	of a receiver to manage the affairs of the association
1437	on the grounds that the association has failed to fill
1438	vacancies on the board of administration sufficient to
1439	constitute a quorum. This petition will not be filed
1440	if the vacancies are filled within 30 days after the
1441	date on which this notice was sent or posted,
1442	whichever is later. If a receiver is appointed, the
1443	receiver shall have all of the powers of the board and
1444	shall be entitled to receive a salary and
1445	reimbursement of all costs and attorney's fees payable
1446	from association funds.
1447
1448	(name and address of petitioning unit owner)
1449
1450	(2)  The notice required by subsection (1) must be provided
1451	by At least 30 days prior to applying to the circuit court, the
1452	unit owner shall mail to the association by certified mail or
1453	personal delivery, must be posted and post in a conspicuous
1454	place on the condominium property, and must be provided by the
1455	unit owner to every other unit owner of the association by
1456	certified mail or personal delivery. The a notice must be posted
1457	and mailed or delivered at least 30 days prior to the filing of
1458	a petition seeking receivership. Notice by mail to a unit owner
1459	shall be sent to the address used by the county property
1460	appraiser for notice to the unit owner, except that where a unit
1461	owner's address is not publicly available the notice shall be
1462	mailed to the unit describing the intended action, giving the
1463	association the opportunity to fill the vacancies.
1464	(3)  If during such time the association fails to fill the
1465	vacancies within 30 days after the notice required by subsection
1466	(1) is posted and mailed or delivered, the unit owner may
1467	proceed with the petition.
1468	(4)  If a receiver is appointed, all unit owners shall be
1469	given written notice of such appointment as provided in s.
1470	718.127.
1471	(5)  The association shall be responsible for the salary of
1472	the receiver, court costs, and attorney's fees. The receiver
1473	shall have all powers and duties of a duly constituted board of
1474	administration and shall serve until the association fills
1475	vacancies on the board sufficient to constitute a quorum and the
1476	court relieves the receiver of the appointment.
1477	Section 9.  Paragraph (a) of subsection (2) and subsection
1478	(5) of section 718.113, Florida Statutes, are amended, and
1479	subsections (6) and (7) are added to that section, to read:
1480	718.113  Maintenance; limitation upon improvement; display
1481	of flag; hurricane shutters; display of religious decorations.--
1482	(2)(a)  Except as otherwise provided in this section, there
1483	shall be no material alteration or substantial additions to the
1484	common elements or to real property which is association
1485	property, except in a manner provided in the declaration as
1486	originally recorded or as amended under the procedures provided
1487	therein. If the declaration as originally recorded or as amended
1488	under the procedures provided therein does not specify the
1489	procedure for approval of material alterations or substantial
1490	additions, 75 percent of the total voting interests of the
1491	association must approve the alterations or additions. This
1492	paragraph is intended to clarify existing law and applies to
1493	associations existing on October 1, 2008.
1494	(5)  Each board of administration shall adopt hurricane
1495	shutter specifications for each building within each condominium
1496	operated by the association which shall include color, style,
1497	and other factors deemed relevant by the board. All
1498	specifications adopted by the board shall comply with the
1499	applicable building code. Notwithstanding any provision to the
1500	contrary in the condominium documents, if approval is required
1501	by the documents, a board shall not refuse to approve the
1502	installation or replacement of hurricane shutters conforming to
1503	the specifications adopted by the board.
1504	(a)  The board may, subject to the provisions of s.
1505	718.3026, and the approval of a majority of voting interests of
1506	the condominium, install hurricane shutters or hurricane
1507	protection that complies with or exceeds the applicable building
1508	code, or both and may maintain, repair, or replace such approved
1509	hurricane shutters, whether on or within common elements,
1510	limited common elements, units, or association property.
1511	However, where hurricane protection that complies with or
1512	exceeds the applicable building code or laminated glass or
1513	window film architecturally designed to function as hurricane
1514	protection which complies with the applicable building code has
1515	been installed, the board may not install hurricane shutters.
1516	(b)  The association shall be responsible for the
1517	maintenance, repair, and replacement of the hurricane shutters
1518	or other hurricane protection authorized by this subsection if
1519	such hurricane shutters or other hurricane protection are the
1520	responsibility of the association pursuant to the declaration of
1521	condominium. If the hurricane shutters or other hurricane
1522	protection authorized by this subsection are the responsibility
1523	of the unit owners pursuant to the declaration of condominium,
1524	the responsibility for the maintenance, repair, and replacement
1525	of such items shall be the responsibility of the unit owner.
1526	(c)  The board may operate shutters installed pursuant to
1527	this subsection without permission of the unit owners only where
1528	such operation is necessary to preserve and protect the
1529	condominium property and association property. The installation,
1530	replacement, operation, repair, and maintenance of such shutters
1531	in accordance with the procedures set forth herein shall not be
1532	deemed a material alteration to the common elements or
1533	association property within the meaning of this section.
1534	(d)  Notwithstanding any provision to the contrary in the
1535	condominium documents, if approval is required by the documents,
1536	a board shall not refuse to approve the installation or
1537	replacement of hurricane shutters by a unit owner conforming to
1538	the specifications adopted by the board.
1539	(6)  As to any condominium building greater than three
1540	stories in height, at least every 5 years, and within 5 years if
1541	not available for inspection on October 1, 2008, the board shall
1542	have the condominium building inspected to provide a report
1543	under seal of an architect or engineer authorized to practice in
1544	this state attesting to required maintenance, useful life, and
1545	replacement costs of the common elements. However, if approved
1546	by a majority of the voting interests present at a properly
1547	called meeting of the association, an association may waive this
1548	requirement. Such meeting and approval must occur prior to the
1549	end of the 5-year period and is effective only for that 5-year
1550	period.
1551	(7)  An association may not refuse the request of a unit
1552	owner for a reasonable accommodation for the attachment on the
1553	mantle or frame of the door of the unit owner a religious object
1554	not to exceed 3 inches wide, 6 inches high, and 1.5 inches deep.
1555	Section 10.  Paragraph (e) of subsection (1) of section
1556	718.115, Florida Statutes, is amended to read:
1557	718.115  Common expenses and common surplus.--
1558	(1)
1559	(e)  The expense of installation, replacement, operation,
1560	repair, and maintenance of hurricane shutters or other hurricane
1561	protection by the board pursuant to s. 718.113(5) shall
1562	constitute a common expense as defined herein and shall be
1563	collected as provided in this section if the association is
1564	responsible for the maintenance, repair, and replacement of the
1565	hurricane shutters or other hurricane protection pursuant to the
1566	declaration of condominium. However, if the maintenance, repair,
1567	and replacement of the hurricane shutters or other hurricane
1568	protection is the responsibility of the unit owners pursuant to
1569	the declaration of condominium, the cost of the installation of
1570	the hurricane shutters or other hurricane protection shall not
1571	be a common expense, but shall be charged individually to the
1572	unit owners based on the cost of installation of the hurricane
1573	shutters or other hurricane protection appurtenant to the unit.
1574	Notwithstanding the provisions of s. 718.116(9), and regardless
1575	of whether or not the declaration requires the association or
1576	unit owners maintain, repair, or replace hurricane shutters or
1577	other hurricane protection a unit owner who has previously
1578	installed hurricane shutters in accordance with s. 718.113(5)
1579	other hurricane protection or laminated glass architecturally
1580	designed to function as hurricane protection, which hurricane
1581	shutters or other hurricane protection or laminated glass comply
1582	complies with the current applicable building code shall receive
1583	a credit equal to the pro rata portion of the assessed
1584	installation cost assigned to each unit. However, such unit
1585	owner shall remain responsible for the pro rata share of
1586	expenses for hurricane shutters or other hurricane protection
1587	installed on common elements and association property by the
1588	board pursuant to s. 718.113(5), and shall remain responsible
1589	for a pro rata share of the expense of the replacement,
1590	operation, repair, and maintenance of such shutters or other
1591	hurricane protection.
1592	Section 11.  Paragraph (a) of subsection (7) of section
1593	718.117, Florida Statutes, is amended to read:
1594	718.117  Termination of condominium.--
1595	(7)  NATURAL DISASTERS.--
1596	(a)  If, after a natural disaster, the identity of the
1597	directors or their right to hold office is in doubt, if they are
1598	deceased or unable to act, if they fail or refuse to act, or if
1599	they cannot be located, any interested person may petition the
1600	circuit court to determine the identity of the directors or, if
1601	found to be in the best interests of the unit owners, to appoint
1602	a receiver to conclude the affairs of the association after a
1603	hearing following notice to such persons as the court directs.
1604	Lienholders shall be given notice of the petition and have the
1605	right to propose persons for the consideration by the court as
1606	receiver. If a receiver is appointed, the court shall direct the
1607	receiver to provide to all unit owners written notice of his or
1608	her appointment as receiver. Such notice shall be mailed or
1609	delivered within 10 days after the appointment. Notice by mail
1610	to a unit owner shall be sent to the address used by the county
1611	property appraiser for notice to the unit owner.
1612	Section 12.  Subsection (4) is added to section 718.121,
1613	Florida Statutes, to read:
1614	718.121  Liens.--
1615	(4)  Except as otherwise provided in this chapter, no lien
1616	may be filed by the association against a condominium unit until
1617	30 days after the date on which a notice of intent to file a
1618	lien has been delivered to the owner by certified mail, return
1619	receipt requested, and by first-class United States mail to the
1620	owner at his or her last known address as reflected in the
1621	records of the association. However, if the address reflected in
1622	the records is outside the United States, then the notice must
1623	be sent by first-class United States mail to the unit and to the
1624	last known address by regular mail with international postage,
1625	which shall be deemed sufficient. Delivery of the notice shall
1626	be deemed given upon mailing as required by this subsection.
1627	Alternatively, notice shall be complete if served on the unit
1628	owner in the manner authorized by chapter 48 and the Florida
1629	Rules of Civil Procedure.
1630	Section 13.  Section 718.1224, Florida Statutes, is created
1631	to read:
1632	718.1224  Prohibition against SLAPP suits.--
1633	(1)  It is the intent of the Legislature to protect the
1634	right of condominium unit owners to exercise their rights to
1635	instruct their representatives and petition for redress of
1636	grievances before the various governmental entities of this
1637	state as protected by the First Amendment to the United States
1638	Constitution and s. 5, Art. I of the State Constitution. The
1639	Legislature recognizes that strategic lawsuits against public
1640	participation, or "SLAPP suits," as they are typically referred
1641	to, have occurred when association members are sued by
1642	individuals, business entities, or governmental entities arising
1643	out of a condominium unit owner's appearance and presentation
1644	before a governmental entity on matters related to the
1645	condominium association. However, it is the public policy of
1646	this state that governmental entities, business organizations,
1647	and individuals not engage in SLAPP suits, because such actions
1648	are inconsistent with the right of condominium unit owners to
1649	participate in the state's institutions of government.
1650	Therefore, the Legislature finds and declares that prohibiting
1651	such lawsuits by governmental entities, business entities, and
1652	individuals against condominium unit owners who address matters
1653	concerning their condominium association will preserve this
1654	fundamental state policy, preserve the constitutional rights of
1655	condominium unit owners, and ensure the continuation of
1656	representative government in this state. It is the intent of the
1657	Legislature that such lawsuits be expeditiously disposed of by
1658	the courts. As used in this subsection, the term "governmental
1659	entity" means the state, including the executive, legislative,
1660	and judicial branches of government; the independent
1661	establishments of the state, counties, municipalities,
1662	districts, authorities, boards, or commissions; or any agencies
1663	of these branches that are subject to chapter 286.
1664	(2)  A governmental entity, business organization, or
1665	individual in this state may not file or cause to be filed
1666	through its employees or agents any lawsuit, cause of action,
1667	claim, cross-claim, or counterclaim against a condominium unit
1668	owner without merit and solely because such condominium unit
1669	owner has exercised the right to instruct his or her
1670	representatives or the right to petition for redress of
1671	grievances before the various governmental entities of this
1672	state, as protected by the First Amendment to the United States
1673	Constitution and s. 5, Art. I of the State Constitution.
1674	(3)  A condominium unit owner sued by a governmental
1675	entity, business organization, or individual in violation of
1676	this section has a right to an expeditious resolution of a claim
1677	that the suit is in violation of this section. A condominium
1678	unit owner may petition the court for an order dismissing the
1679	action or granting final judgment in favor of that condominium
1680	unit owner. The petitioner may file a motion for summary
1681	judgment, together with supplemental affidavits, seeking a
1682	determination that the governmental entity's, business
1683	organization's, or individual's lawsuit has been brought in
1684	violation of this section. The governmental entity, business
1685	organization, or individual shall thereafter file its response
1686	and any supplemental affidavits. As soon as practicable, the
1687	court shall set a hearing on the petitioner's motion, which
1688	shall be held at the earliest possible time after the filing of
1689	the governmental entity's, business organization's, or
1690	individual's response. The court may award the condominium unit
1691	owner sued by the governmental entity, business organization, or
1692	individual actual damages arising from the governmental
1693	entity's, individual's, or business organization's violation of
1694	this section. A court may treble the damages awarded to a
1695	prevailing condominium unit owner and shall state the basis for
1696	the treble damages award in its judgment. The court shall award
1697	the prevailing party reasonable attorney's fees and costs
1698	incurred in connection with a claim that an action was filed in
1699	violation of this section.
1700	(4)  Condominium associations may not expend association
1701	funds in prosecuting a SLAPP suit against a condominium unit
1702	owner.
1703	Section 14.  Paragraph (b) of subsection (3) of section
1704	718.1255, Florida Statutes, is amended to read:
1705	718.1255  Alternative dispute resolution; voluntary
1706	mediation; mandatory nonbinding arbitration; legislative
1707	findings.--
1708	(3)  LEGISLATIVE FINDINGS.--
1709	(b)  The Legislature finds that the courts are becoming
1710	overcrowded with condominium and other disputes, and further
1711	finds that alternative dispute resolution has been making
1712	progress in reducing court dockets and trials and in offering a
1713	more efficient, cost-effective option to court litigation.
1714	However, the Legislature also finds that alternative dispute
1715	resolution should not be used as a mechanism to encourage the
1716	filing of frivolous or nuisance suits.
1717	Section 15.  Section 718.1265, Florida Statutes, is created
1718	to read:
1719	718.1265  Association emergency powers.--
1720	(1)  To the extent allowed by law and unless specifically
1721	prohibited by the declaration of condominium, the articles, or
1722	the bylaws of an association, and consistent with the provisions
1723	of s. 617.0830, the board of administration, in response to
1724	damage caused by an event for which a state of emergency is
1725	declared pursuant to s. 252.36 in the locale in which the
1726	condominium is located, may, but is not required to, exercise
1727	the following powers:
1728	(a)  Conduct board meetings and membership meetings with
1729	notice given as is practicable. Such notice may be given in any
1730	practicable manner, including publication, radio, United States
1731	mail, the Internet, public service announcements, and
1732	conspicuous posting on the condominium property or any other
1733	means the board deems reasonable under the circumstances. Notice
1734	of board decisions may be communicated as provided in this
1735	paragraph.
1736	(b)  Cancel and reschedule any association meeting.
1737	(c)  Name as assistant officers persons who are not
1738	directors, which assistant officers shall have the same
1739	authority as the executive officers to whom they are assistants
1740	during the state of emergency to accommodate the incapacity or
1741	unavailability of any officer of the association.
1742	(d)  Relocate the association's principal office or
1743	designate alternative principal offices.
1744	(e)  Enter into agreements with local counties and
1745	municipalities to assist counties and municipalities with debris
1746	removal.
1747	(f)  Implement a disaster plan before or immediately
1748	following the event for which a state of emergency is declared
1749	which may include, but is not limited to, shutting down or off
1750	elevators; electricity; water, sewer, or security systems; or
1751	air conditioners.
1752	(g)  Based upon advice of emergency management officials or
1753	upon the advice of licensed professionals retained by the board,
1754	determine any portion of the condominium property unavailable
1755	for entry or occupancy by unit owners, family members, tenants,
1756	guests, agents, or invitees to protect the health, safety, or
1757	welfare of such persons.
1758	(h)  Require the evacuation of the condominium property in
1759	the event of a mandatory evacuation order in the locale in which
1760	the condominium is located. Should any unit owner or other
1761	occupant of a condominium fail or refuse to evacuate the
1762	condominium property where the board has required evacuation,
1763	the association shall be immune from liability or injury to
1764	persons or property arising from such failure or refusal.
1765	(i)  Based upon advice of emergency management officials or
1766	upon the advice of licensed professionals retained by the board,
1767	determine whether the condominium property can be safely
1768	inhabited or occupied. However, such determination is not
1769	conclusive as to any determination of habitability pursuant to
1770	the declaration.
1771	(j)  Mitigate further damage, including taking action to
1772	contract for the removal of debris and to prevent or mitigate
1773	the spread of fungus, including, but not limited to, mold or
1774	mildew, by removing and disposing of wet drywall, insulation,
1775	carpet, cabinetry, or other fixtures on or within the
1776	condominium property, even if the unit owner is obligated by the
1777	declaration or law to insure or replace those fixtures and to
1778	remove personal property from a unit.
1779	(k)  Contract, on behalf of any unit owner or owners, for
1780	items or services for which the owners are otherwise
1781	individually responsible for, but which are necessary to prevent
1782	further damage to the condominium property. In such event, the
1783	unit owner or owners on whose behalf the board has contracted
1784	are responsible for reimbursing the association for the actual
1785	costs of the items or services, and the association may use its
1786	lien authority provided by s. 718.116 to enforce collection of
1787	the charges. Without limitation, such items or services may
1788	include the drying of units, the boarding of broken windows or
1789	doors, and the replacement of damaged air conditioners or air
1790	handlers to provide climate control in the units or other
1791	portions of the property.
1792	(l)  Regardless of any provision to the contrary and even
1793	if such authority does not specifically appear in the
1794	declaration of condominium, articles, or bylaws of the
1795	association, levy special assessments without a vote of the
1796	owners.
1797	(m)  Without unit owners' approval, borrow money and pledge
1798	association assets as collateral to fund emergency repairs and
1799	carry out the duties of the association when operating funds are
1800	insufficient. This paragraph does not limit the general
1801	authority of the association to borrow money, subject to such
1802	restrictions as are contained in the declaration of condominium,
1803	articles, or bylaws of the association.
1804	(2)  The special powers authorized under subsection (1)
1805	shall be limited to that time reasonably necessary to protect
1806	the health, safety, and welfare of the association and the unit
1807	owners and the unit owners' family members, tenants, guests,
1808	agents, or invitees and shall be reasonably necessary to
1809	mitigate further damage and make emergency repairs.
1810	Section 16.  Section 718.127, Florida Statutes, is created
1811	to read:
1812	718.127  Receivership notification.--Upon the appointment
1813	of a receiver by a court for any reason relating to a
1814	condominium association, the court shall direct the receiver to
1815	provide to all unit owners written notice of his or her
1816	appointment as receiver. Such notice shall be mailed or
1817	delivered within 10 days after the appointment. Notice by mail
1818	to a unit owner shall be sent to the address used by the county
1819	property appraiser for notice to the unit owner.
1820	Section 17.  Subsection (1) of section 718.301, Florida
1821	Statutes, is amended, and paragraph (p) is added to subsection
1822	(4) of that section, to read:
1823	718.301  Transfer of association control; claims of defect
1824	by association.--
1825	(1)  When unit owners other than the developer own 15
1826	percent or more of the units in a condominium that will be
1827	operated ultimately by an association, the unit owners other
1828	than the developer shall be entitled to elect no less than one-
1829	third of the members of the board of administration of the
1830	association. Unit owners other than the developer are entitled
1831	to elect not less than a majority of the members of the board of
1832	administration of an association:
1833	(a)  Three years after 50 percent of the units that will be
1834	operated ultimately by the association have been conveyed to
1835	purchasers;
1836	(b)  Three months after 90 percent of the units that will
1837	be operated ultimately by the association have been conveyed to
1838	purchasers;
1839	(c)  When all the units that will be operated ultimately by
1840	the association have been completed, some of them have been
1841	conveyed to purchasers, and none of the others are being offered
1842	for sale by the developer in the ordinary course of business;
1843	(d)  When some of the units have been conveyed to
1844	purchasers and none of the others are being constructed or
1845	offered for sale by the developer in the ordinary course of
1846	business; or
1847	(e)  When the developer files a petition seeking protection
1848	in bankruptcy;
1849	(f)  When a receiver for the developer is appointed by a
1850	circuit court and is not discharged within 30 days after such
1851	appointment; or
1852	(g)(e)  Seven years after recordation of the declaration of
1853	condominium; or, in the case of an association which may
1854	ultimately operate more than one condominium, 7 years after
1855	recordation of the declaration for the first condominium it
1856	operates; or, in the case of an association operating a phase
1857	condominium created pursuant to s. 718.403, 7 years after
1858	recordation of the declaration creating the initial phase,
1859
1860	whichever occurs first. The developer is entitled to elect at
1861	least one member of the board of administration of an
1862	association as long as the developer holds for sale in the
1863	ordinary course of business at least 5 percent, in condominiums
1864	with fewer than 500 units, and 2 percent, in condominiums with
1865	more than 500 units, of the units in a condominium operated by
1866	the association. Following the time the developer relinquishes
1867	control of the association, the developer may exercise the right
1868	to vote any developer-owned units in the same manner as any
1869	other unit owner except for purposes of reacquiring control of
1870	the association or selecting the majority members of the board
1871	of administration.
1872	(4)  At the time that unit owners other than the developer
1873	elect a majority of the members of the board of administration
1874	of an association, the developer shall relinquish control of the
1875	association, and the unit owners shall accept control.
1876	Simultaneously, or for the purposes of paragraph (c) not more
1877	than 90 days thereafter, the developer shall deliver to the
1878	association, at the developer's expense, all property of the
1879	unit owners and of the association which is held or controlled
1880	by the developer, including, but not limited to, the following
1881	items, if applicable, as to each condominium operated by the
1882	association:
1883	(p)  A report included in the official records, under seal
1884	of an architect or engineer authorized to practice in this
1885	state, attesting to required maintenance, useful life, and
1886	replacement costs of the following applicable common elements
1887	comprising a turnover inspection report:
1888	1.  Roof.
1889	2.  Structure.
1890	3.  Fireproofing and fire protection systems.
1891	4.  Elevators.
1892	5.  Heating and cooling systems.
1893	6.  Plumbing.
1894	7.  Electrical systems.
1895	8.  Swimming pool or spa and equipment.
1896	9.  Seawalls.
1897	10.  Pavement and parking areas.
1898	11.  Drainage systems.
1899	12.  Painting.
1900	13.  Irrigation systems.
1901	Section 18.  Paragraph (f) is added to subsection (1) of
1902	section 718.3025, Florida Statutes, to read:
1903	718.3025  Agreements for operation, maintenance, or
1904	management of condominiums; specific requirements.--
1905	(1)  No written contract between a party contracting to
1906	provide maintenance or management services and an association
1907	which contract provides for operation, maintenance, or
1908	management of a condominium association or property serving the
1909	unit owners of a condominium shall be valid or enforceable
1910	unless the contract:
1911	(f)  Discloses any financial or ownership interest a board
1912	member or any party providing maintenance or management services
1913	to the association holds with the contracting party.
1914	Section 19.  Section 718.3026, Florida Statutes, is amended
1915	to read:
1916	718.3026  Contracts for products and services; in writing;
1917	bids; exceptions.--Associations with 10 or fewer with less than
1918	100 units may opt out of the provisions of this section if two-
1919	thirds of the unit owners vote to do so, which opt-out may be
1920	accomplished by a proxy specifically setting forth the exception
1921	from this section.
1922	(1)  All contracts as further described herein or any
1923	contract that is not to be fully performed within 1 year after
1924	the making thereof, for the purchase, lease, or renting of
1925	materials or equipment to be used by the association in
1926	accomplishing its purposes under this chapter, and all contracts
1927	for the provision of services, shall be in writing. If a
1928	contract for the purchase, lease, or renting of materials or
1929	equipment, or for the provision of services, requires payment by
1930	the association on behalf of any condominium operated by the
1931	association in the aggregate that exceeds 5 percent of the total
1932	annual budget of the association, including reserves, the
1933	association shall obtain competitive bids for the materials,
1934	equipment, or services. Nothing contained herein shall be
1935	construed to require the association to accept the lowest bid.
1936	(2)(a)1.  Notwithstanding the foregoing, contracts with
1937	employees of the association, and contracts for attorney,
1938	accountant, architect, community association manager, timeshare
1939	management firm, engineering, and landscape architect services
1940	are not subject to the provisions of this section.
1941	2.  A contract executed before January 1, 1992, and any
1942	renewal thereof, is not subject to the competitive bid
1943	requirements of this section. If a contract was awarded under
1944	the competitive bid procedures of this section, any renewal of
1945	that contract is not subject to such competitive bid
1946	requirements if the contract contains a provision that allows
1947	the board to cancel the contract on 30 days' notice. Materials,
1948	equipment, or services provided to a condominium under a local
1949	government franchise agreement by a franchise holder are not
1950	subject to the competitive bid requirements of this section. A
1951	contract with a manager, if made by a competitive bid, may be
1952	made for up to 3 years. A condominium whose declaration or
1953	bylaws provides for competitive bidding for services may operate
1954	under the provisions of that declaration or bylaws in lieu of
1955	this section if those provisions are not less stringent than the
1956	requirements of this section.
1957	(b)  Nothing contained herein is intended to limit the
1958	ability of an association to obtain needed products and services
1959	in an emergency.
1960	(c)  This section shall not apply if the business entity
1961	with which the association desires to enter into a contract is
1962	the only source of supply within the county serving the
1963	association.
1964	(d)  Nothing contained herein shall excuse a party
1965	contracting to provide maintenance or management services from
1966	compliance with s. 718.3025.
1967	(3)  As to any contract or other transaction between an
1968	association and one or more of its directors or any other
1969	corporation, firm, association, or entity in which one or more
1970	of its directors are directors or officers or are financially
1971	interested:
1972	(a)  The association shall comply with the requirements of
1973	s. 617.0832.
1974	(b)  The disclosures required by s. 617.0832 shall be
1975	entered into the written minutes of the meeting.
1976	(c)  Approval of the contract or other transaction shall
1977	require an affirmative vote of two-thirds of the directors
1978	present.
1979	(d)  At the next regular or special meeting of the members,
1980	the existence of the contract or other transaction shall be
1981	disclosed to the members. Upon motion of any member, the
1982	contract or transaction shall be brought up for a vote and may
1983	be canceled by a majority vote of the members present. Should
1984	the members cancel the contract, the association shall only be
1985	liable for the reasonable value of goods and services provided
1986	up to the time of cancellation and shall not be liable for any
1987	termination fee, liquidated damages, or other form of penalty
1988	for such cancellation.
1989	Section 20.  Subsection (3) of section 718.303, Florida
1990	Statutes, is amended to read:
1991	718.303  Obligations of owners; waiver; levy of fine
1992	against unit by association.--
1993	(3)  If the declaration or bylaws so provide, the
1994	association may levy reasonable fines against a unit for the
1995	failure of the owner of the unit, or its occupant, licensee, or
1996	invitee, to comply with any provision of the declaration, the
1997	association bylaws, or reasonable rules of the association. No
1998	fine will become a lien against a unit. No fine may exceed $100
1999	per violation. However, a fine may be levied on the basis of
2000	each day of a continuing violation, with a single notice and
2001	opportunity for hearing, provided that no such fine shall in the
2002	aggregate exceed $1,000. No fine may be levied except after
2003	giving reasonable notice and opportunity for a hearing to the
2004	unit owner and, if applicable, its licensee or invitee. The
2005	hearing must be held before a committee of other unit owners who
2006	are neither board members nor persons residing in a board
2007	member's household. If the committee does not agree with the
2008	fine, the fine may not be levied. The provisions of this
2009	subsection do not apply to unoccupied units.
2010	Section 21.  Section 718.501, Florida Statutes, is amended
2011	to read:
2012	718.501  Authority, responsibility, Powers and duties of
2013	Division of Florida Land Sales, Condominiums, and Mobile
2014	Homes.--
2015	(1)  The Division of Florida Land Sales, Condominiums, and
2016	Mobile Homes of the Department of Business and Professional
2017	Regulation, referred to as the "division" in this part, in
2018	addition to other powers and duties prescribed by chapter 498,
2019	has the power to enforce and ensure compliance with the
2020	provisions of this chapter and rules promulgated pursuant hereto
2021	relating to the development, construction, sale, lease,
2022	ownership, operation, and management of residential condominium
2023	units. In performing its duties, the division has complete
2024	jurisdiction to investigate complaints and enforce compliance
2025	with the provisions of this chapter with respect to associations
2026	that are still under developer control and complaints against
2027	developers involving improper turnover or failure to turnover,
2028	pursuant to s. 718.301. However, after turnover has occurred,
2029	the division shall only have jurisdiction to investigate
2030	complaints related to financial issues, elections, and unit
2031	owner access to association records pursuant to s. 718.111(12).
2032	the following powers and duties:
2033	(a)  The division may make necessary public or private
2034	investigations within or outside this state to determine whether
2035	any person has violated this chapter or any rule or order
2036	hereunder, to aid in the enforcement of this chapter, or to aid
2037	in the adoption of rules or forms hereunder.
2038	(b)  The division may require or permit any person to file
2039	a statement in writing, under oath or otherwise, as the division
2040	determines, as to the facts and circumstances concerning a
2041	matter to be investigated.
2042	(c)  For the purpose of any investigation under this
2043	chapter, the division director or any officer or employee
2044	designated by the division director may administer oaths or
2045	affirmations, subpoena witnesses and compel their attendance,
2046	take evidence, and require the production of any matter which is
2047	relevant to the investigation, including the existence,
2048	description, nature, custody, condition, and location of any
2049	books, documents, or other tangible things and the identity and
2050	location of persons having knowledge of relevant facts or any
2051	other matter reasonably calculated to lead to the discovery of
2052	material evidence. Upon the failure by a person to obey a
2053	subpoena or to answer questions propounded by the investigating
2054	officer and upon reasonable notice to all persons affected
2055	thereby, the division may apply to the circuit court for an
2056	order compelling compliance.
2057	(d)  Notwithstanding any remedies available to unit owners
2058	and associations, if the division has reasonable cause to
2059	believe that a violation of any provision of this chapter or
2060	rule promulgated pursuant hereto has occurred, the division may
2061	institute enforcement proceedings in its own name against any
2062	developer, association, officer, or member of the board of
2063	administration, or its assignees or agents, as follows:
2064	1.  The division may permit a person whose conduct or
2065	actions may be under investigation to waive formal proceedings
2066	and enter into a consent proceeding whereby orders, rules, or
2067	letters of censure or warning, whether formal or informal, may
2068	be entered against the person.
2069	2.  The division may issue an order requiring the
2070	developer, association, developer-designated officer, or
2071	developer-designated member of the board of administration, or
2072	developer-designated its assignees or agents, community
2073	association manager, or community association management firm to
2074	cease and desist from the unlawful practice and take such
2075	affirmative action as in the judgment of the division will carry
2076	out the purposes of this chapter. Such affirmative action may
2077	include, but is not limited to, an order requiring a developer
2078	to pay moneys determined to be owed to a condominium
2079	association.
2080	3.  If a developer fails to pay any restitution determined
2081	by the division to be owed, plus any accrued interest at the
2082	highest rate permitted by law, within 30 days after expiration
2083	of any appellate time period of a final order requiring payment
2084	of restitution or the conclusion of any appeal thereof,
2085	whichever is later, the division shall bring an action in
2086	circuit or county court on behalf of any association, class of
2087	unit owners, lessees, or purchasers for restitution, declaratory
2088	relief, injunctive relief, or any other available remedy. The
2089	division may also temporarily revoke its acceptance of the
2090	filing for the developer to which the restitution relates until
2091	payment of restitution is made. The division may bring an action
2092	in circuit court on behalf of a class of unit owners, lessees,
2093	or purchasers for declaratory relief, injunctive relief, or
2094	restitution.
2095	4.  The division may impose a civil penalty against a
2096	developer or association, or its assignee or agent, for any
2097	violation of this chapter or a rule promulgated pursuant hereto.
2098	The division may impose a civil penalty individually against any
2099	officer or board member who willfully and knowingly violates a
2100	provision of this chapter, a rule adopted pursuant hereto, or a
2101	final order of the division; may order the removal of such
2102	individual as an officer or from the board of administration or
2103	as an officer of the association; and may prohibit such
2104	individual from serving as an officer or on the board of a
2105	community association for a period of time. The term "willfully
2106	and knowingly" means that the division informed the officer or
2107	board member that his or her action or intended action violates
2108	this chapter, a rule adopted under this chapter, or a final
2109	order of the division and that the officer or board member
2110	refused to comply with the requirements of this chapter, a rule
2111	adopted under this chapter, or a final order of the division.
2112	The division, prior to initiating formal agency action under
2113	chapter 120, shall afford the officer or board member an
2114	opportunity to voluntarily comply with this chapter, a rule
2115	adopted under this chapter, or a final order of the division. An
2116	officer or board member who complies within 10 days is not
2117	subject to a civil penalty. A penalty may be imposed on the
2118	basis of each day of continuing violation, but in no event shall
2119	the penalty for any offense exceed $5,000. By January 1, 1998,
2120	the division shall adopt, by rule, penalty guidelines applicable
2121	to possible violations or to categories of violations of this
2122	chapter or rules adopted by the division. The guidelines must
2123	specify a meaningful range of civil penalties for each such
2124	violation of the statute and rules and must be based upon the
2125	harm caused by the violation, the repetition of the violation,
2126	and upon such other factors deemed relevant by the division. For
2127	example, the division may consider whether the violations were
2128	committed by a developer or owner-controlled association, the
2129	size of the association, and other factors. The guidelines must
2130	designate the possible mitigating or aggravating circumstances
2131	that justify a departure from the range of penalties provided by
2132	the rules. It is the legislative intent that minor violations be
2133	distinguished from those which endanger the health, safety, or
2134	welfare of the condominium residents or other persons and that
2135	such guidelines provide reasonable and meaningful notice to the
2136	public of likely penalties that may be imposed for proscribed
2137	conduct. This subsection does not limit the ability of the
2138	division to informally dispose of administrative actions or
2139	complaints by stipulation, agreed settlement, or consent order.
2140	All amounts collected shall be deposited with the Chief
2141	Financial Officer to the credit of the Division of Florida Land
2142	Sales, Condominiums, and Mobile Homes Trust Fund. If a developer
2143	fails to pay the civil penalty and the amount deemed to be owed
2144	to the association, the division shall thereupon issue an order
2145	directing that such developer cease and desist from further
2146	operation until such time as the civil penalty is paid or may
2147	pursue enforcement of the penalty in a court of competent
2148	jurisdiction. If an association fails to pay the civil penalty,
2149	the division shall thereupon pursue enforcement in a court of
2150	competent jurisdiction, and the order imposing the civil penalty
2151	or the cease and desist order will not become effective until 20
2152	days after the date of such order. Any action commenced by the
2153	division shall be brought in the county in which the division
2154	has its executive offices or in the county where the violation
2155	occurred.
2156	5.  If a unit owner presents the division with proof that
2157	the unit owner has requested access to official records in
2158	writing by certified mail, and that after 10 days the unit owner
2159	again made the same request for access to official records in
2160	writing by certified mail, and that more than 10 days has
2161	elapsed since the second request and the association has still
2162	failed or refused to provide access to official records as
2163	required by this chapter, the division shall issue a subpoena
2164	requiring production of the requested records where the records
2165	are kept pursuant to s. 718.112.
2166	(e)  The division is authorized to prepare and disseminate
2167	a prospectus and other information to assist prospective owners,
2168	purchasers, lessees, and developers of residential condominiums
2169	in assessing the rights, privileges, and duties pertaining
2170	thereto.
2171	(f)  The division has authority to adopt rules pursuant to
2172	ss. 120.536(1) and 120.54 to implement and enforce the
2173	provisions of this chapter.
2174	(g)  The division shall establish procedures for providing
2175	notice to an association and the developer during the period
2176	where the developer controls the association when the division
2177	is considering the issuance of a declaratory statement with
2178	respect to the declaration of condominium or any related
2179	document governing in such condominium community.
2180	(h)  The division shall furnish each association which pays
2181	the fees required by paragraph (2)(a) a copy of this act,
2182	subsequent changes to this act on an annual basis, an amended
2183	version of this act as it becomes available from the Secretary
2184	of State's office on a biennial basis, and the rules promulgated
2185	pursuant thereto on an annual basis.
2186	(i)  The division shall annually provide each association
2187	with a summary of declaratory statements and formal legal
2188	opinions relating to the operations of condominiums which were
2189	rendered by the division during the previous year.
2190	(j)  The division shall provide training and educational
2191	programs for condominium association board members and unit
2192	owners. The training may, in the division's discretion, include
2193	web-based electronic media, and live training and seminars in
2194	various locations throughout the state. The division shall have
2195	the authority to review and approve education and training
2196	programs for board members and unit owners offered by providers
2197	and shall maintain a current list of approved programs and
2198	providers and shall make such list available to board members
2199	and unit owners in a reasonable and cost-effective manner.
2200	(k)  The division shall maintain a toll-free telephone
2201	number accessible to condominium unit owners.
2202	(l)  The division shall develop a program to certify both
2203	volunteer and paid mediators to provide mediation of condominium
2204	disputes. The division shall provide, upon request, a list of
2205	such mediators to any association, unit owner, or other
2206	participant in arbitration proceedings under s. 718.1255
2207	requesting a copy of the list. The division shall include on the
2208	list of volunteer mediators only the names of persons who have
2209	received at least 20 hours of training in mediation techniques
2210	or who have mediated at least 20 disputes. In order to become
2211	initially certified by the division, paid mediators must be
2212	certified by the Supreme Court to mediate court cases in either
2213	county or circuit courts. However, the division may adopt, by
2214	rule, additional factors for the certification of paid
2215	mediators, which factors must be related to experience,
2216	education, or background. Any person initially certified as a
2217	paid mediator by the division must, in order to continue to be
2218	certified, comply with the factors or requirements imposed by
2219	rules adopted by the division.
2220	(m)  When a complaint is made, the division shall conduct
2221	its inquiry with due regard to the interests of the affected
2222	parties. Within 30 days after receipt of a complaint, the
2223	division shall acknowledge the complaint in writing and notify
2224	the complainant whether the complaint is within the jurisdiction
2225	of the division and whether additional information is needed by
2226	the division from the complainant. The division shall conduct
2227	its investigation and shall, within 90 days after receipt of the
2228	original complaint or of timely requested additional
2229	information, take action upon the complaint. However, the
2230	failure to complete the investigation within 90 days does not
2231	prevent the division from continuing the investigation,
2232	accepting or considering evidence obtained or received after 90
2233	days, or taking administrative action if reasonable cause exists
2234	to believe that a violation of this chapter or a rule of the
2235	division has occurred. If an investigation is not completed
2236	within the time limits established in this paragraph, the
2237	division shall, on a monthly basis, notify the complainant in
2238	writing of the status of the investigation. When reporting its
2239	action to the complainant, the division shall inform the
2240	complainant of any right to a hearing pursuant to ss. 120.569
2241	and 120.57.
2242	(n)  Condominium association directors, officers, and
2243	employees; condominium developers; community association
2244	managers; and community association management firms have an
2245	ongoing duty to reasonably cooperate with the division in any
2246	investigation pursuant to this section. The division shall refer
2247	to local law enforcement authorities any person whom the
2248	division believes has altered, destroyed, concealed, or removed
2249	any record, document, or thing required to be kept or maintained
2250	by this chapter with the purpose to impair its verity or
2251	availability in the department's investigation.
2252	(2)(a)  Effective January 1, 1992, Each condominium
2253	association which operates more than two units shall pay to the
2254	division an annual fee in the amount of $4 for each residential
2255	unit in condominiums operated by the association. If the fee is
2256	not paid by March 1, then the association shall be assessed a
2257	penalty of 10 percent of the amount due, and the association
2258	will not have standing to maintain or defend any action in the
2259	courts of this state until the amount due, plus any penalty, is
2260	paid.
2261	(b)  All fees shall be deposited in the Division of Florida
2262	Land Sales, Condominiums, and Mobile Homes Trust Fund as
2263	provided by law.
2264	Section 22.  Subsection (9) of section 718.5012, Florida
2265	Statutes, is renumbered as subsection (10), and a new subsection
2266	(9) is added to that section to read:
2267	718.5012  Ombudsman; powers and duties.--The ombudsman
2268	shall have the powers that are necessary to carry out the duties
2269	of his or her office, including the following specific powers:
2270	(9)  To assist with the resolution of disputes between unit
2271	owners and the association or between unit owners when the
2272	dispute is not within the jurisdiction of the division to
2273	resolve.
2274	Section 23.  Section 718.50151, Florida Statutes, is
2275	amended to read:
2276	718.50151  Community Association Living Study Advisory
2277	Council; membership functions.--
2278	(1)  There is created the Community Association Living
2279	Study Advisory Council on Condominiums. The council shall
2280	consist of seven appointed members. Two members shall be
2281	appointed by the President of the Senate, two members shall be
2282	appointed by the Speaker of the House of Representatives, and
2283	three members shall be appointed by the Governor. At least One
2284	member that is appointed by the Governor may shall represent
2285	timeshare condominiums. The council shall be created as of
2286	October 1 every 5 years, commencing October 1, 2008, and shall
2287	exist for a 6-month term. Members shall be appointed to 2-year
2288	terms; however, one of the persons initially appointed by the
2289	Governor, by the President of the Senate, and by the Speaker of
2290	the House of Representatives shall be appointed to a 1-year
2291	term. The director of the division shall appoint serve as an ex
2292	officio nonvoting member. The Legislature intends that the
2293	persons appointed represent a cross-section of persons
2294	interested in community association condominium issues. The
2295	council shall be located within the division for administrative
2296	purposes. Members of the council shall serve without
2297	compensation but are entitled to receive per diem and travel
2298	expenses pursuant to s. 112.061 while on official business.
2299	(2)  The functions of the advisory council shall be to:
2300	(a)  Receive, from the public, input regarding issues of
2301	concern with respect to community association living, including
2302	living in condominiums, cooperatives, and homeowners'
2303	associations. The council shall make and recommendations for
2304	changes in the condominium law related to community association
2305	living. The issues that the council shall consider include, but
2306	are not limited to, the rights and responsibilities of the unit
2307	owners in relation to the rights and responsibilities of the
2308	association.
2309	(b)  Review, evaluate, and advise the division concerning
2310	revisions and adoption of rules affecting condominiums and
2311	cooperatives.
2312	(c)  Recommend improvements, if needed, in the education
2313	programs offered by the division.
2314	(d)  Review, evaluate, and advise the Legislature
2315	concerning revisions and improvements to the laws relating to
2316	condominiums, cooperatives, and homeowners' associations.
2317	(3)  The council may elect a chair and vice chair and such
2318	other officers as it may deem advisable. The council shall meet
2319	at the call of its chair, at the request of a majority of its
2320	membership, at the request of the division, or at such times as
2321	it may prescribe. A majority of the members of the council shall
2322	constitute a quorum. Council action may be taken by vote of a
2323	majority of the voting members who are present at a meeting
2324	where there is a quorum.
2325	Section 24.  Paragraph (a) of subsection (2) of section
2326	718.503, Florida Statutes, is amended to read:
2327	718.503  Developer disclosure prior to sale; nondeveloper
2328	unit owner disclosure prior to sale; voidability.--
2329	(2)  NONDEVELOPER DISCLOSURE.--
2330	(a)  Each unit owner who is not a developer as defined by
2331	this chapter shall comply with the provisions of this subsection
2332	prior to the sale of his or her unit. Each prospective purchaser
2333	who has entered into a contract for the purchase of a
2334	condominium unit is entitled, at the seller's expense, to a
2335	current copy of the declaration of condominium, articles of
2336	incorporation of the association, bylaws and rules of the
2337	association, financial information required by s. 718.111, and
2338	the document entitled "Frequently Asked Questions and Answers"
2339	required by s. 718.504. On and after January 1, 2009, the
2340	prospective purchaser shall also be entitled to receive from the
2341	seller a copy of a governance form. Such form shall be provided
2342	by the division summarizing governance of condominium
2343	associations. In addition to such other information as the
2344	division considers helpful to a prospective purchaser in
2345	understanding association governance, the governance form shall
2346	address the following subjects:
2347	1.  The role of the board in conducting the day-to-day
2348	affairs of the association on behalf of, and in the best
2349	interests of, the owners.
2350	2.  The board's responsibility to provide advance notice of
2351	board and membership meetings.
2352	3.  The rights of owners to attend and speak at board and
2353	membership meetings.
2354	4.  The responsibility of the board and of owners with
2355	respect to maintenance of the condominium property.
2356	5.  The responsibility of the board and owners to abide by
2357	the condominium documents, this chapter, rules adopted by the
2358	division, and reasonable rules adopted by the board.
2359	6.  Owners' rights to inspect and copy association records
2360	and the limitations on such rights.
2361	7.  Remedies available to owners with respect to actions by
2362	the board which may be abusive or beyond the board's power and
2363	authority.
2364	8.  The right of the board to hire a property management
2365	firm, subject to its own primary responsibility for such
2366	management.
2367	9.  The responsibility of owners with regard to payment of
2368	regular or special assessments necessary for the operation of
2369	the property and the potential consequences of failure to pay
2370	such assessments.
2371	10.  The voting rights of owners.
2372	11.  Rights and obligations of the board in enforcement of
2373	rules in the condominium documents and rules adopted by the
2374	board.
2375
2376	The governance form shall also include the following statement
2377	in conspicuous type: "This publication is intended as an
2378	informal educational overview of condominium governance. In the
2379	event of a conflict, the provisions of chapter 718, Florida
2380	Statutes, rules adopted by the Division of Florida Land Sales,
2381	Condominiums, and Mobile Homes of the Department of Business and
2382	Professional Regulation, the provisions of the condominium
2383	documents, and reasonable rules adopted by the condominium
2384	association's board of administration prevail over the contents
2385	of this publication."
2386	Section 25.  This act shall take effect October 1, 2008.

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