CS/CS/HB 561

1	A bill to be entitled
2	An act relating to community associations; amending s.
3	399.02, F.S.; exempting certain elevators from specific
4	code update requirements; providing a phase-in period for
5	such elevators; creating s. 627.714, F.S.; requiring that
6	coverage under a unit owner's policy for certain
7	assessments include at least a minimum amount of loss
8	assessment coverage; requiring that every property
9	insurance policy to an individual unit owner contain a
10	specified provision; amending s. 633.0215, F.S.; providing
11	an exemption for certain condominiums and cooperatives
12	from installing a manual fire alarm system as required in
13	the Life Safety Code if certain conditions are met;
14	amending s. 718.103, F.S.; revising the definition of the
15	term "developer" to exclude a bulk assignee or bulk buyer;
16	amending s. 718.111, F.S.; requiring that adequate
17	property insurance be based upon the replacement cost of
18	the property to be insured as determined by an independent
19	appraisal or update of a prior appraisal; requiring that
20	such replacement cost be determined at least once within a
21	specified period; providing means by which an association
22	may provide adequate property insurance; prohibiting such
23	coverage or program from existing beyond a specified date;
24	authorizing an association to consider deductibles when
25	determining an adequate amount of property insurance;
26	providing that failure to maintain adequate property
27	insurance constitutes a breach of fiduciary duty by the
28	members of the board of directors of an association;
29	revising the procedures for the board to establish the
30	amount of deductibles; requiring that an association
31	controlled by unit owners operating as a residential
32	condominium use its best efforts to obtain and maintain
33	adequate property insurance to protect the association and
34	certain property; requiring that every property insurance
35	policy issued or renewed on or after a specified date
36	provide certain coverage; excluding certain items from
37	such requirement; providing that excluded items and any
38	insurance thereupon are the responsibility of the unit
39	owner; requiring that condominium unit owners' policies
40	conform to certain provisions of state law; deleting
41	provisions relating to certain hazard and casualty
42	insurance policies; conforming provisions to changes made
43	by the act; amending s. 718.112, F.S.; conforming cross-
44	references; revising requirements for the reappointment of
45	certain board members; revising board eligibility
46	requirements; revising notice requirements for board
47	candidates; establishing requirements for newly elected
48	board members; deleting a provision prohibiting an
49	association from foregoing the retrofitting with a fire
50	sprinkler system of common areas in a high-rise building;
51	prohibiting local authorities having jurisdiction from
52	requiring retrofitting with a sprinkler system or other
53	engineered lifesafety system before a specified date;
54	providing requirements for a special meeting of unit
55	owners that may be called every 3 years in order to vote
56	to forgo retrofitting of the sprinkler system or other
57	engineered lifesafety system; providing meeting notice
58	requirements; providing that certain directors and
59	officers delinquent in the payment of any fee, fine, or
60	regular or special assessments shall be deemed to have
61	abandoned their office; amending s. 718.115, F.S.;
62	requiring that certain services obtained pursuant to a
63	bulk contract as provided in the declaration be deemed a
64	common expense; amending s. 718.301, F.S.; revising
65	conditions under which unit owners other than the
66	developer may elect not less than a majority of the
67	members of the board of administration of an association;
68	creating part VII of ch. 718, F.S., relating to distressed
69	condominium relief; providing a short title; providing
70	legislative findings and intent; defining the terms "bulk
71	assignee" and "bulk buyer"; providing for the assignment
72	of developer rights to and the assumption of developer
73	rights by a bulk assignee; specifying liabilities of bulk
74	assignees and bulk buyers; providing exceptions; providing
75	additional responsibilities of bulk assignees and bulk
76	buyers; authorizing certain entities to assign developer
77	rights to a bulk assignee; limiting the number of bulk
78	assignees at any given time; providing for the transfer of
79	control of a board of administration; providing effects of
80	such transfer on parcels acquired by a bulk assignee;
81	providing obligations of a bulk assignee upon the transfer
82	of control of a board of administration; requiring that a
83	bulk assignee certify certain information in writing;
84	providing for the resolution of a conflict between
85	specified provisions of state law; providing that the
86	failure of a bulk assignee or bulk buyer to comply with
87	specified provisions of state law results in the loss of
88	certain protections and exemptions; requiring that a bulk
89	assignee or bulk buyer file certain information with the
90	Division of Florida Condominiums, Timeshares, and Mobile
91	Homes of the Department of Business and Professional
92	Regulation before offering any units for sale or lease in
93	excess of a specified term; requiring that a copy of such
94	information be provided to a prospective purchaser;
95	requiring that certain contracts and disclosure statements
96	contain specified statements; requiring that a bulk
97	assignee or bulk buyer comply with certain disclosure
98	requirements; prohibiting a bulk assignee from taking
99	certain actions on behalf of an association while the bulk
100	assignee is in control of the board of administration of
101	the association and requiring that such bulk assignee
102	comply with certain requirements; requiring that a bulk
103	assignee or bulk buyer comply with certain requirements
104	regarding certain contracts; providing unit owners with
105	specified protections regarding certain contracts;
106	requiring that a bulk buyer comply with certain
107	requirements regarding the transfer of a unit; prohibiting
108	a person from being classified as a bulk assignee or bulk
109	buyer unless condominium parcels were acquired before a
110	specified date; providing for the determination of the
111	date of acquisition of a parcel; providing that the
112	assignment of developer rights to a bulk assignee or bulk
113	buyer does not release a developer from certain
114	liabilities; preserving certain liabilities for certain
115	parties; amending s. 719.1055, F.S.; providing an
116	additional required provision in cooperative bylaws;
117	deleting a provision prohibiting an association from
118	foregoing the retrofitting with a fire sprinkler system of
119	common areas in a high-rise building; prohibiting local
120	authorities having jurisdiction from requiring
121	retrofitting with a sprinkler system or other engineered
122	lifesafety system before a specified date; providing
123	requirements for a special meeting of unit owners that may
124	be called every 3 years in order to vote to require
125	retrofitting of the sprinkler system or other engineered
126	lifesafety system; providing meeting notice requirements;
127	repealing s. 553.509(2), F.S., relating to the requirement
128	that certain residential family dwellings have at least
129	one public elevator that is capable of operating on an
130	alternate power source for emergency purposes; providing
131	an effective date.
132
133	Be It Enacted by the Legislature of the State of Florida:
134
135	Section 1.  Subsection (8) is added to section 399.02,
136	Florida Statutes, to read:
137	399.02  General requirements.-
138	(8)  Updates to the code requiring modifications for Phase
139	II Firefighters' Service on existing elevators, as amended into
140	the Safety Code for Existing Elevators and Escalators, ASME
141	A17.1 and A17.3, may not be enforced on elevators in
142	condominiums or cooperatives issued a certificate of occupancy
143	by the local building authority as of July 1, 2008, for 5 years
144	or until the elevator is replaced or requires major
145	modification, whichever occurs first. This exception does not
146	apply to a building for which a certificate of occupancy was
147	issued after July 1, 2008. This exception does not prevent an
148	elevator owner from requesting a variance from the applicable
149	codes before or after the expiration of the 5-year term. This
150	subsection does not prohibit the division from granting
151	variances pursuant to s. 120.542. The division shall adopt rules
152	to administer this subsection.
153	Section 2.  Section 627.714, Florida Statutes, is created
154	to read:
155	627.714  Residential condominium unit owner coverage; loss
156	assessment coverage required; excess coverage provision
157	required.-For policies issued or renewed on or after July 1,
158	2010, coverage under a unit owner's residential property policy
159	shall include property loss assessment coverage of at least
160	$2,000 for all assessments made as a result of the same direct
161	loss to the property, regardless of the number of assessments,
162	owned by all members of the association collectively when such
163	loss is of the type of loss covered by the unit owner's
164	residential property insurance policy, to which a deductible
165	shall apply of no more than $250 per direct property loss. If a
166	deductible was or will be applied to other property loss
167	sustained by the unit owner resulting from the same direct loss
168	to the property, no deductible shall apply to the loss
169	assessment coverage. Every individual unit owner's residential
170	property policy must contain a provision stating that the
171	coverage afforded by such policy is excess coverage over the
172	amount recoverable under any other policy covering the same
173	property.
174	Section 3.  Subsection (13) is added to section 633.0215,
175	Florida Statutes, to read:
176	633.0215  Florida Fire Prevention Code.-
177	(13)  A condominium or cooperative that is less than four
178	stories in height and has an exterior means of egress corridor
179	is exempt from installing a manual fire alarm system as required
180	in s. 9.6 of the most recent edition of the Life Safety Code
181	adopted in the Florida Fire Prevention Code, or as same may be
182	amended or renumbered.
183	Section 4.  Subsection (16) of section 718.103, Florida
184	Statutes, is amended to read:
185	718.103  Definitions.-As used in this chapter, the term:
186	(16)  "Developer" means a person who creates a condominium
187	or offers condominium parcels for sale or lease in the ordinary
188	course of business, but does not include:
189	(a)  An owner or lessee of a condominium or cooperative
190	unit who has acquired the unit for his or her own occupancy;,
191	nor does it include
192	(b)  A cooperative association which creates a condominium
193	by conversion of an existing residential cooperative after
194	control of the association has been transferred to the unit
195	owners if, following the conversion, the unit owners will be the
196	same persons who were unit owners of the cooperative and no
197	units are offered for sale or lease to the public as part of the
198	plan of conversion;.
199	(c)  A bulk assignee or bulk buyer as defined in s.
200	718.703; or
201	(d)  A state, county, or municipal entity is not a
202	developer for any purposes under this act when it is acting as a
203	lessor and not otherwise named as a developer in the declaration
204	of condominium association.
205	Section 5.  Paragraphs (a), (b), (c), (d), (f), (g), (j),
206	and (n) of subsection (11) of section 718.111, Florida Statutes,
207	are amended to read:
208	718.111  The association.-
209	(11)  INSURANCE.-In order to protect the safety, health,
210	and welfare of the people of the State of Florida and to ensure
211	consistency in the provision of insurance coverage to
212	condominiums and their unit owners, this subsection applies to
213	every residential condominium in the state, regardless of the
214	date of its declaration of condominium. It is the intent of the
215	Legislature to encourage lower or stable insurance premiums for
216	associations described in this subsection.
217	(a)  Adequate property hazard insurance, regardless of any
218	requirement in the declaration of condominium for coverage by
219	the association for full insurable value, replacement cost, or
220	similar coverage, shall be based upon the replacement cost of
221	the property to be insured as determined by an independent
222	insurance appraisal or update of a prior appraisal. The
223	replacement cost full insurable value shall be determined at
224	least once every 36 months.
225	1.  An association or group of associations may provide
226	adequate property hazard insurance through a self-insurance fund
227	that complies with the requirements of ss. 624.460-624.488.
228	2.  The association may also provide adequate property
229	hazard insurance coverage for a group of no fewer than three
230	communities created and operating under this chapter, chapter
231	719, chapter 720, or chapter 721 by obtaining and maintaining
232	for such communities insurance coverage sufficient to cover an
233	amount equal to the probable maximum loss for the communities
234	for a 250-year windstorm event. Such probable maximum loss must
235	be determined through the use of a competent model that has been
236	accepted by the Florida Commission on Hurricane Loss Projection
237	Methodology. No policy or program providing such coverage shall
238	be issued or renewed after July 1, 2008, unless it has been
239	reviewed and approved by the Office of Insurance Regulation. The
240	review and approval shall include approval of the policy and
241	related forms pursuant to ss. 627.410 and 627.411, approval of
242	the rates pursuant to s. 627.062, a determination that the loss
243	model approved by the commission was accurately and
244	appropriately applied to the insured structures to determine the
245	250-year probable maximum loss, and a determination that
246	complete and accurate disclosure of all material provisions is
247	provided to condominium unit owners prior to execution of the
248	agreement by a condominium association.
249	3.  When determining the adequate amount of property hazard
250	insurance coverage, the association may consider deductibles as
251	determined by this subsection.
252	(b)  If an association is a developer-controlled
253	association, the association shall exercise its best efforts to
254	obtain and maintain insurance as described in paragraph (a).
255	Failure to obtain and maintain adequate property hazard
256	insurance during any period of developer control constitutes a
257	breach of fiduciary responsibility by the developer-appointed
258	members of the board of directors of the association, unless the
259	members can show that despite such failure, they have made their
260	best efforts to maintain the required coverage.
261	(c)  Policies may include deductibles as determined by the
262	board.
263	1.  The deductibles shall be consistent with industry
264	standards and prevailing practice for communities of similar
265	size and age, and having similar construction and facilities in
266	the locale where the condominium property is situated.
267	2.  The deductibles may be based upon available funds,
268	including reserve accounts, or predetermined assessment
269	authority at the time the insurance is obtained.
270	3.  The board shall establish the amount of deductibles
271	based upon the level of available funds and predetermined
272	assessment authority at a meeting of the board. Such meeting
273	shall be open to all unit owners in the manner set forth in s.
274	718.112(2)(e). The notice of such meeting must state the
275	proposed deductible and the available funds and the assessment
276	authority relied upon by the board and estimate any potential
277	assessment amount against each unit, if any. The meeting
278	described in this paragraph may be held in conjunction with a
279	meeting to consider the proposed budget or an amendment thereto.
280	(d)  An association controlled by unit owners operating as
281	a residential condominium shall use its best efforts to obtain
282	and maintain adequate property insurance to protect the
283	association, the association property, the common elements, and
284	the condominium property that is required to be insured by the
285	association pursuant to this subsection.
286	(f)  Every property hazard insurance policy issued or
287	renewed on or after January 1, 2009, for the purpose of
288	protecting the condominium shall provide primary coverage for:
289	1.  All portions of the condominium property as originally
290	installed or replacement of like kind and quality, in accordance
291	with the original plans and specifications.
292	2.  All alterations or additions made to the condominium
293	property or association property pursuant to s. 718.113(2).
294	3.  The coverage shall exclude all personal property within
295	the unit or limited common elements, and floor, wall, and
296	ceiling coverings, electrical fixtures, appliances, water
297	heaters, water filters, built-in cabinets and countertops, and
298	window treatments, including curtains, drapes, blinds, hardware,
299	and similar window treatment components, or replacements of any
300	of the foregoing which are located within the boundaries of the
301	unit and serve only such unit. Such property and any insurance
302	thereupon shall be the responsibility of the unit owner.
303	(g)  A condominium unit owner's policy shall conform to the
304	requirements of s. 627.714. Every hazard insurance policy issued
305	or renewed on or after January 1, 2009, to an individual unit
306	owner must contain a provision stating that the coverage
307	afforded by such policy is excess coverage over the amount
308	recoverable under any other policy covering the same property.
309	Such policies must include special assessment coverage of no
310	less than $2,000 per occurrence. An insurance policy issued to
311	an individual unit owner providing such coverage does not
312	provide rights of subrogation against the condominium
313	association operating the condominium in which such individual's
314	unit is located.
315	1.  All improvements or additions to the condominium
316	property that benefit fewer than all unit owners shall be
317	insured by the unit owner or owners having the use thereof, or
318	may be insured by the association at the cost and expense of the
319	unit owners having the use thereof.
320	2.  The association shall require each owner to provide
321	evidence of a currently effective policy of hazard and liability
322	insurance upon request, but not more than once per year. Upon
323	the failure of an owner to provide a certificate of insurance
324	issued by an insurer approved to write such insurance in this
325	state within 30 days after the date on which a written request
326	is delivered, the association may purchase a policy of insurance
327	on behalf of an owner. The cost of such a policy, together with
328	reconstruction costs undertaken by the association but which are
329	the responsibility of the unit owner, may be collected in the
330	manner provided for the collection of assessments in s. 718.116.
331	1.3.  All reconstruction work after a property casualty
332	loss shall be undertaken by the association except as otherwise
333	authorized in this section. A unit owner may undertake
334	reconstruction work on portions of the unit with the prior
335	written consent of the board of administration. However, such
336	work may be conditioned upon the approval of the repair methods,
337	the qualifications of the proposed contractor, or the contract
338	that is used for that purpose. A unit owner shall obtain all
339	required governmental permits and approvals prior to commencing
340	reconstruction.
341	2.4.  Unit owners are responsible for the cost of
342	reconstruction of any portions of the condominium property for
343	which the unit owner is required to carry property casualty
344	insurance, and any such reconstruction work undertaken by the
345	association shall be chargeable to the unit owner and
346	enforceable as an assessment pursuant to s. 718.116. The
347	association must be an additional named insured and loss payee
348	on all casualty insurance policies issued to unit owners in the
349	condominium operated by the association.
350	3.5.  A multicondominium association may elect, by a
351	majority vote of the collective members of the condominiums
352	operated by the association, to operate such condominiums as a
353	single condominium for purposes of insurance matters, including,
354	but not limited to, the purchase of the property hazard
355	insurance required by this section and the apportionment of
356	deductibles and damages in excess of coverage. The election to
357	aggregate the treatment of insurance premiums, deductibles, and
358	excess damages constitutes an amendment to the declaration of
359	all condominiums operated by the association, and the costs of
360	insurance shall be stated in the association budget. The
361	amendments shall be recorded as required by s. 718.110.
362	(j)  Any portion of the condominium property required to be
363	insured by the association against property casualty loss
364	pursuant to paragraph (f) which is damaged by casualty shall be
365	reconstructed, repaired, or replaced as necessary by the
366	association as a common expense. All property hazard insurance
367	deductibles, uninsured losses, and other damages in excess of
368	property hazard insurance coverage under the property hazard
369	insurance policies maintained by the association are a common
370	expense of the condominium, except that:
371	1.  A unit owner is responsible for the costs of repair or
372	replacement of any portion of the condominium property not paid
373	by insurance proceeds, if such damage is caused by intentional
374	conduct, negligence, or failure to comply with the terms of the
375	declaration or the rules of the association by a unit owner, the
376	members of his or her family, unit occupants, tenants, guests,
377	or invitees, without compromise of the subrogation rights of any
378	insurer as set forth in paragraph (g).
379	2.  The provisions of subparagraph 1. regarding the
380	financial responsibility of a unit owner for the costs of
381	repairing or replacing other portions of the condominium
382	property also apply to the costs of repair or replacement of
383	personal property of other unit owners or the association, as
384	well as other property, whether real or personal, which the unit
385	owners are required to insure under paragraph (g).
386	3.  To the extent the cost of repair or reconstruction for
387	which the unit owner is responsible under this paragraph is
388	reimbursed to the association by insurance proceeds, and, to the
389	extent the association has collected the cost of such repair or
390	reconstruction from the unit owner, the association shall
391	reimburse the unit owner without the waiver of any rights of
392	subrogation.
393	4.  The association is not obligated to pay for
394	reconstruction or repairs of property casualty losses as a
395	common expense if the property casualty losses were known or
396	should have been known to a unit owner and were not reported to
397	the association until after the insurance claim of the
398	association for that property casualty was settled or resolved
399	with finality, or denied on the basis that it was untimely
400	filed.
401	(n)  The association is not obligated to pay for any
402	reconstruction or repair expenses due to property casualty loss
403	to any improvements installed by a current or former owner of
404	the unit or by the developer if the improvement benefits only
405	the unit for which it was installed and is not part of the
406	standard improvements installed by the developer on all units as
407	part of original construction, whether or not such improvement
408	is located within the unit. This paragraph does not relieve any
409	party of its obligations regarding recovery due under any
410	insurance implemented specifically for any such improvements.
411	Section 6.  Paragraphs (b), (d), (l), and (n) of subsection
412	(2) of section 718.112, Florida Statutes, are amended to read:
413	718.112  Bylaws.-
414	(2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
415	following and, if they do not do so, shall be deemed to include
416	the following:
417	(b)  Quorum; voting requirements; proxies.-
418	1.  Unless a lower number is provided in the bylaws, the
419	percentage of voting interests required to constitute a quorum
420	at a meeting of the members shall be a majority of the voting
421	interests. Unless otherwise provided in this chapter or in the
422	declaration, articles of incorporation, or bylaws, and except as
423	provided in sub-subparagraph subparagraph (d)3.a., decisions
424	shall be made by owners of a majority of the voting interests
425	represented at a meeting at which a quorum is present.
426	2.  Except as specifically otherwise provided herein, after
427	January 1, 1992, unit owners may not vote by general proxy, but
428	may vote by limited proxies substantially conforming to a
429	limited proxy form adopted by the division. No voting interest
430	or consent right allocated to a unit owned by the association
431	shall be exercised or considered for any purpose, whether for a
432	quorum, an election, or otherwise. Limited proxies and general
433	proxies may be used to establish a quorum. Limited proxies shall
434	be used for votes taken to waive or reduce reserves in
435	accordance with subparagraph (f)2.; for votes taken to waive the
436	financial reporting requirements of s. 718.111(13); for votes
437	taken to amend the declaration pursuant to s. 718.110; for votes
438	taken to amend the articles of incorporation or bylaws pursuant
439	to this section; and for any other matter for which this chapter
440	requires or permits a vote of the unit owners. Except as
441	provided in paragraph (d), after January 1, 1992, no proxy,
442	limited or general, shall be used in the election of board
443	members. General proxies may be used for other matters for which
444	limited proxies are not required, and may also be used in voting
445	for nonsubstantive changes to items for which a limited proxy is
446	required and given. Notwithstanding the provisions of this
447	subparagraph, unit owners may vote in person at unit owner
448	meetings. Nothing contained herein shall limit the use of
449	general proxies or require the use of limited proxies for any
450	agenda item or election at any meeting of a timeshare
451	condominium association.
452	3.  Any proxy given shall be effective only for the
453	specific meeting for which originally given and any lawfully
454	adjourned meetings thereof. In no event shall any proxy be valid
455	for a period longer than 90 days after the date of the first
456	meeting for which it was given. Every proxy is revocable at any
457	time at the pleasure of the unit owner executing it.
458	4.  A member of the board of administration or a committee
459	may submit in writing his or her agreement or disagreement with
460	any action taken at a meeting that the member did not attend.
461	This agreement or disagreement may not be used as a vote for or
462	against the action taken and may not be used for the purposes of
463	creating a quorum.
464	5.  When any of the board or committee members meet by
465	telephone conference, those board or committee members attending
466	by telephone conference may be counted toward obtaining a quorum
467	and may vote by telephone. A telephone speaker must be used so
468	that the conversation of those board or committee members
469	attending by telephone may be heard by the board or committee
470	members attending in person as well as by any unit owners
471	present at a meeting.
472	(d)  Unit owner meetings.-
473	1.  There shall be an annual meeting of the unit owners
474	held at the location provided in the association bylaws and, if
475	the bylaws are silent as to the location, the meeting shall be
476	held within 45 miles of the condominium property. However, such
477	distance requirement does not apply to an association governing
478	a timeshare condominium. Unless the bylaws provide otherwise, a
479	vacancy on the board caused by the expiration of a director's
480	term shall be filled by electing a new board member, and the
481	election shall be by secret ballot; however, if the number of
482	vacancies equals or exceeds the number of candidates, no
483	election is required. Except in a timeshare condominium, the
484	terms of all members of the board shall expire at the annual
485	meeting and such board members may stand for reelection unless
486	otherwise permitted by the bylaws. In the event that the
487	governing documents bylaws permit staggered terms of no more
488	than 2 years and upon approval of a majority of the total voting
489	interests, the association board members may serve 2-year
490	staggered terms. If the number no person is interested in or
491	demonstrates an intention to run for the position of a board
492	members member whose terms have term has expired according to
493	the provisions of this subparagraph exceeds the number of
494	eligible members showing interest in or demonstrating an
495	intention to run for the vacant positions, each such board
496	member whose term has expired shall become eligible for
497	reappointment be automatically reappointed to the board of
498	administration and need not stand for reelection. In a
499	condominium association of more than 10 units or in a
500	condominium association that does not include timeshare units,
501	coowners of a unit may not serve as members of the board of
502	directors at the same time unless they own more than one unit
503	and are not co-occupants of a unit. Any unit owner desiring to
504	be a candidate for board membership must shall comply with sub-
505	subparagraph subparagraph 3.a. A person who has been suspended
506	or removed by the division under this chapter, or who is
507	delinquent in the payment of any fee, fine, or special or
508	regular assessment as provided in paragraph (n), is not eligible
509	for board membership. A person who has been convicted of any
510	felony in this state or in a United States District or
511	Territorial Court, or who has been convicted of any offense in
512	another jurisdiction that would be considered a felony if
513	committed in this state, is not eligible for board membership
514	unless such felon's civil rights have been restored for a period
515	of no less than 5 years as of the date on which such person
516	seeks election to the board. The validity of an action by the
517	board is not affected if it is later determined that a member of
518	the board is ineligible for board membership due to having been
519	convicted of a felony.
520	2.  The bylaws shall provide the method of calling meetings
521	of unit owners, including annual meetings. Written notice, which
522	notice must include an agenda, shall be mailed, hand delivered,
523	or electronically transmitted to each unit owner at least 14
524	days prior to the annual meeting and shall be posted in a
525	conspicuous place on the condominium property at least 14
526	continuous days preceding the annual meeting. Upon notice to the
527	unit owners, the board shall by duly adopted rule designate a
528	specific location on the condominium property or association
529	property upon which all notices of unit owner meetings shall be
530	posted; however, if there is no condominium property or
531	association property upon which notices can be posted, this
532	requirement does not apply. In lieu of or in addition to the
533	physical posting of notice of any meeting of the unit owners on
534	the condominium property, the association may, by reasonable
535	rule, adopt a procedure for conspicuously posting and repeatedly
536	broadcasting the notice and the agenda on a closed-circuit cable
537	television system serving the condominium association. However,
538	if broadcast notice is used in lieu of a notice posted
539	physically on the condominium property, the notice and agenda
540	must be broadcast at least four times every broadcast hour of
541	each day that a posted notice is otherwise required under this
542	section. When broadcast notice is provided, the notice and
543	agenda must be broadcast in a manner and for a sufficient
544	continuous length of time so as to allow an average reader to
545	observe the notice and read and comprehend the entire content of
546	the notice and the agenda. Unless a unit owner waives in writing
547	the right to receive notice of the annual meeting, such notice
548	shall be hand delivered, mailed, or electronically transmitted
549	to each unit owner. Notice for meetings and notice for all other
550	purposes shall be mailed to each unit owner at the address last
551	furnished to the association by the unit owner, or hand
552	delivered to each unit owner. However, if a unit is owned by
553	more than one person, the association shall provide notice, for
554	meetings and all other purposes, to that one address which the
555	developer initially identifies for that purpose and thereafter
556	as one or more of the owners of the unit shall so advise the
557	association in writing, or if no address is given or the owners
558	of the unit do not agree, to the address provided on the deed of
559	record. An officer of the association, or the manager or other
560	person providing notice of the association meeting, shall
561	provide an affidavit or United States Postal Service certificate
562	of mailing, to be included in the official records of the
563	association affirming that the notice was mailed or hand
564	delivered, in accordance with this provision.
565	3.a.  The members of the board shall be elected by written
566	ballot or voting machine. Proxies shall in no event be used in
567	electing the board, either in general elections or elections to
568	fill vacancies caused by recall, resignation, or otherwise,
569	unless otherwise provided in this chapter. Not less than 60 days
570	before a scheduled election, the association shall mail,
571	deliver, or electronically transmit, whether by separate
572	association mailing or included in another association mailing,
573	delivery, or transmission, including regularly published
574	newsletters, to each unit owner entitled to a vote, a first
575	notice of the date of the election along with a certification
576	form provided by the division attesting that he or she has read
577	and understands, to the best of his or her ability, the
578	governing documents of the association and the provisions of
579	this chapter and any applicable rules. Any unit owner or other
580	eligible person desiring to be a candidate for the board must
581	give written notice of intent to be a candidate to the
582	association not less than 40 days before a scheduled election.
583	Together with the written notice and agenda as set forth in
584	subparagraph 2., the association shall mail, deliver, or
585	electronically transmit a second notice of the election to all
586	unit owners entitled to vote therein, together with a ballot
587	which shall list all candidates. Upon request of a candidate,
588	the association shall include an information sheet, no larger
589	than 8 1/2 inches by 11 inches, which must be furnished by the
590	candidate not less than 35 days before the election, shall along
591	with the signed certification form provided for in this
592	subparagraph, to be included with the mailing, delivery, or
593	transmission of the ballot, with the costs of mailing, delivery,
594	or electronic transmission and copying to be borne by the
595	association. The association is not liable for the contents of
596	the information sheets prepared by the candidates. In order to
597	reduce costs, the association may print or duplicate the
598	information sheets on both sides of the paper. The division
599	shall by rule establish voting procedures consistent with the
600	provisions contained herein, including rules establishing
601	procedures for giving notice by electronic transmission and
602	rules providing for the secrecy of ballots. Elections shall be
603	decided by a plurality of those ballots cast. There shall be no
604	quorum requirement; however, at least 20 percent of the eligible
605	voters must cast a ballot in order to have a valid election of
606	members of the board. No unit owner shall permit any other
607	person to vote his or her ballot, and any such ballots
608	improperly cast shall be deemed invalid, provided any unit owner
609	who violates this provision may be fined by the association in
610	accordance with s. 718.303. A unit owner who needs assistance in
611	casting the ballot for the reasons stated in s. 101.051 may
612	obtain assistance in casting the ballot. The regular election
613	shall occur on the date of the annual meeting. The provisions of
614	this sub-subparagraph subparagraph shall not apply to timeshare
615	condominium associations. Notwithstanding the provisions of this
616	sub-subparagraph subparagraph, an election is not required
617	unless more candidates file notices of intent to run or are
618	nominated than board vacancies exist.
619	b.  Within 90 days after being elected to the board, each
620	newly elected director shall certify in writing to the secretary
621	of the association that he or she has read the association's
622	declarations of covenants and restrictions, articles of
623	incorporation, bylaws, and current written policies; that he or
624	she will work to uphold such documents and policies to the best
625	of his or her ability; and that he or she will faithfully
626	discharge his or her fiduciary responsibility to the
627	association's members. In lieu of this written certification,
628	the newly elected director may submit a certificate of
629	satisfactory completion of the educational curriculum
630	administered by a division-approved condominium education
631	provider. Failure to timely file the written certification or
632	educational certificate automatically disqualifies the director
633	from service on the board. Notwithstanding the foregoing, a
634	director shall not be automatically removed from the board if
635	the director's failure to provide the completed education
636	certificate results from a failure of the education provider to
637	timely provide it. The secretary shall cause the association to
638	retain a director's written certification or educational
639	certificate for inspection by the members for 5 years after a
640	director's election. Failure to have such written certification
641	or educational certificate on file does not affect the validity
642	of any appropriate action.
643	4.  Any approval by unit owners called for by this chapter
644	or the applicable declaration or bylaws, including, but not
645	limited to, the approval requirement in s. 718.111(8), shall be
646	made at a duly noticed meeting of unit owners and shall be
647	subject to all requirements of this chapter or the applicable
648	condominium documents relating to unit owner decisionmaking,
649	except that unit owners may take action by written agreement,
650	without meetings, on matters for which action by written
651	agreement without meetings is expressly allowed by the
652	applicable bylaws or declaration or any statute that provides
653	for such action.
654	5.  Unit owners may waive notice of specific meetings if
655	allowed by the applicable bylaws or declaration or any statute.
656	If authorized by the bylaws, notice of meetings of the board of
657	administration, unit owner meetings, except unit owner meetings
658	called to recall board members under paragraph (j), and
659	committee meetings may be given by electronic transmission to
660	unit owners who consent to receive notice by electronic
661	transmission.
662	6.  Unit owners shall have the right to participate in
663	meetings of unit owners with reference to all designated agenda
664	items. However, the association may adopt reasonable rules
665	governing the frequency, duration, and manner of unit owner
666	participation.
667	7.  Any unit owner may tape record or videotape a meeting
668	of the unit owners subject to reasonable rules adopted by the
669	division.
670	8.  Unless otherwise provided in the bylaws, any vacancy
671	occurring on the board before the expiration of a term may be
672	filled by the affirmative vote of the majority of the remaining
673	directors, even if the remaining directors constitute less than
674	a quorum, or by the sole remaining director. In the alternative,
675	a board may hold an election to fill the vacancy, in which case
676	the election procedures must conform to the requirements of sub-
677	subparagraph subparagraph 3.a. unless the association governs 10
678	units or fewer less and has opted out of the statutory election
679	process, in which case the bylaws of the association control.
680	Unless otherwise provided in the bylaws, a board member
681	appointed or elected under this section shall fill the vacancy
682	for the unexpired term of the seat being filled. Filling
683	vacancies created by recall is governed by paragraph (j) and
684	rules adopted by the division.
685
686	Notwithstanding subparagraph subparagraphs (b)2. and sub-
687	subparagraph (d)3.a., an association of 10 or fewer units may,
688	by the affirmative vote of a majority of the total voting
689	interests, provide for different voting and election procedures
690	in its bylaws, which vote may be by a proxy specifically
691	delineating the different voting and election procedures. The
692	different voting and election procedures may provide for
693	elections to be conducted by limited or general proxy.
694	(l)  Certificate of compliance.-There shall be a provision
695	that a certificate of compliance from a licensed electrical
696	contractor or electrician may be accepted by the association's
697	board as evidence of compliance of the condominium units with
698	the applicable fire and life safety code. Notwithstanding the
699	provisions of chapter 633 or of any other code, statute,
700	ordinance, administrative rule, or regulation, or any
701	interpretation of the foregoing, an association, condominium, or
702	unit owner is not obligated to retrofit the common elements,
703	common areas, association-owned property, or units of a
704	residential condominium with a fire sprinkler system or any
705	other form of engineered lifesafety system in a building that
706	has been certified for occupancy by the applicable governmental
707	entity, if the unit owners have voted to forego such
708	retrofitting and engineered lifesafety system by the affirmative
709	vote of two-thirds of all voting interests in the affected
710	condominium. However, a condominium association may not vote to
711	forego the retrofitting with a fire sprinkler system of common
712	areas in a high-rise building. For purposes of this subsection,
713	the term "high-rise building" means a building that is greater
714	than 75 feet in height where the building height is measured
715	from the lowest level of fire department access to the floor of
716	the highest occupiable story. For purposes of this subsection,
717	the term "common areas" means any enclosed hallway, corridor,
718	lobby, stairwell, or entryway. In no event shall the local
719	authority having jurisdiction require completion of retrofitting
720	of common areas with a sprinkler system or any other form of
721	engineered lifesafety system before the end of 2019 2014.
722	1.  A vote to forego retrofitting may be obtained by
723	limited proxy or by a ballot personally cast at a duly called
724	membership meeting, or by execution of a written consent by the
725	member, and shall be effective upon the recording of a
726	certificate attesting to such vote in the public records of the
727	county where the condominium is located. The association shall
728	mail or, hand deliver, or electronically transmit to each unit
729	owner written notice at least 14 days
730	meeting in which the vote to forego
731	fire sprinkler system or any other
732	system is to take place. Within 30 days after the association's
733	opt-out vote, notice of the results of the opt-out vote shall be
734	mailed or, hand delivered, or electronically transmitted to all
735	unit owners. Evidence of compliance with this 30-day notice
736	shall be made by an affidavit executed by the person providing
737	the notice and filed among the official records of the
738	association. After such notice is provided to each owner, a copy
739	of such notice shall be provided by the current owner to a new
740	owner prior to closing and shall be provided by a unit owner to
741	a renter prior to signing a lease.
742	2.  If there has been a previous vote approving the
743	association to forego retrofitting, a vote to require
744	retrofitting may be obtained at a special meeting of the unit
745	owners called by a petition of least 10 percent of the voting
746	interests. Such a vote may only be called for once every 3
747	years. Notice shall be provided as required for any regularly
748	called meeting of the unit owners, and the notice shall state
749	the purpose of the meeting. Electronic transmission may not be
750	used as a method of giving notice of a meeting called in whole
751	or in part for this purpose.
752	3.2.  As part of the information collected annually from
753	condominiums, the division shall require condominium
754	associations to report the membership vote and recording of a
755	certificate under this subsection and, if retrofitting has been
756	undertaken, the per-unit cost of such work. The division shall
757	annually report to the Division of State Fire Marshal of the
758	Department of Financial Services the number of condominiums that
759	have elected to forego retrofitting.
760	(n)  Director or officer delinquencies.-A director or
761	officer more than 90 days delinquent in the payment of any fee,
762	fine, or regular or special assessments shall be deemed to have
763	abandoned the office, creating a vacancy in the office to be
764	filled according to law.
765	Section 7.  Paragraph (d) of subsection (1) of section
766	718.115, Florida Statutes, is amended to read:
767	718.115  Common expenses and common surplus.-
768	(1)
769	(d)  If the association is authorized pursuant to so
770	provided in the declaration to enter into a bulk contract for
771	communications services as defined in chapter 202, information
772	services, or Internet services, the costs charged for such
773	services, the cost of a master antenna television system or duly
774	franchised cable television service obtained pursuant to a bulk
775	contract shall be deemed a common expense. If the declaration
776	does not authorize the association to enter into a bulk contract
777	for provide for the cost of communications services as defined
778	in chapter 202, information services, or Internet services a
779	master antenna television system or duly franchised cable
780	television service obtained under a bulk contract as a common
781	expense, the board may enter into such a contract for such
782	services., and The cost of the services under a bulk contract
783	service will be a common expense but allocated on a per-unit
784	basis rather than a percentage basis if the declaration provides
785	for other than an equal sharing of common expenses, and any
786	contract entered into before July 1, 1998, in which the cost of
787	the service is not equally divided among all unit owners, may be
788	changed by vote of a majority of the voting interests present at
789	a regular or special meeting of the association, to allocate the
790	cost equally among all units. The contract shall be for a term
791	of not less than 2 years.
792	1.  Any contract made by the board after the effective date
793	hereof for communications services as defined in chapter 202,
794	information services, or Internet services a community antenna
795	system or duly franchised cable television service may be
796	canceled by a majority of the voting interests present at the
797	next regular or special meeting of the association. Any member
798	may make a motion to cancel the said contract, but if no motion
799	is made or if such motion fails to obtain the required majority
800	at the next regular or special meeting, whichever occurs is
801	sooner, following the making of the contract, then such contract
802	shall be deemed ratified for the term therein expressed. Any
803	contract made by the association prior to assumption of control
804	of the association by unit owners other than the developer may
805	be canceled within 120 days after unit owners other than the
806	developer elect a majority of the board of directors consistent
807	with the provisions of s. 718.302(1).
808	2.  Any such contract shall provide, and shall be deemed to
809	provide if not expressly set forth, that any hearing-impaired or
810	legally blind unit owner who does not occupy the unit with a
811	non-hearing-impaired or sighted person, or any unit owner
812	receiving supplemental security income under Title XVI of the
813	Social Security Act or food stamps as administered by the
814	Department of Children and Family Services pursuant to s.
815	414.31, may discontinue the cable or video service without
816	incurring disconnect fees, penalties, or subsequent service
817	charges, and, as to such units, the owners shall not be required
818	to pay any common expenses charge related to such service. If
819	less than all members of an association share the expenses of
820	cable or video service television, the expense shall be shared
821	equally by all participating unit owners. The association may
822	use the provisions of s. 718.116 to enforce payment of the
823	shares of such costs by the unit owners receiving cable or video
824	service television.
825	Section 8.  Subsection (1) of section 718.301, Florida
826	Statutes, is amended to read:
827	718.301  Transfer of association control; claims of defect
828	by association.-
829	(1)  When unit owners other than the developer own 15
830	percent or more of the units in a condominium that will be
831	operated ultimately by an association, the unit owners other
832	than the developer shall be entitled to elect no less than one-
833	third of the members of the board of administration of the
834	association. Unit owners other than the developer are entitled
835	to elect not less than a majority of the members of the board of
836	administration of an association:
837	(a)  Three years after 50 percent of the units that will be
838	operated ultimately by the association have been conveyed to
839	purchasers;
840	(b)  Three months after 90 percent of the units that will
841	be operated ultimately by the association have been conveyed to
842	purchasers;
843	(c)  When all the units that will be operated ultimately by
844	the association have been completed, some of them have been
845	conveyed to purchasers, and none of the others are being offered
846	for sale by the developer in the ordinary course of business;
847	(d)  When some of the units have been conveyed to
848	purchasers and none of the others are being constructed or
849	offered for sale by the developer in the ordinary course of
850	business;
851	(e)  When the developer files a petition seeking protection
852	in bankruptcy;
853	(f)  When a receiver for the developer is appointed by a
854	circuit court and is not discharged within 30 days after such
855	appointment, unless the court determines within 30 days after
856	appointment of the receiver that transfer of control would be
857	detrimental to the association or its members; or
858	(g)  Seven years after recordation of the declaration of
859	condominium; or, in the case of an association which may
860	ultimately operate more than one condominium, 7 years after
861	recordation of the declaration for the first condominium it
862	operates; or, in the case of an association operating a phase
863	condominium created pursuant to s. 718.403, 7 years after
864	recordation of the declaration creating the initial phase,
865
866	whichever occurs first. The developer is entitled to elect at
867	least one member of the board of administration of an
868	association as long as the developer holds for sale in the
869	ordinary course of business at least 5 percent, in condominiums
870	with fewer than 500 units, and 2 percent, in condominiums with
871	more than 500 units, of the units in a condominium operated by
872	the association. Following the time the developer relinquishes
873	control of the association, the developer may exercise the right
874	to vote any developer-owned units in the same manner as any
875	other unit owner except for purposes of reacquiring control of
876	the association or selecting the majority members of the board
877	of administration.
878	Section 9.  Part VII of chapter 718, Florida Statutes,
879	consisting of sections 718.701, 718.702, 718.703, 718.704,
880	718.705, 718.706, 718.707, and 718.708, is created to read:
881	PART VII
882	DISTRESSED CONDOMINIUM RELIEF
883	718.701  Short title.-This part may be cited as the
884	"Distressed Condominium Relief Act."
885	718.702  Legislative intent.-
886	(1)  The Legislature acknowledges the massive downturn in
887	the condominium market which has transpired throughout the state
888	and the impact of such downturn on developers, lenders, unit
889	owners, and condominium associations. Numerous condominium
890	projects have either failed or are in the process of failing,
891	whereby the condominium has a small percentage of third-party
892	unit owners as compared to the unsold inventory of units. As a
893	result of the inability to find purchasers for this inventory of
894	units, which results in part from the devaluing of real estate
895	in this state, developers are unable to satisfy the requirements
896	of their lenders, leading to defaults on mortgages.
897	Consequently, lenders are faced with the task of finding a
898	solution to the problem in order to be paid for their
899	investments.
900	(2)  The Legislature recognizes that all of the factors
901	listed in this section lead to condominiums becoming distressed,
902	resulting in detriment to the unit owners and the condominium
903	association on account of the resulting shortage of assessment
904	moneys available to support the financial requirements for
905	proper maintenance of the condominium. Such shortage and the
906	resulting lack of proper maintenance further erode property
907	values. The Legislature finds that individuals and entities
908	within Florida and in other states have expressed interest in
909	purchasing unsold inventory in one or more condominium projects,
910	but are reticent to do so because of accompanying liabilities
911	inherited from the original developer, which are by definition
912	imputed to the successor purchaser, including a foreclosing
913	mortgagee. This results in the potential purchaser having
914	unknown and unquantifiable risks, and potential successor
915	purchasers are unwilling to accept such risks. The result is
916	that condominium projects stagnate, leaving all parties involved
917	at an impasse without the ability to find a solution.
918	(3)  The Legislature finds and declares that it is the
919	public policy of this state to protect the interests of
920	developers, lenders, unit owners, and condominium associations
921	with regard to distressed condominiums, and that there is a need
922	for relief from certain provisions of the Florida Condominium
923	Act geared toward enabling economic opportunities within these
924	condominiums for successor purchasers, including foreclosing
925	mortgagees. Such relief would benefit existing unit owners and
926	condominium associations. The Legislature further finds and
927	declares that this situation cannot be open-ended without
928	potentially prejudicing the rights of unit owners and
929	condominium associations, and thereby declares that the
930	provisions of this part shall be used by purchasers of
931	condominium inventory for a specific and defined period.
932	718.703  Definitions.-As used in this part, the term:
933	(1)  "Bulk assignee" means a person who:
934	(a)  Acquires more than seven condominium parcels as set
935	forth in s. 718.707; and
936	(b)  Receives an assignment of some or all of the rights of
937	the developer as are set forth in the declaration of condominium
938	or in this chapter by a written instrument recorded as an
939	exhibit to the deed or as a separate instrument in the public
940	records of the county in which the condominium is located.
941	(2)  "Bulk buyer" means a person who acquires more than
942	seven condominium parcels as set forth in s. 718.707 but who
943	does not receive an assignment of any developer rights other
944	than the right to conduct sales, leasing, and marketing
945	activities within the condominium.
946	718.704  Assignment of developer rights to and assumption
947	of developer rights by bulk assignee; bulk buyer.-
948	(1)  A bulk assignee shall be deemed to have assumed and is
949	liable for all duties and responsibilities of the developer
950	under the declaration and this chapter, except:
951	(a)  Warranties of the developer under s. 718.203(1) or s.
952	718.618, except for design, construction, development, or repair
953	work performed by or on behalf of such bulk assignee.
954	(b)  The obligation to:
955	1.  Fund converter reserves under s. 718.618 for a unit
956	which was not acquired by the bulk assignee; or
957	2.  Provide converter warranties on any portion of the
958	condominium property except as may be expressly provided by the
959	bulk assignee in the contract for purchase and sale executed
960	with a purchaser and pertaining to any design, construction,
961	development, or repair work performed by or on behalf of the
962	bulk assignee.
963	(c)  The requirement to provide the association with a
964	cumulative audit of the association's finances from the date of
965	formation of the condominium association as required by s.
966	718.301. However, the bulk assignee shall provide an audit for
967	the period for which the bulk assignee elects a majority of the
968	members of the board of administration.
969	(d)  Any liability arising out of or in connection with
970	actions taken by the board of administration or the developer-
971	appointed directors before the bulk assignee elects a majority
972	of the members of the board of administration.
973	(e)  Any liability for or arising out of the developer's
974	failure to fund previous assessments or to resolve budgetary
975	deficits in relation to a developer's right to guarantee
976	assessments, except as otherwise provided in subsection (2).
977
978	Further, the bulk assignee is responsible for delivering
979	documents and materials in accordance with s. 718.705(3). A bulk
980	assignee may expressly assume some or all of the obligations of
981	the developer described in paragraphs (a)-(e).
982	(2)  A bulk assignee receiving the assignment of the rights
983	of the developer to guarantee the level of assessments and fund
984	budgetary deficits pursuant to s. 718.116 shall be deemed to
985	have assumed and is liable for all obligations of the developer
986	with respect to such guarantee, including any applicable funding
987	of reserves to the extent required by law, for as long as the
988	guarantee remains in effect. A bulk assignee not receiving an
989	assignment of the right of the developer to guarantee the level
990	of assessments and fund budgetary deficits pursuant to s.
991	718.116 or a bulk buyer is not deemed to have assumed and is not
992	liable for the obligations of the developer with respect to such
993	guarantee, but is responsible for payment of assessments in the
994	same manner as all other owners of condominium parcels.
995	(3)  A bulk buyer is liable for the duties and
996	responsibilities of the developer under the declaration and this
997	chapter only to the extent provided in this part, together with
998	any other duties or responsibilities of the developer expressly
999	assumed in writing by the bulk buyer.
1000	(4)  An acquirer of condominium parcels is not considered a
1001	bulk assignee or a bulk buyer if the transfer to such acquirer
1002	was made with the intent to hinder, delay, or defraud any
1003	purchaser, unit owner, or the association, or if the acquirer is
1004	a person who would constitute an insider under s. 726.102(7).
1005	(5)  An assignment of developer rights to a bulk assignee
1006	may be made by the developer, a previous bulk assignee, or a
1007	court of competent jurisdiction acting on behalf of the
1008	developer or the previous bulk assignee. At any particular time,
1009	there may be no more than one bulk assignee within a
1010	condominium, but there may be more than one bulk buyer. If more
1011	than one acquirer of condominium parcels receives an assignment
1012	of developer rights from the same person, the bulk assignee is
1013	the acquirer whose instrument of assignment is recorded first in
1014	applicable public records.
1015	718.705  Board of administration; transfer of control.-
1016	(1)  For purposes of determining the timing for transfer of
1017	control of the board of administration of the association to
1018	unit owners other than the developer under s. 718.301(1)(a) or
1019	(b), if a bulk assignee is entitled to elect a majority of the
1020	members of the board, a condominium parcel acquired by the bulk
1021	assignee shall not be deemed to be conveyed to a purchaser, or
1022	to be owned by an owner other than the developer, until such
1023	condominium parcel is conveyed to an owner who is not a bulk
1024	assignee.
1025	(2)  Unless control of the board of administration of the
1026	association has already been relinquished pursuant to s.
1027	718.301(1), the bulk assignee is obligated to relinquish control
1028	of the association in accordance with s. 718.301 and this part.
1029	(3)  When a bulk assignee relinquishes control of the board
1030	of administration as set forth in s. 718.301, the bulk assignee
1031	shall deliver all of those items required by s. 718.301(4).
1032	However, the bulk assignee is not required to deliver items and
1033	documents not in the possession of the bulk assignee during the
1034	period during which the bulk assignee was the owner of
1035	condominium parcels. In conjunction with the acquisition of
1036	condominium parcels, a bulk assignee shall undertake a good
1037	faith effort to obtain the documents and materials required to
1038	be provided to the association pursuant to s. 718.301(4). To the
1039	extent the bulk assignee is not able to obtain all of such
1040	documents and materials, the bulk assignee shall certify in
1041	writing to the association the names or descriptions of the
1042	documents and materials that were not obtainable by the bulk
1043	assignee. Delivery of the certificate relieves the bulk assignee
1044	of responsibility for the delivery of the documents and
1045	materials referenced in the certificate as otherwise required
1046	under ss. 718.112 and 718.301 and this part. The responsibility
1047	of the bulk assignee for the audit required by s. 718.301(4)
1048	shall commence as of the date on which the bulk assignee elected
1049	a majority of the members of the board of administration.
1050	(4)  If a conflict arises between the provisions or
1051	application of this section and s. 718.301, this section shall
1052	prevail.
1053	(5)  Failure of a bulk assignee or bulk buyer to comply
1054	with all the requirements contained in this part shall result in
1055	the loss of any and all protections or exemptions provided under
1056	this part.
1057	718.706  Specific provisions pertaining to offering of
1058	units by a bulk assignee or bulk buyer.-
1059	(1)  Before offering any units for sale or for lease for a
1060	term exceeding 5 years, a bulk assignee or bulk buyer must file
1061	the following documents with the division and provide such
1062	documents to a prospective purchaser:
1063	(a)  An updated prospectus or offering circular, or a
1064	supplement to the prospectus or offering circular, filed by the
1065	creating developer prepared in accordance with s. 718.504, which
1066	shall include the form of contract for purchase and sale in
1067	compliance with s. 718.503(2).
1068	(b)  An updated Frequently Asked Questions and Answers
1069	sheet.
1070	(c)  The executed escrow agreement if required under s.
1071	718.202.
1072	(d)  The financial information required by s. 718.111(13).
1073	However, if a financial information report does not exist for
1074	the fiscal year before acquisition of title by the bulk assignee
1075	or bulk buyer, or accounting records cannot be obtained in good
1076	faith by the bulk assignee or bulk buyer which would permit
1077	preparation of the required financial information report, the
1078	bulk assignee or bulk buyer is excused from the requirement of
1079	this paragraph. However, the bulk assignee or bulk buyer must
1080	include in the purchase contract the following statement in
1081	conspicuous type:
1082
1083	THE FINANCIAL INFORMATION REPORT REQUIRED UNDER
1084	SECTION 718.111(13), FLORIDA STATUTES, FOR THE
1085	IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1086	IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER AS
1087	A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
1088	ASSOCIATION.
1089
1090	(2)  Before offering any units for sale or for lease for a
1091	term exceeding 5 years, a bulk assignee must file with the
1092	division and provide to a prospective purchaser a disclosure
1093	statement that must include, but is not limited to:
1094	(a)  A description to the purchaser of any rights of the
1095	developer which have been assigned to the bulk assignee.
1096	(b)  The following statement in conspicuous type:
1097
1098	SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1099	DEVELOPER UNDER SECTION 718.203(1) OR SECTION 718.618,
1100	FLORIDA STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
1101	CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
1102	OR ON BEHALF OF SELLER.
1103
1104	(c)  If the condominium is a conversion subject to part VI,
1105	the following statement in conspicuous type:
1106
1107	SELLER HAS NO OBLIGATION TO FUND CONVERTER
1108	RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER
1109	SECTION 718.618, FLORIDA STATUTES, ON ANY PORTION OF
1110	THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
1111	REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
1112	AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
1113	DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
1114	DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1115	OF THE SELLER.
1116
1117	(3)  In addition to the requirements set forth in
1118	subsection (1), a bulk assignee or bulk buyer must comply with
1119	the nondeveloper disclosure requirements set forth in s.
1120	718.503(2) before offering any units for sale or for lease for a
1121	term exceeding 5 years.
1122	(4)  A bulk assignee, while in control of the board of
1123	administration of the association, may not authorize, on behalf
1124	of the association:
1125	(a)  The waiver of reserves or the reduction of funding of
1126	the reserves in accordance with s. 718.112(2)(f)2., unless
1127	approved by a majority of the voting interests not controlled by
1128	the developer, bulk assignee, or bulk buyer; or
1129	(b)  The use of reserve expenditures for other purposes in
1130	accordance with s. 718.112(2)(f)3., unless approved by a
1131	majority of the voting interests not controlled by the
1132	developer, bulk assignee, or bulk buyer.
1133	(5)  A bulk assignee, while in control of the board of
1134	administration of the association, must comply with the
1135	requirements imposed upon developers to transfer control of the
1136	association to the unit owners in accordance with s. 718.301.
1137	(6)  A bulk assignee or bulk buyer must comply with all the
1138	requirements of s. 718.302 regarding any contracts entered into
1139	by the association during the period the bulk assignee or bulk
1140	buyer maintains control of the board of administration. Unit
1141	owners shall be afforded all the protections contained in s.
1142	718.302 regarding agreements entered into by the association
1143	before unit owners other than the developer, bulk assignee, or
1144	bulk buyer elected a majority of the board of administration.
1145	(7)  A bulk buyer must comply with the requirements
1146	contained in the declaration regarding any transfer of a unit,
1147	including sales, leases, and subleases. A bulk buyer is not
1148	entitled to any exemptions afforded a developer or successor
1149	developer under this chapter regarding any transfer of a unit,
1150	including sales, leases, or subleases.
1151	718.707  Time limitation for classification as bulk
1152	assignee or bulk buyer.-A person acquiring condominium parcels
1153	may not be classified as a bulk assignee or bulk buyer unless
1154	the condominium parcels were acquired before July 1, 2011. The
1155	date of such acquisition shall be determined by the date of
1156	recording of a deed or other instrument of conveyance for such
1157	parcels in the public records of the county in which the
1158	condominium is located or by the date of issuance of a
1159	certificate of title in a foreclosure proceeding with respect to
1160	such condominium parcels.
1161	718.708  Liability of developers and others.-An assignment
1162	of developer rights to a bulk assignee or bulk buyer does not
1163	release the developer from any liabilities under the declaration
1164	or this chapter. This part does not limit the liability of the
1165	developer for claims brought by unit owners, bulk assignees, or
1166	bulk buyers for violations of this chapter by the developer,
1167	unless specifically excluded in this part. Nothing contained
1168	within this part waives, releases, compromises, or limits the
1169	liability of contractors, subcontractors, materialmen,
1170	manufacturers, architects, engineers, or any participant in the
1171	design or construction of a condominium for any claim brought by
1172	an association, unit owners, bulk assignees, or bulk buyers
1173	arising from the design of the condominium, construction
1174	defects, misrepresentations associated with condominium
1175	property, or violations of this chapter, unless specifically
1176	excluded in this part.
1177	Section 10.  Subsection (5) of section 719.1055, Florida
1178	Statutes, is amended to read:
1179	719.1055  Amendment of cooperative documents; alteration
1180	and acquisition of property.-
1181	(5)  There shall be a provision in the bylaws that a
1182	certificate of compliance from a licensed electrical contractor
1183	or electrician may be accepted by the association's board as
1184	evidence of compliance of the cooperative units with the
1185	applicable fire and life safety code. Notwithstanding the
1186	provisions of chapter 633 or of any other code, statute,
1187	ordinance, administrative rule, or regulation, or any
1188	interpretation of the foregoing, a cooperative or unit owner is
1189	not obligated to retrofit the common elements, common areas,
1190	association-owned property, or units of a residential
1191	cooperative with a fire sprinkler system or any other form of
1192	engineered lifesafety life safety system in a building that has
1193	been certified for occupancy by the applicable governmental
1194	entity, if the unit owners have voted to forego such
1195	retrofitting and engineered lifesafety life safety system by the
1196	affirmative vote of two-thirds of all voting interests in the
1197	affected cooperative. However, a cooperative may not forego the
1198	retrofitting with a fire sprinkler system of common areas in a
1199	high-rise building. For purposes of this subsection, the term
1200	"high-rise building" means a building that is greater than 75
1201	feet in height where the building height is measured from the
1202	lowest level of fire department access to the floor of the
1203	highest occupiable story. For purposes of this subsection, the
1204	term "common areas" means any enclosed hallway, corridor, lobby,
1205	stairwell, or entryway. In no event shall the local authority
1206	having jurisdiction require completion of retrofitting of common
1207	areas with a sprinkler system or other form of engineered
1208	lifesafety system before the end of 2019 2014.
1209	(a)  A vote to forego retrofitting may be obtained by
1210	limited proxy or by a ballot personally cast at a duly called
1211	membership meeting, or by execution of a written consent by the
1212	member, and shall be effective upon the recording of a
1213	certificate attesting to such vote in the public records of the
1214	county where the cooperative is located. The association shall
1215	mail or, hand deliver, or electronically transmit to each unit
1216	owner written notice at least 14 days prior to such membership
1217	meeting in which the vote to forego retrofitting of the required
1218	fire sprinkler system or any other form of engineered lifesafety
1219	system is to take place. Within 30 days after the association's
1220	opt-out vote, notice of the results of the opt-out vote shall be
1221	mailed or, hand delivered, or electronically transmitted to all
1222	unit owners. Evidence of compliance with this 30-day notice
1223	shall be made by an affidavit executed by the person providing
1224	the notice and filed among the official records of the
1225	association. After such notice is provided to each owner, a copy
1226	of such notice shall be provided by the current owner to a new
1227	owner prior to closing and shall be provided by a unit owner to
1228	a renter prior to signing a lease.
1229	(b) If there has been a previous vote approving the
1230	association to forego retrofitting, a vote to require
1231	retrofitting may be obtained at a special meeting of the unit
1232	owners called by a petition of least 10 percent of the voting
1233	interests. Such vote may only be called for once every 3 years.
1234	Notice shall be provided as required for any regularly called
1235	meeting of the unit owners, and the notice shall state the
1236	purpose of the meeting. Electronic transmission may not be used
1237	as a method of giving notice of a meeting called in whole or in
1238	part for this purpose.
1239	(c)(b)  As part of the information collected annually from
1240	cooperatives, the division shall require associations to report
1241	the membership vote and recording of a certificate under this
1242	subsection and, if retrofitting has been undertaken, the per-
1243	unit cost of such work. The division shall annually report to
1244	the Division of State Fire Marshal of the Department of
1245	Financial Services the number of cooperatives that have elected
1246	to forego retrofitting.
1247	Section 11.  Subsection (2) of section 553.509, Florida
1248	Statutes, is repealed.
1249	Section 12.  This act shall take effect upon becoming a
1250	law.

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