CS/HB 995

A bill to be entitled
2An act relating to community associations; amending s.
3468.431, F.S.; defining the term "community association
4management firm"; redefining the term "community
5association manager" to apply only to natural persons;
6amending s. 468.4315, F.S.; revising membership criteria
7for members of the Regulatory Council of Community
8Association Managers; requiring the council to establish a
9public education program; providing for council members to
10serve without compensation but be entitled to receive per
11diem and travel expenses; providing responsibilities of
12the council; amending s. 468.432, F.S.; providing for the
13licensure of community association management firms;
14providing application, licensure, and fee requirements;
15providing for the cancellation of the license of a
16community association management firm under certain
17circumstances; providing that such firm or similar
18organization agrees that, by being licensed, it shall
19employ only licensed persons providing certain services;
20amending s. 468.433, F.S.; providing for the refusal of an
21applicant certification under certain circumstances;
22amending s. 468.436, F.S.; requiring the Department of
23Business and Professional Regulation to investigate
24certain complaints and allegations; providing complaint
25and investigation procedures; providing grounds for which
26disciplinary action may be taken; amending s. 718.111,
27F.S.; providing that a director of the association who
28abstains from voting on any action taken on any corporate
29matter shall be presumed to have taken no position with
30regard to the action; providing duties of officers,
31directors, and agents of a condominium association and
32liability for monetary damages under certain
33circumstances; providing that a person who knowingly or
34intentionally fails to create or maintain, or who defaces
35or destroys certain records, is subject to civil penalties
36as prescribed by state law; requiring that a copy of the
37inspection report be maintained as an official record of
38the association; requiring official records of the
39association to be maintained for a specified minimum
40period and be made available at certain locations and in
41specified formats; providing that any person who knowingly
42or intentionally defaces, destroys, or fails to create or
43maintain accounting records is subject to civil and
44criminal sanctions; prohibiting accessibility to certain
45personal identifying information of unit owners by fellow
46unit owners; requiring that the Division of Florida Land
47Sales, Condominiums, and Mobile Homes of the Department of
48Business and Professional Regulation adopt certain rules;
49requiring certain audits and reports to be paid for by the
50developer if done before control of the association is
51turned over; restricting a condominium association from
52waiving a financial report for more than a specified
53period; amending s. 718.112, F.S.; prohibiting a voting
54interest or a consent right allocated to a unit owner from
55being exercised under certain circumstances; requiring the
56board to address certain agenda items proposed by a
57petition of a specified percentage of the unit owners;
58providing requirements for the location of annual unit
59owner meetings; revising terms of service for board
60members; prohibiting certain persons from serving on the
61board; requiring the association to provide a
62certification form to unit owners for specified purposes;
63authorizing an association consisting of a specified
64maximum number of units to provide for different voting
65and election procedures in its bylaws by affirmative vote
66of a majority of the association's voting interests;
67revising requirements related to the annual budget;
68requiring proxy questions relating to reserves to contain
69a specified statement; providing for the removal of board
70members under certain circumstances; requiring that
71directors who are delinquent in certain payments owed in
72excess of certain periods of time be suspended from office
73or deemed to have abandoned their offices; requiring that
74directors charged with certain offenses involving an
75association's funds or property be suspended from office
76pending resolution of the charge; providing for the
77reinstatement of such officers or directors under certain
78circumstances; amending s. 718.1124, F.S.; providing that
79any unit owner may give notice of his or her intent to
80apply to the circuit court for the appointment of a
81receiver to manage the affairs of the association under
82certain circumstances; providing a form for such notice;
83providing for the delivery of such notice; providing
84procedures for resolving a petition submitted pursuant to
85such notice; requiring that all unit owners be provided
86written notice of the appointment of a receiver; amending
87s. 718.113, F.S.; providing a statement of clarification;
88authorizing the board to install certain hurricane
89protection; prohibiting the board from installing
90hurricane shutters under certain circumstances; providing
91for the maintenance, repair, and replacement of hurricane
92shutters or other hurricane protection; providing that a
93vote of the owners is not required under certain
94conditions; prohibiting a board from refusing to approve
95the installation or replacement of hurricane shutters by a
96unit owner under certain conditions; requiring that the
97board inspect certain condominium buildings and issue a
98report thereupon; providing an exception; prohibiting the
99board from refusing a request for reasonable accommodation
100for the attachment to a unit of religious objects meeting
101certain size specifications; amending s. 718.115, F.S.;
102providing the expense of installation, replacement,
103operation, repair, and maintenance of hurricane shutters
104or other hurricane protection shall constitute either a
105common expense or shall be charged individually to the
106unit owners under certain conditions; amending s. 718.117,
107F.S.; requiring that all unit owners be provided written
108notice of the appointment of a receiver; providing for the
109delivery of such notice; amending s. 718.121, F.S.;
110providing requirements and restrictions for liens filed by
111the association against a condominium unit; providing for
112notice and delivery thereof; creating s. 718.1224, F.S.;
113prohibiting strategic lawsuits against public
114participation; providing legislative findings and intent;
115prohibiting a governmental entity, business organization,
116or individual from filing certain lawsuits made upon
117specified bases against a unit owner; providing rights of
118a unit owner who has been served with such a lawsuit;
119providing procedures for the resolution of claims that
120such suit violates certain provisions of state law;
121providing for the award of damages and attorney's fees;
122prohibiting associations from expending association funds
123in prosecuting such a suit against a unit owner; amending
124s. 718.1255, F.S.; revising legislative intent concerning
125alternative dispute resolution; creating s. 718.1265,
126F.S.; authorizing an association to exercise certain
127powers in instances involving damage caused by an event
128for which a state of emergency has been declared; limiting
129the applicability of such powers; creating s. 718.127,
130F.S.; requiring that all unit owners be provided written
131notice of the appointment of a receiver; providing for the
132delivery of such notice; amending s. 718.301, F.S.;
133providing circumstances under which unit owners other than
134a developer may elect not fewer than a majority of the
135members of the board of administration of an association;
136requiring a turnover inspection report; requiring that the
137report contain certain information; amending s. 718.3025,
138F.S.; requiring that maintenance and management services
139contracts disclose certain information; amending s.
140718.3026, F.S.; revising a provision authorizing certain
141associations to opt out of provisions relating to
142contracts for products and services; removing provisions
143relating to competitive bid requirements for contracts
144executed before a specified date; providing requirements
145for any contract or transaction between an association and
146one or more of its directors or any other entity in which
147one or more of its directors are directors or officers or
148have a financial interest; amending s. 718.303, F.S.;
149providing that hearings regarding noncompliance with a
150declaration be held before certain persons; amending s.
151718.501, F.S.; providing authority and responsibilities of
152the division; providing for enforcement actions brought by
153the division in its own name; providing for the imposition
154of penalties by the division; requiring that the division
155issue a subpoena requiring production of certain requested
156records under certain circumstances; providing for the
157issuance of notice of a declaratory statement with respect
158to documents governing a condominium community; requiring
159that the division provide training and education for
160condominium association board members and unit owners;
161authorizing the division to include certain training
162components and review or approve training programs offered
163by providers; requiring that certain individuals cooperate
164with the division in any investigation conducted by the
165division; amending s. 718.5012, F.S.; providing additional
166powers of the ombudsman; amending s. 718.50151, F.S.;
167redesignating the Advisory Council on Condominiums as the
168"Community Association Living Study Council"; providing
169for the creation of the council; revising legislative
170intent with respect to the appointment of council members;
171providing functions of the council; amending s. 718.503,
172F.S.; providing for disclosure of certain information upon
173the sale of a unit by a nondeveloper; requiring the
174provision of a governance form by the seller to the
175prospective buyer; requiring that such form contain
176certain information and a specified statement; providing
177an effective date.
179Be It Enacted by the Legislature of the State of Florida:
181     Section 1.  Section 468.431, Florida Statutes, is amended
182to read:
183     468.431  Definitions.--As used in this part:
184     (1)  "Community association" means a residential
185homeowners' association in which membership is a condition of
186ownership of a unit in a planned unit development, or of a lot
187for a home or a mobile home, or of a townhouse, villa,
188condominium, cooperative, or other residential unit which is
189part of a residential development scheme and which is authorized
190to impose a fee which may become a lien on the parcel.
191     (2)  "Community association management" means any of the
192following practices requiring substantial specialized knowledge,
193judgment, and managerial skill when done for remuneration and
194when the association or associations served contain more than 10
19550 units or have an annual budget or budgets in excess of
196$100,000: controlling or disbursing funds of a community
197association, preparing budgets or other financial documents for
198a community association, assisting in the noticing or conduct of
199community association meetings, and coordinating maintenance for
200the residential development and other day-to-day services
201involved with the operation of a community association. A person
202who performs clerical or ministerial functions under the direct
203supervision and control of a licensed manager or who is charged
204only with performing the maintenance of a community association
205and who does not assist in any of the management services
206described in this subsection is not required to be licensed
207under this part.
208     (3)  "Community association management firm" means a
209corporation, limited liability company, partnership, trust,
210association, sole proprietorship, or other similar organization
211engaging in the business of community association management for
212the purpose of providing any of the services described in
213subsection (2).
214     (4)(3)  "Community association manager" means a natural
215person who is licensed pursuant to this part to perform
216community association management services.
217     (5)(4)  "Council" means the Regulatory Council of Community
218Association Managers.
219     (6)(5)  "Department" means the Department of Business and
220Professional Regulation.
221     Section 2.  Section 468.4315, Florida Statutes, is amended
222to read:
223     468.4315  Regulatory Council of Community Association
225     (1)  The Regulatory Council of Community Association
226Managers is created within the department and shall consist of
227seven members appointed by the Governor and confirmed by the
229     (a)  Five members of the council shall be licensed
230community association managers, one of whom may shall be a
231community association manager employed by a timeshare managing
232entity as described in ss. 468.438 and 721.13, who have held an
233active license for at least 5 years. The remaining two council
234members shall be residents of this state, and must not be or
235ever have been connected with the business of community
236association management, and shall not be prohibited from serving
237because the member is or has been a resident or board member of
238a community association.
239     (b)  The Governor shall appoint members for terms of 4
240years. Such members shall serve until their successors are
241appointed. Members' service on the council shall begin upon
242appointment and shall continue until their successors are
244     (2)  The council may adopt rules relating to the licensure
245examination, continuing education requirements, continuing
246education providers, fees, and professional practice standards
247to assist the department in carrying out the duties and
248authorities conferred upon the department by this part.
249     (3) To the extent the council is authorized to exercise
250functions otherwise exercised by a board pursuant to chapter
251455, the provisions of chapter 455 and s. 20.165 relating to
252regulatory boards shall apply, including, but not limited to,
253provisions relating to board rules and the accountability and
254liability of board members. All proceedings and actions of the
255council are subject to the provisions of chapter 120. In
256addition, the provisions of chapter 455 and s. 20.165 shall
257apply to the department in carrying out the duties and
258authorities conferred upon the department by this part.
259     (4)  The council may establish a public education program
260relating to professional community association management.
261     (5)  Members of the council shall serve without
262compensation but are entitled to receive per diem and travel
263expenses pursuant to s. 112.061 while carrying out business
264approved by the council.
265     (6)  The responsibilities of the council shall include, but
266not be limited to:
267     (a)  Receiving input regarding issues of concern with
268respect to community association management and recommendations
269for changes in applicable laws.
270     (b)  Reviewing, evaluating, and advising the division
271concerning revisions and adoption of rules affecting community
272association management.
273     (c)  Recommending improvements, if needed, in the education
274programs offered by the division.
275     Section 3.  Section 468.432, Florida Statutes, is amended
276to read:
277     468.432  Licensure of community association managers and
278community association management firms; exceptions.--
279     (1)  A person shall not manage or hold herself or himself
280out to the public as being able to manage a community
281association in this state unless she or he is licensed by the
282department in accordance with the provisions of this part.
283However, nothing in this part prohibits any person licensed in
284this state under any other law or court rule from engaging in
285the profession for which she or he is licensed.
286     (2)  As of January 1, 2009, a community association
287management firm or other similar organization responsible for
288the management of more than 10 units or a budget of $100,000 or
289greater shall not engage or hold itself out to the public as
290being able to engage in the business of community association
291management in this state unless it is licensed by the department
292as a community association management firm in accordance with
293the provisions of this part.
294     (a)  A community association management firm or other
295similar organization desiring to be licensed as a community
296association management firm shall apply to the department on a
297form approved by the department together with the application
298and licensure fees required by s. 468.435(1)(a) and (c). Each
299community association management firm applying for licensure
300under this subsection must be actively registered and authorized
301to do business in this state.
302     (b)  Each applicant shall designate on its application a
303licensed community association manager who shall be required to
304respond to all inquires from and investigations by the
305department or division.
306     (c)  Each licensed community association management firm
307shall notify the department within 30 days after any change of
308information contained in the application upon which licensure is
310     (d)  Community association management firm licenses shall
311expire on September 30 of odd-numbered years and shall be
312renewed every 2 years. An application for renewal shall be
313accompanied by the renewal fee as required by s. 468.435(1)(d).
314     (e)  The department shall license each applicant whom the
315department certifies as meeting the requirements of this
317     (f)  If the license of at least one individual active
318community association manager member is not in force, the
319license of the community association management firm or other
320similar organization is canceled automatically during that time.
321     (g)  Any community association management firm or other
322similar organization agrees by being licensed that it will
323employ only licensed persons in the direct provision of
324community association management services as described in s.
326     (2)  Nothing in this part prohibits a corporation,
327partnership, trust, association, or other like organization from
328engaging in the business of community association management
329without being licensed if it employs licensed natural persons in
330the direct provision of community association management
331services. Such corporation, partnership, trust, association, or
332other organization shall also file with the department a
333statement on a form approved by the department that it submits
334itself to the rules of the council and the department and the
335provisions of this part which the department deems applicable.
336     Section 4.  Subsections (2) and (4) of section 468.433,
337Florida Statutes, are amended to read:
338     468.433  Licensure by examination.--
339     (2)  The department shall examine each applicant who is at
340least 18 years of age, who has successfully completed all
341prelicensure education requirements, and who the department
342certifies is of good moral character.
343     (a)  Good moral character means a personal history of
344honesty, fairness, and respect for the rights of others and for
345the laws of this state and nation.
346     (b)  The department may refuse to certify an applicant only
348     1.  There is a substantial connection between the lack of
349good moral character of the applicant and the professional
350responsibilities of a community association manager; and
351     2.  The finding by the department of lack of good moral
352character is supported by clear and convincing evidence; or
353     3.  The applicant is found to have provided management
354services requiring licensure without the requisite license.
355     (c)  When an applicant is found to be unqualified for a
356license because of a lack of good moral character, the
357department shall furnish the applicant a statement containing
358its findings, a complete record of the evidence upon which the
359determination was based, and a notice of the rights of the
360applicant to a rehearing and appeal.
361     (d)  The council shall establish by rule the required
362amount of prelicensure education, which shall consist of not
363more than 24 hours of in-person instruction by a department-
364approved provider and which shall cover all areas of the
365examination specified in subsection (3). Such instruction shall
366be completed within 12 months prior to the date of the
367examination. Prelicensure education providers shall be
368considered continuing education providers for purposes of
369establishing provider approval fees. A licensee shall not be
370required to comply with the continuing education requirements of
371s. 468.4337 prior to the first license renewal. The department
372shall, by rule, set standards for exceptions to the requirement
373of in-person instruction in cases of hardship or disability.
374     (4)  The department shall issue a license to practice in
375this state as a community association manager to any qualified
376applicant who successfully completes the examination in
377accordance with this section and pays the appropriate fee.
378     Section 5.  Section 468.436, Florida Statutes, is amended
379to read:
380     468.436  Disciplinary proceedings.--
381     (1)  The department shall investigate complaints and
382allegations of a violation of this part or chapter 455, or any
383rule adopted thereunder, filed against community association
384managers or firms and forwarded from other divisions under the
385Department of Business and Professional Regulation. After a
386complaint is received, the department shall conduct its inquiry
387with due regard to the interests of the affected parties. Within
38830 days after receipt of a complaint, the department shall
389acknowledge the complaint in writing and notify the complainant
390whether or not the complaint is within the jurisdiction of the
391department and whether or not additional information is needed
392by the department from the complainant. The department shall
393conduct an investigation and shall, within 90 days after receipt
394of the original complaint or of a timely request for additional
395information, take action upon the complaint. However, the
396failure to complete the investigation within 90 days does not
397prevent the department from continuing the investigation,
398accepting or considering evidence obtained or received after 90
399days, or taking administrative action if reasonable cause exists
400to believe that a violation of this part or chapter 455, or a
401rule of the department has occurred. If an investigation is not
402completed within the time limits established in this subsection,
403the department shall, on a monthly basis, notify the complainant
404in writing of the status of the investigation. When reporting
405its action to the complainant, the department shall inform the
406complainant of any right to a hearing pursuant to ss. 120.569
407and 120.57.
408     (2)(1)  The following acts constitute grounds for which the
409disciplinary actions in subsection (4) (3) may be taken:
410     (a)  Violation of any provision of s. 455.227(1).
411     (b)1.  Violation of any provision of this part.
412     2.  Violation of any lawful order or rule rendered or
413adopted by the department or the council.
414     3.  Being convicted of or pleading nolo contendere to a
415felony in any court in the United States.
416     4.  Obtaining a license or certification or any other
417order, ruling, or authorization by means of fraud,
418misrepresentation, or concealment of material facts.
419     5.  Committing acts of gross misconduct or gross negligence
420in connection with the profession.
421     6.  Contracting, on behalf of an association, with any
422entity in which the licensee has a financial interest that is
423not disclosed.
424     (3)(2)  The council shall specify by rule the acts or
425omissions that constitute a violation of subsection (2) (1).
426     (4)(3)  When the department finds any community association
427manager or firm guilty of any of the grounds set forth in
428subsection (2) (1), it may enter an order imposing one or more
429of the following penalties:
430     (a)  Denial of an application for licensure.
431     (b)  Revocation or suspension of a license.
432     (c)  Imposition of an administrative fine not to exceed
433$5,000 for each count or separate offense.
434     (d)  Issuance of a reprimand.
435     (e)  Placement of the community association manager on
436probation for a period of time and subject to such conditions as
437the department specifies.
438     (f)  Restriction of the authorized scope of practice by the
439community association manager.
440     (5)(4)  The department may shall reissue the license of a
441disciplined community association manager or firm upon
442certification by the department that the disciplined person or
443firm has complied with all of the terms and conditions set forth
444in the final order.
445     Section 6.  Paragraph (b) of subsection (1) and subsections
446(12) and (13) of section 718.111, Florida Statutes are amended,
447and paragraph (d) is added to subsection (1) of that section, to
449     718.111  The association.--
450     (1)  CORPORATE ENTITY.--
451     (b)  A director of the association who is present at a
452meeting of its board at which action on any corporate matter is
453taken shall be presumed to have assented to the action taken
454unless he or she votes against such action or abstains from
455voting in respect thereto because of an asserted conflict of
456interest. A director of the association who abstains from voting
457on any action taken on any corporate matter shall be presumed to
458have taken no position with regard to the action. Directors may
459not vote by proxy or by secret ballot at board meetings, except
460that officers may be elected by secret ballot. A vote or
461abstention for each member present shall be recorded in the
463     (d)  As required by s. 617.0830, an officer, director, or
464agent shall discharge his or her duties in good faith, with the
465care an ordinarily prudent person in a like position would
466exercise under similar circumstances, and in a manner he or she
467reasonably believes to be in the interests of the association.
468An officer, director, or agent shall be liable for monetary
469damages as provided in s. 617.0834 if such officer, director, or
470agent breached or failed to perform his or her duties and the
471breach of, or failure to perform, his or her duties constitutes
472a violation of criminal law as provided in s. 617.0834;
473constitutes a transaction from which the officer or director
474derived an improper personal benefit, either directly or
475indirectly; or constitutes recklessness or an act or omission
476that was  in bad faith, with malicious purpose, or in a manner
477exhibiting wanton and willful disregard of human rights, safety,
478or property.
479     (12)  OFFICIAL RECORDS.--
480     (a)  From the inception of the association, the association
481shall maintain each of the following items, when applicable,
482which shall constitute the official records of the association:
483     1.  A copy of the plans, permits, warranties, and other
484items provided by the developer pursuant to s. 718.301(4).
485     2.  A photocopy of the recorded declaration of condominium
486of each condominium operated by the association and of each
487amendment to each declaration.
488     3.  A photocopy of the recorded bylaws of the association
489and of each amendment to the bylaws.
490     4.  A certified copy of the articles of incorporation of
491the association, or other documents creating the association,
492and of each amendment thereto.
493     5.  A copy of the current rules of the association.
494     6.  A book or books which contain the minutes of all
495meetings of the association, of the board of administration
496directors, and of unit owners, which minutes shall be retained
497for a period of not less than 7 years.
498     7.  A current roster of all unit owners and their mailing
499addresses, unit identifications, voting certifications, and, if
500known, telephone numbers. The association shall also maintain
501the electronic mailing addresses and the numbers designated by
502unit owners for receiving notice sent by electronic transmission
503of those unit owners consenting to receive notice by electronic
504transmission. The electronic mailing addresses and numbers
505provided by unit owners to receive notice by electronic
506transmission shall be removed from association records when
507consent to receive notice by electronic transmission is revoked.
508However, the association is not liable for an erroneous
509disclosure of the electronic mail address or the number for
510receiving electronic transmission of notices.
511     8.  All current insurance policies of the association and
512condominiums operated by the association.
513     9.  A current copy of any management agreement, lease, or
514other contract to which the association is a party or under
515which the association or the unit owners have an obligation or
517     10.  Bills of sale or transfer for all property owned by
518the association.
519     11.  Accounting records for the association and separate
520accounting records for each condominium which the association
521operates. All accounting records shall be maintained for a
522period of not less than 7 years. Any person who knowingly or
523intentionally defaces or destroys accounting records required to
524be maintained by this chapter, or who knowingly or intentionally
525fails to create or maintain accounting records required to be
526maintained by this chapter, is personally subject to a civil
527penalty pursuant to s. 718.501(1)(d). The accounting records
528shall include, but are not limited to:
529     a.  Accurate, itemized, and detailed records of all
530receipts and expenditures.
531     b.  A current account and a monthly, bimonthly, or
532quarterly statement of the account for each unit designating the
533name of the unit owner, the due date and amount of each
534assessment, the amount paid upon the account, and the balance
536     c.  All audits, reviews, accounting statements, and
537financial reports of the association or condominium.
538     d.  All contracts for work to be performed. Bids for work
539to be performed shall also be considered official records and
540shall be maintained by the association for a period of 1 year.
541     12.  Ballots, sign-in sheets, voting proxies, and all other
542papers relating to voting by unit owners, which shall be
543maintained for a period of 1 year from the date of the election,
544vote, or meeting to which the document relates, notwithstanding
545paragraph (b).
546     13.  All rental records, when the association is acting as
547agent for the rental of condominium units.
548     14.  A copy of the current question and answer sheet as
549described by s. 718.504.
550     15.  All other records of the association not specifically
551included in the foregoing which are related to the operation of
552the association.
553     16.  A copy of the inspection report as provided for in s.
555     (b)  The official records of the association shall be
556maintained within the state for at least 7 years. The records of
557the association shall be made available to a unit owner within
55845 miles of the condominium property or within the county in
559which the condominium property is located within 5 working days
560after receipt of written request by the board or its designee.
561However, such distance requirement does not apply to an
562association governing a timeshare condominium. This paragraph
563may be complied with by having a copy of the official records of
564the association available for inspection or copying on the
565condominium property or association property, or the association
566may offer the option of making the records of the association
567available to a unit owner either electronically via the Internet
568or by allowing the records to be viewed in electronic format on
569a computer screen and printed upon request.
570     (c)  The official records of the association are open to
571inspection by any association member or the authorized
572representative of such member at all reasonable times. The right
573to inspect the records includes the right to make or obtain
574copies, at the reasonable expense, if any, of the association
575member. The association may adopt reasonable rules regarding the
576frequency, time, location, notice, and manner of record
577inspections and copying. The failure of an association to
578provide the records within 10 working days after receipt of a
579written request shall create a rebuttable presumption that the
580association willfully failed to comply with this paragraph. A
581unit owner who is denied access to official records is entitled
582to the actual damages or minimum damages for the association's
583willful failure to comply with this paragraph. The minimum
584damages shall be $50 per calendar day up to 10 days, the
585calculation to begin on the 11th working day after receipt of
586the written request. The failure to permit inspection of the
587association records as provided herein entitles any person
588prevailing in an enforcement action to recover reasonable
589attorney's fees from the person in control of the records who,
590directly or indirectly, knowingly denied access to the records
591for inspection. Any person who knowingly or intentionally
592defaces or destroys accounting records that are required by this
593chapter, or knowingly or intentionally fails to create or
594maintain accounting records that are required by this chapter,
595is personally subject to a civil penalty pursuant to s.
596718.501(1)(d). The association shall maintain an adequate number
597of copies of the declaration, articles of incorporation, bylaws,
598and rules, and all amendments to each of the foregoing, as well
599as the question and answer sheet provided for in s. 718.504 and
600year-end financial information required in this section on the
601condominium property to ensure their availability to unit owners
602and prospective purchasers, and may charge its actual costs for
603preparing and furnishing these documents to those requesting the
604same. Notwithstanding the provisions of this paragraph, the
605following records shall not be accessible to unit owners:
606     1.  Any record protected by the lawyer-client privilege as
607described in s. 90.502; and any record protected by the work-
608product privilege, including any record prepared by an
609association attorney or prepared at the attorney's express
610direction; which reflects a mental impression, conclusion,
611litigation strategy, or legal theory of the attorney or the
612association, and which was prepared exclusively for civil or
613criminal litigation or for adversarial administrative
614proceedings, or which was prepared in anticipation of imminent
615civil or criminal litigation or imminent adversarial
616administrative proceedings until the conclusion of the
617litigation or adversarial administrative proceedings.
618     2.  Information obtained by an association in connection
619with the approval of the lease, sale, or other transfer of a
621     3.  Medical records of unit owners.
622     4.  Social security numbers, driver's license numbers,
623credit card numbers, and other personal identifying information
624of any person.
625     (d)  The association shall prepare a question and answer
626sheet as described in s. 718.504, and shall update it annually.
627     (e)1.  The association or its authorized agent is not
628required to provide a prospective purchaser or lienholder with
629information about the condominium or the association other than
630information or documents required by this chapter to be made
631available or disclosed. The association or its authorized agent
632may charge a reasonable fee to the prospective purchaser,
633lienholder, or the current unit owner for providing good faith
634responses to requests for information by or on behalf of a
635prospective purchaser or lienholder, other than that required by
636law, if the fee does not exceed $150 plus the reasonable cost of
637photocopying and any attorney's fees incurred by the association
638in connection with the response.
639     2.  An association and its authorized agent are not liable
640for providing such information in good faith pursuant to a
641written request if the person providing the information includes
642a written statement in substantially the following form: "The
643responses herein are made in good faith and to the best of my
644ability as to their accuracy."
645     (13)  FINANCIAL REPORTING.--Within 90 days after the end of
646the fiscal year, or annually on a date provided in the bylaws,
647the association shall prepare and complete, or contract for the
648preparation and completion of, a financial report for the
649preceding fiscal year. Within 21 days after the final financial
650report is completed by the association or received from the
651third party, but not later than 120 days after the end of the
652fiscal year or other date as provided in the bylaws, the
653association shall mail to each unit owner at the address last
654furnished to the association by the unit owner, or hand deliver
655to each unit owner, a copy of the financial report or a notice
656that a copy of the financial report will be mailed or hand
657delivered to the unit owner, without charge, upon receipt of a
658written request from the unit owner. The division shall adopt
659rules setting forth uniform accounting principles and standards
660to be used by all associations and shall adopt rules addressing
661financial reporting requirements for multicondominium
662associations. The rules shall include, but not be limited to,
663uniform accounting principles and standards for stating the
664disclosure of at least a summary of the reserves, including
665information as to whether such reserves are being funded at a
666level sufficient to prevent the need for a special assessment
667and, if not, the amount of assessments necessary to bring the
668reserves up to the level necessary to avoid a special
669assessment. The person preparing the financial reports shall be
670entitled to rely on an inspection report prepared for or
671provided to the association to meet the fiscal and fiduciary
672standards of this chapter. In adopting such rules, the division
673shall consider the number of members and annual revenues of an
674association. Financial reports shall be prepared as follows:
675     (a)  An association that meets the criteria of this
676paragraph shall prepare or cause to be prepared a complete set
677of financial statements in accordance with generally accepted
678accounting principles. The financial statements shall be based
679upon the association's total annual revenues, as follows:
680     1.  An association with total annual revenues of $100,000
681or more, but less than $200,000, shall prepare compiled
682financial statements.
683     2.  An association with total annual revenues of at least
684$200,000, but less than $400,000, shall prepare reviewed
685financial statements.
686     3.  An association with total annual revenues of $400,000
687or more shall prepare audited financial statements.
688     (b)1.  An association with total annual revenues of less
689than $100,000 shall prepare a report of cash receipts and
691     2.  An association which operates less than 50 units,
692regardless of the association's annual revenues, shall prepare a
693report of cash receipts and expenditures in lieu of financial
694statements required by paragraph (a).
695     3.  A report of cash receipts and disbursements must
696disclose the amount of receipts by accounts and receipt
697classifications and the amount of expenses by accounts and
698expense classifications, including, but not limited to, the
699following, as applicable: costs for security, professional and
700management fees and expenses, taxes, costs for recreation
701facilities, expenses for refuse collection and utility services,
702expenses for lawn care, costs for building maintenance and
703repair, insurance costs, administration and salary expenses, and
704reserves accumulated and expended for capital expenditures,
705deferred maintenance, and any other category for which the
706association maintains reserves.
707     (c)  An association may prepare or cause to be prepared,
708without a meeting of or approval by the unit owners:
709     1.  Compiled, reviewed, or audited financial statements, if
710the association is required to prepare a report of cash receipts
711and expenditures;
712     2.  Reviewed or audited financial statements, if the
713association is required to prepare compiled financial
714statements; or
715     3.  Audited financial statements if the association is
716required to prepare reviewed financial statements.
717     (d)  If approved by a majority of the voting interests
718present at a properly called meeting of the association, an
719association may prepare or cause to be prepared:
720     1.  A report of cash receipts and expenditures in lieu of a
721compiled, reviewed, or audited financial statement;
722     2.  A report of cash receipts and expenditures or a
723compiled financial statement in lieu of a reviewed or audited
724financial statement; or
725     3.  A report of cash receipts and expenditures, a compiled
726financial statement, or a reviewed financial statement in lieu
727of an audited financial statement.
729Such meeting and approval must occur prior to the end of the
730fiscal year and is effective only for the fiscal year in which
731the vote is taken, except that the approval also may be
732effective for the following fiscal year. With respect to an
733association to which the developer has not turned over control
734of the association, all unit owners, including the developer,
735may vote on issues related to the preparation of financial
736reports for the first 2 fiscal years of the association's
737operation, beginning with the fiscal year in which the
738declaration is recorded. Thereafter, all unit owners except the
739developer may vote on such issues until control is turned over
740to the association by the developer. Any audit or review
741prepared under this section shall be paid for by the developer
742if done prior to turnover of control of the association. An
743association may not waive the financial reporting requirements
744of this section for more than 3 consecutive years.
745     Section 7.  Subsection (2) of section 718.112, Florida
746Statutes, is amended to read:
747     718.112  Bylaws.--
748     (2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
749following and, if they do not do so, shall be deemed to include
750the following:
751     (a)  Administration.--
752     1.  The form of administration of the association shall be
753described indicating the title of the officers and board of
754administration and specifying the powers, duties, manner of
755selection and removal, and compensation, if any, of officers and
756boards. In the absence of such a provision, the board of
757administration shall be composed of five members, except in the
758case of a condominium which has five or fewer units, in which
759case in a not-for-profit corporation the board shall consist of
760not fewer than three members. In the absence of provisions to
761the contrary in the bylaws, the board of administration shall
762have a president, a secretary, and a treasurer, who shall
763perform the duties of such officers customarily performed by
764officers of corporations. Unless prohibited in the bylaws, the
765board of administration may appoint other officers and grant
766them the duties it deems appropriate. Unless otherwise provided
767in the bylaws, the officers shall serve without compensation and
768at the pleasure of the board of administration. Unless otherwise
769provided in the bylaws, the members of the board shall serve
770without compensation.
771     2.  When a unit owner files a written inquiry by certified
772mail with the board of administration, the board shall respond
773in writing to the unit owner within 30 days of receipt of the
774inquiry. The board's response shall either give a substantive
775response to the inquirer, notify the inquirer that a legal
776opinion has been requested, or notify the inquirer that advice
777has been requested from the division. If the board requests
778advice from the division, the board shall, within 10 days of its
779receipt of the advice, provide in writing a substantive response
780to the inquirer. If a legal opinion is requested, the board
781shall, within 60 days after the receipt of the inquiry, provide
782in writing a substantive response to the inquiry. The failure to
783provide a substantive response to the inquiry as provided herein
784precludes the board from recovering attorney's fees and costs in
785any subsequent litigation, administrative proceeding, or
786arbitration arising out of the inquiry. The association may
787through its board of administration adopt reasonable rules and
788regulations regarding the frequency and manner of responding to
789unit owner inquiries, one of which may be that the association
790is only obligated to respond to one written inquiry per unit in
791any given 30-day period. In such a case, any additional inquiry
792or inquiries must be responded to in the subsequent 30-day
793period, or periods, as applicable.
794     (b)  Quorum; voting requirements; proxies.--
795     1.  Unless a lower number is provided in the bylaws, the
796percentage of voting interests required to constitute a quorum
797at a meeting of the members shall be a majority of the voting
798interests. Unless otherwise provided in this chapter or in the
799declaration, articles of incorporation, or bylaws, and except as
800provided in subparagraph (d)3., decisions shall be made by
801owners of a majority of the voting interests represented at a
802meeting at which a quorum is present.
803     2.  Except as specifically otherwise provided herein, after
804January 1, 1992, unit owners may not vote by general proxy, but
805may vote by limited proxies substantially conforming to a
806limited proxy form adopted by the division. No voting interest
807or consent right allocated to a unit owned by the association
808shall be exercised or considered for any purpose, whether for a
809quorum, an election, or otherwise. Limited proxies and general
810proxies may be used to establish a quorum. Limited proxies shall
811be used for votes taken to waive or reduce reserves in
812accordance with subparagraph (f)2.; for votes taken to waive the
813financial reporting requirements of s. 718.111(13); for votes
814taken to amend the declaration pursuant to s. 718.110; for votes
815taken to amend the articles of incorporation or bylaws pursuant
816to this section; and for any other matter for which this chapter
817requires or permits a vote of the unit owners. Except as
818provided in paragraph (d), after January 1, 1992, no proxy,
819limited or general, shall be used in the election of board
820members. General proxies may be used for other matters for which
821limited proxies are not required, and may also be used in voting
822for nonsubstantive changes to items for which a limited proxy is
823required and given. Notwithstanding the provisions of this
824subparagraph, unit owners may vote in person at unit owner
825meetings. Nothing contained herein shall limit the use of
826general proxies or require the use of limited proxies for any
827agenda item or election at any meeting of a timeshare
828condominium association.
829     3.  Any proxy given shall be effective only for the
830specific meeting for which originally given and any lawfully
831adjourned meetings thereof. In no event shall any proxy be valid
832for a period longer than 90 days after the date of the first
833meeting for which it was given. Every proxy is revocable at any
834time at the pleasure of the unit owner executing it.
835     4.  A member of the board of administration or a committee
836may submit in writing his or her agreement or disagreement with
837any action taken at a meeting that the member did not attend.
838This agreement or disagreement may not be used as a vote for or
839against the action taken and may not be used for the purposes of
840creating a quorum.
841     5.  When any of the board or committee members meet by
842telephone conference, those board or committee members attending
843by telephone conference may be counted toward obtaining a quorum
844and may vote by telephone. A telephone speaker must be used so
845that the conversation of those board or committee members
846attending by telephone may be heard by the board or committee
847members attending in person as well as by any unit owners
848present at a meeting.
849     (c)  Board of administration meetings.--Meetings of the
850board of administration at which a quorum of the members is
851present shall be open to all unit owners. Any unit owner may
852tape record or videotape meetings of the board of
853administration. The right to attend such meetings includes the
854right to speak at such meetings with reference to all designated
855agenda items. The division shall adopt reasonable rules
856governing the tape recording and videotaping of the meeting. The
857association may adopt written reasonable rules governing the
858frequency, duration, and manner of unit owner statements.
859Adequate notice of all meetings, which notice shall specifically
860incorporate an identification of agenda items, shall be posted
861conspicuously on the condominium property at least 48 continuous
862hours preceding the meeting except in an emergency. If 20
863percent of the voting interests petition the board to address an
864item of business, the board shall at its next regular board
865meeting or at a special meeting of the board, but not later than
86660 days after the receipt of the petition, place the item on the
867agenda. Any item not included on the notice may be taken up on
868an emergency basis by at least a majority plus one of the
869members of the board. Such emergency action shall be noticed and
870ratified at the next regular meeting of the board. However,
871written notice of any meeting at which nonemergency special
872assessments, or at which amendment to rules regarding unit use,
873will be considered shall be mailed, delivered, or electronically
874transmitted to the unit owners and posted conspicuously on the
875condominium property not less than 14 days prior to the meeting.
876Evidence of compliance with this 14-day notice shall be made by
877an affidavit executed by the person providing the notice and
878filed among the official records of the association. Upon notice
879to the unit owners, the board shall by duly adopted rule
880designate a specific location on the condominium property or
881association property upon which all notices of board meetings
882shall be posted. If there is no condominium property or
883association property upon which notices can be posted, notices
884of board meetings shall be mailed, delivered, or electronically
885transmitted at least 14 days before the meeting to the owner of
886each unit. In lieu of or in addition to the physical posting of
887notice of any meeting of the board of administration on the
888condominium property, the association may, by reasonable rule,
889adopt a procedure for conspicuously posting and repeatedly
890broadcasting the notice and the agenda on a closed-circuit cable
891television system serving the condominium association. However,
892if broadcast notice is used in lieu of a notice posted
893physically on the condominium property, the notice and agenda
894must be broadcast at least four times every broadcast hour of
895each day that a posted notice is otherwise required under this
896section. When broadcast notice is provided, the notice and
897agenda must be broadcast in a manner and for a sufficient
898continuous length of time so as to allow an average reader to
899observe the notice and read and comprehend the entire content of
900the notice and the agenda. Notice of any meeting in which
901regular or special assessments against unit owners are to be
902considered for any reason shall specifically state contain a
903statement that assessments will be considered and the nature,
904estimated cost, and description of the purposes for any such
905assessments. Meetings of a committee to take final action on
906behalf of the board or make recommendations to the board
907regarding the association budget are subject to the provisions
908of this paragraph. Meetings of a committee that does not take
909final action on behalf of the board or make recommendations to
910the board regarding the association budget are subject to the
911provisions of this section, unless those meetings are exempted
912from this section by the bylaws of the association.
913Notwithstanding any other law, the requirement that board
914meetings and committee meetings be open to the unit owners is
915inapplicable to meetings between the board or a committee and
916the association's attorney, with respect to proposed or pending
917litigation, when the meeting is held for the purpose of seeking
918or rendering legal advice.
919     (d)  Unit owner meetings.--
920     1.  There shall be an annual meeting of the unit owners
921held at the location provided in the association bylaws and, if
922the bylaws are silent as to the location, the meeting shall be
923held within 45 miles of the condominium property. However, such
924distance requirement does not apply to an association governing
925a timeshare condominium. Unless the bylaws provide otherwise, a
926vacancy on the board caused by the expiration of a director's
927term shall be filled by electing a new board member, and the
928election shall be by secret ballot; however, if the number of
929vacancies equals or exceeds the number of candidates, no
930election is required. If there is no provision in the bylaws for
931terms of the members of the board, The terms of all members of
932the board shall expire upon the election of their successors at
933the annual meeting and such board members may stand for
934reelection unless otherwise permitted by the bylaws. In the
935event that the bylaws permit staggered terms of no more than 2
936years and upon approval of a majority of the total voting
937interests, the association board members may serve 2-year
938staggered terms. If no person is interested in or demonstrates
939an intention to run for the position of a board member whose
940term has expired according to the provisions of this
941subparagraph, such board member whose term has expired shall be
942automatically reappointed to the board of administration and
943need not stand for reelection. In a condominium association of
944more than 10 units, coowners of a unit may not serve as members
945of the board of directors at the same time. Any unit owner
946desiring to be a candidate for board membership shall comply
947with subparagraph 3. A person who has been suspended or removed
948by the division under this chapter, or who is delinquent in the
949payment of any fee or assessment as provided in paragraph (n),
950is not eligible for board membership. A person who has been
951convicted of any felony in this state or by any court of record
952in a the United States District or Territorial Court, or who has
953been convicted of any offense in another jurisdiction that would
954be considered a felony if committed in this state, and who has
955not had his or her right to vote restored pursuant to law in the
956jurisdiction of his or her residence is not eligible for board
957membership unless such felon's civil rights have been restored
958for a period of no less than 5 years as of the date on which
959such person seeks election to the board. The validity of an
960action by the board is not affected if it is later determined
961that a member of the board is ineligible for board membership
962due to having been convicted of a felony.
963     2.  The bylaws shall provide the method of calling meetings
964of unit owners, including annual meetings. Written notice, which
965notice must include an agenda, shall be mailed, hand delivered,
966or electronically transmitted to each unit owner at least 14
967days prior to the annual meeting and shall be posted in a
968conspicuous place on the condominium property at least 14
969continuous days preceding the annual meeting. Upon notice to the
970unit owners, the board shall by duly adopted rule designate a
971specific location on the condominium property or association
972property upon which all notices of unit owner meetings shall be
973posted; however, if there is no condominium property or
974association property upon which notices can be posted, this
975requirement does not apply. In lieu of or in addition to the
976physical posting of notice of any meeting of the unit owners on
977the condominium property, the association may, by reasonable
978rule, adopt a procedure for conspicuously posting and repeatedly
979broadcasting the notice and the agenda on a closed-circuit cable
980television system serving the condominium association. However,
981if broadcast notice is used in lieu of a notice posted
982physically on the condominium property, the notice and agenda
983must be broadcast at least four times every broadcast hour of
984each day that a posted notice is otherwise required under this
985section. When broadcast notice is provided, the notice and
986agenda must be broadcast in a manner and for a sufficient
987continuous length of time so as to allow an average reader to
988observe the notice and read and comprehend the entire content of
989the notice and the agenda. Unless a unit owner waives in writing
990the right to receive notice of the annual meeting, such notice
991shall be hand delivered, mailed, or electronically transmitted
992to each unit owner. Notice for meetings and notice for all other
993purposes shall be mailed to each unit owner at the address last
994furnished to the association by the unit owner, or hand
995delivered to each unit owner. However, if a unit is owned by
996more than one person, the association shall provide notice, for
997meetings and all other purposes, to that one address which the
998developer initially identifies for that purpose and thereafter
999as one or more of the owners of the unit shall so advise the
1000association in writing, or if no address is given or the owners
1001of the unit do not agree, to the address provided on the deed of
1002record. An officer of the association, or the manager or other
1003person providing notice of the association meeting, shall
1004provide an affidavit or United States Postal Service certificate
1005of mailing, to be included in the official records of the
1006association affirming that the notice was mailed or hand
1007delivered, in accordance with this provision.
1008     3.  The members of the board shall be elected by written
1009ballot or voting machine. Proxies shall in no event be used in
1010electing the board, either in general elections or elections to
1011fill vacancies caused by recall, resignation, or otherwise,
1012unless otherwise provided in this chapter. Not less than 60 days
1013before a scheduled election, the association shall mail,
1014deliver, or electronically transmit, whether by separate
1015association mailing or included in another association mailing,
1016delivery, or transmission, including regularly published
1017newsletters, to each unit owner entitled to a vote, a first
1018notice of the date of the election along with a certification
1019form provided by the division attesting that he or she has read
1020and understands, to the best of his or her ability, the
1021governing documents of the association and the provisions of
1022this chapter and any applicable rules. Any unit owner or other
1023eligible person desiring to be a candidate for the board must
1024give written notice to the association not less than 40 days
1025before a scheduled election. Together with the written notice
1026and agenda as set forth in subparagraph 2., the association
1027shall mail, deliver, or electronically transmit a second notice
1028of the election to all unit owners entitled to vote therein,
1029together with a ballot which shall list all candidates. Upon
1030request of a candidate, the association shall include an
1031information sheet, no larger than 81/2 inches by 11 inches,
1032which must be furnished by the candidate not less than 35 days
1033before the election, along with the signed certification form
1034provided for in this subparagraph, to be included with the
1035mailing, delivery, or transmission of the ballot, with the costs
1036of mailing, delivery, or electronic transmission and copying to
1037be borne by the association. The association is not liable for
1038the contents of the information sheets prepared by the
1039candidates. In order to reduce costs, the association may print
1040or duplicate the information sheets on both sides of the paper.
1041The division shall by rule establish voting procedures
1042consistent with the provisions contained herein, including rules
1043establishing procedures for giving notice by electronic
1044transmission and rules providing for the secrecy of ballots.
1045Elections shall be decided by a plurality of those ballots cast.
1046There shall be no quorum requirement; however, at least 20
1047percent of the eligible voters must cast a ballot in order to
1048have a valid election of members of the board. No unit owner
1049shall permit any other person to vote his or her ballot, and any
1050such ballots improperly cast shall be deemed invalid, provided
1051any unit owner who violates this provision may be fined by the
1052association in accordance with s. 718.303. A unit owner who
1053needs assistance in casting the ballot for the reasons stated in
1054s. 101.051 may obtain assistance in casting the ballot. The
1055regular election shall occur on the date of the annual meeting.
1056The provisions of this subparagraph shall not apply to timeshare
1057condominium associations. Notwithstanding the provisions of this
1058subparagraph, an election is not required unless more candidates
1059file notices of intent to run or are nominated than board
1060vacancies exist.
1061     4.  Any approval by unit owners called for by this chapter
1062or the applicable declaration or bylaws, including, but not
1063limited to, the approval requirement in s. 718.111(8), shall be
1064made at a duly noticed meeting of unit owners and shall be
1065subject to all requirements of this chapter or the applicable
1066condominium documents relating to unit owner decisionmaking,
1067except that unit owners may take action by written agreement,
1068without meetings, on matters for which action by written
1069agreement without meetings is expressly allowed by the
1070applicable bylaws or declaration or any statute that provides
1071for such action.
1072     5.  Unit owners may waive notice of specific meetings if
1073allowed by the applicable bylaws or declaration or any statute.
1074If authorized by the bylaws, notice of meetings of the board of
1075administration, unit owner meetings, except unit owner meetings
1076called to recall board members under paragraph (j), and
1077committee meetings may be given by electronic transmission to
1078unit owners who consent to receive notice by electronic
1080     6.  Unit owners shall have the right to participate in
1081meetings of unit owners with reference to all designated agenda
1082items. However, the association may adopt reasonable rules
1083governing the frequency, duration, and manner of unit owner
1085     7.  Any unit owner may tape record or videotape a meeting
1086of the unit owners subject to reasonable rules adopted by the
1088     8.  Unless otherwise provided in the bylaws, any vacancy
1089occurring on the board before the expiration of a term may be
1090filled by the affirmative vote of the majority of the remaining
1091directors, even if the remaining directors constitute less than
1092a quorum, or by the sole remaining director. In the alternative,
1093a board may hold an election to fill the vacancy, in which case
1094the election procedures must conform to the requirements of
1095subparagraph 3. unless the association governs 10 units or less
1096and has opted out of the statutory election process, in which
1097case the bylaws of the association control. Unless otherwise
1098provided in the bylaws, a board member appointed or elected
1099under this section shall fill the vacancy for the unexpired term
1100of the seat being filled. Filling vacancies created by recall is
1101governed by paragraph (j) and rules adopted by the division.
1103Notwithstanding subparagraphs (b)2. and (d)3., an association of
110410 or fewer units may, by the affirmative vote of a majority of
1105the total voting interests, provide for different voting and
1106election procedures in its bylaws, which vote may be by a proxy
1107specifically delineating the different voting and election
1108procedures. The different voting and election procedures may
1109provide for elections to be conducted by limited or general
1111     (e)  Budget meeting.--
1112     1.  Any meeting at which a proposed annual budget of an
1113association will be considered by the board or unit owners shall
1114be open to all unit owners. At least 14 days prior to such a
1115meeting, the board shall hand deliver to each unit owner, mail
1116to each unit owner at the address last furnished to the
1117association by the unit owner, or electronically transmit to the
1118location furnished by the unit owner for that purpose a notice
1119of such meeting and a copy of the proposed annual budget. An
1120officer or manager of the association, or other person providing
1121notice of such meeting, shall execute an affidavit evidencing
1122compliance with such notice requirement, and such affidavit
1123shall be filed among the official records of the association.
1124     2.a.  If a board adopts in any fiscal year an annual budget
1125which requires assessments against unit owners which exceed 115
1126percent of assessments for the preceding fiscal year, the board
1127shall conduct a special meeting of the unit owners to consider a
1128substitute budget if the board receives, within 21 days after
1129adoption of the annual budget, a written request for a special
1130meeting from at least 10 percent of all voting interests. The
1131special meeting shall be conducted within 60 days after adoption
1132of the annual budget. At least 14 days prior to such special
1133meeting, the board shall hand deliver to each unit owner, or
1134mail to each unit owner at the address last furnished to the
1135association, a notice of the meeting. An officer or manager of
1136the association, or other person providing notice of such
1137meeting shall execute an affidavit evidencing compliance with
1138this notice requirement, and such affidavit shall be filed among
1139the official records of the association. Unit owners may
1140consider and adopt a substitute budget at the special meeting. A
1141substitute budget is adopted if approved by a majority of all
1142voting interests unless the bylaws require adoption by a greater
1143percentage of voting interests. If there is not a quorum at the
1144special meeting or a substitute budget is not adopted, the
1145annual budget previously adopted by the board shall take effect
1146as scheduled.
1147     b.  Any determination of whether assessments exceed 115
1148percent of assessments for the prior fiscal year shall exclude
1149any authorized provision for reasonable reserves for repair or
1150replacement of the condominium property, anticipated expenses of
1151the association which the board does not expect to be incurred
1152on a regular or annual basis, or assessments for betterments to
1153the condominium property.
1154     c.  If the developer controls the board, assessments shall
1155not exceed 115 percent of assessments for the prior fiscal year
1156unless approved by a majority of all voting interests.
1157     (f)  Annual budget.--
1158     1.  The proposed annual budget of estimated revenues and
1159common expenses shall be detailed and shall show the amounts
1160budgeted by accounts and expense classifications, including, if
1161applicable, but not limited to, those expenses listed in s.
1162718.504(21). A multicondominium association shall adopt a
1163separate budget of common expenses for each condominium the
1164association operates and shall adopt a separate budget of common
1165expenses for the association. In addition, if the association
1166maintains limited common elements with the cost to be shared
1167only by those entitled to use the limited common elements as
1168provided for in s. 718.113(1), the budget or a schedule attached
1169thereto shall show amounts budgeted therefor. If, after turnover
1170of control of the association to the unit owners, any of the
1171expenses listed in s. 718.504(21) are not applicable, they need
1172not be listed.
1173     2.  In addition to annual operating expenses, the budget
1174shall include reserve accounts for capital expenditures and
1175deferred maintenance. These accounts shall include, but are not
1176limited to, roof replacement, building painting, and pavement
1177resurfacing, regardless of the amount of deferred maintenance
1178expense or replacement cost, and for any other item for which
1179the deferred maintenance expense or replacement cost exceeds
1180$10,000. The amount to be reserved shall be computed by means of
1181a formula which is based upon estimated remaining useful life
1182and estimated replacement cost or deferred maintenance expense
1183of each reserve item. The association may adjust replacement
1184reserve assessments annually to take into account any changes in
1185estimates or extension of the useful life of a reserve item
1186caused by deferred maintenance. This subsection does not apply
1187to an adopted budget in which the members of an association have
1188determined, by a majority vote at a duly called meeting of the
1189association, to provide no reserves or less reserves than
1190required by this subsection. However, prior to turnover of
1191control of an association by a developer to unit owners other
1192than a developer pursuant to s. 718.301, the developer may vote
1193to waive the reserves or reduce the funding of reserves for the
1194first 2 fiscal years of the association's operation, beginning
1195with the fiscal year in which the initial declaration is
1196recorded, after which time reserves may be waived or reduced
1197only upon the vote of a majority of all nondeveloper voting
1198interests voting in person or by limited proxy at a duly called
1199meeting of the association. If a meeting of the unit owners has
1200been called to determine whether to waive or reduce the funding
1201of reserves, and no such result is achieved or a quorum is not
1202attained, the reserves as included in the budget shall go into
1203effect. After the turnover, the developer may vote its voting
1204interest to waive or reduce the funding of reserves.
1205     3.  Reserve funds and any interest accruing thereon shall
1206remain in the reserve account or accounts, and shall be used
1207only for authorized reserve expenditures unless their use for
1208other purposes is approved in advance by a majority vote at a
1209duly called meeting of the association. Prior to turnover of
1210control of an association by a developer to unit owners other
1211than the developer pursuant to s. 718.301, the developer-
1212controlled association shall not vote to use reserves for
1213purposes other than that for which they were intended without
1214the approval of a majority of all nondeveloper voting interests,
1215voting in person or by limited proxy at a duly called meeting of
1216the association.
1217     4.  The only voting interests which are eligible to vote on
1218questions that involve waiving or reducing the funding of
1219reserves, or using existing reserve funds for purposes other
1220than purposes for which the reserves were intended, are the
1221voting interests of the units subject to assessment to fund the
1222reserves in question. Proxy questions relating to waiving or
1223reducing the funding of reserves or using existing reserve funds
1224for purposes other than purposes for which the reserves were
1225intended shall contain the following statement in capitalized,
1226bold letters in a font size larger than any other used on the
1227face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1231     (g)  Assessments.--The manner of collecting from the unit
1232owners their shares of the common expenses shall be stated in
1233the bylaws. Assessments shall be made against units not less
1234frequently than quarterly in an amount which is not less than
1235that required to provide funds in advance for payment of all of
1236the anticipated current operating expenses and for all of the
1237unpaid operating expenses previously incurred. Nothing in this
1238paragraph shall preclude the right of an association to
1239accelerate assessments of an owner delinquent in payment of
1240common expenses. Accelerated assessments shall be due and
1241payable on the date the claim of lien is filed. Such accelerated
1242assessments shall include the amounts due for the remainder of
1243the budget year in which the claim of lien was filed.
1244     (h)  Amendment of bylaws.--
1245     1.  The method by which the bylaws may be amended
1246consistent with the provisions of this chapter shall be stated.
1247If the bylaws fail to provide a method of amendment, the bylaws
1248may be amended if the amendment is approved by the owners of not
1249less than two-thirds of the voting interests.
1250     2.  No bylaw shall be revised or amended by reference to
1251its title or number only. Proposals to amend existing bylaws
1252shall contain the full text of the bylaws to be amended; new
1253words shall be inserted in the text underlined, and words to be
1254deleted shall be lined through with hyphens. However, if the
1255proposed change is so extensive that this procedure would
1256hinder, rather than assist, the understanding of the proposed
1257amendment, it is not necessary to use underlining and hyphens as
1258indicators of words added or deleted, but, instead, a notation
1259must be inserted immediately preceding the proposed amendment in
1260substantially the following language: "Substantial rewording of
1261bylaw. See bylaw _____ for present text."
1262     3.  Nonmaterial errors or omissions in the bylaw process
1263will not invalidate an otherwise properly promulgated amendment.
1264     (i)  Transfer fees.--No charge shall be made by the
1265association or any body thereof in connection with the sale,
1266mortgage, lease, sublease, or other transfer of a unit unless
1267the association is required to approve such transfer and a fee
1268for such approval is provided for in the declaration, articles,
1269or bylaws. Any such fee may be preset, but in no event may such
1270fee exceed $100 per applicant other than husband/wife or
1271parent/dependent child, which are considered one applicant.
1272However, if the lease or sublease is a renewal of a lease or
1273sublease with the same lessee or sublessee, no charge shall be
1274made. The foregoing notwithstanding, an association may, if the
1275authority to do so appears in the declaration or bylaws, require
1276that a prospective lessee place a security deposit, in an amount
1277not to exceed the equivalent of 1 month's rent, into an escrow
1278account maintained by the association. The security deposit
1279shall protect against damages to the common elements or
1280association property. Payment of interest, claims against the
1281deposit, refunds, and disputes under this paragraph shall be
1282handled in the same fashion as provided in part II of chapter
1284     (j)  Recall of board members.--Subject to the provisions of
1285s. 718.301, any member of the board of administration may be
1286recalled and removed from office with or without cause by the
1287vote or agreement in writing by a majority of all the voting
1288interests. A special meeting of the unit owners to recall a
1289member or members of the board of administration may be called
1290by 10 percent of the voting interests giving notice of the
1291meeting as required for a meeting of unit owners, and the notice
1292shall state the purpose of the meeting. Electronic transmission
1293may not be used as a method of giving notice of a meeting called
1294in whole or in part for this purpose.
1295     1.  If the recall is approved by a majority of all voting
1296interests by a vote at a meeting, the recall will be effective
1297as provided herein. The board shall duly notice and hold a board
1298meeting within 5 full business days of the adjournment of the
1299unit owner meeting to recall one or more board members. At the
1300meeting, the board shall either certify the recall, in which
1301case such member or members shall be recalled effective
1302immediately and shall turn over to the board within 5 full
1303business days any and all records and property of the
1304association in their possession, or shall proceed as set forth
1305in subparagraph 3.
1306     2.  If the proposed recall is by an agreement in writing by
1307a majority of all voting interests, the agreement in writing or
1308a copy thereof shall be served on the association by certified
1309mail or by personal service in the manner authorized by chapter
131048 and the Florida Rules of Civil Procedure. The board of
1311administration shall duly notice and hold a meeting of the board
1312within 5 full business days after receipt of the agreement in
1313writing. At the meeting, the board shall either certify the
1314written agreement to recall a member or members of the board, in
1315which case such member or members shall be recalled effective
1316immediately and shall turn over to the board within 5 full
1317business days any and all records and property of the
1318association in their possession, or proceed as described in
1319subparagraph 3.
1320     3.  If the board determines not to certify the written
1321agreement to recall a member or members of the board, or does
1322not certify the recall by a vote at a meeting, the board shall,
1323within 5 full business days after the meeting, file with the
1324division a petition for arbitration pursuant to the procedures
1325in s. 718.1255. For the purposes of this section, the unit
1326owners who voted at the meeting or who executed the agreement in
1327writing shall constitute one party under the petition for
1328arbitration. If the arbitrator certifies the recall as to any
1329member or members of the board, the recall will be effective
1330upon mailing of the final order of arbitration to the
1331association. If the association fails to comply with the order
1332of the arbitrator, the division may take action pursuant to s.
1333718.501. Any member or members so recalled shall deliver to the
1334board any and all records of the association in their possession
1335within 5 full business days of the effective date of the recall.
1336     4.  If the board fails to duly notice and hold a board
1337meeting within 5 full business days of service of an agreement
1338in writing or within 5 full business days of the adjournment of
1339the unit owner recall meeting, the recall shall be deemed
1340effective and the board members so recalled shall immediately
1341turn over to the board any and all records and property of the
1343     5.  If a vacancy occurs on the board as a result of a
1344recall or removal and less than a majority of the board members
1345are removed, the vacancy may be filled by the affirmative vote
1346of a majority of the remaining directors, notwithstanding any
1347provision to the contrary contained in this subsection. If
1348vacancies occur on the board as a result of a recall and a
1349majority or more of the board members are removed, the vacancies
1350shall be filled in accordance with procedural rules to be
1351adopted by the division, which rules need not be consistent with
1352this subsection. The rules must provide procedures governing the
1353conduct of the recall election as well as the operation of the
1354association during the period after a recall but prior to the
1355recall election.
1356     (k)  Arbitration.--There shall be a provision for mandatory
1357nonbinding arbitration as provided for in s. 718.1255.
1358     (l)  Certificate of compliance.--There shall be a provision
1359that a certificate of compliance from a licensed electrical
1360contractor or electrician may be accepted by the association's
1361board as evidence of compliance of the condominium units with
1362the applicable fire and life safety code. Notwithstanding the
1363provisions of chapter 633 or of any other code, statute,
1364ordinance, administrative rule, or regulation, or any
1365interpretation of the foregoing, an association, condominium, or
1366unit owner is not obligated to retrofit the common elements or
1367units of a residential condominium with a fire sprinkler system
1368or other engineered lifesafety system in a building that has
1369been certified for occupancy by the applicable governmental
1370entity, if the unit owners have voted to forego such
1371retrofitting and engineered lifesafety system by the affirmative
1372vote of two-thirds of all voting interests in the affected
1373condominium. However, a condominium association may not vote to
1374forego the retrofitting with a fire sprinkler system of common
1375areas in a high-rise building. For purposes of this subsection,
1376the term "high-rise building" means a building that is greater
1377than 75 feet in height where the building height is measured
1378from the lowest level of fire department access to the floor of
1379the highest occupiable story. For purposes of this subsection,
1380the term "common areas" means any enclosed hallway, corridor,
1381lobby, stairwell, or entryway. In no event shall the local
1382authority having jurisdiction require completion of retrofitting
1383of common areas with a sprinkler system before the end of 2014.
1384     1.  A vote to forego retrofitting may be obtained by
1385limited proxy or by a ballot personally cast at a duly called
1386membership meeting, or by execution of a written consent by the
1387member, and shall be effective upon the recording of a
1388certificate attesting to such vote in the public records of the
1389county where the condominium is located. The association shall
1390mail, hand deliver, or electronically transmit to each unit
1391owner written notice at least 14 days prior to such membership
1392meeting in which the vote to forego retrofitting of the required
1393fire sprinkler system is to take place. Within 30 days after the
1394association's opt-out vote, notice of the results of the opt-out
1395vote shall be mailed, hand delivered, or electronically
1396transmitted to all unit owners. Evidence of compliance with this
139730-day notice shall be made by an affidavit executed by the
1398person providing the notice and filed among the official records
1399of the association. After such notice is provided to each owner,
1400a copy of such notice shall be provided by the current owner to
1401a new owner prior to closing and shall be provided by a unit
1402owner to a renter prior to signing a lease.
1403     2.  As part of the information collected annually from
1404condominiums, the division shall require condominium
1405associations to report the membership vote and recording of a
1406certificate under this subsection and, if retrofitting has been
1407undertaken, the per-unit cost of such work. The division shall
1408annually report to the Division of State Fire Marshal of the
1409Department of Financial Services the number of condominiums that
1410have elected to forego retrofitting.
1411     (m)  Common elements; limited power to convey.--
1412     1.  With respect to condominiums created on or after
1413October 1, 1994, the bylaws shall include a provision granting
1414the association a limited power to convey a portion of the
1415common elements to a condemning authority for the purpose of
1416providing utility easements, right-of-way expansion, or other
1417public purposes, whether negotiated or as a result of eminent
1418domain proceedings.
1419     2.  In any case where the bylaws are silent as to the
1420association's power to convey common elements as described in
1421subparagraph 1., the bylaws shall be deemed to include the
1422provision described in subparagraph 1.
1423     (n)  Director or officer delinquencies.--A director or
1424officer more than 90 days delinquent in the payment of regular
1425assessments shall be deemed to have abandoned the office,
1426creating a vacancy in the office to be filled according to law.
1427     (o)  Director and officer offenses.--A director or officer
1428charged with a felony theft or embezzlement offense involving
1429the association's funds or property shall be removed from
1430office, creating a vacancy in the office to be filled according
1431to law. While such director or officer has such criminal charge
1432pending, he or she may not be appointed or elected to a position
1433as a director or officer. However, should the charges be
1434resolved without a finding of guilt, the director of officer
1435shall be reinstated for the remainder of his or her term of
1436office, if any.
1437     Section 8.  Section 718.1124, Florida Statutes, is amended
1438to read:
1439     718.1124  Failure to fill vacancies on board of
1440administration sufficient to constitute a quorum; appointment of
1441receiver upon petition of unit owner.--
1442     (1)  If an association fails to fill vacancies on the board
1443of administration sufficient to constitute a quorum in
1444accordance with the bylaws, any unit owner may give notice of
1445his or her intent to apply to the circuit court within whose
1446jurisdiction the condominium lies for the appointment of a
1447receiver to manage the affairs of the association. The form of
1448the notice shall be as follows:
1452YOU ARE HEREBY NOTIFIED that the undersigned owner of
1453a condominium unit in (name of condominium) intends to
1454file a petition in the circuit court for appointment
1455of a receiver to manage the affairs of the association
1456on the grounds that the association has failed to fill
1457vacancies on the board of administration sufficient to
1458constitute a quorum. This petition will not be filed
1459if the vacancies are filled within 30 days after the
1460date on which this notice was sent or posted,
1461whichever is later. If a receiver is appointed, the
1462receiver shall have all of the powers of the board and
1463shall be entitled to receive a salary and
1464reimbursement of all costs and attorney's fees payable
1465from association funds.
1467(name and address of petitioning unit owner)
1469     (2)  The notice required by subsection (1) must be provided
1470by At least 30 days prior to applying to the circuit court, the
1471unit owner shall mail to the association by certified mail or
1472personal delivery, must be posted and post in a conspicuous
1473place on the condominium property, and must be provided by the
1474unit owner to every other unit owner of the association by
1475certified mail or personal delivery. The a notice must be posted
1476and mailed or delivered at least 30 days prior to the filing of
1477a petition seeking receivership. Notice by mail to a unit owner
1478shall be sent to the address used by the county property
1479appraiser for notice to the unit owner, except that where a unit
1480owner's address is not publicly available the notice shall be
1481mailed to the unit describing the intended action, giving the
1482association the opportunity to fill the vacancies.
1483     (3)  If during such time the association fails to fill the
1484vacancies within 30 days after the notice required by subsection
1485(1) is posted and mailed or delivered, the unit owner may
1486proceed with the petition.
1487     (4)  If a receiver is appointed, all unit owners shall be
1488given written notice of such appointment as provided in s.
1490     (5)  The association shall be responsible for the salary of
1491the receiver, court costs, and attorney's fees. The receiver
1492shall have all powers and duties of a duly constituted board of
1493administration and shall serve until the association fills
1494vacancies on the board sufficient to constitute a quorum and the
1495court relieves the receiver of the appointment.
1496     Section 9.  Paragraph (a) of subsection (2) and subsection
1497(5) of section 718.113, Florida Statutes, are amended, and
1498subsections (6) and (7) are added to that section, to read:
1499     718.113  Maintenance; limitation upon improvement; display
1500of flag; hurricane shutters; display of religious decorations.--
1501     (2)(a)  Except as otherwise provided in this section, there
1502shall be no material alteration or substantial additions to the
1503common elements or to real property which is association
1504property, except in a manner provided in the declaration as
1505originally recorded or as amended under the procedures provided
1506therein. If the declaration as originally recorded or as amended
1507under the procedures provided therein does not specify the
1508procedure for approval of material alterations or substantial
1509additions, 75 percent of the total voting interests of the
1510association must approve the alterations or additions. This
1511paragraph is intended to clarify existing law and applies to
1512associations existing on October 1, 2008.
1513     (5)  Each board of administration shall adopt hurricane
1514shutter specifications for each building within each condominium
1515operated by the association which shall include color, style,
1516and other factors deemed relevant by the board. All
1517specifications adopted by the board shall comply with the
1518applicable building code. Notwithstanding any provision to the
1519contrary in the condominium documents, if approval is required
1520by the documents, a board shall not refuse to approve the
1521installation or replacement of hurricane shutters conforming to
1522the specifications adopted by the board.
1523     (a)  The board may, subject to the provisions of s.
1524718.3026, and the approval of a majority of voting interests of
1525the condominium, install hurricane shutters or hurricane
1526protection that complies with or exceeds the applicable building
1527code, or both, except that a vote of the owners is not required
1528if the maintenance, repair, and replacement of hurricane
1529shutters or other forms of hurricane protection are the
1530responsibility of the association pursuant to the declaration of
1531condominium and may maintain, repair, or replace such approved
1532hurricane shutters, whether on or within common elements,
1533limited common elements, units, or association property.
1534However, where hurricane protection or laminated glass or window
1535film architecturally designed to function as hurricane
1536protection which complies with or exceeds the current applicable
1537building code has been previously installed, the board may not
1538install hurricane shutters or other hurricane protection.
1539     (b)  The association shall be responsible for the
1540maintenance, repair, and replacement of the hurricane shutters
1541or other hurricane protection authorized by this subsection if
1542such hurricane shutters or other hurricane protection are the
1543responsibility of the association pursuant to the declaration of
1544condominium. If the hurricane shutters or other hurricane
1545protection authorized by this subsection are the responsibility
1546of the unit owners pursuant to the declaration of condominium,
1547the responsibility for the maintenance, repair, and replacement
1548of such items shall be the responsibility of the unit owner.
1549     (c)  The board may operate shutters installed pursuant to
1550this subsection without permission of the unit owners only where
1551such operation is necessary to preserve and protect the
1552condominium property and association property. The installation,
1553replacement, operation, repair, and maintenance of such shutters
1554in accordance with the procedures set forth herein shall not be
1555deemed a material alteration to the common elements or
1556association property within the meaning of this section.
1557     (d)  Notwithstanding any provision to the contrary in the
1558condominium documents, if approval is required by the documents,
1559a board shall not refuse to approve the installation or
1560replacement of hurricane shutters by a unit owner conforming to
1561the specifications adopted by the board.
1562     (6)  As to any condominium building greater than three
1563stories in height, at least every 5 years, and within 5 years if
1564not available for inspection on October 1, 2008, the board shall
1565have the condominium building inspected to provide a report
1566under seal of an architect or engineer authorized to practice in
1567this state attesting to required maintenance, useful life, and
1568replacement costs of the common elements. However, if approved
1569by a majority of the voting interests present at a properly
1570called meeting of the association, an association may waive this
1571requirement. Such meeting and approval must occur prior to the
1572end of the 5-year period and is effective only for that 5-year
1574     (7)  An association may not refuse the request of a unit
1575owner for a reasonable accommodation for the attachment on the
1576mantle or frame of the door of the unit owner a religious object
1577not to exceed 3 inches wide, 6 inches high, and 1.5 inches deep.
1578     Section 10.  Paragraph (e) of subsection (1) of section
1579718.115, Florida Statutes, is amended to read:
1580     718.115  Common expenses and common surplus.--
1581     (1)
1582     (e)  The expense of installation, replacement, operation,
1583repair, and maintenance of hurricane shutters or other hurricane
1584protection by the board pursuant to s. 718.113(5) shall
1585constitute a common expense as defined herein and shall be
1586collected as provided in this section if the association is
1587responsible for the maintenance, repair, and replacement of the
1588hurricane shutters or other hurricane protection pursuant to the
1589declaration of condominium. However, if the maintenance, repair,
1590and replacement of the hurricane shutters or other hurricane
1591protection is the responsibility of the unit owners pursuant to
1592the declaration of condominium, the cost of the installation of
1593the hurricane shutters or other hurricane protection shall not
1594be a common expense, but shall be charged individually to the
1595unit owners based on the cost of installation of the hurricane
1596shutters or other hurricane protection appurtenant to the unit.
1597Notwithstanding the provisions of s. 718.116(9), and regardless
1598of whether or not the declaration requires the association or
1599unit owners maintain, repair, or replace hurricane shutters or
1600other hurricane protection a unit owner who has previously
1601installed hurricane shutters in accordance with s. 718.113(5)
1602other hurricane protection or laminated glass architecturally
1603designed to function as hurricane protection, which hurricane
1604shutters or other hurricane protection or laminated glass comply
1605complies with the current applicable building code shall receive
1606a credit equal to the pro rata portion of the assessed
1607installation cost assigned to each unit. However, such unit
1608owner shall remain responsible for the pro rata share of
1609expenses for hurricane shutters or other hurricane protection
1610installed on common elements and association property by the
1611board pursuant to s. 718.113(5), and shall remain responsible
1612for a pro rata share of the expense of the replacement,
1613operation, repair, and maintenance of such shutters or other
1614hurricane protection.
1615     Section 11.  Paragraph (a) of subsection (7) of section
1616718.117, Florida Statutes, is amended to read:
1617     718.117  Termination of condominium.--
1618     (7)  NATURAL DISASTERS.--
1619     (a)  If, after a natural disaster, the identity of the
1620directors or their right to hold office is in doubt, if they are
1621deceased or unable to act, if they fail or refuse to act, or if
1622they cannot be located, any interested person may petition the
1623circuit court to determine the identity of the directors or, if
1624found to be in the best interests of the unit owners, to appoint
1625a receiver to conclude the affairs of the association after a
1626hearing following notice to such persons as the court directs.
1627Lienholders shall be given notice of the petition and have the
1628right to propose persons for the consideration by the court as
1629receiver. If a receiver is appointed, the court shall direct the
1630receiver to provide to all unit owners written notice of his or
1631her appointment as receiver. Such notice shall be mailed or
1632delivered within 10 days after the appointment. Notice by mail
1633to a unit owner shall be sent to the address used by the county
1634property appraiser for notice to the unit owner.
1635     Section 12.  Subsection (4) is added to section 718.121,
1636Florida Statutes, to read:
1637     718.121  Liens.--
1638     (4)  Except as otherwise provided in this chapter, no lien
1639may be filed by the association against a condominium unit until
164030 days after the date on which a notice of intent to file a
1641lien has been delivered to the owner by certified mail, return
1642receipt requested, and by first-class United States mail to the
1643owner at his or her last known address as reflected in the
1644records of the association. However, if the address reflected in
1645the records is outside the United States, then the notice must
1646be sent by first-class United States mail to the unit and to the
1647last known address by regular mail with international postage,
1648which shall be deemed sufficient. Delivery of the notice shall
1649be deemed given upon mailing as required by this subsection.
1650Alternatively, notice shall be complete if served on the unit
1651owner in the manner authorized by chapter 48 and the Florida
1652Rules of Civil Procedure.
1653     Section 13.  Section 718.1224, Florida Statutes, is created
1654to read:
1655     718.1224  Prohibition against SLAPP suits.--
1656     (1)  It is the intent of the Legislature to protect the
1657right of condominium unit owners to exercise their rights to
1658instruct their representatives and petition for redress of
1659grievances before the various governmental entities of this
1660state as protected by the First Amendment to the United States
1661Constitution and s. 5, Art. I of the State Constitution. The
1662Legislature recognizes that strategic lawsuits against public
1663participation, or "SLAPP suits," as they are typically referred
1664to, have occurred when association members are sued by
1665individuals, business entities, or governmental entities arising
1666out of a condominium unit owner's appearance and presentation
1667before a governmental entity on matters related to the
1668condominium association. However, it is the public policy of
1669this state that governmental entities, business organizations,
1670and individuals not engage in SLAPP suits, because such actions
1671are inconsistent with the right of condominium unit owners to
1672participate in the state's institutions of government.
1673Therefore, the Legislature finds and declares that prohibiting
1674such lawsuits by governmental entities, business entities, and
1675individuals against condominium unit owners who address matters
1676concerning their condominium association will preserve this
1677fundamental state policy, preserve the constitutional rights of
1678condominium unit owners, and ensure the continuation of
1679representative government in this state. It is the intent of the
1680Legislature that such lawsuits be expeditiously disposed of by
1681the courts. As used in this subsection, the term "governmental
1682entity" means the state, including the executive, legislative,
1683and judicial branches of government; the independent
1684establishments of the state, counties, municipalities,
1685districts, authorities, boards, or commissions; or any agencies
1686of these branches that are subject to chapter 286.
1687     (2)  A governmental entity, business organization, or
1688individual in this state may not file or cause to be filed
1689through its employees or agents any lawsuit, cause of action,
1690claim, cross-claim, or counterclaim against a condominium unit
1691owner without merit and solely because such condominium unit
1692owner has exercised the right to instruct his or her
1693representatives or the right to petition for redress of
1694grievances before the various governmental entities of this
1695state, as protected by the First Amendment to the United States
1696Constitution and s. 5, Art. I of the State Constitution.
1697     (3)  A condominium unit owner sued by a governmental
1698entity, business organization, or individual in violation of
1699this section has a right to an expeditious resolution of a claim
1700that the suit is in violation of this section. A condominium
1701unit owner may petition the court for an order dismissing the
1702action or granting final judgment in favor of that condominium
1703unit owner. The petitioner may file a motion for summary
1704judgment, together with supplemental affidavits, seeking a
1705determination that the governmental entity's, business
1706organization's, or individual's lawsuit has been brought in
1707violation of this section. The governmental entity, business
1708organization, or individual shall thereafter file its response
1709and any supplemental affidavits. As soon as practicable, the
1710court shall set a hearing on the petitioner's motion, which
1711shall be held at the earliest possible time after the filing of
1712the governmental entity's, business organization's, or
1713individual's response. The court may award the condominium unit
1714owner sued by the governmental entity, business organization, or
1715individual actual damages arising from the governmental
1716entity's, individual's, or business organization's violation of
1717this section. A court may treble the damages awarded to a
1718prevailing condominium unit owner and shall state the basis for
1719the treble damages award in its judgment. The court shall award
1720the prevailing party reasonable attorney's fees and costs
1721incurred in connection with a claim that an action was filed in
1722violation of this section.
1723     (4)  Condominium associations may not expend association
1724funds in prosecuting a SLAPP suit against a condominium unit
1726     Section 14.  Paragraph (b) of subsection (3) of section
1727718.1255, Florida Statutes, is amended to read:
1728     718.1255  Alternative dispute resolution; voluntary
1729mediation; mandatory nonbinding arbitration; legislative
1732     (b)  The Legislature finds that the courts are becoming
1733overcrowded with condominium and other disputes, and further
1734finds that alternative dispute resolution has been making
1735progress in reducing court dockets and trials and in offering a
1736more efficient, cost-effective option to court litigation.
1737However, the Legislature also finds that alternative dispute
1738resolution should not be used as a mechanism to encourage the
1739filing of frivolous or nuisance suits.
1740     Section 15.  Section 718.1265, Florida Statutes, is created
1741to read:
1742     718.1265  Association emergency powers.--
1743     (1)  To the extent allowed by law and unless specifically
1744prohibited by the declaration of condominium, the articles, or
1745the bylaws of an association, and consistent with the provisions
1746of s. 617.0830, the board of administration, in response to
1747damage caused by an event for which a state of emergency is
1748declared pursuant to s. 252.36 in the locale in which the
1749condominium is located, may, but is not required to, exercise
1750the following powers:
1751     (a)  Conduct board meetings and membership meetings with
1752notice given as is practicable. Such notice may be given in any
1753practicable manner, including publication, radio, United States
1754mail, the Internet, public service announcements, and
1755conspicuous posting on the condominium property or any other
1756means the board deems reasonable under the circumstances. Notice
1757of board decisions may be communicated as provided in this
1759     (b)  Cancel and reschedule any association meeting.
1760     (c)  Name as assistant officers persons who are not
1761directors, which assistant officers shall have the same
1762authority as the executive officers to whom they are assistants
1763during the state of emergency to accommodate the incapacity or
1764unavailability of any officer of the association.
1765     (d)  Relocate the association's principal office or
1766designate alternative principal offices.
1767     (e)  Enter into agreements with local counties and
1768municipalities to assist counties and municipalities with debris
1770     (f)  Implement a disaster plan before or immediately
1771following the event for which a state of emergency is declared
1772which may include, but is not limited to, shutting down or off
1773elevators; electricity; water, sewer, or security systems; or
1774air conditioners.
1775     (g)  Based upon advice of emergency management officials or
1776upon the advice of licensed professionals retained by the board,
1777determine any portion of the condominium property unavailable
1778for entry or occupancy by unit owners, family members, tenants,
1779guests, agents, or invitees to protect the health, safety, or
1780welfare of such persons.
1781     (h)  Require the evacuation of the condominium property in
1782the event of a mandatory evacuation order in the locale in which
1783the condominium is located. Should any unit owner or other
1784occupant of a condominium fail or refuse to evacuate the
1785condominium property where the board has required evacuation,
1786the association shall be immune from liability or injury to
1787persons or property arising from such failure or refusal.
1788     (i)  Based upon advice of emergency management officials or
1789upon the advice of licensed professionals retained by the board,
1790determine whether the condominium property can be safely
1791inhabited or occupied. However, such determination is not
1792conclusive as to any determination of habitability pursuant to
1793the declaration.
1794     (j)  Mitigate further damage, including taking action to
1795contract for the removal of debris and to prevent or mitigate
1796the spread of fungus, including, but not limited to, mold or
1797mildew, by removing and disposing of wet drywall, insulation,
1798carpet, cabinetry, or other fixtures on or within the
1799condominium property, even if the unit owner is obligated by the
1800declaration or law to insure or replace those fixtures and to
1801remove personal property from a unit.
1802     (k)  Contract, on behalf of any unit owner or owners, for
1803items or services for which the owners are otherwise
1804individually responsible for, but which are necessary to prevent
1805further damage to the condominium property. In such event, the
1806unit owner or owners on whose behalf the board has contracted
1807are responsible for reimbursing the association for the actual
1808costs of the items or services, and the association may use its
1809lien authority provided by s. 718.116 to enforce collection of
1810the charges. Without limitation, such items or services may
1811include the drying of units, the boarding of broken windows or
1812doors, and the replacement of damaged air conditioners or air
1813handlers to provide climate control in the units or other
1814portions of the property.
1815     (l)  Regardless of any provision to the contrary and even
1816if such authority does not specifically appear in the
1817declaration of condominium, articles, or bylaws of the
1818association, levy special assessments without a vote of the
1820     (m)  Without unit owners' approval, borrow money and pledge
1821association assets as collateral to fund emergency repairs and
1822carry out the duties of the association when operating funds are
1823insufficient. This paragraph does not limit the general
1824authority of the association to borrow money, subject to such
1825restrictions as are contained in the declaration of condominium,
1826articles, or bylaws of the association.
1827     (2)  The special powers authorized under subsection (1)
1828shall be limited to that time reasonably necessary to protect
1829the health, safety, and welfare of the association and the unit
1830owners and the unit owners' family members, tenants, guests,
1831agents, or invitees and shall be reasonably necessary to
1832mitigate further damage and make emergency repairs.
1833     Section 16.  Section 718.127, Florida Statutes, is created
1834to read:
1835     718.127  Receivership notification.--Upon the appointment
1836of a receiver by a court for any reason relating to a
1837condominium association, the court shall direct the receiver to
1838provide to all unit owners written notice of his or her
1839appointment as receiver. Such notice shall be mailed or
1840delivered within 10 days after the appointment. Notice by mail
1841to a unit owner shall be sent to the address used by the county
1842property appraiser for notice to the unit owner.
1843     Section 17.  Subsection (1) of section 718.301, Florida
1844Statutes, is amended, and paragraph (p) is added to subsection
1845(4) of that section, to read:
1846     718.301  Transfer of association control; claims of defect
1847by association.--
1848     (1)  When unit owners other than the developer own 15
1849percent or more of the units in a condominium that will be
1850operated ultimately by an association, the unit owners other
1851than the developer shall be entitled to elect no less than one-
1852third of the members of the board of administration of the
1853association. Unit owners other than the developer are entitled
1854to elect not less than a majority of the members of the board of
1855administration of an association:
1856     (a)  Three years after 50 percent of the units that will be
1857operated ultimately by the association have been conveyed to
1859     (b)  Three months after 90 percent of the units that will
1860be operated ultimately by the association have been conveyed to
1862     (c)  When all the units that will be operated ultimately by
1863the association have been completed, some of them have been
1864conveyed to purchasers, and none of the others are being offered
1865for sale by the developer in the ordinary course of business;
1866     (d)  When some of the units have been conveyed to
1867purchasers and none of the others are being constructed or
1868offered for sale by the developer in the ordinary course of
1869business; or
1870     (e)  When the developer files a petition seeking protection
1871in bankruptcy;
1872     (f)  When a receiver for the developer is appointed by a
1873circuit court and is not discharged within 30 days after such
1874appointment; or
1875     (g)(e)  Seven years after recordation of the declaration of
1876condominium; or, in the case of an association which may
1877ultimately operate more than one condominium, 7 years after
1878recordation of the declaration for the first condominium it
1879operates; or, in the case of an association operating a phase
1880condominium created pursuant to s. 718.403, 7 years after
1881recordation of the declaration creating the initial phase,
1883whichever occurs first. The developer is entitled to elect at
1884least one member of the board of administration of an
1885association as long as the developer holds for sale in the
1886ordinary course of business at least 5 percent, in condominiums
1887with fewer than 500 units, and 2 percent, in condominiums with
1888more than 500 units, of the units in a condominium operated by
1889the association. Following the time the developer relinquishes
1890control of the association, the developer may exercise the right
1891to vote any developer-owned units in the same manner as any
1892other unit owner except for purposes of reacquiring control of
1893the association or selecting the majority members of the board
1894of administration.
1895     (4)  At the time that unit owners other than the developer
1896elect a majority of the members of the board of administration
1897of an association, the developer shall relinquish control of the
1898association, and the unit owners shall accept control.
1899Simultaneously, or for the purposes of paragraph (c) not more
1900than 90 days thereafter, the developer shall deliver to the
1901association, at the developer's expense, all property of the
1902unit owners and of the association which is held or controlled
1903by the developer, including, but not limited to, the following
1904items, if applicable, as to each condominium operated by the
1906     (p)  A report included in the official records, under seal
1907of an architect or engineer authorized to practice in this
1908state, attesting to required maintenance, useful life, and
1909replacement costs of the following applicable common elements
1910comprising a turnover inspection report:
1911     1.  Roof.
1912     2.  Structure.
1913     3.  Fireproofing and fire protection systems.
1914     4.  Elevators.
1915     5.  Heating and cooling systems.
1916     6.  Plumbing.
1917     7.  Electrical systems.
1918     8.  Swimming pool or spa and equipment.
1919     9.  Seawalls.
1920     10.  Pavement and parking areas.
1921     11.  Drainage systems.
1922     12.  Painting.
1923     13.  Irrigation systems.
1924     Section 18.  Paragraph (f) is added to subsection (1) of
1925section 718.3025, Florida Statutes, to read:
1926     718.3025  Agreements for operation, maintenance, or
1927management of condominiums; specific requirements.--
1928     (1)  No written contract between a party contracting to
1929provide maintenance or management services and an association
1930which contract provides for operation, maintenance, or
1931management of a condominium association or property serving the
1932unit owners of a condominium shall be valid or enforceable
1933unless the contract:
1934     (f)  Discloses any financial or ownership interest a board
1935member or any party providing maintenance or management services
1936to the association holds with the contracting party.
1937     Section 19.  Section 718.3026, Florida Statutes, is amended
1938to read:
1939     718.3026  Contracts for products and services; in writing;
1940bids; exceptions.--Associations with 10 or fewer with less than
1941100 units may opt out of the provisions of this section if two-
1942thirds of the unit owners vote to do so, which opt-out may be
1943accomplished by a proxy specifically setting forth the exception
1944from this section.
1945     (1)  All contracts as further described herein or any
1946contract that is not to be fully performed within 1 year after
1947the making thereof, for the purchase, lease, or renting of
1948materials or equipment to be used by the association in
1949accomplishing its purposes under this chapter, and all contracts
1950for the provision of services, shall be in writing. If a
1951contract for the purchase, lease, or renting of materials or
1952equipment, or for the provision of services, requires payment by
1953the association on behalf of any condominium operated by the
1954association in the aggregate that exceeds 5 percent of the total
1955annual budget of the association, including reserves, the
1956association shall obtain competitive bids for the materials,
1957equipment, or services. Nothing contained herein shall be
1958construed to require the association to accept the lowest bid.
1959     (2)(a)1.  Notwithstanding the foregoing, contracts with
1960employees of the association, and contracts for attorney,
1961accountant, architect, community association manager, timeshare
1962management firm, engineering, and landscape architect services
1963are not subject to the provisions of this section.
1964     2.  A contract executed before January 1, 1992, and any
1965renewal thereof, is not subject to the competitive bid
1966requirements of this section. If a contract was awarded under
1967the competitive bid procedures of this section, any renewal of
1968that contract is not subject to such competitive bid
1969requirements if the contract contains a provision that allows
1970the board to cancel the contract on 30 days' notice. Materials,
1971equipment, or services provided to a condominium under a local
1972government franchise agreement by a franchise holder are not
1973subject to the competitive bid requirements of this section. A
1974contract with a manager, if made by a competitive bid, may be
1975made for up to 3 years. A condominium whose declaration or
1976bylaws provides for competitive bidding for services may operate
1977under the provisions of that declaration or bylaws in lieu of
1978this section if those provisions are not less stringent than the
1979requirements of this section.
1980     (b)  Nothing contained herein is intended to limit the
1981ability of an association to obtain needed products and services
1982in an emergency.
1983     (c)  This section shall not apply if the business entity
1984with which the association desires to enter into a contract is
1985the only source of supply within the county serving the
1987     (d)  Nothing contained herein shall excuse a party
1988contracting to provide maintenance or management services from
1989compliance with s. 718.3025.
1990     (3)  As to any contract or other transaction between an
1991association and one or more of its directors or any other
1992corporation, firm, association, or entity in which one or more
1993of its directors are directors or officers or are financially
1995     (a)  The association shall comply with the requirements of
1996s. 617.0832.
1997     (b)  The disclosures required by s. 617.0832 shall be
1998entered into the written minutes of the meeting.
1999     (c)  Approval of the contract or other transaction shall
2000require an affirmative vote of two-thirds of the directors
2002     (d)  At the next regular or special meeting of the members,
2003the existence of the contract or other transaction shall be
2004disclosed to the members. Upon motion of any member, the
2005contract or transaction shall be brought up for a vote and may
2006be canceled by a majority vote of the members present. Should
2007the members cancel the contract, the association shall only be
2008liable for the reasonable value of goods and services provided
2009up to the time of cancellation and shall not be liable for any
2010termination fee, liquidated damages, or other form of penalty
2011for such cancellation.
2012     Section 20.  Subsection (3) of section 718.303, Florida
2013Statutes, is amended to read:
2014     718.303  Obligations of owners; waiver; levy of fine
2015against unit by association.--
2016     (3)  If the declaration or bylaws so provide, the
2017association may levy reasonable fines against a unit for the
2018failure of the owner of the unit, or its occupant, licensee, or
2019invitee, to comply with any provision of the declaration, the
2020association bylaws, or reasonable rules of the association. No
2021fine will become a lien against a unit. No fine may exceed $100
2022per violation. However, a fine may be levied on the basis of
2023each day of a continuing violation, with a single notice and
2024opportunity for hearing, provided that no such fine shall in the
2025aggregate exceed $1,000. No fine may be levied except after
2026giving reasonable notice and opportunity for a hearing to the
2027unit owner and, if applicable, its licensee or invitee. The
2028hearing must be held before a committee of other unit owners who
2029are neither board members nor persons residing in a board
2030member's household. If the committee does not agree with the
2031fine, the fine may not be levied. The provisions of this
2032subsection do not apply to unoccupied units.
2033     Section 21.  Section 718.501, Florida Statutes, is amended
2034to read:
2035     718.501  Authority, responsibility, Powers and duties of
2036Division of Florida Land Sales, Condominiums, and Mobile
2038     (1)  The Division of Florida Land Sales, Condominiums, and
2039Mobile Homes of the Department of Business and Professional
2040Regulation, referred to as the "division" in this part, in
2041addition to other powers and duties prescribed by chapter 498,
2042has the power to enforce and ensure compliance with the
2043provisions of this chapter and rules promulgated pursuant hereto
2044relating to the development, construction, sale, lease,
2045ownership, operation, and management of residential condominium
2046units. In performing its duties, the division has complete
2047jurisdiction to investigate complaints and enforce compliance
2048with the provisions of this chapter with respect to associations
2049that are still under developer control and complaints against
2050developers involving improper turnover or failure to turnover,
2051pursuant to s. 718.301. However, after turnover has occurred,
2052the division shall only have jurisdiction to investigate
2053complaints related to financial issues, elections, and unit
2054owner access to association records pursuant to s. 718.111(12).
2055the following powers and duties:
2056     (a)  The division may make necessary public or private
2057investigations within or outside this state to determine whether
2058any person has violated this chapter or any rule or order
2059hereunder, to aid in the enforcement of this chapter, or to aid
2060in the adoption of rules or forms hereunder.
2061     (b)  The division may require or permit any person to file
2062a statement in writing, under oath or otherwise, as the division
2063determines, as to the facts and circumstances concerning a
2064matter to be investigated.
2065     (c)  For the purpose of any investigation under this
2066chapter, the division director or any officer or employee
2067designated by the division director may administer oaths or
2068affirmations, subpoena witnesses and compel their attendance,
2069take evidence, and require the production of any matter which is
2070relevant to the investigation, including the existence,
2071description, nature, custody, condition, and location of any
2072books, documents, or other tangible things and the identity and
2073location of persons having knowledge of relevant facts or any
2074other matter reasonably calculated to lead to the discovery of
2075material evidence. Upon the failure by a person to obey a
2076subpoena or to answer questions propounded by the investigating
2077officer and upon reasonable notice to all persons affected
2078thereby, the division may apply to the circuit court for an
2079order compelling compliance.
2080     (d)  Notwithstanding any remedies available to unit owners
2081and associations, if the division has reasonable cause to
2082believe that a violation of any provision of this chapter or
2083rule promulgated pursuant hereto has occurred, the division may
2084institute enforcement proceedings in its own name against any
2085developer, association, officer, or member of the board of
2086administration, or its assignees or agents, as follows:
2087     1.  The division may permit a person whose conduct or
2088actions may be under investigation to waive formal proceedings
2089and enter into a consent proceeding whereby orders, rules, or
2090letters of censure or warning, whether formal or informal, may
2091be entered against the person.
2092     2.  The division may issue an order requiring the
2093developer, association, developer-designated officer, or
2094developer-designated member of the board of administration, or
2095developer-designated its assignees or agents, community
2096association manager, or community association management firm to
2097cease and desist from the unlawful practice and take such
2098affirmative action as in the judgment of the division will carry
2099out the purposes of this chapter. Such affirmative action may
2100include, but is not limited to, an order requiring a developer
2101to pay moneys determined to be owed to a condominium
2103     3.  If a developer fails to pay any restitution determined
2104by the division to be owed, plus any accrued interest at the
2105highest rate permitted by law, within 30 days after expiration
2106of any appellate time period of a final order requiring payment
2107of restitution or the conclusion of any appeal thereof,
2108whichever is later, the division shall bring an action in
2109circuit or county court on behalf of any association, class of
2110unit owners, lessees, or purchasers for restitution, declaratory
2111relief, injunctive relief, or any other available remedy. The
2112division may also temporarily revoke its acceptance of the
2113filing for the developer to which the restitution relates until
2114payment of restitution is made. The division may bring an action
2115in circuit court on behalf of a class of unit owners, lessees,
2116or purchasers for declaratory relief, injunctive relief, or
2118     4.  The division may impose a civil penalty against a
2119developer or association, or its assignee or agent, for any
2120violation of this chapter or a rule promulgated pursuant hereto.
2121The division may impose a civil penalty individually against any
2122officer or board member who willfully and knowingly violates a
2123provision of this chapter, a rule adopted pursuant hereto, or a
2124final order of the division; may order the removal of such
2125individual as an officer or from the board of administration or
2126as an officer of the association; and may prohibit such
2127individual from serving as an officer or on the board of a
2128community association for a period of time. The term "willfully
2129and knowingly" means that the division informed the officer or
2130board member that his or her action or intended action violates
2131this chapter, a rule adopted under this chapter, or a final
2132order of the division and that the officer or board member
2133refused to comply with the requirements of this chapter, a rule
2134adopted under this chapter, or a final order of the division.
2135The division, prior to initiating formal agency action under
2136chapter 120, shall afford the officer or board member an
2137opportunity to voluntarily comply with this chapter, a rule
2138adopted under this chapter, or a final order of the division. An
2139officer or board member who complies within 10 days is not
2140subject to a civil penalty. A penalty may be imposed on the
2141basis of each day of continuing violation, but in no event shall
2142the penalty for any offense exceed $5,000. By January 1, 1998,
2143the division shall adopt, by rule, penalty guidelines applicable
2144to possible violations or to categories of violations of this
2145chapter or rules adopted by the division. The guidelines must
2146specify a meaningful range of civil penalties for each such
2147violation of the statute and rules and must be based upon the
2148harm caused by the violation, the repetition of the violation,
2149and upon such other factors deemed relevant by the division. For
2150example, the division may consider whether the violations were
2151committed by a developer or owner-controlled association, the
2152size of the association, and other factors. The guidelines must
2153designate the possible mitigating or aggravating circumstances
2154that justify a departure from the range of penalties provided by
2155the rules. It is the legislative intent that minor violations be
2156distinguished from those which endanger the health, safety, or
2157welfare of the condominium residents or other persons and that
2158such guidelines provide reasonable and meaningful notice to the
2159public of likely penalties that may be imposed for proscribed
2160conduct. This subsection does not limit the ability of the
2161division to informally dispose of administrative actions or
2162complaints by stipulation, agreed settlement, or consent order.
2163All amounts collected shall be deposited with the Chief
2164Financial Officer to the credit of the Division of Florida Land
2165Sales, Condominiums, and Mobile Homes Trust Fund. If a developer
2166fails to pay the civil penalty and the amount deemed to be owed
2167to the association, the division shall thereupon issue an order
2168directing that such developer cease and desist from further
2169operation until such time as the civil penalty is paid or may
2170pursue enforcement of the penalty in a court of competent
2171jurisdiction. If an association fails to pay the civil penalty,
2172the division shall thereupon pursue enforcement in a court of
2173competent jurisdiction, and the order imposing the civil penalty
2174or the cease and desist order will not become effective until 20
2175days after the date of such order. Any action commenced by the
2176division shall be brought in the county in which the division
2177has its executive offices or in the county where the violation
2179     5.  If a unit owner presents the division with proof that
2180the unit owner has requested access to official records in
2181writing by certified mail, and that after 10 days the unit owner
2182again made the same request for access to official records in
2183writing by certified mail, and that more than 10 days has
2184elapsed since the second request and the association has still
2185failed or refused to provide access to official records as
2186required by this chapter, the division shall issue a subpoena
2187requiring production of the requested records where the records
2188are kept pursuant to s. 718.112.
2189     (e)  The division is authorized to prepare and disseminate
2190a prospectus and other information to assist prospective owners,
2191purchasers, lessees, and developers of residential condominiums
2192in assessing the rights, privileges, and duties pertaining
2194     (f)  The division has authority to adopt rules pursuant to
2195ss. 120.536(1) and 120.54 to implement and enforce the
2196provisions of this chapter.
2197     (g)  The division shall establish procedures for providing
2198notice to an association and the developer during the period
2199where the developer controls the association when the division
2200is considering the issuance of a declaratory statement with
2201respect to the declaration of condominium or any related
2202document governing in such condominium community.
2203     (h)  The division shall furnish each association which pays
2204the fees required by paragraph (2)(a) a copy of this act,
2205subsequent changes to this act on an annual basis, an amended
2206version of this act as it becomes available from the Secretary
2207of State's office on a biennial basis, and the rules promulgated
2208pursuant thereto on an annual basis.
2209     (i)  The division shall annually provide each association
2210with a summary of declaratory statements and formal legal
2211opinions relating to the operations of condominiums which were
2212rendered by the division during the previous year.
2213     (j)  The division shall provide training and educational
2214programs for condominium association board members and unit
2215owners. The training may, in the division's discretion, include
2216web-based electronic media, and live training and seminars in
2217various locations throughout the state. The division shall have
2218the authority to review and approve education and training
2219programs for board members and unit owners offered by providers
2220and shall maintain a current list of approved programs and
2221providers and shall make such list available to board members
2222and unit owners in a reasonable and cost-effective manner.
2223     (k)  The division shall maintain a toll-free telephone
2224number accessible to condominium unit owners.
2225     (l)  The division shall develop a program to certify both
2226volunteer and paid mediators to provide mediation of condominium
2227disputes. The division shall provide, upon request, a list of
2228such mediators to any association, unit owner, or other
2229participant in arbitration proceedings under s. 718.1255
2230requesting a copy of the list. The division shall include on the
2231list of volunteer mediators only the names of persons who have
2232received at least 20 hours of training in mediation techniques
2233or who have mediated at least 20 disputes. In order to become
2234initially certified by the division, paid mediators must be
2235certified by the Supreme Court to mediate court cases in either
2236county or circuit courts. However, the division may adopt, by
2237rule, additional factors for the certification of paid
2238mediators, which factors must be related to experience,
2239education, or background. Any person initially certified as a
2240paid mediator by the division must, in order to continue to be
2241certified, comply with the factors or requirements imposed by
2242rules adopted by the division.
2243     (m)  When a complaint is made, the division shall conduct
2244its inquiry with due regard to the interests of the affected
2245parties. Within 30 days after receipt of a complaint, the
2246division shall acknowledge the complaint in writing and notify
2247the complainant whether the complaint is within the jurisdiction
2248of the division and whether additional information is needed by
2249the division from the complainant. The division shall conduct
2250its investigation and shall, within 90 days after receipt of the
2251original complaint or of timely requested additional
2252information, take action upon the complaint. However, the
2253failure to complete the investigation within 90 days does not
2254prevent the division from continuing the investigation,
2255accepting or considering evidence obtained or received after 90
2256days, or taking administrative action if reasonable cause exists
2257to believe that a violation of this chapter or a rule of the
2258division has occurred. If an investigation is not completed
2259within the time limits established in this paragraph, the
2260division shall, on a monthly basis, notify the complainant in
2261writing of the status of the investigation. When reporting its
2262action to the complainant, the division shall inform the
2263complainant of any right to a hearing pursuant to ss. 120.569
2264and 120.57.
2265     (n)  Condominium association directors, officers, and
2266employees; condominium developers; community association
2267managers; and community association management firms have an
2268ongoing duty to reasonably cooperate with the division in any
2269investigation pursuant to this section. The division shall refer
2270to local law enforcement authorities any person whom the
2271division believes has altered, destroyed, concealed, or removed
2272any record, document, or thing required to be kept or maintained
2273by this chapter with the purpose to impair its verity or
2274availability in the department's investigation.
2275     (2)(a)  Effective January 1, 1992, Each condominium
2276association which operates more than two units shall pay to the
2277division an annual fee in the amount of $4 for each residential
2278unit in condominiums operated by the association. If the fee is
2279not paid by March 1, then the association shall be assessed a
2280penalty of 10 percent of the amount due, and the association
2281will not have standing to maintain or defend any action in the
2282courts of this state until the amount due, plus any penalty, is
2284     (b)  All fees shall be deposited in the Division of Florida
2285Land Sales, Condominiums, and Mobile Homes Trust Fund as
2286provided by law.
2287     Section 22.  Subsection (9) of section 718.5012, Florida
2288Statutes, is renumbered as subsection (10), and a new subsection
2289(9) is added to that section to read:
2290     718.5012  Ombudsman; powers and duties.--The ombudsman
2291shall have the powers that are necessary to carry out the duties
2292of his or her office, including the following specific powers:
2293     (9)  To assist with the resolution of disputes between unit
2294owners and the association or between unit owners when the
2295dispute is not within the jurisdiction of the division to
2297     Section 23.  Section 718.50151, Florida Statutes, is
2298amended to read:
2299     718.50151  Community Association Living Study Advisory
2300Council; membership functions.--
2301     (1)  There is created the Community Association Living
2302Study Advisory Council on Condominiums. The council shall
2303consist of seven appointed members. Two members shall be
2304appointed by the President of the Senate, two members shall be
2305appointed by the Speaker of the House of Representatives, and
2306three members shall be appointed by the Governor. At least One
2307member that is appointed by the Governor may shall represent
2308timeshare condominiums. The council shall be created as of
2309October 1 every 5 years, commencing October 1, 2008, and shall
2310exist for a 6-month term. Members shall be appointed to 2-year
2311terms; however, one of the persons initially appointed by the
2312Governor, by the President of the Senate, and by the Speaker of
2313the House of Representatives shall be appointed to a 1-year
2314term. The director of the division shall appoint serve as an ex
2315officio nonvoting member. The Legislature intends that the
2316persons appointed represent a cross-section of persons
2317interested in community association condominium issues. The
2318council shall be located within the division for administrative
2319purposes. Members of the council shall serve without
2320compensation but are entitled to receive per diem and travel
2321expenses pursuant to s. 112.061 while on official business.
2322     (2)  The functions of the advisory council shall be to:
2323     (a)  Receive, from the public, input regarding issues of
2324concern with respect to community association living, including
2325living in condominiums, cooperatives, and homeowners'
2326associations. The council shall make and recommendations for
2327changes in the condominium law related to community association
2328living. The issues that the council shall consider include, but
2329are not limited to, the rights and responsibilities of the unit
2330owners in relation to the rights and responsibilities of the
2332     (b)  Review, evaluate, and advise the division concerning
2333revisions and adoption of rules affecting condominiums and
2335     (c)  Recommend improvements, if needed, in the education
2336programs offered by the division.
2337     (d)  Review, evaluate, and advise the Legislature
2338concerning revisions and improvements to the laws relating to
2339condominiums, cooperatives, and homeowners' associations.
2340     (3)  The council may elect a chair and vice chair and such
2341other officers as it may deem advisable. The council shall meet
2342at the call of its chair, at the request of a majority of its
2343membership, at the request of the division, or at such times as
2344it may prescribe. A majority of the members of the council shall
2345constitute a quorum. Council action may be taken by vote of a
2346majority of the voting members who are present at a meeting
2347where there is a quorum.
2348     Section 24.  Paragraph (a) of subsection (2) of section
2349718.503, Florida Statutes, is amended to read:
2350     718.503  Developer disclosure prior to sale; nondeveloper
2351unit owner disclosure prior to sale; voidability.--
2353     (a)  Each unit owner who is not a developer as defined by
2354this chapter shall comply with the provisions of this subsection
2355prior to the sale of his or her unit. Each prospective purchaser
2356who has entered into a contract for the purchase of a
2357condominium unit is entitled, at the seller's expense, to a
2358current copy of the declaration of condominium, articles of
2359incorporation of the association, bylaws and rules of the
2360association, financial information required by s. 718.111, and
2361the document entitled "Frequently Asked Questions and Answers"
2362required by s. 718.504. On and after January 1, 2009, the
2363prospective purchaser shall also be entitled to receive from the
2364seller a copy of a governance form. Such form shall be provided
2365by the division summarizing governance of condominium
2366associations. In addition to such other information as the
2367division considers helpful to a prospective purchaser in
2368understanding association governance, the governance form shall
2369address the following subjects:
2370     1.  The role of the board in conducting the day-to-day
2371affairs of the association on behalf of, and in the best
2372interests of, the owners.
2373     2.  The board's responsibility to provide advance notice of
2374board and membership meetings.
2375     3.  The rights of owners to attend and speak at board and
2376membership meetings.
2377     4.  The responsibility of the board and of owners with
2378respect to maintenance of the condominium property.
2379     5.  The responsibility of the board and owners to abide by
2380the condominium documents, this chapter, rules adopted by the
2381division, and reasonable rules adopted by the board.
2382     6.  Owners' rights to inspect and copy association records
2383and the limitations on such rights.
2384     7.  Remedies available to owners with respect to actions by
2385the board which may be abusive or beyond the board's power and
2387     8.  The right of the board to hire a property management
2388firm, subject to its own primary responsibility for such
2390     9.  The responsibility of owners with regard to payment of
2391regular or special assessments necessary for the operation of
2392the property and the potential consequences of failure to pay
2393such assessments.
2394     10.  The voting rights of owners.
2395     11.  Rights and obligations of the board in enforcement of
2396rules in the condominium documents and rules adopted by the
2399The governance form shall also include the following statement
2400in conspicuous type: "This publication is intended as an
2401informal educational overview of condominium governance. In the
2402event of a conflict, the provisions of chapter 718, Florida
2403Statutes, rules adopted by the Division of Florida Land Sales,
2404Condominiums, and Mobile Homes of the Department of Business and
2405Professional Regulation, the provisions of the condominium
2406documents, and reasonable rules adopted by the condominium
2407association's board of administration prevail over the contents
2408of this publication."
2409     Section 25.  This act shall take effect October 1, 2008.

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