CS/HB 561

1	A bill to be entitled
2	An act relating to community associations; creating s.
3	627.714, F.S.; requiring that coverage under a unit
4	owner's policy for certain assessments include at least a
5	minimum amount of loss assessment coverage; requiring that
6	every property insurance policy to an individual unit
7	owner contain a specified provision; amending s. 633.0215,
8	F.S.; providing an exemption for certain condominiums from
9	installing a manual fire alarm system as required in the
10	Life Safety Code if certain conditions are met; amending
11	s. 718.103, F.S.; revising the definition of the term
12	"developer" to exclude a bulk assignee or bulk buyer;
13	amending s. 718.111, F.S.; requiring that adequate
14	property insurance be based upon the replacement cost of
15	the property to be insured as determined by an independent
16	appraisal or update of a prior appraisal; requiring that
17	such replacement cost be determined at least once within a
18	specified period; providing means by which an association
19	may provide adequate property insurance; prohibiting such
20	coverage or program from existing beyond a specified date;
21	authorizing an association to consider deductibles when
22	determining an adequate amount of property insurance;
23	providing that failure to maintain adequate property
24	insurance constitutes a breach of fiduciary duty by the
25	members of the board of directors of an association;
26	revising the procedures for the board to establish the
27	amount of deductibles; requiring that an association
28	controlled by unit owners operating as a residential
29	condominium use its best efforts to obtain and maintain
30	adequate property insurance to protect the association and
31	certain property; requiring that every property insurance
32	policy issued or renewed on or after a specified date
33	provide certain coverage; excluding certain items from
34	such requirement; providing that excluded items and any
35	insurance thereupon are the responsibility of the unit
36	owner; requiring that condominium unit owners' policies
37	conform to certain provisions of state law; deleting
38	provisions relating to certain hazard and casualty
39	insurance policies; conforming provisions to changes made
40	by the act; amending s. 718.112, F.S.; conforming cross-
41	references; revising requirements for the reappointment of
42	certain board members; revising board eligibility
43	requirements; revising notice requirements for board
44	candidates; establishing requirements for newly elected
45	board members; deleting a provision prohibiting an
46	association from foregoing the retrofitting with a fire
47	sprinkler system of common areas in a high-rise building;
48	prohibiting local authorities having jurisdiction from
49	requiring retrofitting with a sprinkler system or other
50	engineered lifesafety system before a specified date;
51	providing requirements for a special meeting of unit
52	owners that may be called every 3 years in order to vote
53	to forgo retrofitting of the sprinkler system or other
54	engineered lifesafety system; providing meeting notice
55	requirements; providing that certain directors and
56	officers delinquent in the payment of any fee, fine, or
57	regular or special assessments shall be deemed to have
58	abandoned their office; amending s. 718.115, F.S.;
59	requiring that certain services obtained pursuant to a
60	bulk contract as provided in the declaration be deemed a
61	common expense; amending s. 718.301, F.S.; revising
62	conditions under which unit owners other than the
63	developer may elect not less than a majority of the
64	members of the board of administration of an association;
65	creating part VII of ch. 718, F.S., relating to distressed
66	condominium relief; providing a short title; providing
67	legislative findings and intent; defining the terms "bulk
68	assignee" and "bulk buyer"; providing for the assignment
69	of developer rights to and the assumption of developer
70	rights by a bulk assignee; specifying liabilities of bulk
71	assignees and bulk buyers; providing exceptions; providing
72	additional responsibilities of bulk assignees and bulk
73	buyers; authorizing certain entities to assign developer
74	rights to a bulk assignee; limiting the number of bulk
75	assignees at any given time; providing for the transfer of
76	control of a board of administration; providing effects of
77	such transfer on parcels acquired by a bulk assignee;
78	providing obligations of a bulk assignee upon the transfer
79	of control of a board of administration; requiring that a
80	bulk assignee certify certain information in writing;
81	providing for the resolution of a conflict between
82	specified provisions of state law; providing that the
83	failure of a bulk assignee or bulk buyer to comply with
84	specified provisions of state law results in the loss of
85	certain protections and exemptions; requiring that a bulk
86	assignee or bulk buyer file certain information with the
87	Division of Florida Condominiums, Timeshares, and Mobile
88	Homes of the Department of Business and Professional
89	Regulation before offering any units for sale or lease in
90	excess of a specified term; requiring that a copy of such
91	information be provided to a prospective purchaser;
92	requiring that certain contracts and disclosure statements
93	contain specified statements; requiring that a bulk
94	assignee or bulk buyer comply with certain disclosure
95	requirements; prohibiting a bulk assignee from taking
96	certain actions on behalf of an association while the bulk
97	assignee is in control of the board of administration of
98	the association and requiring that such bulk assignee
99	comply with certain requirements; requiring that a bulk
100	assignee or bulk buyer comply with certain requirements
101	regarding certain contracts; providing unit owners with
102	specified protections regarding certain contracts;
103	requiring that a bulk buyer comply with certain
104	requirements regarding the transfer of a unit; prohibiting
105	a person from being classified as a bulk assignee or bulk
106	buyer unless condominium parcels were acquired before a
107	specified date; providing for the determination of the
108	date of acquisition of a parcel; providing that the
109	assignment of developer rights to a bulk assignee or bulk
110	buyer does not release a developer from certain
111	liabilities; preserving certain liabilities for certain
112	parties; amending s. 719.1055, F.S.; providing an
113	additional required provision in cooperative bylaws;
114	deleting a provision prohibiting an association from
115	foregoing the retrofitting with a fire sprinkler system of
116	common areas in a high-rise building; prohibiting local
117	authorities having jurisdiction from requiring
118	retrofitting with a sprinkler system or other engineered
119	lifesafety system before a specified date; providing
120	requirements for a special meeting of unit owners that may
121	be called every 3 years in order to vote to require
122	retrofitting of the sprinkler system or other engineered
123	lifesafety system; providing meeting notice requirements;
124	repealing s. 553.509(2), F.S., relating to the requirement
125	that certain residential family dwellings have at least
126	one public elevator that is capable of operating on an
127	alternate power source for emergency purposes; providing
128	an effective date.
129
130	Be It Enacted by the Legislature of the State of Florida:
131
132	Section 1.  Section 627.714, Florida Statutes, is created
133	to read:
134	627.714  Residential condominium unit owner coverage; loss
135	assessment coverage required; excess coverage provision
136	required.-For policies issued or renewed on or after July 1,
137	2010, coverage under a unit owner's residential property policy
138	shall include property loss assessment coverage of at least
139	$2,000 for all assessments made as a result of the same direct
140	loss to the property, regardless of the number of assessments,
141	owned by all members of the association collectively when such
142	loss is of the type of loss covered by the unit owner's
143	residential property insurance policy, to which a deductible
144	shall apply of no more than $250 per direct property loss. If a
145	deductible was or will be applied to other property loss
146	sustained by the unit owner resulting from the same direct loss
147	to the property, no deductible shall apply to the loss
148	assessment coverage. Every individual unit owner's residential
149	property policy must contain a provision stating that the
150	coverage afforded by such policy is excess coverage over the
151	amount recoverable under any other policy covering the same
152	property.
153	Section 2.  Subsection (13) is added to section 633.0215,
154	Florida Statutes, to read:
155	633.0215  Florida Fire Prevention Code.-
156	(13)  A condominium that is less than three stories in
157	height and has an exterior means of egress corridor is exempt
158	from installing a manual fire alarm system as required in s. 9.6
159	of the most recent edition of the Life Safety Code adopted in
160	the Florida Fire Prevention Code, or as same may be amended or
161	renumbered.
162	Section 3.  Subsection (16) of section 718.103, Florida
163	Statutes, is amended to read:
164	718.103  Definitions.-As used in this chapter, the term:
165	(16)  "Developer" means a person who creates a condominium
166	or offers condominium parcels for sale or lease in the ordinary
167	course of business, but does not include:
168	(a)  An owner or lessee of a condominium or cooperative
169	unit who has acquired the unit for his or her own occupancy;,
170	nor does it include
171	(b)  A cooperative association which creates a condominium
172	by conversion of an existing residential cooperative after
173	control of the association has been transferred to the unit
174	owners if, following the conversion, the unit owners will be the
175	same persons who were unit owners of the cooperative and no
176	units are offered for sale or lease to the public as part of the
177	plan of conversion;.
178	(c)  A bulk assignee or bulk buyer as defined in s.
179	718.703; or
180	(d)  A state, county, or municipal entity is not a
181	developer for any purposes under this act when it is acting as a
182	lessor and not otherwise named as a developer in the declaration
183	of condominium association.
184	Section 4.  Paragraphs (a), (b), (c), (d), (f), (g), (j),
185	and (n) of subsection (11) of section 718.111, Florida Statutes,
186	are amended to read:
187	718.111  The association.-
188	(11)  INSURANCE.-In order to protect the safety, health,
189	and welfare of the people of the State of Florida and to ensure
190	consistency in the provision of insurance coverage to
191	condominiums and their unit owners, this subsection applies to
192	every residential condominium in the state, regardless of the
193	date of its declaration of condominium. It is the intent of the
194	Legislature to encourage lower or stable insurance premiums for
195	associations described in this subsection.
196	(a)  Adequate property hazard insurance, regardless of any
197	requirement in the declaration of condominium for coverage by
198	the association for full insurable value, replacement cost, or
199	similar coverage, shall be based upon the replacement cost of
200	the property to be insured as determined by an independent
201	insurance appraisal or update of a prior appraisal. The
202	replacement cost full insurable value shall be determined at
203	least once every 36 months.
204	1.  An association or group of associations may provide
205	adequate property hazard insurance through a self-insurance fund
206	that complies with the requirements of ss. 624.460-624.488.
207	2.  The association may also provide adequate property
208	hazard insurance coverage for a group of no fewer than three
209	communities created and operating under this chapter, chapter
210	719, chapter 720, or chapter 721 by obtaining and maintaining
211	for such communities insurance coverage sufficient to cover an
212	amount equal to the probable maximum loss for the communities
213	for a 250-year windstorm event. Such probable maximum loss must
214	be determined through the use of a competent model that has been
215	accepted by the Florida Commission on Hurricane Loss Projection
216	Methodology. No policy or program providing such coverage shall
217	be issued or renewed after July 1, 2008, unless it has been
218	reviewed and approved by the Office of Insurance Regulation. The
219	review and approval shall include approval of the policy and
220	related forms pursuant to ss. 627.410 and 627.411, approval of
221	the rates pursuant to s. 627.062, a determination that the loss
222	model approved by the commission was accurately and
223	appropriately applied to the insured structures to determine the
224	250-year probable maximum loss, and a determination that
225	complete and accurate disclosure of all material provisions is
226	provided to condominium unit owners prior to execution of the
227	agreement by a condominium association.
228	3.  When determining the adequate amount of property hazard
229	insurance coverage, the association may consider deductibles as
230	determined by this subsection.
231	(b)  If an association is a developer-controlled
232	association, the association shall exercise its best efforts to
233	obtain and maintain insurance as described in paragraph (a).
234	Failure to obtain and maintain adequate property hazard
235	insurance during any period of developer control constitutes a
236	breach of fiduciary responsibility by the developer-appointed
237	members of the board of directors of the association, unless the
238	members can show that despite such failure, they have made their
239	best efforts to maintain the required coverage.
240	(c)  Policies may include deductibles as determined by the
241	board.
242	1.  The deductibles shall be consistent with industry
243	standards and prevailing practice for communities of similar
244	size and age, and having similar construction and facilities in
245	the locale where the condominium property is situated.
246	2.  The deductibles may be based upon available funds,
247	including reserve accounts, or predetermined assessment
248	authority at the time the insurance is obtained.
249	3.  The board shall establish the amount of deductibles
250	based upon the level of available funds and predetermined
251	assessment authority at a meeting of the board. Such meeting
252	shall be open to all unit owners in the manner set forth in s.
253	718.112(2)(e). The notice of such meeting must state the
254	proposed deductible and the available funds and the assessment
255	authority relied upon by the board and estimate any potential
256	assessment amount against each unit, if any. The meeting
257	described in this paragraph may be held in conjunction with a
258	meeting to consider the proposed budget or an amendment thereto.
259	(d)  An association controlled by unit owners operating as
260	a residential condominium shall use its best efforts to obtain
261	and maintain adequate property insurance to protect the
262	association, the association property, the common elements, and
263	the condominium property that is required to be insured by the
264	association pursuant to this subsection.
265	(f)  Every property hazard insurance policy issued or
266	renewed on or after January 1, 2009, for the purpose of
267	protecting the condominium shall provide primary coverage for:
268	1.  All portions of the condominium property as originally
269	installed or replacement of like kind and quality, in accordance
270	with the original plans and specifications.
271	2.  All alterations or additions made to the condominium
272	property or association property pursuant to s. 718.113(2).
273	3.  The coverage shall exclude all personal property within
274	the unit or limited common elements, and floor, wall, and
275	ceiling coverings, electrical fixtures, appliances, water
276	heaters, water filters, built-in cabinets and countertops, and
277	window treatments, including curtains, drapes, blinds, hardware,
278	and similar window treatment components, or replacements of any
279	of the foregoing which are located within the boundaries of the
280	unit and serve only such unit. Such property and any insurance
281	thereupon shall be the responsibility of the unit owner.
282	(g)  A condominium unit owner's policy shall conform to the
283	requirements of s. 627.714. Every hazard insurance policy issued
284	or renewed on or after January 1, 2009, to an individual unit
285	owner must contain a provision stating that the coverage
286	afforded by such policy is excess coverage over the amount
287	recoverable under any other policy covering the same property.
288	Such policies must include special assessment coverage of no
289	less than $2,000 per occurrence. An insurance policy issued to
290	an individual unit owner providing such coverage does not
291	provide rights of subrogation against the condominium
292	association operating the condominium in which such individual's
293	unit is located.
294	1.  All improvements or additions to the condominium
295	property that benefit fewer than all unit owners shall be
296	insured by the unit owner or owners having the use thereof, or
297	may be insured by the association at the cost and expense of the
298	unit owners having the use thereof.
299	2.  The association shall require each owner to provide
300	evidence of a currently effective policy of hazard and liability
301	insurance upon request, but not more than once per year. Upon
302	the failure of an owner to provide a certificate of insurance
303	issued by an insurer approved to write such insurance in this
304	state within 30 days after the date on which a written request
305	is delivered, the association may purchase a policy of insurance
306	on behalf of an owner. The cost of such a policy, together with
307	reconstruction costs undertaken by the association but which are
308	the responsibility of the unit owner, may be collected in the
309	manner provided for the collection of assessments in s. 718.116.
310	1.3.  All reconstruction work after a property casualty
311	loss shall be undertaken by the association except as otherwise
312	authorized in this section. A unit owner may undertake
313	reconstruction work on portions of the unit with the prior
314	written consent of the board of administration. However, such
315	work may be conditioned upon the approval of the repair methods,
316	the qualifications of the proposed contractor, or the contract
317	that is used for that purpose. A unit owner shall obtain all
318	required governmental permits and approvals prior to commencing
319	reconstruction.
320	2.4.  Unit owners are responsible for the cost of
321	reconstruction of any portions of the condominium property for
322	which the unit owner is required to carry property casualty
323	insurance, and any such reconstruction work undertaken by the
324	association shall be chargeable to the unit owner and
325	enforceable as an assessment pursuant to s. 718.116. The
326	association must be an additional named insured and loss payee
327	on all casualty insurance policies issued to unit owners in the
328	condominium operated by the association.
329	3.5.  A multicondominium association may elect, by a
330	majority vote of the collective members of the condominiums
331	operated by the association, to operate such condominiums as a
332	single condominium for purposes of insurance matters, including,
333	but not limited to, the purchase of the property hazard
334	insurance required by this section and the apportionment of
335	deductibles and damages in excess of coverage. The election to
336	aggregate the treatment of insurance premiums, deductibles, and
337	excess damages constitutes an amendment to the declaration of
338	all condominiums operated by the association, and the costs of
339	insurance shall be stated in the association budget. The
340	amendments shall be recorded as required by s. 718.110.
341	(j)  Any portion of the condominium property required to be
342	insured by the association against property casualty loss
343	pursuant to paragraph (f) which is damaged by casualty shall be
344	reconstructed, repaired, or replaced as necessary by the
345	association as a common expense. All property hazard insurance
346	deductibles, uninsured losses, and other damages in excess of
347	property hazard insurance coverage under the property hazard
348	insurance policies maintained by the association are a common
349	expense of the condominium, except that:
350	1.  A unit owner is responsible for the costs of repair or
351	replacement of any portion of the condominium property not paid
352	by insurance proceeds, if such damage is caused by intentional
353	conduct, negligence, or failure to comply with the terms of the
354	declaration or the rules of the association by a unit owner, the
355	members of his or her family, unit occupants, tenants, guests,
356	or invitees, without compromise of the subrogation rights of any
357	insurer as set forth in paragraph (g).
358	2.  The provisions of subparagraph 1. regarding the
359	financial responsibility of a unit owner for the costs of
360	repairing or replacing other portions of the condominium
361	property also apply to the costs of repair or replacement of
362	personal property of other unit owners or the association, as
363	well as other property, whether real or personal, which the unit
364	owners are required to insure under paragraph (g).
365	3.  To the extent the cost of repair or reconstruction for
366	which the unit owner is responsible under this paragraph is
367	reimbursed to the association by insurance proceeds, and, to the
368	extent the association has collected the cost of such repair or
369	reconstruction from the unit owner, the association shall
370	reimburse the unit owner without the waiver of any rights of
371	subrogation.
372	4.  The association is not obligated to pay for
373	reconstruction or repairs of property casualty losses as a
374	common expense if the property casualty losses were known or
375	should have been known to a unit owner and were not reported to
376	the association until after the insurance claim of the
377	association for that property casualty was settled or resolved
378	with finality, or denied on the basis that it was untimely
379	filed.
380	(n)  The association is not obligated to pay for any
381	reconstruction or repair expenses due to property casualty loss
382	to any improvements installed by a current or former owner of
383	the unit or by the developer if the improvement benefits only
384	the unit for which it was installed and is not part of the
385	standard improvements installed by the developer on all units as
386	part of original construction, whether or not such improvement
387	is located within the unit. This paragraph does not relieve any
388	party of its obligations regarding recovery due under any
389	insurance implemented specifically for any such improvements.
390	Section 5.  Paragraphs (b), (d), (l), and (n) of subsection
391	(2) of section 718.112, Florida Statutes, are amended to read:
392	718.112  Bylaws.-
393	(2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
394	following and, if they do not do so, shall be deemed to include
395	the following:
396	(b)  Quorum; voting requirements; proxies.-
397	1.  Unless a lower number is provided in the bylaws, the
398	percentage of voting interests required to constitute a quorum
399	at a meeting of the members shall be a majority of the voting
400	interests. Unless otherwise provided in this chapter or in the
401	declaration, articles of incorporation, or bylaws, and except as
402	provided in sub-subparagraph subparagraph (d)3.a., decisions
403	shall be made by owners of a majority of the voting interests
404	represented at a meeting at which a quorum is present.
405	2.  Except as specifically otherwise provided herein, after
406	January 1, 1992, unit owners may not vote by general proxy, but
407	may vote by limited proxies substantially conforming to a
408	limited proxy form adopted by the division. No voting interest
409	or consent right allocated to a unit owned by the association
410	shall be exercised or considered for any purpose, whether for a
411	quorum, an election, or otherwise. Limited proxies and general
412	proxies may be used to establish a quorum. Limited proxies shall
413	be used for votes taken to waive or reduce reserves in
414	accordance with subparagraph (f)2.; for votes taken to waive the
415	financial reporting requirements of s. 718.111(13); for votes
416	taken to amend the declaration pursuant to s. 718.110; for votes
417	taken to amend the articles of incorporation or bylaws pursuant
418	to this section; and for any other matter for which this chapter
419	requires or permits a vote of the unit owners. Except as
420	provided in paragraph (d), after January 1, 1992, no proxy,
421	limited or general, shall be used in the election of board
422	members. General proxies may be used for other matters for which
423	limited proxies are not required, and may also be used in voting
424	for nonsubstantive changes to items for which a limited proxy is
425	required and given. Notwithstanding the provisions of this
426	subparagraph, unit owners may vote in person at unit owner
427	meetings. Nothing contained herein shall limit the use of
428	general proxies or require the use of limited proxies for any
429	agenda item or election at any meeting of a timeshare
430	condominium association.
431	3.  Any proxy given shall be effective only for the
432	specific meeting for which originally given and any lawfully
433	adjourned meetings thereof. In no event shall any proxy be valid
434	for a period longer than 90 days after the date of the first
435	meeting for which it was given. Every proxy is revocable at any
436	time at the pleasure of the unit owner executing it.
437	4.  A member of the board of administration or a committee
438	may submit in writing his or her agreement or disagreement with
439	any action taken at a meeting that the member did not attend.
440	This agreement or disagreement may not be used as a vote for or
441	against the action taken and may not be used for the purposes of
442	creating a quorum.
443	5.  When any of the board or committee members meet by
444	telephone conference, those board or committee members attending
445	by telephone conference may be counted toward obtaining a quorum
446	and may vote by telephone. A telephone speaker must be used so
447	that the conversation of those board or committee members
448	attending by telephone may be heard by the board or committee
449	members attending in person as well as by any unit owners
450	present at a meeting.
451	(d)  Unit owner meetings.-
452	1.  There shall be an annual meeting of the unit owners
453	held at the location provided in the association bylaws and, if
454	the bylaws are silent as to the location, the meeting shall be
455	held within 45 miles of the condominium property. However, such
456	distance requirement does not apply to an association governing
457	a timeshare condominium. Unless the bylaws provide otherwise, a
458	vacancy on the board caused by the expiration of a director's
459	term shall be filled by electing a new board member, and the
460	election shall be by secret ballot; however, if the number of
461	vacancies equals or exceeds the number of candidates, no
462	election is required. Except in a timeshare condominium, the
463	terms of all members of the board shall expire at the annual
464	meeting and such board members may stand for reelection unless
465	otherwise permitted by the bylaws. In the event that the
466	governing documents bylaws permit staggered terms of no more
467	than 2 years and upon approval of a majority of the total voting
468	interests, the association board members may serve 2-year
469	staggered terms. If the number no person is interested in or
470	demonstrates an intention to run for the position of a board
471	members member whose terms have term has expired according to
472	the provisions of this subparagraph exceeds the number of
473	eligible members showing interest in or demonstrating an
474	intention to run for the vacant positions, each such board
475	member whose term has expired shall become eligible for
476	reappointment be automatically reappointed to the board of
477	administration and need not stand for reelection. In a
478	condominium association of more than 10 units or in a
479	condominium association that does not include timeshare units,
480	coowners of a unit may not serve as members of the board of
481	directors at the same time unless they own more than one unit
482	and are not co-occupants of a unit. Any unit owner desiring to
483	be a candidate for board membership must shall comply with sub-
484	subparagraph subparagraph 3.a. A person who has been suspended
485	or removed by the division under this chapter, or who is
486	delinquent in the payment of any fee, fine, or special or
487	regular assessment as provided in paragraph (n), is not eligible
488	for board membership. A person who has been convicted of any
489	felony in this state or in a United States District or
490	Territorial Court, or who has been convicted of any offense in
491	another jurisdiction that would be considered a felony if
492	committed in this state, is not eligible for board membership
493	unless such felon's civil rights have been restored for a period
494	of no less than 5 years as of the date on which such person
495	seeks election to the board. The validity of an action by the
496	board is not affected if it is later determined that a member of
497	the board is ineligible for board membership due to having been
498	convicted of a felony.
499	2.  The bylaws shall provide the method of calling meetings
500	of unit owners, including annual meetings. Written notice, which
501	notice must include an agenda, shall be mailed, hand delivered,
502	or electronically transmitted to each unit owner at least 14
503	days prior to the annual meeting and shall be posted in a
504	conspicuous place on the condominium property at least 14
505	continuous days preceding the annual meeting. Upon notice to the
506	unit owners, the board shall by duly adopted rule designate a
507	specific location on the condominium property or association
508	property upon which all notices of unit owner meetings shall be
509	posted; however, if there is no condominium property or
510	association property upon which notices can be posted, this
511	requirement does not apply. In lieu of or in addition to the
512	physical posting of notice of any meeting of the unit owners on
513	the condominium property, the association may, by reasonable
514	rule, adopt a procedure for conspicuously posting and repeatedly
515	broadcasting the notice and the agenda on a closed-circuit cable
516	television system serving the condominium association. However,
517	if broadcast notice is used in lieu of a notice posted
518	physically on the condominium property, the notice and agenda
519	must be broadcast at least four times every broadcast hour of
520	each day that a posted notice is otherwise required under this
521	section. When broadcast notice is provided, the notice and
522	agenda must be broadcast in a manner and for a sufficient
523	continuous length of time so as to allow an average reader to
524	observe the notice and read and comprehend the entire content of
525	the notice and the agenda. Unless a unit owner waives in writing
526	the right to receive notice of the annual meeting, such notice
527	shall be hand delivered, mailed, or electronically transmitted
528	to each unit owner. Notice for meetings and notice for all other
529	purposes shall be mailed to each unit owner at the address last
530	furnished to the association by the unit owner, or hand
531	delivered to each unit owner. However, if a unit is owned by
532	more than one person, the association shall provide notice, for
533	meetings and all other purposes, to that one address which the
534	developer initially identifies for that purpose and thereafter
535	as one or more of the owners of the unit shall so advise the
536	association in writing, or if no address is given or the owners
537	of the unit do not agree, to the address provided on the deed of
538	record. An officer of the association, or the manager or other
539	person providing notice of the association meeting, shall
540	provide an affidavit or United States Postal Service certificate
541	of mailing, to be included in the official records of the
542	association affirming that the notice was mailed or hand
543	delivered, in accordance with this provision.
544	3.a.  The members of the board shall be elected by written
545	ballot or voting machine. Proxies shall in no event be used in
546	electing the board, either in general elections or elections to
547	fill vacancies caused by recall, resignation, or otherwise,
548	unless otherwise provided in this chapter. Not less than 60 days
549	before a scheduled election, the association shall mail,
550	deliver, or electronically transmit, whether by separate
551	association mailing or included in another association mailing,
552	delivery, or transmission, including regularly published
553	newsletters, to each unit owner entitled to a vote, a first
554	notice of the date of the election along with a certification
555	form provided by the division attesting that he or she has read
556	and understands, to the best of his or her ability, the
557	governing documents of the association and the provisions of
558	this chapter and any applicable rules. Any unit owner or other
559	eligible person desiring to be a candidate for the board must
560	give written notice of intent to be a candidate to the
561	association not less than 40 days before a scheduled election.
562	Together with the written notice and agenda as set forth in
563	subparagraph 2., the association shall mail, deliver, or
564	electronically transmit a second notice of the election to all
565	unit owners entitled to vote therein, together with a ballot
566	which shall list all candidates. Upon request of a candidate,
567	the association shall include an information sheet, no larger
568	than 8 1/2 inches by 11 inches, which must be furnished by the
569	candidate not less than 35 days before the election, shall along
570	with the signed certification form provided for in this
571	subparagraph, to be included with the mailing, delivery, or
572	transmission of the ballot, with the costs of mailing, delivery,
573	or electronic transmission and copying to be borne by the
574	association. The association is not liable for the contents of
575	the information sheets prepared by the candidates. In order to
576	reduce costs, the association may print or duplicate the
577	information sheets on both sides of the paper. The division
578	shall by rule establish voting procedures consistent with the
579	provisions contained herein, including rules establishing
580	procedures for giving notice by electronic transmission and
581	rules providing for the secrecy of ballots. Elections shall be
582	decided by a plurality of those ballots cast. There shall be no
583	quorum requirement; however, at least 20 percent of the eligible
584	voters must cast a ballot in order to have a valid election of
585	members of the board. No unit owner shall permit any other
586	person to vote his or her ballot, and any such ballots
587	improperly cast shall be deemed invalid, provided any unit owner
588	who violates this provision may be fined by the association in
589	accordance with s. 718.303. A unit owner who needs assistance in
590	casting the ballot for the reasons stated in s. 101.051 may
591	obtain assistance in casting the ballot. The regular election
592	shall occur on the date of the annual meeting. The provisions of
593	this sub-subparagraph subparagraph shall not apply to timeshare
594	condominium associations. Notwithstanding the provisions of this
595	sub-subparagraph subparagraph, an election is not required
596	unless more candidates file notices of intent to run or are
597	nominated than board vacancies exist.
598	b.  Within 90 days after being elected to the board, each
599	newly elected director shall certify in writing to the secretary
600	of the association that he or she has read the association's
601	declarations of covenants and restrictions, articles of
602	incorporation, bylaws, and current written policies; that he or
603	she will work to uphold such documents and policies to the best
604	of his or her ability; and that he or she will faithfully
605	discharge his or her fiduciary responsibility to the
606	association's members. In lieu of this written certification,
607	the newly elected director may submit a certificate of
608	satisfactory completion of the educational curriculum
609	administered by a division-approved condominium education
610	provider. Failure to timely file the written certification or
611	educational certificate automatically disqualifies the director
612	from service on the board. Notwithstanding the foregoing, a
613	director shall not be automatically removed from the board if
614	the director's failure to provide the completed education
615	certificate results from a failure of the education provider to
616	timely provide it. The secretary shall cause the association to
617	retain a director's written certification or educational
618	certificate for inspection by the members for 5 years after a
619	director's election. Failure to have such written certification
620	or educational certificate on file does not affect the validity
621	of any appropriate action.
622	4.  Any approval by unit owners called for by this chapter
623	or the applicable declaration or bylaws, including, but not
624	limited to, the approval requirement in s. 718.111(8), shall be
625	made at a duly noticed meeting of unit owners and shall be
626	subject to all requirements of this chapter or the applicable
627	condominium documents relating to unit owner decisionmaking,
628	except that unit owners may take action by written agreement,
629	without meetings, on matters for which action by written
630	agreement without meetings is expressly allowed by the
631	applicable bylaws or declaration or any statute that provides
632	for such action.
633	5.  Unit owners may waive notice of specific meetings if
634	allowed by the applicable bylaws or declaration or any statute.
635	If authorized by the bylaws, notice of meetings of the board of
636	administration, unit owner meetings, except unit owner meetings
637	called to recall board members under paragraph (j), and
638	committee meetings may be given by electronic transmission to
639	unit owners who consent to receive notice by electronic
640	transmission.
641	6.  Unit owners shall have the right to participate in
642	meetings of unit owners with reference to all designated agenda
643	items. However, the association may adopt reasonable rules
644	governing the frequency, duration, and manner of unit owner
645	participation.
646	7.  Any unit owner may tape record or videotape a meeting
647	of the unit owners subject to reasonable rules adopted by the
648	division.
649	8.  Unless otherwise provided in the bylaws, any vacancy
650	occurring on the board before the expiration of a term may be
651	filled by the affirmative vote of the majority of the remaining
652	directors, even if the remaining directors constitute less than
653	a quorum, or by the sole remaining director. In the alternative,
654	a board may hold an election to fill the vacancy, in which case
655	the election procedures must conform to the requirements of sub-
656	subparagraph subparagraph 3.a. unless the association governs 10
657	units or fewer less and has opted out of the statutory election
658	process, in which case the bylaws of the association control.
659	Unless otherwise provided in the bylaws, a board member
660	appointed or elected under this section shall fill the vacancy
661	for the unexpired term of the seat being filled. Filling
662	vacancies created by recall is governed by paragraph (j) and
663	rules adopted by the division.
664
665	Notwithstanding subparagraph subparagraphs (b)2. and sub-
666	subparagraph (d)3.a., an association of 10 or fewer units may,
667	by the affirmative vote of a majority of the total voting
668	interests, provide for different voting and election procedures
669	in its bylaws, which vote may be by a proxy specifically
670	delineating the different voting and election procedures. The
671	different voting and election procedures may provide for
672	elections to be conducted by limited or general proxy.
673	(l)  Certificate of compliance.-There shall be a provision
674	that a certificate of compliance from a licensed electrical
675	contractor or electrician may be accepted by the association's
676	board as evidence of compliance of the condominium units with
677	the applicable fire and life safety code. Notwithstanding the
678	provisions of chapter 633 or of any other code, statute,
679	ordinance, administrative rule, or regulation, or any
680	interpretation of the foregoing, an association, condominium, or
681	unit owner is not obligated to retrofit the common elements,
682	common areas, association-owned property, or units of a
683	residential condominium with a fire sprinkler system or any
684	other form of engineered lifesafety system in a building that
685	has been certified for occupancy by the applicable governmental
686	entity, if the unit owners have voted to forego such
687	retrofitting and engineered lifesafety system by the affirmative
688	vote of two-thirds of all voting interests in the affected
689	condominium. However, a condominium association may not vote to
690	forego the retrofitting with a fire sprinkler system of common
691	areas in a high-rise building. For purposes of this subsection,
692	the term "high-rise building" means a building that is greater
693	than 75 feet in height where the building height is measured
694	from the lowest level of fire department access to the floor of
695	the highest occupiable story. For purposes of this subsection,
696	the term "common areas" means any enclosed hallway, corridor,
697	lobby, stairwell, or entryway. In no event shall the local
698	authority having jurisdiction require completion of retrofitting
699	of common areas with a sprinkler system or any other form of
700	engineered lifesafety system before the end of 2019 2014.
701	1.  A vote to forego retrofitting may be obtained by
702	limited proxy or by a ballot personally cast at a duly called
703	membership meeting, or by execution of a written consent by the
704	member, and shall be effective upon the recording of a
705	certificate attesting to such vote in the public records of the
706	county where the condominium is located. The association shall
707	mail or, hand deliver, or electronically transmit to each unit
708	owner written notice at least 14 days prior to such membership
709	meeting in which the vote to forego retrofitting of the required
710	fire sprinkler system or any other form of engineered lifesafety
711	system is to take place. Within 30 days after the association's
712	opt-out vote, notice of the results of the opt-out vote shall be
713	mailed or, hand delivered, or electronically transmitted to all
714	unit owners. Evidence of compliance with this 30-day notice
715	shall be made by an affidavit executed by the person providing
716	the notice and filed among the official records of the
717	association. After such notice is provided to each owner, a copy
718	of such notice shall be provided by the current owner to a new
719	owner prior to closing and shall be provided by a unit owner to
720	a renter prior to signing a lease.
721	2.  If there has been a previous vote approving the
722	association to forego retrofitting, a vote to require
723	retrofitting may be obtained at a special meeting of the unit
724	owners called by a petition of least 10 percent of the voting
725	interests. Such a vote may only be called for once every 3
726	years. Notice shall be provided as required for any regularly
727	called meeting of the unit owners, and the notice shall state
728	the purpose of the meeting. Electronic transmission may not be
729	used as a method of giving notice of a meeting called in whole
730	or in part for this purpose.
731	3.2.  As part of the information collected annually from
732	condominiums, the division shall require condominium
733	associations to report the membership vote and recording of a
734	certificate under this subsection and, if retrofitting has been
735	undertaken, the per-unit cost of such work. The division shall
736	annually report to the Division of State Fire Marshal of the
737	Department of Financial Services the number of condominiums that
738	have elected to forego retrofitting.
739	(n)  Director or officer delinquencies.-A director or
740	officer more than 90 days delinquent in the payment of any fee,
741	fine, or regular or special assessments shall be deemed to have
742	abandoned the office, creating a vacancy in the office to be
743	filled according to law.
744	Section 6.  Paragraph (d) of subsection (1) of section
745	718.115, Florida Statutes, is amended to read:
746	718.115  Common expenses and common surplus.-
747	(1)
748	(d)  If the association is authorized pursuant to so
749	provided in the declaration to enter into a bulk contract for
750	communications services as defined in chapter 202, information
751	services, or Internet services, the costs charged for such
752	services, the cost of a master antenna television system or duly
753	franchised cable television service obtained pursuant to a bulk
754	contract shall be deemed a common expense. If the declaration
755	does not authorize the association to enter into a bulk contract
756	for provide for the cost of communications services as defined
757	in chapter 202, information services, or Internet services a
758	master antenna television system or duly franchised cable
759	television service obtained under a bulk contract as a common
760	expense, the board may enter into such a contract for such
761	services., and The cost of the services under a bulk contract
762	service will be a common expense but allocated on a per-unit
763	basis rather than a percentage basis if the declaration provides
764	for other than an equal sharing of common expenses, and any
765	contract entered into before July 1, 1998, in which the cost of
766	the service is not equally divided among all unit owners, may be
767	changed by vote of a majority of the voting interests present at
768	a regular or special meeting of the association, to allocate the
769	cost equally among all units. The contract shall be for a term
770	of not less than 2 years.
771	1.  Any contract made by the board after the effective date
772	hereof for communications services as defined in chapter 202,
773	information services, or Internet services a community antenna
774	system or duly franchised cable television service may be
775	canceled by a majority of the voting interests present at the
776	next regular or special meeting of the association. Any member
777	may make a motion to cancel the said contract, but if no motion
778	is made or if such motion fails to obtain the required majority
779	at the next regular or special meeting, whichever occurs is
780	sooner, following the making of the contract, then such contract
781	shall be deemed ratified for the term therein expressed. Any
782	contract made by the association prior to assumption of control
783	of the association by unit owners other than the developer may
784	be canceled within 120 days after unit owners other than the
785	developer elect a majority of the board of directors consistent
786	with the provisions of s. 718.302(1).
787	2.  Any such contract shall provide, and shall be deemed to
788	provide if not expressly set forth, that any hearing-impaired or
789	legally blind unit owner who does not occupy the unit with a
790	non-hearing-impaired or sighted person, or any unit owner
791	receiving supplemental security income under Title XVI of the
792	Social Security Act or food stamps as administered by the
793	Department of Children and Family Services pursuant to s.
794	414.31, may discontinue the cable or video service without
795	incurring disconnect fees, penalties, or subsequent service
796	charges, and, as to such units, the owners shall not be required
797	to pay any common expenses charge related to such service. If
798	less than all members of an association share the expenses of
799	cable or video service television, the expense shall be shared
800	equally by all participating unit owners. The association may
801	use the provisions of s. 718.116 to enforce payment of the
802	shares of such costs by the unit owners receiving cable or video
803	service television.
804	Section 7.  Subsection (1) of section 718.301, Florida
805	Statutes, is amended to read:
806	718.301  Transfer of association control; claims of defect
807	by association.-
808	(1)  When unit owners other than the developer own 15
809	percent or more of the units in a condominium that will be
810	operated ultimately by an association, the unit owners other
811	than the developer shall be entitled to elect no less than one-
812	third of the members of the board of administration of the
813	association. Unit owners other than the developer are entitled
814	to elect not less than a majority of the members of the board of
815	administration of an association:
816	(a)  Three years after 50 percent of the units that will be
817	operated ultimately by the association have been conveyed to
818	purchasers;
819	(b)  Three months after 90 percent of the units that will
820	be operated ultimately by the association have been conveyed to
821	purchasers;
822	(c)  When all the units that will be operated ultimately by
823	the association have been completed, some of them have been
824	conveyed to purchasers, and none of the others are being offered
825	for sale by the developer in the ordinary course of business;
826	(d)  When some of the units have been conveyed to
827	purchasers and none of the others are being constructed or
828	offered for sale by the developer in the ordinary course of
829	business;
830	(e)  When the developer files a petition seeking protection
831	in bankruptcy;
832	(f)  When a receiver for the developer is appointed by a
833	circuit court and is not discharged within 30 days after such
834	appointment, unless the court determines within 30 days after
835	appointment of the receiver that transfer of control would be
836	detrimental to the association or its members; or
837	(g)  Seven years after recordation of the declaration of
838	condominium; or, in the case of an association which may
839	ultimately operate more than one condominium, 7 years after
840	recordation of the declaration for the first condominium it
841	operates; or, in the case of an association operating a phase
842	condominium created pursuant to s. 718.403, 7 years after
843	recordation of the declaration creating the initial phase,
844
845	whichever occurs first. The developer is entitled to elect at
846	least one member of the board of administration of an
847	association as long as the developer holds for sale in the
848	ordinary course of business at least 5 percent, in condominiums
849	with fewer than 500 units, and 2 percent, in condominiums with
850	more than 500 units, of the units in a condominium operated by
851	the association. Following the time the developer relinquishes
852	control of the association, the developer may exercise the right
853	to vote any developer-owned units in the same manner as any
854	other unit owner except for purposes of reacquiring control of
855	the association or selecting the majority members of the board
856	of administration.
857	Section 8.  Part VII of chapter 718, Florida Statutes,
858	consisting of sections 718.701, 718.702, 718.703, 718.704,
859	718.705, 718.706, 718.707, and 718.708, is created to read:
860	PART VII
861	DISTRESSED CONDOMINIUM RELIEF
862	718.701  Short title.-This part may be cited as the
863	"Distressed Condominium Relief Act."
864	718.702  Legislative intent.-
865	(1)  The Legislature acknowledges the massive downturn in
866	the condominium market which has transpired throughout the state
867	and the impact of such downturn on developers, lenders, unit
868	owners, and condominium associations. Numerous condominium
869	projects have either failed or are in the process of failing,
870	whereby the condominium has a small percentage of third-party
871	unit owners as compared to the unsold inventory of units. As a
872	result of the inability to find purchasers for this inventory of
873	units, which results in part from the devaluing of real estate
874	in this state, developers are unable to satisfy the requirements
875	of their lenders, leading to defaults on mortgages.
876	Consequently, lenders are faced with the task of finding a
877	solution to the problem in order to be paid for their
878	investments.
879	(2)  The Legislature recognizes that all of the factors
880	listed in this section lead to condominiums becoming distressed,
881	resulting in detriment to the unit owners and the condominium
882	association on account of the resulting shortage of assessment
883	moneys available to support the financial requirements for
884	proper maintenance of the condominium. Such shortage and the
885	resulting lack of proper maintenance further erode property
886	values. The Legislature finds that individuals and entities
887	within Florida and in other states have expressed interest in
888	purchasing unsold inventory in one or more condominium projects,
889	but are reticent to do so because of accompanying liabilities
890	inherited from the original developer, which are by definition
891	imputed to the successor purchaser, including a foreclosing
892	mortgagee. This results in the potential purchaser having
893	unknown and unquantifiable risks, and potential successor
894	purchasers are unwilling to accept such risks. The result is
895	that condominium projects stagnate, leaving all parties involved
896	at an impasse without the ability to find a solution.
897	(3)  The Legislature finds and declares that it is the
898	public policy of this state to protect the interests of
899	developers, lenders, unit owners, and condominium associations
900	with regard to distressed condominiums, and that there is a need
901	for relief from certain provisions of the Florida Condominium
902	Act geared toward enabling economic opportunities within these
903	condominiums for successor purchasers, including foreclosing
904	mortgagees. Such relief would benefit existing unit owners and
905	condominium associations. The Legislature further finds and
906	declares that this situation cannot be open-ended without
907	potentially prejudicing the rights of unit owners and
908	condominium associations, and thereby declares that the
909	provisions of this part shall be used by purchasers of
910	condominium inventory for a specific and defined period.
911	718.703  Definitions.-As used in this part, the term:
912	(1)  "Bulk assignee" means a person who:
913	(a)  Acquires more than seven condominium parcels as set
914	forth in s. 718.707; and
915	(b)  Receives an assignment of some or all of the rights of
916	the developer as are set forth in the declaration of condominium
917	or in this chapter by a written instrument recorded as an
918	exhibit to the deed or as a separate instrument in the public
919	records of the county in which the condominium is located.
920	(2)  "Bulk buyer" means a person who acquires more than
921	seven condominium parcels as set forth in s. 718.707 but who
922	does not receive an assignment of any developer rights other
923	than the right to conduct sales, leasing, and marketing
924	activities within the condominium.
925	718.704  Assignment of developer rights to and assumption
926	of developer rights by bulk assignee; bulk buyer.-
927	(1)  A bulk assignee shall be deemed to have assumed and is
928	liable for all duties and responsibilities of the developer
929	under the declaration and this chapter, except:
930	(a)  Warranties of the developer under s. 718.203(1) or s.
931	718.618, except for design, construction, development, or repair
932	work performed by or on behalf of such bulk assignee.
933	(b)  The obligation to:
934	1.  Fund converter reserves under s. 718.618 for a unit
935	which was not acquired by the bulk assignee; or
936	2.  Provide converter warranties on any portion of the
937	condominium property except as may be expressly provided by the
938	bulk assignee in the contract for purchase and sale executed
939	with a purchaser and pertaining to any design, construction,
940	development, or repair work performed by or on behalf of the
941	bulk assignee.
942	(c)  The requirement to provide the association with a
943	cumulative audit of the association's finances from the date of
944	formation of the condominium association as required by s.
945	718.301. However, the bulk assignee shall provide an audit for
946	the period for which the bulk assignee elects a majority of the
947	members of the board of administration.
948	(d)  Any liability arising out of or in connection with
949	actions taken by the board of administration or the developer-
950	appointed directors before the bulk assignee elects a majority
951	of the members of the board of administration.
952	(e)  Any liability for or arising out of the developer's
953	failure to fund previous assessments or to resolve budgetary
954	deficits in relation to a developer's right to guarantee
955	assessments, except as otherwise provided in subsection (2).
956
957	Further, the bulk assignee is responsible for delivering
958	documents and materials in accordance with s. 718.705(3). A bulk
959	assignee may expressly assume some or all of the obligations of
960	the developer described in paragraphs (a)-(e).
961	(2)  A bulk assignee receiving the assignment of the rights
962	of the developer to guarantee the level of assessments and fund
963	budgetary deficits pursuant to s. 718.116 shall be deemed to
964	have assumed and is liable for all obligations of the developer
965	with respect to such guarantee, including any applicable funding
966	of reserves to the extent required by law, for as long as the
967	guarantee remains in effect. A bulk assignee not receiving an
968	assignment of the right of the developer to guarantee the level
969	of assessments and fund budgetary deficits pursuant to s.
970	718.116 or a bulk buyer is not deemed to have assumed and is not
971	liable for the obligations of the developer with respect to such
972	guarantee, but is responsible for payment of assessments in the
973	same manner as all other owners of condominium parcels.
974	(3)  A bulk buyer is liable for the duties and
975	responsibilities of the developer under the declaration and this
976	chapter only to the extent provided in this part, together with
977	any other duties or responsibilities of the developer expressly
978	assumed in writing by the bulk buyer.
979	(4)  An acquirer of condominium parcels is not considered a
980	bulk assignee or a bulk buyer if the transfer to such acquirer
981	was made with the intent to hinder, delay, or defraud any
982	purchaser, unit owner, or the association, or if the acquirer is
983	a person who would constitute an insider under s. 726.102(7).
984	(5)  An assignment of developer rights to a bulk assignee
985	may be made by the developer, a previous bulk assignee, or a
986	court of competent jurisdiction acting on behalf of the
987	developer or the previous bulk assignee. At any particular time,
988	there may be no more than one bulk assignee within a
989	condominium, but there may be more than one bulk buyer. If more
990	than one acquirer of condominium parcels receives an assignment
991	of developer rights from the same person, the bulk assignee is
992	the acquirer whose instrument of assignment is recorded first in
993	applicable public records.
994	718.705  Board of administration; transfer of control.-
995	(1)  For purposes of determining the timing for transfer of
996	control of the board of administration of the association to
997	unit owners other than the developer under s. 718.301(1)(a) or
998	(b), if a bulk assignee is entitled to elect a majority of the
999	members of the board, a condominium parcel acquired by the bulk
1000	assignee shall not be deemed to be conveyed to a purchaser, or
1001	to be owned by an owner other than the developer, until such
1002	condominium parcel is conveyed to an owner who is not a bulk
1003	assignee.
1004	(2)  Unless control of the board of administration of the
1005	association has already been relinquished pursuant to s.
1006	718.301(1), the bulk assignee is obligated to relinquish control
1007	of the association in accordance with s. 718.301 and this part.
1008	(3)  When a bulk assignee relinquishes control of the board
1009	of administration as set forth in s. 718.301, the bulk assignee
1010	shall deliver all of those items required by s. 718.301(4).
1011	However, the bulk assignee is not required to deliver items and
1012	documents not in the possession of the bulk assignee during the
1013	period during which the bulk assignee was the owner of
1014	condominium parcels. In conjunction with the acquisition of
1015	condominium parcels, a bulk assignee shall undertake a good
1016	faith effort to obtain the documents and materials required to
1017	be provided to the association pursuant to s. 718.301(4). To the
1018	extent the bulk assignee is not able to obtain all of such
1019	documents and materials, the bulk assignee shall certify in
1020	writing to the association the names or descriptions of the
1021	documents and materials that were not obtainable by the bulk
1022	assignee. Delivery of the certificate relieves the bulk assignee
1023	of responsibility for the delivery of the documents and
1024	materials referenced in the certificate as otherwise required
1025	under ss. 718.112 and 718.301 and this part. The responsibility
1026	of the bulk assignee for the audit required by s. 718.301(4)
1027	shall commence as of the date on which the bulk assignee elected
1028	a majority of the members of the board of administration.
1029	(4)  If a conflict arises between the provisions or
1030	application of this section and s. 718.301, this section shall
1031	prevail.
1032	(5)  Failure of a bulk assignee or bulk buyer to comply
1033	with all the requirements contained in this part shall result in
1034	the loss of any and all protections or exemptions provided under
1035	this part.
1036	718.706  Specific provisions pertaining to offering of
1037	units by a bulk assignee or bulk buyer.-
1038	(1)  Before offering any units for sale or for lease for a
1039	term exceeding 5 years, a bulk assignee or bulk buyer must file
1040	the following documents with the division and provide such
1041	documents to a prospective purchaser:
1042	(a)  An updated prospectus or offering circular, or a
1043	supplement to the prospectus or offering circular, filed by the
1044	creating developer prepared in accordance with s. 718.504, which
1045	shall include the form of contract for purchase and sale in
1046	compliance with s. 718.503(2).
1047	(b)  An updated Frequently Asked Questions and Answers
1048	sheet.
1049	(c)  The executed escrow agreement if required under s.
1050	718.202.
1051	(d)  The financial information required by s. 718.111(13).
1052	However, if a financial information report does not exist for
1053	the fiscal year before acquisition of title by the bulk assignee
1054	or bulk buyer, or accounting records cannot be obtained in good
1055	faith by the bulk assignee or bulk buyer which would permit
1056	preparation of the required financial information report, the
1057	bulk assignee or bulk buyer is excused from the requirement of
1058	this paragraph. However, the bulk assignee or bulk buyer must
1059	include in the purchase contract the following statement in
1060	conspicuous type:
1061
1062	THE FINANCIAL INFORMATION REPORT REQUIRED UNDER
1063	SECTION 718.111(13), FLORIDA STATUTES, FOR THE
1064	IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1065	IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER AS
1066	A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
1067	ASSOCIATION.
1068
1069	(2)  Before offering any units for sale or for lease for a
1070	term exceeding 5 years, a bulk assignee must file with the
1071	division and provide to a prospective purchaser a disclosure
1072	statement that must include, but is not limited to:
1073	(a)  A description to the purchaser of any rights of the
1074	developer which have been assigned to the bulk assignee.
1075	(b)  The following statement in conspicuous type:
1076
1077	SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1078	DEVELOPER UNDER SECTION 718.203(1) OR SECTION 718.618,
1079	FLORIDA STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
1080	CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
1081	OR ON BEHALF OF SELLER.
1082
1083	(c)  If the condominium is a conversion subject to part VI,
1084	the following statement in conspicuous type:
1085
1086	SELLER HAS NO OBLIGATION TO FUND CONVERTER
1087	RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER
1088	SECTION 718.618, FLORIDA STATUTES, ON ANY PORTION OF
1089	THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
1090	REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
1091	AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
1092	DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
1093	DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1094	OF THE SELLER.
1095
1096	(3)  In addition to the requirements set forth in
1097	subsection (1), a bulk assignee or bulk buyer must comply with
1098	the nondeveloper disclosure requirements set forth in s.
1099	718.503(2) before offering any units for sale or for lease for a
1100	term exceeding 5 years.
1101	(4)  A bulk assignee, while in control of the board of
1102	administration of the association, may not authorize, on behalf
1103	of the association:
1104	(a)  The waiver of reserves or the reduction of funding of
1105	the reserves in accordance with s. 718.112(2)(f)2., unless
1106	approved by a majority of the voting interests not controlled by
1107	the developer, bulk assignee, or bulk buyer; or
1108	(b)  The use of reserve expenditures for other purposes in
1109	accordance with s. 718.112(2)(f)3., unless approved by a
1110	majority of the voting interests not controlled by the
1111	developer, bulk assignee, or bulk buyer.
1112	(5)  A bulk assignee, while in control of the board of
1113	administration of the association, must comply with the
1114	requirements imposed upon developers to transfer control of the
1115	association to the unit owners in accordance with s. 718.301.
1116	(6)  A bulk assignee or bulk buyer must comply with all the
1117	requirements of s. 718.302 regarding any contracts entered into
1118	by the association during the period the bulk assignee or bulk
1119	buyer maintains control of the board of administration. Unit
1120	owners shall be afforded all the protections contained in s.
1121	718.302 regarding agreements entered into by the association
1122	before unit owners other than the developer, bulk assignee, or
1123	bulk buyer elected a majority of the board of administration.
1124	(7)  A bulk buyer must comply with the requirements
1125	contained in the declaration regarding any transfer of a unit,
1126	including sales, leases, and subleases. A bulk buyer is not
1127	entitled to any exemptions afforded a developer or successor
1128	developer under this chapter regarding any transfer of a unit,
1129	including sales, leases, or subleases.
1130	718.707  Time limitation for classification as bulk
1131	assignee or bulk buyer.-A person acquiring condominium parcels
1132	may not be classified as a bulk assignee or bulk buyer unless
1133	the condominium parcels were acquired before July 1, 2011. The
1134	date of such acquisition shall be determined by the date of
1135	recording of a deed or other instrument of conveyance for such
1136	parcels in the public records of the county in which the
1137	condominium is located or by the date of issuance of a
1138	certificate of title in a foreclosure proceeding with respect to
1139	such condominium parcels.
1140	718.708  Liability of developers and others.-An assignment
1141	of developer rights to a bulk assignee or bulk buyer does not
1142	release the developer from any liabilities under the declaration
1143	or this chapter. This part does not limit the liability of the
1144	developer for claims brought by unit owners, bulk assignees, or
1145	bulk buyers for violations of this chapter by the developer,
1146	unless specifically excluded in this part. Nothing contained
1147	within this part waives, releases, compromises, or limits the
1148	liability of contractors, subcontractors, materialmen,
1149	manufacturers, architects, engineers, or any participant in the
1150	design or construction of a condominium for any claim brought by
1151	an association, unit owners, bulk assignees, or bulk buyers
1152	arising from the design of the condominium, construction
1153	defects, misrepresentations associated with condominium
1154	property, or violations of this chapter, unless specifically
1155	excluded in this part.
1156	Section 9.  Subsection (5) of section 719.1055, Florida
1157	Statutes, is amended to read:
1158	719.1055  Amendment of cooperative documents; alteration
1159	and acquisition of property.-
1160	(5)  There shall be a provision in the bylaws that a
1161	certificate of compliance from a licensed electrical contractor
1162	or electrician may be accepted by the association's board as
1163	evidence of compliance of the cooperative units with the
1164	applicable fire and life safety code. Notwithstanding the
1165	provisions of chapter 633 or of any other code, statute,
1166	ordinance, administrative rule, or regulation, or any
1167	interpretation of the foregoing, a cooperative or unit owner is
1168	not obligated to retrofit the common elements, common areas,
1169	association-owned property, or units of a residential
1170	cooperative with a fire sprinkler system or any other form of
1171	engineered lifesafety life safety system in a building that has
1172	been certified for occupancy by the applicable governmental
1173	entity, if the unit owners have voted to forego such
1174	retrofitting and engineered lifesafety life safety system by the
1175	affirmative vote of two-thirds of all voting interests in the
1176	affected cooperative. However, a cooperative may not forego the
1177	retrofitting with a fire sprinkler system of common areas in a
1178	high-rise building. For purposes of this subsection, the term
1179	"high-rise building" means a building that is greater than 75
1180	feet in height where the building height is measured from the
1181	lowest level of fire department access to the floor of the
1182	highest occupiable story. For purposes of this subsection, the
1183	term "common areas" means any enclosed hallway, corridor, lobby,
1184	stairwell, or entryway. In no event shall the local authority
1185	having jurisdiction require completion of retrofitting of common
1186	areas with a sprinkler system or other form of engineered
1187	lifesafety system before the end of 2019 2014.
1188	(a)  A vote to forego retrofitting may be obtained by
1189	limited proxy or by a ballot personally cast at a duly called
1190	membership meeting, or by execution of a written consent by the
1191	member, and shall be effective upon the recording of a
1192	certificate attesting to such vote in the public records of the
1193	county where the cooperative is located. The association shall
1194	mail or, hand deliver, or electronically transmit to each unit
1195	owner written notice at least 14 days prior to such membership
1196	meeting in which the vote to forego retrofitting of the required
1197	fire sprinkler system or any other form of engineered lifesafety
1198	system is to take place. Within 30 days after the association's
1199	opt-out vote, notice of the results of the opt-out vote shall be
1200	mailed or, hand delivered, or electronically transmitted to all
1201	unit owners. Evidence of compliance with this 30-day notice
1202	shall be made by an affidavit executed by the person providing
1203	the notice and filed among the official records of the
1204	association. After such notice is provided to each owner, a copy
1205	of such notice shall be provided by the current owner to a new
1206	owner prior to closing and shall be provided by a unit owner to
1207	a renter prior to signing a lease.
1208	(b) If there has been a previous vote approving the
1209	association to forego retrofitting, a vote to require
1210	retrofitting may be obtained at a special meeting of the unit
1211	owners called by a petition of least 10 percent of the voting
1212	interests. Such vote may only be called for once every 3 years.
1213	Notice shall be provided as required for any regularly called
1214	meeting of the unit owners, and the notice shall state the
1215	purpose of the meeting. Electronic transmission may not be used
1216	as a method of giving notice of a meeting called in whole or in
1217	part for this purpose.
1218	(c)(b)  As part of the information collected annually from
1219	cooperatives, the division shall require associations to report
1220	the membership vote and recording of a certificate under this
1221	subsection and, if retrofitting has been undertaken, the per-
1222	unit cost of such work. The division shall annually report to
1223	the Division of State Fire Marshal of the Department of
1224	Financial Services the number of cooperatives that have elected
1225	to forego retrofitting.
1226	Section 10.  Subsection (2) of section 553.509, Florida
1227	Statutes, is repealed.
1228	Section 11.  This act shall take effect upon becoming a
1229	law.

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