Florida Senate - 2020                      CS for CS for SB 1154
       
       
        
       By the Committees on Community Affairs; and Innovation,
       Industry, and Technology; and Senator Baxley
       
       
       
       
       578-03427-20                                          20201154c2
    1                        A bill to be entitled                      
    2         An act relating to community associations; amending s.
    3         627.714, F.S.; prohibiting subrogation rights against
    4         a condominium association under certain circumstances;
    5         creating s. 712.065, F.S.; defining the term
    6         “discriminatory restriction”; providing that
    7         discriminatory restrictions are unlawful,
    8         unenforceable, and declared null and void; providing
    9         that certain discriminatory restrictions are
   10         extinguished and severed from recorded title
   11         transactions; specifying that the recording of certain
   12         notices does not reimpose or preserve a discriminatory
   13         restriction; providing requirements for a parcel owner
   14         to remove a discriminatory restriction from a covenant
   15         or restriction; amending s. 718.111, F.S.; requiring
   16         that certain records be maintained for a specified
   17         time; requiring associations to maintain official
   18         records in a specified manner; requiring an
   19         association to provide a checklist or affidavit
   20         relating to certain records to certain persons;
   21         providing a timeframe for maintaining such checklist
   22         and affidavit; creating a rebuttable presumption;
   23         prohibiting an association from requiring certain
   24         actions relating to the inspection of records;
   25         revising requirements relating to the posting of
   26         digital copies of certain documents by certain
   27         condominium associations; conforming cross-references;
   28         amending s. 718.112, F.S.; authorizing condominium
   29         associations to extinguish discriminatory
   30         restrictions; specifying that only board service that
   31         occurs on or after a specified date may be used for
   32         calculating a board member’s term limit; providing
   33         requirements for certain notices; revising the fees an
   34         association may charge for transfers; conforming
   35         provisions to changes made by the act; deleting a
   36         prohibition against employing or contracting with
   37         certain service providers; amending s. 718.113, F.S.;
   38         defining the terms “natural gas fuel” and “natural gas
   39         fuel vehicle”; revising legislative findings; revising
   40         requirements for electric vehicle charging stations;
   41         providing requirements for the installation of natural
   42         gas fuel stations on property governed by condominium
   43         associations; amending s. 718.1255, F.S.; authorizing
   44         parties to initiate presuit mediation under certain
   45         circumstances; specifying when arbitration is binding
   46         on the parties; providing requirements for presuit
   47         mediation; amending s. 718.202, F.S.; revising how
   48         developers may use certain withdrawn escrow funds;
   49         amending s. 718.303, F.S.; revising requirements for
   50         certain actions for failure to comply with specified
   51         provisions; revising requirements for certain fines;
   52         amending s. 718.501, F.S.; defining the term
   53         “financial issue”; authorizing the Division of
   54         Condominiums, Timeshares, and Mobile Homes to adopt
   55         rules; amending s. 718.5014, F.S.; revising where the
   56         principal office of the Office of the Condominium
   57         Ombudsman must be maintained; amending s. 719.103,
   58         F.S.; revising the definition of the term “unit” to
   59         specify that an interest in a cooperative unit is an
   60         interest in real property; amending s. 719.104, F.S.;
   61         prohibiting an association from requiring certain
   62         actions relating to the inspection of records; making
   63         technical changes; amending s. 719.106, F.S.; revising
   64         provisions relating to a quorum and voting rights for
   65         members remotely participating in meetings;
   66         authorizing cooperative associations to extinguish
   67         discriminatory restrictions; amending s. 720.303,
   68         F.S.; authorizing an association to adopt procedures
   69         for electronic meeting notices; revising the documents
   70         that constitute the official records of an
   71         association; revising when a specified statement must
   72         be included in an association’s financial report for
   73         the preceding fiscal year; revising requirements for
   74         such statement; revising when an association is deemed
   75         to have provided for reserve accounts; amending s.
   76         720.305, F.S.; providing requirements for certain
   77         fines; amending s. 720.306, F.S.; revising
   78         requirements for providing certain notices; amending
   79         s. 720.3075, F.S.; authorizing homeowners’
   80         associations to extinguish discriminatory
   81         restrictions; providing an effective date.
   82          
   83  Be It Enacted by the Legislature of the State of Florida:
   84  
   85         Section 1. Subsection (4) of section 627.714, Florida
   86  Statutes, is amended to read:
   87         627.714 Residential condominium unit owner coverage; loss
   88  assessment coverage required.—
   89         (4) Every individual unit owner’s residential property
   90  policy must contain a provision stating that the coverage
   91  afforded by such policy is excess coverage over the amount
   92  recoverable under any other policy covering the same property.
   93  If a condominium association’s insurance policy does not provide
   94  rights for subrogation against the unit owners in the
   95  association, an insurance policy issued to an individual unit
   96  owner located in the association may not provide rights of
   97  subrogation against the condominium association.
   98         Section 2. Section 712.065, Florida Statutes, is created to
   99  read:
  100         712.065 Extinguishment of discriminatory restrictions.—
  101         (1)As used in this section, the term “discriminatory
  102  restriction” means a provision in a title transaction recorded
  103  in this state which restricts the ownership, occupancy, or use
  104  of any real property in this state by any natural person on the
  105  basis of a characteristic that has been held, or is held after
  106  July 1, 2020, by the United States Supreme Court or the Florida
  107  Supreme Court to be protected against discrimination under the
  108  Fourteenth Amendment to the United States Constitution or under
  109  s. 2, Art. I of the State Constitution, including race, color,
  110  national origin, religion, gender, or physical disability.
  111         (2)A discriminatory restriction is not enforceable in this
  112  state, and all discriminatory restrictions contained in any
  113  title transaction recorded in this state are unlawful, are
  114  unenforceable, and are declared null and void. Any
  115  discriminatory restriction contained in a previously recorded
  116  title transaction is extinguished and severed from the recorded
  117  title transaction and the remainder of the title transaction
  118  remains enforceable and effective. The recording of any notice
  119  preserving or protecting interests or rights pursuant to s.
  120  712.05 does not reimpose or preserve any discriminatory
  121  restriction that is extinguished under this section.
  122         (3)Upon request of a parcel owner, a discriminatory
  123  restriction appearing in a covenant or restriction affecting the
  124  parcel may be removed from the covenant or restriction by an
  125  amendment approved by a majority vote of the board of directors
  126  of the respective property owners’ association or an owners’
  127  association in which all owners may voluntarily join,
  128  notwithstanding any other requirements for approval of an
  129  amendment of the covenant or restriction. Unless the amendment
  130  also changes other provisions of the covenant or restriction,
  131  the recording of an amendment removing a discriminatory
  132  restriction does not constitute a title transaction occurring
  133  after the root of title for purposes of s. 712.03(4).
  134         Section 3. Paragraphs (a), (b), (c), (f) and (g) of
  135  subsection (12) of section 718.111, Florida Statutes, are
  136  amended to read:
  137         718.111 The association.—
  138         (12) OFFICIAL RECORDS.—
  139         (a) From the inception of the association, the association
  140  shall maintain each of the following items, if applicable, which
  141  constitutes the official records of the association:
  142         1. A copy of the plans, permits, warranties, and other
  143  items provided by the developer under pursuant to s. 718.301(4).
  144         2. A photocopy of the recorded declaration of condominium
  145  of each condominium operated by the association and each
  146  amendment to each declaration.
  147         3. A photocopy of the recorded bylaws of the association
  148  and each amendment to the bylaws.
  149         4. A certified copy of the articles of incorporation of the
  150  association, or other documents creating the association, and
  151  each amendment thereto.
  152         5. A copy of the current rules of the association.
  153         6. A book or books that contain the minutes of all meetings
  154  of the association, the board of administration, and the unit
  155  owners.
  156         7. A current roster of all unit owners and their mailing
  157  addresses, unit identifications, voting certifications, and, if
  158  known, telephone numbers. The association shall also maintain
  159  the e-mail addresses and facsimile numbers of unit owners
  160  consenting to receive notice by electronic transmission. The e
  161  mail addresses and facsimile numbers are not accessible to unit
  162  owners if consent to receive notice by electronic transmission
  163  is not provided in accordance with sub-subparagraph (c)3.e.
  164  However, the association is not liable for an inadvertent
  165  disclosure of the e-mail address or facsimile number for
  166  receiving electronic transmission of notices.
  167         8. All current insurance policies of the association and
  168  condominiums operated by the association.
  169         9. A current copy of any management agreement, lease, or
  170  other contract to which the association is a party or under
  171  which the association or the unit owners have an obligation or
  172  responsibility.
  173         10. Bills of sale or transfer for all property owned by the
  174  association.
  175         11. Accounting records for the association and separate
  176  accounting records for each condominium that the association
  177  operates. Any person who knowingly or intentionally defaces or
  178  destroys such records, or who knowingly or intentionally fails
  179  to create or maintain such records, with the intent of causing
  180  harm to the association or one or more of its members, is
  181  personally subject to a civil penalty under s. 718.501(2)(d)
  182  pursuant to s. 718.501(1)(d). The accounting records must
  183  include, but are not limited to:
  184         a. Accurate, itemized, and detailed records of all receipts
  185  and expenditures.
  186         b. A current account and a monthly, bimonthly, or quarterly
  187  statement of the account for each unit designating the name of
  188  the unit owner, the due date and amount of each assessment, the
  189  amount paid on the account, and the balance due.
  190         c. All audits, reviews, accounting statements, and
  191  financial reports of the association or condominium.
  192         d. All contracts for work to be performed. Bids for work to
  193  be performed are also considered official records and must be
  194  maintained by the association for at least 1 year after receipt
  195  of the bid.
  196         12. Ballots, sign-in sheets, voting proxies, and all other
  197  papers and electronic records relating to voting by unit owners,
  198  which must be maintained for 1 year from the date of the
  199  election, vote, or meeting to which the document relates,
  200  notwithstanding paragraph (b).
  201         13. All rental records if the association is acting as
  202  agent for the rental of condominium units.
  203         14. A copy of the current question and answer sheet as
  204  described in s. 718.504.
  205         15. All other written records of the association not
  206  specifically included in the foregoing which are related to the
  207  operation of the association.
  208         16. A copy of the inspection report as described in s.
  209  718.301(4)(p).
  210         16.17. Bids for materials, equipment, or services.
  211         17.All other written records of the association not
  212  specifically included in subparagraphs 1.-16. which are related
  213  to the operation of the association.
  214         (b) The official records specified in subparagraphs (a)1.
  215  6. must be permanently maintained from the inception of the
  216  association. Bids for work to be performed or for materials,
  217  equipment, or services must be maintained for at least 1 year
  218  after receipt of the bid. All other official records must be
  219  maintained within the state for at least 7 years, unless
  220  otherwise provided by general law. All official records must be
  221  maintained in a manner and format determined by the division so
  222  that the records are easily accessible for inspection. The
  223  records of the association shall be made available to a unit
  224  owner within 45 miles of the condominium property or within the
  225  county in which the condominium property is located within 10
  226  working days after receipt of a written request by the board or
  227  its designee. However, such distance requirement does not apply
  228  to an association governing a timeshare condominium. This
  229  paragraph may be complied with by having a copy of the official
  230  records of the association available for inspection or copying
  231  on the condominium property or association property, or the
  232  association may offer the option of making the records available
  233  to a unit owner electronically via the Internet or by allowing
  234  the records to be viewed in electronic format on a computer
  235  screen and printed upon request. The association is not
  236  responsible for the use or misuse of the information provided to
  237  an association member or his or her authorized representative in
  238  pursuant to the compliance with requirements of this chapter
  239  unless the association has an affirmative duty not to disclose
  240  such information under pursuant to this chapter.
  241         (c)1. The official records of the association are open to
  242  inspection by any association member or the authorized
  243  representative of such member at all reasonable times. The right
  244  to inspect the records includes the right to make or obtain
  245  copies, at the reasonable expense, if any, of the member or
  246  authorized representative of such member. A renter of a unit
  247  only has a right to inspect and copy the declaration of
  248  condominium and association’s bylaws and rules. The association
  249  must provide a checklist to the member or the authorized
  250  representative of such member of all records that are made
  251  available for inspection and copying in response to a written
  252  request. If any of the association’s official records are not
  253  available, such records must be identified on the checklist
  254  provided to the person requesting the records. The checklist
  255  must be signed by a manager licensed pursuant to chapter 468 who
  256  certifies that the checklist is accurate to the best of his or
  257  her knowledge and belief or the association must provide the
  258  person requesting the records with a sworn affidavit attesting
  259  to the veracity of the checklist and executed by the person
  260  responding to the written request on behalf of the association.
  261  The association must maintain a copy of the checklist and
  262  affidavit for at least 7 years. Delivery of the checklist and,
  263  if required, the sworn affidavit to the person requesting the
  264  records creates a rebuttable presumption that the association
  265  complied with this paragraph. The association may adopt
  266  reasonable rules regarding the frequency, time, location,
  267  notice, and manner of record inspections and copying, but may
  268  not require a member to demonstrate any purpose or state any
  269  reason for the inspection. The failure of an association to
  270  provide the records within 10 working days after receipt of a
  271  written request creates a rebuttable presumption that the
  272  association willfully failed to comply with this paragraph. A
  273  unit owner who is denied access to official records is entitled
  274  to the actual damages or minimum damages for the association’s
  275  willful failure to comply. Minimum damages are $50 per calendar
  276  day for up to 10 days, beginning on the 11th working day after
  277  receipt of the written request. The failure to permit inspection
  278  entitles any person prevailing in an enforcement action to
  279  recover reasonable attorney fees from the person in control of
  280  the records who, directly or indirectly, knowingly denied access
  281  to the records.
  282         2. Any person who knowingly or intentionally defaces or
  283  destroys accounting records that are required by this chapter to
  284  be maintained during the period for which such records are
  285  required to be maintained, or who knowingly or intentionally
  286  fails to create or maintain accounting records that are required
  287  to be created or maintained, with the intent of causing harm to
  288  the association or one or more of its members, is personally
  289  subject to a civil penalty under 718.501(2)(d) pursuant to s.
  290  718.501(1)(d).
  291         3. The association shall maintain an adequate number of
  292  copies of the declaration, articles of incorporation, bylaws,
  293  and rules, and all amendments to each of the foregoing, as well
  294  as the question and answer sheet as described in s. 718.504 and
  295  year-end financial information required under this section, on
  296  the condominium property to ensure their availability to unit
  297  owners and prospective purchasers, and may charge its actual
  298  costs for preparing and furnishing these documents to those
  299  requesting the documents. An association shall allow a member or
  300  his or her authorized representative to use a portable device,
  301  including a smartphone, tablet, portable scanner, or any other
  302  technology capable of scanning or taking photographs, to make an
  303  electronic copy of the official records in lieu of the
  304  association’s providing the member or his or her authorized
  305  representative with a copy of such records. The association may
  306  not charge a member or his or her authorized representative for
  307  the use of a portable device. Notwithstanding this paragraph,
  308  the following records are not accessible to unit owners:
  309         a. Any record protected by the lawyer-client privilege as
  310  described in s. 90.502 and any record protected by the work
  311  product privilege, including a record prepared by an association
  312  attorney or prepared at the attorney’s express direction, which
  313  reflects a mental impression, conclusion, litigation strategy,
  314  or legal theory of the attorney or the association, and which
  315  was prepared exclusively for civil or criminal litigation or for
  316  adversarial administrative proceedings, or which was prepared in
  317  anticipation of such litigation or proceedings until the
  318  conclusion of the litigation or proceedings.
  319         b. Information obtained by an association in connection
  320  with the approval of the lease, sale, or other transfer of a
  321  unit.
  322         c. Personnel records of association or management company
  323  employees, including, but not limited to, disciplinary, payroll,
  324  health, and insurance records. For purposes of this sub
  325  subparagraph, the term “personnel records” does not include
  326  written employment agreements with an association employee or
  327  management company, or budgetary or financial records that
  328  indicate the compensation paid to an association employee.
  329         d. Medical records of unit owners.
  330         e. Social security numbers, driver license numbers, credit
  331  card numbers, e-mail addresses, telephone numbers, facsimile
  332  numbers, emergency contact information, addresses of a unit
  333  owner other than as provided to fulfill the association’s notice
  334  requirements, and other personal identifying information of any
  335  person, excluding the person’s name, unit designation, mailing
  336  address, property address, and any address, e-mail address, or
  337  facsimile number provided to the association to fulfill the
  338  association’s notice requirements. Notwithstanding the
  339  restrictions in this sub-subparagraph, an association may print
  340  and distribute to unit parcel owners a directory containing the
  341  name, unit parcel address, and all telephone numbers of each
  342  unit parcel owner. However, an owner may exclude his or her
  343  telephone numbers from the directory by so requesting in writing
  344  to the association. An owner may consent in writing to the
  345  disclosure of other contact information described in this sub
  346  subparagraph. The association is not liable for the inadvertent
  347  disclosure of information that is protected under this sub
  348  subparagraph if the information is included in an official
  349  record of the association and is voluntarily provided by an
  350  owner and not requested by the association.
  351         f. Electronic security measures that are used by the
  352  association to safeguard data, including passwords.
  353         g. The software and operating system used by the
  354  association which allow the manipulation of data, even if the
  355  owner owns a copy of the same software used by the association.
  356  The data is part of the official records of the association.
  357         (f) An outgoing board or committee member must relinquish
  358  all official records and property of the association in his or
  359  her possession or under his or her control to the incoming board
  360  within 5 days after the election. The division shall impose a
  361  civil penalty as set forth in s. 718.501(2)(d)6. s.
  362  718.501(1)(d)6. against an outgoing board or committee member
  363  who willfully and knowingly fails to relinquish such records and
  364  property.
  365         (g)1. By January 1, 2019, an association managing a
  366  condominium with 150 or more units which does not contain
  367  timeshare units shall post digital copies of the documents
  368  specified in subparagraph 2. on its website or make such
  369  documents available through an application that can be
  370  downloaded on a mobile device.
  371         a. The association’s website or application must be:
  372         (I) An independent website, application, or web portal
  373  wholly owned and operated by the association; or
  374         (II) A website, application, or web portal operated by a
  375  third-party provider with whom the association owns, leases,
  376  rents, or otherwise obtains the right to operate a web page,
  377  subpage, web portal, or collection of subpages or web portals,
  378  or application which is dedicated to the association’s
  379  activities and on which required notices, records, and documents
  380  may be posted or made available by the association.
  381         b. The association’s website or application must be
  382  accessible through the Internet and must contain a subpage, web
  383  portal, or other protected electronic location that is
  384  inaccessible to the general public and accessible only to unit
  385  owners and employees of the association.
  386         c. Upon a unit owner’s written request, the association
  387  must provide the unit owner with a username and password and
  388  access to the protected sections of the association’s website or
  389  application that contain any notices, records, or documents that
  390  must be electronically provided.
  391         2. A current copy of the following documents must be posted
  392  in digital format on the association’s website or application:
  393         a. The recorded declaration of condominium of each
  394  condominium operated by the association and each amendment to
  395  each declaration.
  396         b. The recorded bylaws of the association and each
  397  amendment to the bylaws.
  398         c. The articles of incorporation of the association, or
  399  other documents creating the association, and each amendment to
  400  the articles of incorporation or other documents thereto. The
  401  copy posted pursuant to this sub-subparagraph must be a copy of
  402  the articles of incorporation filed with the Department of
  403  State.
  404         d. The rules of the association.
  405         e. A list of all executory contracts or documents to which
  406  the association is a party or under which the association or the
  407  unit owners have an obligation or responsibility and, after
  408  bidding for the related materials, equipment, or services has
  409  closed, a list of bids received by the association within the
  410  past year. Summaries of bids for materials, equipment, or
  411  services which exceed $500 must be maintained on the website or
  412  application for 1 year. In lieu of summaries, complete copies of
  413  the bids may be posted.
  414         f. The annual budget required by s. 718.112(2)(f) and any
  415  proposed budget to be considered at the annual meeting.
  416         g. The financial report required by subsection (13) and any
  417  monthly income or expense statement to be considered at a
  418  meeting.
  419         h. The certification of each director required by s.
  420  718.112(2)(d)4.b.
  421         i. All contracts or transactions between the association
  422  and any director, officer, corporation, firm, or association
  423  that is not an affiliated condominium association or any other
  424  entity in which an association director is also a director or
  425  officer and financially interested.
  426         j. Any contract or document regarding a conflict of
  427  interest or possible conflict of interest as provided in ss.
  428  468.436(2)(b)6. and 718.3027(3).
  429         k. The notice of any unit owner meeting and the agenda for
  430  the meeting, as required by s. 718.112(2)(d)3., no later than 14
  431  days before the meeting. The notice must be posted in plain view
  432  on the front page of the website or application, or on a
  433  separate subpage of the website or application labeled “Notices”
  434  which is conspicuously visible and linked from the front page.
  435  The association must also post on its website or application any
  436  document to be considered and voted on by the owners during the
  437  meeting or any document listed on the agenda at least 7 days
  438  before the meeting at which the document or the information
  439  within the document will be considered.
  440         l. Notice of any board meeting, the agenda, and any other
  441  document required for the meeting as required by s.
  442  718.112(2)(c), which must be posted no later than the date
  443  required for notice under pursuant to s. 718.112(2)(c).
  444         3. The association shall ensure that the information and
  445  records described in paragraph (c), which are not allowed to be
  446  accessible to unit owners, are not posted on the association’s
  447  website or application. If protected information or information
  448  restricted from being accessible to unit owners is included in
  449  documents that are required to be posted on the association’s
  450  website or application, the association shall ensure the
  451  information is redacted before posting the documents online.
  452  Notwithstanding the foregoing, the association or its agent is
  453  not liable for disclosing information that is protected or
  454  restricted under pursuant to this paragraph unless such
  455  disclosure was made with a knowing or intentional disregard of
  456  the protected or restricted nature of such information.
  457         4. The failure of the association to post information
  458  required under subparagraph 2. is not in and of itself
  459  sufficient to invalidate any action or decision of the
  460  association’s board or its committees.
  461         Section 4. Paragraphs (d), (i), (k), and (p) of subsection
  462  (2) of section 718.112, Florida Statutes, are amended, and
  463  paragraph (c) is added to subsection (1) of that section, to
  464  read:
  465         718.112 Bylaws.—
  466         (1) GENERALLY.—
  467         (c)The association may extinguish a discriminatory
  468  restriction, as defined in s. 712.065(1), pursuant to s.
  469  712.065.
  470         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  471  following and, if they do not do so, shall be deemed to include
  472  the following:
  473         (d) Unit owner meetings.—
  474         1. An annual meeting of the unit owners must be held at the
  475  location provided in the association bylaws and, if the bylaws
  476  are silent as to the location, the meeting must be held within
  477  45 miles of the condominium property. However, such distance
  478  requirement does not apply to an association governing a
  479  timeshare condominium.
  480         2. Unless the bylaws provide otherwise, a vacancy on the
  481  board caused by the expiration of a director’s term must be
  482  filled by electing a new board member, and the election must be
  483  by secret ballot. An election is not required if the number of
  484  vacancies equals or exceeds the number of candidates. For
  485  purposes of this paragraph, the term “candidate” means an
  486  eligible person who has timely submitted the written notice, as
  487  described in sub-subparagraph 4.a., of his or her intention to
  488  become a candidate. Except in a timeshare or nonresidential
  489  condominium, or if the staggered term of a board member does not
  490  expire until a later annual meeting, or if all members’ terms
  491  would otherwise expire but there are no candidates, the terms of
  492  all board members expire at the annual meeting, and such members
  493  may stand for reelection unless prohibited by the bylaws. Board
  494  members may serve terms longer than 1 year if permitted by the
  495  bylaws or articles of incorporation. A board member may not
  496  serve more than 8 consecutive years unless approved by an
  497  affirmative vote of unit owners representing two-thirds of all
  498  votes cast in the election or unless there are not enough
  499  eligible candidates to fill the vacancies on the board at the
  500  time of the vacancy. Only board service that occurs on or after
  501  July 1, 2018, may be used when calculating a board member’s term
  502  limit. If the number of board members whose terms expire at the
  503  annual meeting equals or exceeds the number of candidates, the
  504  candidates become members of the board effective upon the
  505  adjournment of the annual meeting. Unless the bylaws provide
  506  otherwise, any remaining vacancies shall be filled by the
  507  affirmative vote of the majority of the directors making up the
  508  newly constituted board even if the directors constitute less
  509  than a quorum or there is only one director. In a residential
  510  condominium association of more than 10 units or in a
  511  residential condominium association that does not include
  512  timeshare units or timeshare interests, co-owners of a unit may
  513  not serve as members of the board of directors at the same time
  514  unless they own more than one unit or unless there are not
  515  enough eligible candidates to fill the vacancies on the board at
  516  the time of the vacancy. A unit owner in a residential
  517  condominium desiring to be a candidate for board membership must
  518  comply with sub-subparagraph 4.a. and must be eligible to be a
  519  candidate to serve on the board of directors at the time of the
  520  deadline for submitting a notice of intent to run in order to
  521  have his or her name listed as a proper candidate on the ballot
  522  or to serve on the board. A person who has been suspended or
  523  removed by the division under this chapter, or who is delinquent
  524  in the payment of any monetary obligation due to the
  525  association, is not eligible to be a candidate for board
  526  membership and may not be listed on the ballot. A person who has
  527  been convicted of any felony in this state or in a United States
  528  District or Territorial Court, or who has been convicted of any
  529  offense in another jurisdiction which would be considered a
  530  felony if committed in this state, is not eligible for board
  531  membership unless such felon’s civil rights have been restored
  532  for at least 5 years as of the date such person seeks election
  533  to the board. The validity of an action by the board is not
  534  affected if it is later determined that a board member is
  535  ineligible for board membership due to having been convicted of
  536  a felony. This subparagraph does not limit the term of a member
  537  of the board of a nonresidential or timeshare condominium.
  538         3. The bylaws must provide the method of calling meetings
  539  of unit owners, including annual meetings. Written notice of an
  540  annual meeting must include an agenda;, must be mailed, hand
  541  delivered, or electronically transmitted to each unit owner at
  542  least 14 days before the annual meeting;, and must be posted in
  543  a conspicuous place on the condominium property at least 14
  544  continuous days before the annual meeting. Written notice of a
  545  meeting other than an annual meeting must include an agenda; be
  546  mailed, hand delivered, or electronically transmitted to each
  547  unit owner; and be posted in a conspicuous place on the
  548  condominium property in accordance with the minimum period of
  549  time for posting a notice as set forth in the bylaws, or if the
  550  bylaws do not provide such notice requirements, at least 14
  551  continuous days before the meeting. Upon notice to the unit
  552  owners, the board shall, by duly adopted rule, designate a
  553  specific location on the condominium property where all notices
  554  of unit owner meetings must be posted. This requirement does not
  555  apply if there is no condominium property for posting notices.
  556  In lieu of, or in addition to, the physical posting of meeting
  557  notices, the association may, by reasonable rule, adopt a
  558  procedure for conspicuously posting and repeatedly broadcasting
  559  the notice and the agenda on a closed-circuit cable television
  560  system serving the condominium association. However, if
  561  broadcast notice is used in lieu of a notice posted physically
  562  on the condominium property, the notice and agenda must be
  563  broadcast at least four times every broadcast hour of each day
  564  that a posted notice is otherwise required under this section.
  565  If broadcast notice is provided, the notice and agenda must be
  566  broadcast in a manner and for a sufficient continuous length of
  567  time so as to allow an average reader to observe the notice and
  568  read and comprehend the entire content of the notice and the
  569  agenda. In addition to any of the authorized means of providing
  570  notice of a meeting of the board, the association may, by rule,
  571  adopt a procedure for conspicuously posting the meeting notice
  572  and the agenda on a website serving the condominium association
  573  for at least the minimum period of time for which a notice of a
  574  meeting is also required to be physically posted on the
  575  condominium property. Any rule adopted shall, in addition to
  576  other matters, include a requirement that the association send
  577  an electronic notice in the same manner as a notice for a
  578  meeting of the members, which must include a hyperlink to the
  579  website where the notice is posted, to unit owners whose e-mail
  580  addresses are included in the association’s official records.
  581  Unless a unit owner waives in writing the right to receive
  582  notice of the annual meeting, such notice must be hand
  583  delivered, mailed, or electronically transmitted to each unit
  584  owner. Notice for meetings and notice for all other purposes
  585  must be mailed to each unit owner at the address last furnished
  586  to the association by the unit owner, or hand delivered to each
  587  unit owner. However, if a unit is owned by more than one person,
  588  the association must provide notice to the address that the
  589  developer identifies for that purpose and thereafter as one or
  590  more of the owners of the unit advise the association in
  591  writing, or if no address is given or the owners of the unit do
  592  not agree, to the address provided on the deed of record. An
  593  officer of the association, or the manager or other person
  594  providing notice of the association meeting, must provide an
  595  affidavit or United States Postal Service certificate of
  596  mailing, to be included in the official records of the
  597  association affirming that the notice was mailed or hand
  598  delivered in accordance with this provision.
  599         4. The members of the board of a residential condominium
  600  shall be elected by written ballot or voting machine. Proxies
  601  may not be used in electing the board in general elections or
  602  elections to fill vacancies caused by recall, resignation, or
  603  otherwise, unless otherwise provided in this chapter. This
  604  subparagraph does not apply to an association governing a
  605  timeshare condominium.
  606         a. At least 60 days before a scheduled election, the
  607  association shall mail, deliver, or electronically transmit, by
  608  separate association mailing or included in another association
  609  mailing, delivery, or transmission, including regularly
  610  published newsletters, to each unit owner entitled to a vote, a
  611  first notice of the date of the election. A unit owner or other
  612  eligible person desiring to be a candidate for the board must
  613  give written notice of his or her intent to be a candidate to
  614  the association at least 40 days before a scheduled election.
  615  Together with the written notice and agenda as set forth in
  616  subparagraph 3., the association shall mail, deliver, or
  617  electronically transmit a second notice of the election to all
  618  unit owners entitled to vote, together with a ballot that lists
  619  all candidates, not less than 14 days or more than 34 days
  620  before the date of the election. Upon request of a candidate, an
  621  information sheet, no larger than 8 1/2 inches by 11 inches,
  622  which must be furnished by the candidate at least 35 days before
  623  the election, must be included with the mailing, delivery, or
  624  transmission of the ballot, with the costs of mailing, delivery,
  625  or electronic transmission and copying to be borne by the
  626  association. The association is not liable for the contents of
  627  the information sheets prepared by the candidates. In order to
  628  reduce costs, the association may print or duplicate the
  629  information sheets on both sides of the paper. The division
  630  shall by rule establish voting procedures consistent with this
  631  sub-subparagraph, including rules establishing procedures for
  632  giving notice by electronic transmission and rules providing for
  633  the secrecy of ballots. Elections shall be decided by a
  634  plurality of ballots cast. There is no quorum requirement;
  635  however, at least 20 percent of the eligible voters must cast a
  636  ballot in order to have a valid election. A unit owner may not
  637  authorize any other person to vote his or her ballot, and any
  638  ballots improperly cast are invalid. A unit owner who violates
  639  this provision may be fined by the association in accordance
  640  with s. 718.303. A unit owner who needs assistance in casting
  641  the ballot for the reasons stated in s. 101.051 may obtain such
  642  assistance. The regular election must occur on the date of the
  643  annual meeting. Notwithstanding this sub-subparagraph, an
  644  election is not required unless more candidates file notices of
  645  intent to run or are nominated than board vacancies exist.
  646         b. Within 90 days after being elected or appointed to the
  647  board of an association of a residential condominium, each newly
  648  elected or appointed director shall certify in writing to the
  649  secretary of the association that he or she has read the
  650  association’s declaration of condominium, articles of
  651  incorporation, bylaws, and current written policies; that he or
  652  she will work to uphold such documents and policies to the best
  653  of his or her ability; and that he or she will faithfully
  654  discharge his or her fiduciary responsibility to the
  655  association’s members. In lieu of this written certification,
  656  within 90 days after being elected or appointed to the board,
  657  the newly elected or appointed director may submit a certificate
  658  of having satisfactorily completed the educational curriculum
  659  administered by a division-approved condominium education
  660  provider within 1 year before or 90 days after the date of
  661  election or appointment. The written certification or
  662  educational certificate is valid and does not have to be
  663  resubmitted as long as the director serves on the board without
  664  interruption. A director of an association of a residential
  665  condominium who fails to timely file the written certification
  666  or educational certificate is suspended from service on the
  667  board until he or she complies with this sub-subparagraph. The
  668  board may temporarily fill the vacancy during the period of
  669  suspension. The secretary shall cause the association to retain
  670  a director’s written certification or educational certificate
  671  for inspection by the members for 5 years after a director’s
  672  election or the duration of the director’s uninterrupted tenure,
  673  whichever is longer. Failure to have such written certification
  674  or educational certificate on file does not affect the validity
  675  of any board action.
  676         c. Any challenge to the election process must be commenced
  677  within 60 days after the election results are announced.
  678         5. Any approval by unit owners called for by this chapter
  679  or the applicable declaration or bylaws, including, but not
  680  limited to, the approval requirement in s. 718.111(8), must be
  681  made at a duly noticed meeting of unit owners and is subject to
  682  all requirements of this chapter or the applicable condominium
  683  documents relating to unit owner decisionmaking, except that
  684  unit owners may take action by written agreement, without
  685  meetings, on matters for which action by written agreement
  686  without meetings is expressly allowed by the applicable bylaws
  687  or declaration or any law that provides for such action.
  688         6. Unit owners may waive notice of specific meetings if
  689  allowed by the applicable bylaws or declaration or any law.
  690  Notice of meetings of the board of administration, unit owner
  691  meetings, except unit owner meetings called to recall board
  692  members under paragraph (j), and committee meetings may be given
  693  by electronic transmission to unit owners who consent to receive
  694  notice by electronic transmission. A unit owner who consents to
  695  receiving notices by electronic transmission is solely
  696  responsible for removing or bypassing filters that block receipt
  697  of mass e-mails emails sent to members on behalf of the
  698  association in the course of giving electronic notices.
  699         7. Unit owners have the right to participate in meetings of
  700  unit owners with reference to all designated agenda items.
  701  However, the association may adopt reasonable rules governing
  702  the frequency, duration, and manner of unit owner participation.
  703         8. A unit owner may tape record or videotape a meeting of
  704  the unit owners subject to reasonable rules adopted by the
  705  division.
  706         9. Unless otherwise provided in the bylaws, any vacancy
  707  occurring on the board before the expiration of a term may be
  708  filled by the affirmative vote of the majority of the remaining
  709  directors, even if the remaining directors constitute less than
  710  a quorum, or by the sole remaining director. In the alternative,
  711  a board may hold an election to fill the vacancy, in which case
  712  the election procedures must conform to sub-subparagraph 4.a.
  713  unless the association governs 10 units or fewer and has opted
  714  out of the statutory election process, in which case the bylaws
  715  of the association control. Unless otherwise provided in the
  716  bylaws, a board member appointed or elected under this section
  717  shall fill the vacancy for the unexpired term of the seat being
  718  filled. Filling vacancies created by recall is governed by
  719  paragraph (j) and rules adopted by the division.
  720         10. This chapter does not limit the use of general or
  721  limited proxies, require the use of general or limited proxies,
  722  or require the use of a written ballot or voting machine for any
  723  agenda item or election at any meeting of a timeshare
  724  condominium association or nonresidential condominium
  725  association.
  726  
  727  Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
  728  association of 10 or fewer units may, by affirmative vote of a
  729  majority of the total voting interests, provide for different
  730  voting and election procedures in its bylaws, which may be by a
  731  proxy specifically delineating the different voting and election
  732  procedures. The different voting and election procedures may
  733  provide for elections to be conducted by limited or general
  734  proxy.
  735         (i) Transfer fees.An association may not no charge an
  736  applicant any fees, except the actual costs of any background
  737  check or screening performed shall be made by the association as
  738  supported by an invoice from an independent third party
  739  background investigation company used by the association or its
  740  authorized agent, or any body thereof in connection with the
  741  sale, mortgage, lease, sublease, or other transfer of a unit
  742  unless the association is required to approve such transfer and
  743  a fee for such approval is provided for in the declaration,
  744  articles, or bylaws. Neither the association, nor its authorized
  745  agent may charge an owner, purchaser, mortgagee, lessee, or
  746  sublessee any administration fee on such background check or
  747  screening. In addition to the actual costs of any background
  748  check or screening performed by the association, a transfer any
  749  such fee may be preset, but may not in no event may such fee
  750  exceed $100 per applicant other than spouses or parent and
  751  dependent child, who husband/wife or parent/dependent child,
  752  which are considered one applicant. However, if the lease or
  753  sublease is a renewal of a lease or sublease with the same
  754  lessee or sublessee, a charge may not no charge shall be made.
  755  The foregoing notwithstanding, an association may, if the
  756  authority to do so appears in the declaration, articles, or
  757  bylaws, require that a prospective lessee place a security
  758  deposit, in an amount not to exceed the equivalent of 1 month’s
  759  rent, into an escrow account maintained by the association. The
  760  security deposit shall protect against damages to the common
  761  elements or association property. Payment of interest, claims
  762  against the deposit, refunds, and disputes under this paragraph
  763  shall be handled in the same fashion as provided in part II of
  764  chapter 83.
  765         (k) Alternative Dispute Resolution Arbitration.— There must
  766  shall be a provision for mandatory alternative dispute
  767  resolution nonbinding arbitration as provided for in s. 718.1255
  768  for any residential condominium.
  769         (p)Service providers; conflicts of interest.—An
  770  association, which is not a timeshare condominium association,
  771  may not employ or contract with any service provider that is
  772  owned or operated by a board member or with any person who has a
  773  financial relationship with a board member or officer, or a
  774  relative within the third degree of consanguinity by blood or
  775  marriage of a board member or officer. This paragraph does not
  776  apply to a service provider in which a board member or officer,
  777  or a relative within the third degree of consanguinity by blood
  778  or marriage of a board member or officer, owns less than 1
  779  percent of the equity shares.
  780         Section 5. Subsection (8) of section 718.113, Florida
  781  Statutes, is amended to read:
  782         718.113 Maintenance; limitation upon improvement; display
  783  of flag; hurricane shutters and protection; display of religious
  784  decorations.—
  785         (8) The Legislature finds that the use of electric and
  786  natural gas fuel vehicles conserves and protects the state’s
  787  environmental resources, provides significant economic savings
  788  to drivers, and serves an important public interest. The
  789  participation of condominium associations is essential to the
  790  state’s efforts to conserve and protect the state’s
  791  environmental resources and provide economic savings to drivers.
  792  For purposes of this subsection, the term “natural gas fuel” has
  793  the same meaning as in s. 206.9951, and the term “natural gas
  794  fuel vehicle” means any motor vehicle, as defined in s.
  795  320.01(1), powered by natural gas fuel. Therefore, the
  796  installation of an electric vehicle charging or natural gas fuel
  797  station shall be governed as follows:
  798         (a) A declaration of condominium or restrictive covenant
  799  may not prohibit or be enforced so as to prohibit any unit owner
  800  from installing an electric vehicle charging or natural gas fuel
  801  station within the boundaries of the unit owner’s limited common
  802  element or exclusively designated parking area. The board of
  803  administration of a condominium association may not prohibit a
  804  unit owner from installing an electric vehicle charging station
  805  for an electric vehicle, as defined in s. 320.01, or a natural
  806  gas fuel station for a natural gas fuel vehicle within the
  807  boundaries of his or her limited common element or exclusively
  808  designated parking area. The installation of such charging or
  809  fuel stations are subject to the provisions of this subsection.
  810         (b) The installation may not cause irreparable damage to
  811  the condominium property.
  812         (c) The electricity for the electric vehicle charging or
  813  natural gas fuel station must be separately metered or metered
  814  by an embedded meter and payable by the unit owner installing
  815  such charging or fuel station or by his or her successor.
  816         (d)The cost for supply and storage of the natural gas fuel
  817  must be paid by the unit owner installing the natural gas fuel
  818  station or by his or her successor.
  819         (e)(d) The unit owner who is installing an electric vehicle
  820  charging or natural gas fuel station is responsible for the
  821  costs of installation, operation, maintenance, and repair,
  822  including, but not limited to, hazard and liability insurance.
  823  The association may enforce payment of such costs under pursuant
  824  to s. 718.116.
  825         (f)(e) If the unit owner or his or her successor decides
  826  there is no longer a need for the electronic vehicle charging or
  827  natural gas fuel station, such person is responsible for the
  828  cost of removal of such the electronic vehicle charging or fuel
  829  station. The association may enforce payment of such costs under
  830  pursuant to s. 718.116.
  831         (g)The unit owner installing, maintaining, or removing the
  832  electric vehicle charging or natural gas fuel station is
  833  responsible for complying with all federal, state, or local laws
  834  and regulations applicable to such installation, maintenance, or
  835  removal.
  836         (h)(f) The association may require the unit owner to:
  837         1. Comply with bona fide safety requirements, consistent
  838  with applicable building codes or recognized safety standards,
  839  for the protection of persons and property.
  840         2. Comply with reasonable architectural standards adopted
  841  by the association that govern the dimensions, placement, or
  842  external appearance of the electric vehicle charging or natural
  843  gas fuel station, provided that such standards may not prohibit
  844  the installation of such charging or fuel station or
  845  substantially increase the cost thereof.
  846         3. Engage the services of a licensed and registered firm
  847  electrical contractor or engineer familiar with the installation
  848  or removal and core requirements of an electric vehicle charging
  849  or natural gas fuel station.
  850         4. Provide a certificate of insurance naming the
  851  association as an additional insured on the owner’s insurance
  852  policy for any claim related to the installation, maintenance,
  853  or use of the electric vehicle charging or natural gas fuel
  854  station within 14 days after receiving the association’s
  855  approval to install such charging or fuel station or notice to
  856  provide such a certificate.
  857         5. Reimburse the association for the actual cost of any
  858  increased insurance premium amount attributable to the electric
  859  vehicle charging or natural gas fuel station within 14 days
  860  after receiving the association’s insurance premium invoice.
  861         (i)(g) The association provides an implied easement across
  862  the common elements of the condominium property to the unit
  863  owner for purposes of the installation of the electric vehicle
  864  charging or natural gas fuel station installation, and the
  865  furnishing of electrical power or natural gas fuel supply,
  866  including any necessary equipment, to such charging or fuel
  867  station, subject to the requirements of this subsection.
  868         Section 6. Section 718.1255, Florida Statutes, is amended
  869  to read:
  870         718.1255 Alternative dispute resolution; voluntary
  871  mediation; mandatory nonbinding arbitration; legislative
  872  findings.—
  873         (1) DEFINITIONS.—As used in this section, the term
  874  “dispute” means any disagreement between two or more parties
  875  that involves:
  876         (a) The authority of the board of directors, under this
  877  chapter or association document to:
  878         1. Require any owner to take any action, or not to take any
  879  action, involving that owner’s unit or the appurtenances
  880  thereto.
  881         2. Alter or add to a common area or element.
  882         (b) The failure of a governing body, when required by this
  883  chapter or an association document, to:
  884         1. Properly conduct elections.
  885         2. Give adequate notice of meetings or other actions.
  886         3. Properly conduct meetings.
  887         4. Allow inspection of books and records.
  888         (c) A plan of termination pursuant to s. 718.117.
  889  
  890  “Dispute” does not include any disagreement that primarily
  891  involves: title to any unit or common element; the
  892  interpretation or enforcement of any warranty; the levy of a fee
  893  or assessment, or the collection of an assessment levied against
  894  a party; the eviction or other removal of a tenant from a unit;
  895  alleged breaches of fiduciary duty by one or more directors; or
  896  claims for damages to a unit based upon the alleged failure of
  897  the association to maintain the common elements or condominium
  898  property.
  899         (2) VOLUNTARY MEDIATION.—Voluntary mediation through
  900  Citizen Dispute Settlement Centers as provided for in s. 44.201
  901  is encouraged.
  902         (3) LEGISLATIVE FINDINGS.—
  903         (a) The Legislature finds that unit owners are frequently
  904  at a disadvantage when litigating against an association.
  905  Specifically, a condominium association, with its statutory
  906  assessment authority, is often more able to bear the costs and
  907  expenses of litigation than the unit owner who must rely on his
  908  or her own financial resources to satisfy the costs of
  909  litigation against the association.
  910         (b) The Legislature finds that alternative dispute
  911  resolution has been making progress in reducing court dockets
  912  and trials and in offering a more efficient, cost-effective
  913  option to court litigation. However, the Legislature also finds
  914  that alternative dispute resolution should not be used as a
  915  mechanism to encourage the filing of frivolous or nuisance
  916  suits.
  917         (c) There exists a need to develop a flexible means of
  918  alternative dispute resolution that directs disputes to the most
  919  efficient means of resolution.
  920         (d) The high cost and significant delay of circuit court
  921  litigation faced by unit owners in the state can be alleviated
  922  by requiring nonbinding arbitration and mediation in appropriate
  923  cases, thereby reducing delay and attorney’s fees while
  924  preserving the right of either party to have its case heard by a
  925  jury, if applicable, in a court of law.
  926         (4) MANDATORY NONBINDING ARBITRATION AND MEDIATION OF
  927  DISPUTES.—The Division of Florida Condominiums, Timeshares, and
  928  Mobile Homes of the Department of Business and Professional
  929  Regulation may employ full-time attorneys to act as arbitrators
  930  to conduct the arbitration hearings provided by this chapter.
  931  The division may also certify attorneys who are not employed by
  932  the division to act as arbitrators to conduct the arbitration
  933  hearings provided by this chapter. No person may be employed by
  934  the department as a full-time arbitrator unless he or she is a
  935  member in good standing of The Florida Bar. A person may only be
  936  certified by the division to act as an arbitrator if he or she
  937  has been a member in good standing of The Florida Bar for at
  938  least 5 years and has mediated or arbitrated at least 10
  939  disputes involving condominiums in this state during the 3 years
  940  immediately preceding the date of application, mediated or
  941  arbitrated at least 30 disputes in any subject area in this
  942  state during the 3 years immediately preceding the date of
  943  application, or attained board certification in real estate law
  944  or condominium and planned development law from The Florida Bar.
  945  Arbitrator certification is valid for 1 year. An arbitrator who
  946  does not maintain the minimum qualifications for initial
  947  certification may not have his or her certification renewed. The
  948  department may not enter into a legal services contract for an
  949  arbitration hearing under this chapter with an attorney who is
  950  not a certified arbitrator unless a certified arbitrator is not
  951  available within 50 miles of the dispute. The department shall
  952  adopt rules of procedure to govern such arbitration hearings
  953  including mediation incident thereto. The decision of an
  954  arbitrator shall be final; however, a decision shall not be
  955  deemed final agency action. Nothing in this provision shall be
  956  construed to foreclose parties from proceeding in a trial de
  957  novo unless the parties have agreed that the arbitration is
  958  binding. If judicial proceedings are initiated, the final
  959  decision of the arbitrator shall be admissible in evidence in
  960  the trial de novo.
  961         (a) Prior to the institution of court litigation, a party
  962  to a dispute shall either petition the division for nonbinding
  963  arbitration or initiate presuit mediation as provided in
  964  subsection (5). Arbitration shall be binding on the parties if
  965  all parties in arbitration agree to be bound in a writing filed
  966  in arbitration. The petition must be accompanied by a filing fee
  967  in the amount of $50. Filing fees collected under this section
  968  must be used to defray the expenses of the alternative dispute
  969  resolution program.
  970         (b) The petition must recite, and have attached thereto,
  971  supporting proof that the petitioner gave the respondents:
  972         1. Advance written notice of the specific nature of the
  973  dispute;
  974         2. A demand for relief, and a reasonable opportunity to
  975  comply or to provide the relief; and
  976         3. Notice of the intention to file an arbitration petition
  977  or other legal action in the absence of a resolution of the
  978  dispute.
  979  
  980  Failure to include the allegations or proof of compliance with
  981  these prerequisites requires dismissal of the petition without
  982  prejudice.
  983         (c) Upon receipt, the petition shall be promptly reviewed
  984  by the division to determine the existence of a dispute and
  985  compliance with the requirements of paragraphs (a) and (b). If
  986  emergency relief is required and is not available through
  987  arbitration, a motion to stay the arbitration may be filed. The
  988  motion must be accompanied by a verified petition alleging facts
  989  that, if proven, would support entry of a temporary injunction,
  990  and if an appropriate motion and supporting papers are filed,
  991  the division may abate the arbitration pending a court hearing
  992  and disposition of a motion for temporary injunction.
  993         (d) Upon determination by the division that a dispute
  994  exists and that the petition substantially meets the
  995  requirements of paragraphs (a) and (b) and any other applicable
  996  rules, the division shall assign or enter into a contract with
  997  an arbitrator and serve a copy of the petition upon all
  998  respondents. The arbitrator shall conduct a hearing within 30
  999  days after being assigned or entering into a contract unless the
 1000  petition is withdrawn or a continuance is granted for good cause
 1001  shown.
 1002         (e) Before or after the filing of the respondents’ answer
 1003  to the petition, any party may request that the arbitrator refer
 1004  the case to mediation under this section and any rules adopted
 1005  by the division. Upon receipt of a request for mediation, the
 1006  division shall promptly contact the parties to determine if
 1007  there is agreement that mediation would be appropriate. If all
 1008  parties agree, the dispute must be referred to mediation.
 1009  Notwithstanding a lack of an agreement by all parties, the
 1010  arbitrator may refer a dispute to mediation at any time.
 1011         (f) Upon referral of a case to mediation, the parties must
 1012  select a mutually acceptable mediator. To assist in the
 1013  selection, the arbitrator shall provide the parties with a list
 1014  of both volunteer and paid mediators that have been certified by
 1015  the division under s. 718.501. If the parties are unable to
 1016  agree on a mediator within the time allowed by the arbitrator,
 1017  the arbitrator shall appoint a mediator from the list of
 1018  certified mediators. If a case is referred to mediation, the
 1019  parties shall attend a mediation conference, as scheduled by the
 1020  parties and the mediator. If any party fails to attend a duly
 1021  noticed mediation conference, without the permission or approval
 1022  of the arbitrator or mediator, the arbitrator must impose
 1023  sanctions against the party, including the striking of any
 1024  pleadings filed, the entry of an order of dismissal or default
 1025  if appropriate, and the award of costs and attorney fees
 1026  incurred by the other parties. Unless otherwise agreed to by the
 1027  parties or as provided by order of the arbitrator, a party is
 1028  deemed to have appeared at a mediation conference by the
 1029  physical presence of the party or its representative having full
 1030  authority to settle without further consultation, provided that
 1031  an association may comply by having one or more representatives
 1032  present with full authority to negotiate a settlement and
 1033  recommend that the board of administration ratify and approve
 1034  such a settlement within 5 days from the date of the mediation
 1035  conference. The parties shall share equally the expense of
 1036  mediation, unless they agree otherwise.
 1037         (g) The purpose of mediation as provided for by this
 1038  section is to present the parties with an opportunity to resolve
 1039  the underlying dispute in good faith, and with a minimum
 1040  expenditure of time and resources.
 1041         (h) Mediation proceedings must generally be conducted in
 1042  accordance with the Florida Rules of Civil Procedure, and these
 1043  proceedings are privileged and confidential to the same extent
 1044  as court-ordered mediation. Persons who are not parties to the
 1045  dispute are not allowed to attend the mediation conference
 1046  without the consent of all parties, with the exception of
 1047  counsel for the parties and corporate representatives designated
 1048  to appear for a party. If the mediator declares an impasse after
 1049  a mediation conference has been held, the arbitration proceeding
 1050  terminates, unless all parties agree in writing to continue the
 1051  arbitration proceeding, in which case the arbitrator’s decision
 1052  shall be binding or nonbinding, as agreed upon by the parties;
 1053  in the arbitration proceeding, the arbitrator shall not consider
 1054  any evidence relating to the unsuccessful mediation except in a
 1055  proceeding to impose sanctions for failure to appear at the
 1056  mediation conference. If the parties do not agree to continue
 1057  arbitration, the arbitrator shall enter an order of dismissal,
 1058  and either party may institute a suit in a court of competent
 1059  jurisdiction. The parties may seek to recover any costs and
 1060  attorney fees incurred in connection with arbitration and
 1061  mediation proceedings under this section as part of the costs
 1062  and fees that may be recovered by the prevailing party in any
 1063  subsequent litigation.
 1064         (i) Arbitration shall be conducted according to rules
 1065  adopted by the division. The filing of a petition for
 1066  arbitration shall toll the applicable statute of limitations.
 1067         (j) At the request of any party to the arbitration, the
 1068  arbitrator shall issue subpoenas for the attendance of witnesses
 1069  and the production of books, records, documents, and other
 1070  evidence and any party on whose behalf a subpoena is issued may
 1071  apply to the court for orders compelling such attendance and
 1072  production. Subpoenas shall be served and shall be enforceable
 1073  in the manner provided by the Florida Rules of Civil Procedure.
 1074  Discovery may, in the discretion of the arbitrator, be permitted
 1075  in the manner provided by the Florida Rules of Civil Procedure.
 1076  Rules adopted by the division may authorize any reasonable
 1077  sanctions except contempt for a violation of the arbitration
 1078  procedural rules of the division or for the failure of a party
 1079  to comply with a reasonable nonfinal order issued by an
 1080  arbitrator which is not under judicial review.
 1081         (k) The arbitration decision shall be rendered within 30
 1082  days after the hearing and presented to the parties in writing.
 1083  An arbitration decision is final in those disputes in which the
 1084  parties have agreed to be bound. An arbitration decision is also
 1085  final if a complaint for a trial de novo is not filed in a court
 1086  of competent jurisdiction in which the condominium is located
 1087  within 30 days. The right to file for a trial de novo entitles
 1088  the parties to file a complaint in the appropriate trial court
 1089  for a judicial resolution of the dispute. The prevailing party
 1090  in an arbitration proceeding shall be awarded the costs of the
 1091  arbitration and reasonable attorney fees in an amount determined
 1092  by the arbitrator. Such an award shall include the costs and
 1093  reasonable attorney fees incurred in the arbitration proceeding
 1094  as well as the costs and reasonable attorney fees incurred in
 1095  preparing for and attending any scheduled mediation. An
 1096  arbitrator’s failure to render a written decision within 30 days
 1097  after the hearing may result in the cancellation of his or her
 1098  arbitration certification.
 1099         (l) The party who files a complaint for a trial de novo
 1100  shall be assessed the other party’s arbitration costs, court
 1101  costs, and other reasonable costs, including attorney fees,
 1102  investigation expenses, and expenses for expert or other
 1103  testimony or evidence incurred after the arbitration hearing if
 1104  the judgment upon the trial de novo is not more favorable than
 1105  the arbitration decision. If the judgment is more favorable, the
 1106  party who filed a complaint for trial de novo shall be awarded
 1107  reasonable court costs and attorney fees.
 1108         (m) Any party to an arbitration proceeding may enforce an
 1109  arbitration award by filing a petition in a court of competent
 1110  jurisdiction in which the condominium is located. A petition may
 1111  not be granted unless the time for appeal by the filing of a
 1112  complaint for trial de novo has expired. If a complaint for a
 1113  trial de novo has been filed, a petition may not be granted with
 1114  respect to an arbitration award that has been stayed. If the
 1115  petition for enforcement is granted, the petitioner shall
 1116  recover reasonable attorney fees and costs incurred in enforcing
 1117  the arbitration award. A mediation settlement may also be
 1118  enforced through the county or circuit court, as applicable, and
 1119  any costs and fees incurred in the enforcement of a settlement
 1120  agreement reached at mediation must be awarded to the prevailing
 1121  party in any enforcement action.
 1122         (5) PRESUIT MEDIATION.—In lieu of the initiation of
 1123  mandatory nonbinding arbitration set forth in subsections (1)
 1124  (4), a party may submit a dispute to presuit mediation in
 1125  accordance with s. 720.311. Election and recall disputes are not
 1126  eligible for mediation; such disputes must be arbitrated by the
 1127  division or filed with a court of competent jurisdiction.
 1128         (6) DISPUTES INVOLVING ELECTION IRREGULARITIES.—Every
 1129  arbitration petition received by the division and required to be
 1130  filed under this section challenging the legality of the
 1131  election of any director of the board of administration must be
 1132  handled on an expedited basis in the manner provided by the
 1133  division’s rules for recall arbitration disputes.
 1134         (7)(6) APPLICABILITY.—This section does not apply to a
 1135  nonresidential condominium unless otherwise specifically
 1136  provided for in the declaration of the nonresidential
 1137  condominium.
 1138         Section 7. Subsection (3) of section 718.202, Florida
 1139  Statutes, is amended to read:
 1140         718.202 Sales or reservation deposits prior to closing.—
 1141         (3) If the contract for sale of the condominium unit so
 1142  provides, the developer may withdraw escrow funds in excess of
 1143  10 percent of the purchase price from the special account
 1144  required by subsection (2) when the construction of improvements
 1145  has begun. He or she may use the funds for the actual costs
 1146  incurred by the developer in the actual construction and
 1147  development of the condominium property in which the unit to be
 1148  sold is located. Actual costs include, but are not limited to,
 1149  expenditures for demolition, site clearing, permit fees, impact
 1150  fees, and utility reservation fees, as well as architectural,
 1151  engineering, and surveying fees that directly relate to
 1152  construction and development. However, no part of these funds
 1153  may be used for salaries, commissions, or expenses of
 1154  salespersons; or for advertising, marketing, or promotional
 1155  purposes; or for loan fees, costs or interest, attorney fees,
 1156  accounting fees, or insurance. A contract which permits use of
 1157  the advance payments for these purposes shall include the
 1158  following legend conspicuously printed or stamped in boldfaced
 1159  type on the first page of the contract and immediately above the
 1160  place for the signature of the buyer: ANY PAYMENT IN EXCESS OF
 1161  10 PERCENT OF THE PURCHASE PRICE MADE TO DEVELOPER PRIOR TO
 1162  CLOSING PURSUANT TO THIS CONTRACT MAY BE USED FOR CONSTRUCTION
 1163  PURPOSES BY THE DEVELOPER.
 1164         Section 8. Subsection (1) and paragraph (b) of subsection
 1165  (3) of section 718.303, Florida Statutes, are amended to read:
 1166         718.303 Obligations of owners and occupants; remedies.—
 1167         (1) Each unit owner, each tenant and other invitee, and
 1168  each association is governed by, and must comply with the
 1169  provisions of, this chapter, the declaration, the documents
 1170  creating the association, and the association bylaws which are
 1171  shall be deemed expressly incorporated into any lease of a unit.
 1172  Actions at law or in equity for damages or for injunctive
 1173  relief, or both, for failure to comply with these provisions may
 1174  be brought by the association or by a unit owner against:
 1175         (a) The association.
 1176         (b) A unit owner.
 1177         (c) Directors designated by the developer, for actions
 1178  taken by them before control of the association is assumed by
 1179  unit owners other than the developer.
 1180         (d) Any director who willfully and knowingly fails to
 1181  comply with these provisions.
 1182         (e) Any tenant leasing a unit, and any other invitee
 1183  occupying a unit.
 1184  
 1185  The prevailing party in any such action or in any action in
 1186  which the purchaser claims a right of voidability based upon
 1187  contractual provisions as required in s. 718.503(1)(a) is
 1188  entitled to recover reasonable attorney attorney’s fees. A unit
 1189  owner prevailing in an action between the association and the
 1190  unit owner under this subsection section, in addition to
 1191  recovering his or her reasonable attorney attorney’s fees, may
 1192  recover additional amounts as determined by the court to be
 1193  necessary to reimburse the unit owner for his or her share of
 1194  assessments levied by the association to fund its expenses of
 1195  the litigation. This relief does not exclude other remedies
 1196  provided by law. Actions arising under this subsection are not
 1197  considered may not be deemed to be actions for specific
 1198  performance.
 1199         (3) The association may levy reasonable fines for the
 1200  failure of the owner of the unit or its occupant, licensee, or
 1201  invitee to comply with any provision of the declaration, the
 1202  association bylaws, or reasonable rules of the association. A
 1203  fine may not become a lien against a unit. A fine may be levied
 1204  by the board on the basis of each day of a continuing violation,
 1205  with a single notice and opportunity for hearing before a
 1206  committee as provided in paragraph (b). However, the fine may
 1207  not exceed $100 per violation, or $1,000 in the aggregate.
 1208         (b) A fine or suspension levied by the board of
 1209  administration may not be imposed unless the board first
 1210  provides at least 14 days’ written notice to the unit owner and,
 1211  if applicable, any tenant occupant, licensee, or invitee of the
 1212  unit owner sought to be fined or suspended, and an opportunity
 1213  for a hearing before a committee of at least three members
 1214  appointed by the board who are not officers, directors, or
 1215  employees of the association, or the spouse, parent, child,
 1216  brother, or sister of an officer, director, or employee. The
 1217  role of the committee is limited to determining whether to
 1218  confirm or reject the fine or suspension levied by the board. If
 1219  the committee does not approve the proposed fine or suspension
 1220  by majority vote, the fine or suspension may not be imposed. If
 1221  the proposed fine or suspension is approved by the committee,
 1222  the fine payment is due 5 days after notice of the approved fine
 1223  is provided to the unit owner and, if applicable, to any tenant,
 1224  licensee, or invitee of the unit owner the date of the committee
 1225  meeting at which the fine is approved. The association must
 1226  provide written notice of such fine or suspension by mail or
 1227  hand delivery to the unit owner and, if applicable, to any
 1228  tenant, licensee, or invitee of the unit owner.
 1229         Section 9. Present subsections (1) and (2) of section
 1230  718.501, Florida Statutes, are redesignated as subsections (2)
 1231  and (3), respectively, a new subsection (1) is added to that
 1232  section and paragraphs (h) and (j) of present subsection (1) of
 1233  that section are amended, to read:
 1234         718.501 Authority, responsibility, and duties of Division
 1235  of Florida Condominiums, Timeshares, and Mobile Homes.—
 1236         (1) As used in this section, the term “financial issue”
 1237  means an issue related to operating budgets; reserve schedules;
 1238  accounting records under s. 718.111(12)(a)11.; notices of
 1239  meetings; minutes of meetings discussing budget or financial
 1240  issues; assessments for common expenses, fees, or fines; the
 1241  commingling of funds; and any other record necessary to
 1242  determine the revenues and expenses of the association. The
 1243  division may adopt rules to further define what a financial
 1244  issue is under this section and may adopt a rule outlining the
 1245  requirements of the checklist under s. 718.111(c)1.
 1246         (2) The division may enforce and ensure compliance with the
 1247  provisions of this chapter and rules relating to the
 1248  development, construction, sale, lease, ownership, operation,
 1249  and management of residential condominium units. In performing
 1250  its duties, the division has complete jurisdiction to
 1251  investigate complaints and enforce compliance with respect to
 1252  associations that are still under developer control or the
 1253  control of a bulk assignee or bulk buyer pursuant to part VII of
 1254  this chapter and complaints against developers, bulk assignees,
 1255  or bulk buyers involving improper turnover or failure to
 1256  turnover, pursuant to s. 718.301. However, after turnover has
 1257  occurred, the division has jurisdiction to investigate
 1258  complaints related only to financial issues, elections, and the
 1259  maintenance of and unit owner access to association records
 1260  under pursuant to s. 718.111(12).
 1261         (h) The division shall furnish each association that pays
 1262  the fees required by paragraph (3)(a) (2)(a) a copy of this
 1263  chapter, as amended, and the rules adopted thereto on an annual
 1264  basis.
 1265         (j) The division shall provide training and educational
 1266  programs for condominium association board members and unit
 1267  owners. The training may, in the division’s discretion, include
 1268  web-based electronic media, and live training and seminars in
 1269  various locations throughout the state. The division may review
 1270  and approve education and training programs for board members
 1271  and unit owners offered by providers and shall maintain a
 1272  current list of approved programs and providers and make such
 1273  list available to board members and unit owners in a reasonable
 1274  and cost-effective manner. The division may adopt rules to
 1275  establish requirements for the training and educational programs
 1276  required in this paragraph.
 1277         Section 10. Section 718.5014, Florida Statutes, is amended
 1278  to read:
 1279         718.5014 Ombudsman location.—The ombudsman shall maintain
 1280  his or her principal office in a Leon County on the premises of
 1281  the division or, if suitable space cannot be provided there, at
 1282  another place convenient to the offices of the division which
 1283  will enable the ombudsman to expeditiously carry out the duties
 1284  and functions of his or her office. The ombudsman may establish
 1285  branch offices elsewhere in the state upon the concurrence of
 1286  the Governor.
 1287         Section 11. Subsection (25) of section 719.103, Florida
 1288  Statutes, is amended to read:
 1289         719.103 Definitions.—As used in this chapter:
 1290         (25) “Unit” means a part of the cooperative property which
 1291  is subject to exclusive use and possession. A unit may be
 1292  improvements, land, or land and improvements together, as
 1293  specified in the cooperative documents. An interest in a unit is
 1294  an interest in real property.
 1295         Section 12. Paragraph (c) of subsection (2) of section
 1296  719.104, Florida Statutes, is amended to read:
 1297         719.104 Cooperatives; access to units; records; financial
 1298  reports; assessments; purchase of leases.—
 1299         (2) OFFICIAL RECORDS.—
 1300         (c) The official records of the association are open to
 1301  inspection by any association member or the authorized
 1302  representative of such member at all reasonable times. The right
 1303  to inspect the records includes the right to make or obtain
 1304  copies, at the reasonable expense, if any, of the association
 1305  member. The association may adopt reasonable rules regarding the
 1306  frequency, time, location, notice, and manner of record
 1307  inspections and copying, but may not require a member to
 1308  demonstrate any purpose or state any reason for the inspection.
 1309  The failure of an association to provide the records within 10
 1310  working days after receipt of a written request creates a
 1311  rebuttable presumption that the association willfully failed to
 1312  comply with this paragraph. A member unit owner who is denied
 1313  access to official records is entitled to the actual damages or
 1314  minimum damages for the association’s willful failure to comply.
 1315  The minimum damages are $50 per calendar day for up to 10 days,
 1316  beginning on the 11th working day after receipt of the written
 1317  request. The failure to permit inspection entitles any person
 1318  prevailing in an enforcement action to recover reasonable
 1319  attorney fees from the person in control of the records who,
 1320  directly or indirectly, knowingly denied access to the records.
 1321  Any person who knowingly or intentionally defaces or destroys
 1322  accounting records that are required by this chapter to be
 1323  maintained during the period for which such records are required
 1324  to be maintained, or who knowingly or intentionally fails to
 1325  create or maintain accounting records that are required to be
 1326  created or maintained, with the intent of causing harm to the
 1327  association or one or more of its members, is personally subject
 1328  to a civil penalty under pursuant to s. 719.501(1)(d). The
 1329  association shall maintain an adequate number of copies of the
 1330  declaration, articles of incorporation, bylaws, and rules, and
 1331  all amendments to each of the foregoing, as well as the question
 1332  and answer sheet as described in s. 719.504 and year-end
 1333  financial information required by the department, on the
 1334  cooperative property to ensure their availability to members
 1335  unit owners and prospective purchasers, and may charge its
 1336  actual costs for preparing and furnishing these documents to
 1337  those requesting the same. An association shall allow a member
 1338  or his or her authorized representative to use a portable
 1339  device, including a smartphone, tablet, portable scanner, or any
 1340  other technology capable of scanning or taking photographs, to
 1341  make an electronic copy of the official records in lieu of the
 1342  association providing the member or his or her authorized
 1343  representative with a copy of such records. The association may
 1344  not charge a member or his or her authorized representative for
 1345  the use of a portable device. Notwithstanding this paragraph,
 1346  the following records shall not be accessible to members unit
 1347  owners:
 1348         1. Any record protected by the lawyer-client privilege as
 1349  described in s. 90.502 and any record protected by the work
 1350  product privilege, including any record prepared by an
 1351  association attorney or prepared at the attorney’s express
 1352  direction which reflects a mental impression, conclusion,
 1353  litigation strategy, or legal theory of the attorney or the
 1354  association, and which was prepared exclusively for civil or
 1355  criminal litigation or for adversarial administrative
 1356  proceedings, or which was prepared in anticipation of such
 1357  litigation or proceedings until the conclusion of the litigation
 1358  or proceedings.
 1359         2. Information obtained by an association in connection
 1360  with the approval of the lease, sale, or other transfer of a
 1361  unit.
 1362         3. Personnel records of association or management company
 1363  employees, including, but not limited to, disciplinary, payroll,
 1364  health, and insurance records. For purposes of this
 1365  subparagraph, the term “personnel records” does not include
 1366  written employment agreements with an association employee or
 1367  management company, or budgetary or financial records that
 1368  indicate the compensation paid to an association employee.
 1369         4. Medical records of unit owners.
 1370         5. Social security numbers, driver license numbers, credit
 1371  card numbers, e-mail addresses, telephone numbers, facsimile
 1372  numbers, emergency contact information, addresses of a unit
 1373  owner other than as provided to fulfill the association’s notice
 1374  requirements, and other personal identifying information of any
 1375  person, excluding the person’s name, unit designation, mailing
 1376  address, property address, and any address, e-mail address, or
 1377  facsimile number provided to the association to fulfill the
 1378  association’s notice requirements. Notwithstanding the
 1379  restrictions in this subparagraph, an association may print and
 1380  distribute to unit parcel owners a directory containing the
 1381  name, unit parcel address, and all telephone numbers of each
 1382  unit parcel owner. However, an owner may exclude his or her
 1383  telephone numbers from the directory by so requesting in writing
 1384  to the association. An owner may consent in writing to the
 1385  disclosure of other contact information described in this
 1386  subparagraph. The association is not liable for the inadvertent
 1387  disclosure of information that is protected under this
 1388  subparagraph if the information is included in an official
 1389  record of the association and is voluntarily provided by an
 1390  owner and not requested by the association.
 1391         6. Electronic security measures that are used by the
 1392  association to safeguard data, including passwords.
 1393         7. The software and operating system used by the
 1394  association which allow the manipulation of data, even if the
 1395  owner owns a copy of the same software used by the association.
 1396  The data is part of the official records of the association.
 1397         Section 13. Paragraph (b) of subsection (1) of section
 1398  719.106, Florida Statutes, is amended, and subsection (3) is
 1399  added to that section, to read:
 1400         719.106 Bylaws; cooperative ownership.—
 1401         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1402  documents shall provide for the following, and if they do not,
 1403  they shall be deemed to include the following:
 1404         (b) Quorum; voting requirements; proxies.—
 1405         1. Unless otherwise provided in the bylaws, the percentage
 1406  of voting interests required to constitute a quorum at a meeting
 1407  of the members shall be a majority of voting interests, and
 1408  decisions shall be made by owners of a majority of the voting
 1409  interests. Unless otherwise provided in this chapter, or in the
 1410  articles of incorporation, bylaws, or other cooperative
 1411  documents, and except as provided in subparagraph (d)1.,
 1412  decisions shall be made by owners of a majority of the voting
 1413  interests represented at a meeting at which a quorum is present.
 1414         2. Except as specifically otherwise provided herein, after
 1415  January 1, 1992, unit owners may not vote by general proxy, but
 1416  may vote by limited proxies substantially conforming to a
 1417  limited proxy form adopted by the division. Limited proxies and
 1418  general proxies may be used to establish a quorum. Limited
 1419  proxies shall be used for votes taken to waive or reduce
 1420  reserves in accordance with subparagraph (j)2., for votes taken
 1421  to waive the financial reporting requirements of s.
 1422  719.104(4)(b), for votes taken to amend the articles of
 1423  incorporation or bylaws pursuant to this section, and for any
 1424  other matter for which this chapter requires or permits a vote
 1425  of the unit owners. Except as provided in paragraph (d), after
 1426  January 1, 1992, no proxy, limited or general, shall be used in
 1427  the election of board members. General proxies may be used for
 1428  other matters for which limited proxies are not required, and
 1429  may also be used in voting for nonsubstantive changes to items
 1430  for which a limited proxy is required and given. Notwithstanding
 1431  the provisions of this section, unit owners may vote in person
 1432  at unit owner meetings. Nothing contained herein shall limit the
 1433  use of general proxies or require the use of limited proxies or
 1434  require the use of limited proxies for any agenda item or
 1435  election at any meeting of a timeshare cooperative.
 1436         3. Any proxy given shall be effective only for the specific
 1437  meeting for which originally given and any lawfully adjourned
 1438  meetings thereof. In no event shall any proxy be valid for a
 1439  period longer than 90 days after the date of the first meeting
 1440  for which it was given. Every proxy shall be revocable at any
 1441  time at the pleasure of the unit owner executing it.
 1442         4. A member of the board of administration or a committee
 1443  may submit in writing his or her agreement or disagreement with
 1444  any action taken at a meeting that the member did not attend.
 1445  This agreement or disagreement may not be used as a vote for or
 1446  against the action taken and may not be used for the purposes of
 1447  creating a quorum.
 1448         5. A board or committee member participating in a meeting
 1449  via telephone, real-time video conferencing, or similar real
 1450  time electronic or video communication counts toward a quorum,
 1451  and such member may vote as if physically present When some or
 1452  all of the board or committee members meet by telephone
 1453  conference, those board or committee members attending by
 1454  telephone conference may be counted toward obtaining a quorum
 1455  and may vote by telephone. A telephone speaker must shall be
 1456  used utilized so that the conversation of such those board or
 1457  committee members attending by telephone may be heard by the
 1458  board or committee members attending in person, as well as by
 1459  any unit owners present at a meeting.
 1460         (3)GENERALLY.—The association may extinguish a
 1461  discriminatory restriction, as defined in s. 712.065(1),
 1462  pursuant to s. 712.065.
 1463         Section 14. Paragraph (l) of subsection (4) of section
 1464  720.303, Florida Statutes, is redesignated as paragraph (m), a
 1465  new paragraph (l) is added to that subsection, and paragraph (c)
 1466  of subsection (2), present paragraph (l) of subsection (4), and
 1467  paragraphs (c) and (d) of subsection (6) of that section are
 1468  amended, to read:
 1469         720.303 Association powers and duties; meetings of board;
 1470  official records; budgets; financial reporting; association
 1471  funds; recalls.—
 1472         (2) BOARD MEETINGS.—
 1473         (c) The bylaws shall provide the following for giving
 1474  notice to parcel owners and members of all board meetings and,
 1475  if they do not do so, shall be deemed to include the following:
 1476         1. Notices of all board meetings must be posted in a
 1477  conspicuous place in the community at least 48 hours in advance
 1478  of a meeting, except in an emergency. In the alternative, if
 1479  notice is not posted in a conspicuous place in the community,
 1480  notice of each board meeting must be mailed or delivered to each
 1481  member at least 7 days before the meeting, except in an
 1482  emergency. Notwithstanding this general notice requirement, for
 1483  communities with more than 100 members, the association bylaws
 1484  may provide for a reasonable alternative to posting or mailing
 1485  of notice for each board meeting, including publication of
 1486  notice, provision of a schedule of board meetings, or the
 1487  conspicuous posting and repeated broadcasting of the notice on a
 1488  closed-circuit cable television system serving the homeowners’
 1489  association. However, if broadcast notice is used in lieu of a
 1490  notice posted physically in the community, the notice must be
 1491  broadcast at least four times every broadcast hour of each day
 1492  that a posted notice is otherwise required. When broadcast
 1493  notice is provided, the notice and agenda must be broadcast in a
 1494  manner and for a sufficient continuous length of time so as to
 1495  allow an average reader to observe the notice and read and
 1496  comprehend the entire content of the notice and the agenda. In
 1497  addition to any of the authorized means of providing notice of a
 1498  meeting of the board, the association may adopt, by rule, a
 1499  procedure for conspicuously posting the meeting notice and the
 1500  agenda on the association’s website for at least the minimum
 1501  period of time for which a notice of a meeting is also required
 1502  to be physically posted on the association property. Any such
 1503  rule must require the association to send to members whose e
 1504  mail addresses are included in the association’s official
 1505  records an electronic notice in the same manner as is required
 1506  for a notice of a meeting of the members. Such notice must
 1507  include a hyperlink to the website where the notice is posted.
 1508  The association may provide notice by electronic transmission in
 1509  a manner authorized by law for meetings of the board of
 1510  directors, committee meetings requiring notice under this
 1511  section, and annual and special meetings of the members to any
 1512  member who has provided a facsimile number or e-mail address to
 1513  the association to be used for such purposes; however, a member
 1514  must consent in writing to receiving notice by electronic
 1515  transmission.
 1516         2. An assessment may not be levied at a board meeting
 1517  unless the notice of the meeting includes a statement that
 1518  assessments will be considered and the nature of the
 1519  assessments. Written notice of any meeting at which special
 1520  assessments will be considered or at which amendments to rules
 1521  regarding parcel use will be considered must be mailed,
 1522  delivered, or electronically transmitted to the members and
 1523  parcel owners and posted conspicuously on the property or
 1524  broadcast on closed-circuit cable television not less than 14
 1525  days before the meeting.
 1526         3. Directors may not vote by proxy or by secret ballot at
 1527  board meetings, except that secret ballots may be used in the
 1528  election of officers. This subsection also applies to the
 1529  meetings of any committee or other similar body, when a final
 1530  decision will be made regarding the expenditure of association
 1531  funds, and to any body vested with the power to approve or
 1532  disapprove architectural decisions with respect to a specific
 1533  parcel of residential property owned by a member of the
 1534  community.
 1535         (4) OFFICIAL RECORDS.—The association shall maintain each
 1536  of the following items, when applicable, which constitute the
 1537  official records of the association:
 1538         (l)Ballots, sign-in sheets, voting proxies, and all other
 1539  papers and electronic records relating to voting by parcel
 1540  owners, which must be maintained for at least 1 year after the
 1541  date of the election, vote, or meeting.
 1542         (m)(l) All other written records of the association not
 1543  specifically included in this subsection the foregoing which are
 1544  related to the operation of the association.
 1545         (6) BUDGETS.—
 1546         (c)1. If the budget of the association does not provide for
 1547  reserve accounts pursuant to paragraph (d), or the declaration
 1548  of covenants, articles, or bylaws do not obligate the developer
 1549  to create reserves, and the association is responsible for the
 1550  repair and maintenance of capital improvements that may result
 1551  in a special assessment if reserves are not provided or not
 1552  fully funded, then each financial report for the preceding
 1553  fiscal year required by subsection (7) must contain the
 1554  following statement in conspicuous type:
 1555  
 1556         THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR
 1557         FULLY FUNDING RESERVE ACCOUNTS FOR CAPITAL
 1558         EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT
 1559         IN SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. OWNERS
 1560         MAY ELECT TO PROVIDE FOR FULLY FUNDING RESERVE
 1561         ACCOUNTS PURSUANT TO SECTION 720.303(6), FLORIDA
 1562         STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF
 1563         THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY VOTE
 1564         OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
 1565  
 1566         2. If the budget of the association does provide for
 1567  funding accounts for deferred expenditures, including, but not
 1568  limited to, funds for capital expenditures and deferred
 1569  maintenance, but such accounts are not created or established
 1570  pursuant to paragraph (d), each financial report for the
 1571  preceding fiscal year required under subsection (7) must also
 1572  contain the following statement in conspicuous type:
 1573  
 1574         THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED
 1575         VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING
 1576         CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT
 1577         TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING
 1578         DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
 1579         PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION
 1580         720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
 1581         SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET
 1582         FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN
 1583         ACCORDANCE WITH THAT STATUTE.
 1584         (d) An association is deemed to have provided for reserve
 1585  accounts if reserve accounts have been initially established by
 1586  the developer or if the membership of the association
 1587  affirmatively elects to provide for reserves. If reserve
 1588  accounts are established by the developer, the budget must
 1589  designate the components for which the reserve accounts may be
 1590  used. If reserve accounts are not initially provided by the
 1591  developer, the membership of the association may elect to do so
 1592  upon the affirmative approval of a majority of the total voting
 1593  interests of the association. Such approval may be obtained by
 1594  vote of the members at a duly called meeting of the membership
 1595  or by the written consent of a majority of the total voting
 1596  interests of the association. The approval action of the
 1597  membership must state that reserve accounts shall be provided
 1598  for in the budget and must designate the components for which
 1599  the reserve accounts are to be established. Upon approval by the
 1600  membership, the board of directors shall include the required
 1601  reserve accounts in the budget in the next fiscal year following
 1602  the approval and each year thereafter. Once established as
 1603  provided in this subsection, the reserve accounts must be funded
 1604  or maintained or have their funding waived in the manner
 1605  provided in paragraph (f).
 1606         Section 15. Subsections (1) and (2) of section 720.305,
 1607  Florida Statutes, are amended to read:
 1608         720.305 Obligations of members; remedies at law or in
 1609  equity; levy of fines and suspension of use rights.—
 1610         (1) Each member and the member’s tenants, guests, and
 1611  invitees, and each association, are governed by, and must comply
 1612  with, this chapter and, the governing documents of the
 1613  community, and the rules of the association. Actions at law or
 1614  in equity, or both, to redress alleged failure or refusal to
 1615  comply with these provisions may be brought by the association
 1616  or by any member against:
 1617         (a) The association;
 1618         (b) A member;
 1619         (c) Any director or officer of an association who willfully
 1620  and knowingly fails to comply with these provisions; and
 1621         (d) Any tenants, guests, or invitees occupying a parcel or
 1622  using the common areas.
 1623  
 1624  The prevailing party in any such litigation is entitled to
 1625  recover reasonable attorney fees and costs. A member prevailing
 1626  in an action between the association and the member under this
 1627  section, in addition to recovering his or her reasonable
 1628  attorney fees, may recover additional amounts as determined by
 1629  the court to be necessary to reimburse the member for his or her
 1630  share of assessments levied by the association to fund its
 1631  expenses of the litigation. This relief does not exclude other
 1632  remedies provided by law. This section does not deprive any
 1633  person of any other available right or remedy.
 1634         (2) An The association may levy reasonable fines. A fine
 1635  may not exceed $100 per violation against any member or any
 1636  member’s tenant, guest, or invitee for the failure of the owner
 1637  of the parcel or its occupant, licensee, or invitee to comply
 1638  with any provision of the declaration, the association bylaws,
 1639  or reasonable rules of the association unless otherwise provided
 1640  in the governing documents. A fine may be levied by the board
 1641  for each day of a continuing violation, with a single notice and
 1642  opportunity for hearing, except that the fine may not exceed
 1643  $1,000 in the aggregate unless otherwise provided in the
 1644  governing documents. A fine of less than $1,000 may not become a
 1645  lien against a parcel. In any action to recover a fine, the
 1646  prevailing party is entitled to reasonable attorney fees and
 1647  costs from the nonprevailing party as determined by the court.
 1648         (a) An association may suspend, for a reasonable period of
 1649  time, the right of a member, or a member’s tenant, guest, or
 1650  invitee, to use common areas and facilities for the failure of
 1651  the owner of the parcel or its occupant, licensee, or invitee to
 1652  comply with any provision of the declaration, the association
 1653  bylaws, or reasonable rules of the association. This paragraph
 1654  does not apply to that portion of common areas used to provide
 1655  access or utility services to the parcel. A suspension may not
 1656  prohibit an owner or tenant of a parcel from having vehicular
 1657  and pedestrian ingress to and egress from the parcel, including,
 1658  but not limited to, the right to park.
 1659         (b) A fine or suspension levied by the board of
 1660  administration may not be imposed unless the board first
 1661  provides at least 14 days’ notice to the parcel owner and, if
 1662  applicable, any occupant, licensee, or invitee of the parcel
 1663  owner, sought to be fined or suspended and an opportunity for a
 1664  hearing before a committee of at least three members appointed
 1665  by the board who are not officers, directors, or employees of
 1666  the association, or the spouse, parent, child, brother, or
 1667  sister of an officer, director, or employee. If the committee,
 1668  by majority vote, does not approve a proposed fine or
 1669  suspension, the proposed fine or suspension may not be imposed.
 1670  The role of the committee is limited to determining whether to
 1671  confirm or reject the fine or suspension levied by the board. If
 1672  the proposed fine or suspension levied by the board is approved
 1673  by the committee, the fine payment is due 5 days after notice of
 1674  the approved fine is provided to the parcel owner and, if
 1675  applicable, to any occupant, licensee, or invitee of the parcel
 1676  owner the date of the committee meeting at which the fine is
 1677  approved. The association must provide written notice of such
 1678  fine or suspension by mail or hand delivery to the parcel owner
 1679  and, if applicable, to any occupant tenant, licensee, or invitee
 1680  of the parcel owner.
 1681         Section 16. Paragraph (g) of subsection (1) of section
 1682  720.306, Florida Statutes, is amended to read:
 1683         720.306 Meetings of members; voting and election
 1684  procedures; amendments.—
 1685         (1) QUORUM; AMENDMENTS.—
 1686         (g) A notice required under this section must be mailed or
 1687  delivered to the address identified as the parcel owner’s
 1688  mailing address in the official records of the association as
 1689  required under s. 720.303(4) on the property appraiser’s website
 1690  for the county in which the parcel is located, or electronically
 1691  transmitted in a manner authorized by the association if the
 1692  parcel owner has consented, in writing, to receive notice by
 1693  electronic transmission.
 1694         Section 17. Subsection (6) is added to section 720.3075,
 1695  Florida Statutes, to read:
 1696         720.3075 Prohibited clauses in association documents.—
 1697         (6)The association may extinguish a discriminatory
 1698  restriction, as defined in s. 712.065(1), pursuant to s.
 1699  712.065.
 1700         Section 18. This act shall take effect July 1, 2020.