CONDOMINIUM ASSOCIATIONS (FS 718)

CONDOMINIUMS

718.103 718.104 718.105 718.110 718.111 718.112 718.1123
718.113 718.115 718.1255 718.302 718.3025 718.3026 718.303
718.501 718.5011 718.5012 718.502 718.504 718.508 718.509
718.608            

 

     Section 1.  Subsection (17) of section 718.103, Florida

Statutes, is amended to read:

     718.103  Definitions.--As used in this chapter, the term:

     (17)  "Division" means the Division of Florida Land Sales,

Condominiums, Homeowners' Associations, and Mobile Homes of the

Department of Business and Professional Regulation.

     Section 2.  Paragraph (f) of subsection (4) of section

718.104, Florida Statutes, is amended to read:

     718.104  Creation of condominiums; contents of

declaration.--Every condominium created in this state shall be

created pursuant to this chapter.

     (4)  The declaration must contain or provide for the

following matters:

     (f)  The undivided share of ownership of the common

elements and common surplus of the condominium that is

appurtenant to each unit stated as a percentage or a fraction of

the whole. In the declaration of condominium for residential

condominiums created after April 1, 2007 1992, the ownership

share of the common elements assigned to each residential unit

shall be based either upon the total square footage of each

residential unit in uniform relationship to the total square

footage of each other residential unit in the condominium or on

an equal fractional basis.

     Section 3.  Paragraph (c) of subsection (4) of section

718.105, Florida Statutes, is amended to read:

     718.105  Recording of declaration.--

     (4)

     (c)  If the sum of money held by the clerk has not been

paid to the developer or association as provided in paragraph

(b) by 3 years after the date the declaration was originally

recorded, the clerk in his or her discretion may notify, in

writing, the registered agent of the association that the sum is

still available and the purpose for which it was deposited. If

the association does not record the certificate within 90 days

after the clerk has given the notice, the clerk may disburse the

money to the developer. If the developer cannot be located, the

clerk shall disburse the money to the Division of Florida Land

Sales, Condominiums, Homeowners' Associations, and Mobile Homes

for deposit in the Division of Florida Land Sales, Condominiums,

Homeowners' Associations, and Mobile Homes Trust Fund.

     Section 4.  Paragraph (d) is added to subsection (1) of

section 718.110, Florida Statutes, to read:

     718.110  Amendment of declaration; correction of error or

omission in declaration by circuit court.--

     (1)

     (d)  Notice of a proposed amendment to the declaration

shall be sent to the unit owner by certified mail.

     Section 5.  Subsection (5), paragraph (b) of subsection

(7), paragraphs (a), (b) and (c) of subsection (12), and subsection

(13) of section 718.111, Florida Statutes, are amended, and

subsection (15) is added to that section, to read:

     718.111  The association.--

     (5)  RIGHT OF ACCESS TO UNITS.--The association has the

irrevocable right of access to each unit during reasonable

hours, when necessary for the maintenance, repair, or

replacement of any common elements or of any portion of a unit

to be maintained by the association pursuant to the declaration

or as necessary to prevent damage to the common elements or to a

unit or units. Except in cases of emergency, the association

must give the unit owner 24 hours' advance written notice of

intent to access the unit and such access must include two

persons, one of whom must be a member of the board of

administration.

     (7)  TITLE TO PROPERTY.--

     (b)  Subject to the provisions of s. 718.112(2)(l)(m), the

association, through its board, has the limited power to convey

a portion of the common elements to a condemning authority for

the purposes of providing utility easements, right-of-way

expansion, or other public purposes, whether negotiated or as a

result of eminent domain proceedings.

     (12)  OFFICIAL RECORDS.-- 

         (a)

11.  Accounting records for the association and separate accounting

records for each condominium which the association operates. All 

accounting records shall be maintained for a period of not less than 

7 years. Any officer, director, or manager who knowingly or intentionally

defaces, destroys or fails to create, or maintain accounting records is

personally subject to a civil penalty pursuant to s. 718.501(1)(d) and

appropriate criminal sanctions. The accounting records shall include,

but are not limited to:

a.  Accurate, itemized, and detailed records of all receipts and

expenditures.

b.  A current account and a monthly, bimonthly, or quarterly statement 

of the account for each unit designating the name of the unit owner,

the due date and amount of each assessment, the amount paid upon

the account, and the balance due.

c.  All audits, reviews, accounting statements, and financial reports 

of the association or condominium.

d.  All contracts for work to be performed. Bids for work to be 

performed shall also be considered official records and shall 

be maintained for a period of 1 year.

     (b)  The official records of the association shall be

maintained within the state county. The records of the association

shall be made available to a unit owner, at a location within 30

miles' driving distance of the condominium property, within 5

working days after receipt of written request by the board or

its designee. This paragraph may be complied with by having a

copy of the official records of the association available for

inspection or copying on the condominium property or association

property.

     (c)  The official records of the association are open to

inspection by any association member or the authorized

representative of such member at all reasonable times. The right

to inspect the records includes the right to make or obtain

copies, at the reasonable expense, if any, of the association

member. The association may adopt reasonable rules regarding the

frequency, time, location, notice, and manner of record

inspections and copying. The failure of an association to

provide the records within 10 working days after receipt of a

written request shall create a rebuttable presumption that the

association willfully failed to comply with this paragraph. A

unit owner who is denied access to official records is entitled

to the actual damages or minimum damages for the association's

willful failure to comply with this paragraph. The minimum

damages shall be $50 per calendar day up to 10 days, the

calculation to begin on the 11th working day after receipt of

the written request. The failure to permit inspection of the

association records as provided herein entitles any person

prevailing in an enforcement action to recover reasonable

attorney's fees from the person in control of the records who,

directly or indirectly, knowingly denied access to the records

for inspection. Any officer, director, or manager who knowingly

or intentionally defaces, destroys or fails to create, or maintain

accounting records is personally subject to a civil penalty pursuant

to s. 718.501(1)(d) and appropriate criminal sanctions. The

The association shall maintain an adequate number of copies of

the declaration, articles of incorporation, bylaws, and rules, and all 

amendments to each of the foregoing, as well as the question 

and answer sheet provided for in s. 718.504 and year-end 

financial information required in this section on the 

condominium property to ensure their availability to unit 

owners and prospective purchasers, and may charge its

actual costs for preparing and furnishing these documents to

those requesting the same. Notwithstanding the provisions of

this paragraph, the following records shall not be accessible to

unit owners:

     1.  Any record protected by the lawyer-client privilege as

described in s. 90.502; and any record protected by the work-

product privilege, including any record prepared by an

association attorney or prepared at the attorney's express

direction; which reflects a mental impression, conclusion,

litigation strategy, or legal theory of the attorney or the

association, and which was prepared exclusively for civil or

criminal litigation or for adversarial administrative

proceedings, or which was prepared in anticipation of imminent

civil or criminal litigation or imminent adversarial

administrative proceedings until the conclusion of the

litigation or adversarial administrative proceedings.

     2.  Information obtained by an association in connection

with the approval of the lease, sale, or other transfer of a

unit.

     3.  Medical records of unit owners.

     4.  Social security numbers, driver's license numbers,

credit card numbers, and other personal identifying information

of unit owners, occupants, or tenants.

     (13)  FINANCIAL REPORTING.--Within 90 days after the end of

the fiscal year, or annually on a date provided in the bylaws,

the association shall prepare and complete, or contract for the

preparation and completion of, a financial report for the

preceding fiscal year. Within 21 days after the final financial

report is completed by the association or received from the

third party, but not later than 120 days after the end of the

fiscal year or other date as provided in the bylaws, the

association shall mail to each unit owner at the address last

furnished to the association by the unit owner, or hand deliver

to each unit owner, a copy of the financial report or a notice

that a copy of the financial report will be mailed or hand

delivered to the unit owner, without charge, upon receipt of a

written request from the unit owner. The division shall adopt

rules setting forth uniform accounting principles and standards

to be used by all associations and shall adopt rules addressing

financial reporting requirements for multicondominium

associations. In adopting such rules, the division shall

consider the number of members and annual revenues of an

association. Financial reports shall be prepared as follows:

     (a)  An association that meets the criteria of this

paragraph shall prepare or cause to be prepared a complete set

of financial statements in accordance with generally accepted

accounting principles. The financial statements shall be based

upon the association's total annual revenues, as follows:

     1.  An association with total annual revenues of $100,000

or more, but less than $200,000, shall prepare compiled

financial statements.

     2.  An association with total annual revenues of at least

$200,000, but less than $400,000, shall prepare reviewed

financial statements.

     3.  An association with total annual revenues of $400,000

or more shall prepare audited financial statements.

     (b)1.  An association with total annual revenues of less

than $100,000 shall prepare a report of cash receipts and

expenditures.

     2.  An association which operates less than 50 units,

regardless of the association's annual revenues, shall prepare a

report of cash receipts and expenditures in lieu of financial

statements required by paragraph (a).

     3.  A report of cash receipts and disbursements must

disclose the amount of receipts by accounts and receipt

classifications and the amount of expenses by accounts and

expense classifications, including, but not limited to, the

following, as applicable: costs for security, professional and

management fees and expenses, taxes, costs for recreation

facilities, expenses for refuse collection and utility services,

expenses for lawn care, costs for building maintenance and

repair, insurance costs, administration and salary expenses, and

reserves accumulated and expended for capital expenditures,

deferred maintenance, and any other category for which the

association maintains reserves.

     (c)  An association may prepare or cause to be prepared,

without a meeting of or approval by the unit owners:

     1.  Compiled, reviewed, or audited financial statements, if

the association is required to prepare a report of cash receipts

and expenditures;

     2.  Reviewed or audited financial statements, if the

association is required to prepare compiled financial

statements; or

     3.  Audited financial statements if the association is

required to prepare reviewed financial statements.

     (d)  If approved by a majority of the voting interests

present at a properly called meeting of the association, an

association may prepare or cause to be prepared:

     1.  A report of cash receipts and expenditures in lieu of a

compiled, reviewed, or audited financial statement;

     2.  A report of cash receipts and expenditures or a

compiled financial statement in lieu of a reviewed or audited

financial statement; or

     3.  A report of cash receipts and expenditures, a compiled

financial statement, or a reviewed financial statement in lieu

of an audited financial statement.

Such meeting and approval must occur prior to the end of the

fiscal year and is effective only for the fiscal year in which

the vote is taken. With respect to an association to which the

developer has not turned over control of the association, all

unit owners, including the developer, may vote on issues related

to the preparation of financial reports for the first 2 fiscal

years of the association's operation, beginning with the fiscal

year in which the declaration is recorded. Thereafter, all unit

owners except the developer may vote on such issues until

control is turned over to the association by the developer. An

association or board of administration may not waive the

financial reporting requirements of this section for more than 2

years.

     (15)  RECONSTRUCTION AFTER CASUALTY.--

     (a)  In the event the condominium property and units are

damaged after a casualty, the board of administration shall

obtain reliable and detailed estimates of the cost necessary to

repair and replace the damaged property to substantially the

same condition existing immediately prior to the casualty and

substantially in accordance with the original plans and

specifications of the condominium as soon as possible and not

later than 60 days after the casualty. If the damage to the

condominium property exceeds 50 percent of the property's value,

the condominium may be terminated unless 75 percent of the unit

owners agree to reconstruction and repair within 90 days after

the casualty.

     (b)  The board of administration shall engage the services

of a registered architect and knowledgeable construction

specialists to prepare any necessary plans and specifications

and shall receive and approve bids for reconstruction, execute

all necessary contracts for restoration, and arrange for

disbursement of construction funds, the approval of work, and

all other matters pertaining to the repairs and reconstruction

required.

     (c)  If the proceeds of the hazard insurance policy

maintained by the association pursuant to paragraph (11)(b) are

insufficient to pay the estimated costs of reconstruction or at

any time during reconstruction and repair, assessments shall be

made against all unit owners according to their share of the

common elements and expenses as set forth in the declaration of

condominium.

     (d)  Assessments shall be made against unit owners for

damage to their units according to the cost of reconstruction or

repair of their respective units. The assessments shall be

levied and collected as all other assessments are provided for

in this chapter.

     Section 6.  Subsection (2) of section 718.112, Florida

Statutes, is amended to read:

     718.112  Bylaws.--

     (2)  REQUIRED PROVISIONS.--The bylaws of the association

shall provide for the following and, if they do not do so, shall

be deemed to include the following:

     (a)  Administration.--

     1.  The form of administration of the association shall be

described indicating the title of the officers and board of

administration and specifying the powers, duties, manner of

selection and removal, and compensation, if any, of officers and

boards. In the absence of such a provision or determination by

the board or membership, the board of administration shall be

composed of five members who are unit owners, except in the case

of a condominium which has five or fewer units, in which case in

a not-for-profit corporation the board shall consist of not

fewer than three members who are unit owners. In the absence of

provisions to the contrary in the bylaws, the board of

administration shall have a president, a secretary, and a

treasurer, who shall perform the duties of such officers

customarily performed by officers of corporations. Unless

prohibited in the bylaws, the board of administration may

appoint other officers and grant them the duties it deems

appropriate. Unless otherwise provided in the bylaws, the

officers shall serve without compensation and at the pleasure of

the board of administration. Unless otherwise provided in the

bylaws, the members of the board shall serve without

compensation.

     2.  When a unit owner files a written inquiry by certified

mail with the board of administration, the board shall respond

in writing by certified mail, return receipt requested, to the

unit owner within 30 days after of receipt of the inquiry. The

board's response shall either give a substantive response to the

inquirer, notify the inquirer that a legal opinion has been

requested, or notify the inquirer that advice has been requested

from the division. If the board requests advice from the

division, the board shall, within 10 days after of its receipt

of the advice, provide in writing by certified mail a

substantive response to the inquirer. If a legal opinion is

requested, the board shall, within 60 days after the receipt of

the inquiry, provide in writing by certified mail a substantive

response to the inquiry. The failure to provide a substantive

response to the inquiry as provided herein precludes the board

from recovering attorney's fees and costs in any subsequent

litigation, administrative proceeding, or arbitration arising

out of the inquiry. The association may through its board of

administration adopt reasonable rules and regulations regarding

the frequency and manner of responding to unit owner inquiries,

one of which may be that the association is only obligated to

respond to one written inquiry per unit in any given 30-day

period. In such a case, any additional inquiry or inquiries must

be responded to in the subsequent 30-day period, or periods, as

applicable.

     (b)  Quorum; voting requirements; proxies.--

     1.  Unless a lower number is provided in the bylaws, the

percentage of voting interests required to constitute a quorum

at a meeting of the members shall be a majority of the voting

interests. Unless otherwise provided in this chapter or in the

declaration, articles of incorporation, or bylaws, and except as

provided in subparagraph (d)3., decisions shall be made by

owners of a majority of the voting interests represented at a

meeting at which a quorum is present.

     2.  Except as specifically otherwise provided herein, after

January 1, 1992, unit owners may not vote by general proxy, but

may vote by limited proxies substantially conforming to a

limited proxy form adopted by the division. Limited proxies and

general proxies may be used to establish a quorum. Limited

proxies shall be used for votes taken to waive or reduce

reserves in accordance with subparagraph (f)2.; for votes taken

to waive the financial reporting requirements of s. 718.111(13);

for votes taken to amend the declaration pursuant to s. 718.110;

for votes taken to amend the articles of incorporation or bylaws

pursuant to this section; and for any other matter for which

this chapter requires or permits a vote of the unit owners.

Except as provided in paragraph (d), after January 1, 1992, No

proxy, limited or general, shall be used in the election of

board members. General proxies may be used for other matters for

which limited proxies are not required, and may also be used in

voting for nonsubstantive changes to items for which a limited

proxy is required and given. Notwithstanding the provisions of

this subparagraph, unit owners may vote in person at unit owner

meetings. Nothing contained herein shall limit the use of

general proxies or require the use of limited proxies for any

agenda item or election at any meeting of a timeshare

condominium association.

     3.  Any proxy given shall be effective only for the

specific meeting for which originally given and any lawfully

adjourned meetings thereof. In no event shall any proxy be valid

for a period longer than 90 days after the date of the first

meeting for which it was given. Every proxy is revocable at any

time at the pleasure of the unit owner executing it.

     4.  A member of the board of administration or a committee

may submit in writing his or her agreement or disagreement with

any action taken at a meeting that the member did not attend.

This agreement or disagreement may not be used as a vote for or

against the action taken and may not be used for the purposes of

creating a quorum.

     5.  When any of the board or committee members meet by

telephone conference, those board or committee members attending

by telephone conference may be counted toward obtaining a quorum

and may vote by telephone. A telephone speaker must be used so

that the conversation of those board or committee members

attending by telephone may be heard by the board or committee

members attending in person as well as by any unit owners

present at a meeting.

6.  Votes allocated to units, space, or elements owned by the

association may not be cast for any purpose.

     (c)  Board of administration meetings.--Meetings of the

board of administration at which a quorum of the members is

present shall be open to all unit owners. No action shall be

taken or resolution made without an open meeting of the board of

administration. The board of administration shall address agenda

items proposed by a petition of 20 percent of the unit owners.

Unless otherwise provided in the bylaws, boards of

administration shall use rules of parliamentary procedure in

conducting all association meetings and business. A unit owner's

facsimile signature shall constitute the unit owner's original

signature in any matter under this chapter that requires the

unit owner's signature. Correspondence from the board of

administration to unit owners shall be accomplished by the same

delivery method used by the unit owner except as otherwise

provided in this paragraph. Any unit owner may tape record or

videotape meetings of the board of administration. The right to

attend such meetings includes the right to speak at such

meetings with reference to all designated agenda items. The

division shall adopt reasonable rules governing the tape

recording and videotaping of the meeting. The association may

adopt written reasonable rules governing the frequency,

duration, and manner of unit owner statements. Adequate notice

of all meetings, which notice shall specifically incorporate an

identification of agenda items, shall be posted conspicuously on

the condominium property at least 48 continuous hours preceding

the meeting except in an emergency. Any item not included on the

notice may be taken up on an emergency basis by at least a

majority plus one of the members of the board or by a petition

of 20 percent of the unit owners. Such emergency action shall be

noticed and ratified at the next regular meeting of the board.

However, written notice of any meeting at which nonemergency

special assessments, or at which amendment to rules regarding

unit use, will be considered shall be mailed, delivered, or

electronically transmitted to the unit owners and posted

conspicuously on the condominium property not less than 14 days

prior to the meeting. Evidence of compliance with this 14-day

notice shall be made by an affidavit executed by the person

providing the notice and filed among the official records of the

association. Upon notice to the unit owners, the board shall by

duly adopted rule designate a specific location on the

condominium property or association property upon which all

notices of board meetings shall be posted. If there is no

condominium property or association property upon which notices

can be posted, notices of board meetings shall be mailed,

delivered, or electronically transmitted at least 14 days before

the meeting to the owner of each unit. In lieu of or in addition

to the physical posting of notice of any meeting of the board of

administration on the condominium property, the association may,

by reasonable rule, adopt a procedure for conspicuously posting

and repeatedly broadcasting the notice and the agenda on a

closed-circuit cable television system serving the condominium

association. However, if broadcast notice is used in lieu of a

notice posted physically on the condominium property, the notice

and agenda must be broadcast at least four times every broadcast

hour of each day that a posted notice is otherwise required

under this section. When broadcast notice is provided, the

notice and agenda must be broadcast in a manner and for a

sufficient continuous length of time so as to allow an average

reader to observe the notice and read and comprehend the entire

content of the notice and the agenda. Notice of any meeting in

which regular or special assessments against unit owners are to

be considered for any reason shall specifically state contain a

statement that assessments will be considered and the nature,

cost, and breakdown of any such assessments. Meetings of a

committee to take final action on behalf of the board or make

recommendations to the board regarding the association budget

are subject to the provisions of this paragraph. Meetings of a

committee that does not take final action on behalf of the board

or make recommendations to the board regarding the association

budget are subject to the provisions of this section, unless

those meetings are exempted from this section by the bylaws of

the association. Notwithstanding any other law, the requirement

that board meetings and committee meetings be open to the unit

owners is inapplicable to meetings between the board or a

committee and the association's attorney, with respect to

proposed or pending litigation, when the meeting is held for the

purpose of seeking or rendering legal advice.

     (d)  Unit owner meetings.--

     1.  There shall be an annual meeting of the unit owners

held at the location provided in the association bylaws, and if 

the bylaws are silent on the location, the meeting shall be held 

in the State of Florida and within 30 miles of the condominium 

property. Unless the bylaws provide otherwise, a vacancy on the

board caused by the expiration of a director's term shall be filled

by electing a new board member, and the election shall be by

secret ballot; however, if the number of vacancies equals or

exceeds the number of candidates, no election is required. If

there is no provision in the bylaws for terms of the members of

the board, the terms of all members of the board shall expire

upon the election of their successors at the annual meeting.

A unit owner may not serve on the board as a director for more

than two terms nor longer than four years. A member may not

serve as president or vice president of the corporation for more

 that one term. Co-owners of a unit may not serve as members

of the board of administration during the same fiscal year. Any

unit owner desiring to be a candidate for board membership

shall comply with subparagraph 3. The only prohibition against

eligibility for board membership shall be for a person who has

been convicted of any felony by any court of record in the

United States and who has not had his or her right to vote

restored pursuant to law in the jurisdiction of his or her

residence is not eligible for board membership. The validity of

an action by the board is not affected if it is later determined

that a member of the board is ineligible for board membership

due to having been convicted of a felony.

     2.  The bylaws shall provide the method of calling meetings

of unit owners, including annual meetings. Written notice, which

notice must include an agenda, shall be mailed, hand delivered,

or electronically transmitted to each unit owner at least 14

days prior to the annual meeting and shall be posted in a

conspicuous place on the condominium property at least 14

continuous days preceding the annual meeting. Upon notice to the

unit owners, the board shall by duly adopted rule designate a

specific location on the condominium property or association

property upon which all notices of unit owner meetings shall be

posted; however, if there is no condominium property or

association property upon which notices can be posted, this

requirement does not apply. In lieu of or in addition to the

physical posting of notice of any meeting of the unit owners on

the condominium property, the association may, by reasonable

rule, adopt a procedure for conspicuously posting and repeatedly

broadcasting the notice and the agenda on a closed-circuit cable

television system serving the condominium association. However,

if broadcast notice is used in lieu of a notice posted

physically on the condominium property, the notice and agenda

must be broadcast at least four times every broadcast hour of

each day that a posted notice is otherwise required under this

section. When broadcast notice is provided, the notice and

agenda must be broadcast in a manner and for a sufficient

continuous length of time so as to allow an average reader to

observe the notice and read and comprehend the entire content of

the notice and the agenda. Unless a unit owner waives in writing

the right to receive notice of the annual meeting, such notice

shall be hand delivered, mailed, or electronically transmitted

to each unit owner. Notice for meetings and notice for all other

purposes shall be mailed to each unit owner at the address last

furnished to the association by the unit owner, or hand

delivered to each unit owner. However, if a unit is owned by

more than one person, the association shall provide notice, for

meetings and all other purposes, to that one address which the

developer initially identifies for that purpose and thereafter

as one or more of the owners of the unit shall so advise the

association in writing, or if no address is given or the owners

of the unit do not agree, to the address provided on the deed of

record. An officer of the association, or the manager or other

person providing the first notice of the association meeting,

and the second notice as provided for in subparagraph 3., shall

provide an affidavit or United States Postal Service certificate

of mailing, to be included in the official records of the

association affirming that the notices were notice was mailed or

hand delivered, in accordance with this provision.

     3.  The members of the board shall be elected by written

ballot or voting machine. Proxies shall in no event be used in

electing the board, either in general elections or elections to

fill vacancies caused by recall, resignation, or otherwise,

unless otherwise provided in this chapter. Not less than 60 days

before a scheduled election, the association or its

representative shall mail, deliver, or electronically transmit,

whether by separate association mailing or included in another

association mailing, delivery, or transmission, including

regularly published newsletters, to each unit owner entitled to

a vote, a first notice of the date of the election. Any unit

owner or other eligible person desiring to be a candidate for

the board must give written notice to the association or its

representative not less than 40 days before a scheduled

election. Together with the written notice and agenda as set

forth in subparagraph 2., the association or its representative

shall mail, deliver, or electronically transmit a second notice

of the election to all unit owners entitled to vote therein,

together with a ballot which shall list all candidates. Upon

request of a candidate, the association or its representative

shall include an information sheet, no larger than 81/2 inches

by 11 inches, which must be furnished by the candidate not less

than 35 days before the election, to be included with the

mailing, delivery, or transmission of the ballot, with the costs

of mailing, delivery, or electronic transmission and copying to

be borne by the association. The association or its

representative is not liable for the contents of the information

sheets prepared by the candidates. In order to reduce costs, the

association may print or duplicate the information sheets on

both sides of the paper. The division shall by rule establish

voting procedures consistent with the provisions contained

herein, including rules establishing procedures for giving

notice by electronic transmission and rules providing for the

secrecy of ballots. All ballot envelopes must be placed in a

locked or sealed ballot drop box immediately upon receipt, and

the box shall not be opened in advance of the election meeting.

Elections shall be decided by a plurality of those ballots cast.

There shall be no quorum requirement; however, at least 20

percent of the eligible voters must cast a ballot in order to

have a valid election of members of the board. No unit owner

shall permit any other person to vote his or her ballot, except for 

a person acting under a specific power of attorney, and any

such ballots improperly cast shall be deemed invalid, provided

any unit owner who violates this provision may be fined by the

association in accordance with s. 718.303. A unit owner who

needs assistance in casting the ballot for the reasons stated in

s. 101.051 may obtain assistance in casting the ballot. The

regular election shall occur on the date of the annual meeting.

The provisions of this subparagraph shall not apply to timeshare

condominium associations. Notwithstanding the provisions of this

subparagraph, an election is not required unless more candidates

file notices of intent to run or are nominated than board

vacancies exist.

     4.  Any approval by unit owners called for by this chapter

or the applicable declaration or bylaws, including, but not

limited to, the approval requirement in s. 718.111(8), shall be

made at a duly noticed meeting of unit owners and shall be

subject to all requirements of this chapter or the applicable

condominium documents relating to unit owner decisionmaking,

except that unit owners may take action by written agreement,

without meetings, on matters for which action by written

agreement without meetings is expressly allowed by the

applicable bylaws or declaration or any statute that provides

for such action.

     5.  Unit owners may waive notice of specific meetings if

allowed by the applicable bylaws or declaration or any statute.

If authorized by the bylaws, notice of meetings of the board of

administration, unit owner meetings, except unit owner meetings

called to recall board members under paragraph (j), and

committee meetings may be given by electronic transmission to

unit owners who consent to receive notice by electronic

transmission.

     6.  Unit owners shall have the right to participate in

meetings of unit owners with reference to all designated agenda

items. However, the association may adopt reasonable rules

governing the frequency, duration, and manner of unit owner

participation.

     7.  Any unit owner may tape record or videotape a meeting

of the unit owners subject to reasonable rules adopted by the

division.

     8.  Unless otherwise provided in the bylaws, any vacancy

occurring on the board before the expiration of a term may be

filled by the affirmative vote of the majority of the remaining

directors, even if the remaining directors constitute less than

a quorum, or by the sole remaining director. In the alternative,

a board may hold an election to fill the vacancy, in which case

the election procedures must conform to the requirements of

subparagraph 3. unless the association has opted out of the

statutory election process, in which case the bylaws of the

association control. Unless otherwise provided in the bylaws, a

board member appointed or elected under this section shall fill

the vacancy for the unexpired term of the seat being filled.

Filling vacancies created by recall is governed by paragraph (j)

and rules adopted by the division.

     9.  Unit owners shall have the right to have items placed

on the agenda of the annual meeting and voted upon if a written

request is made to the board of administration by 20 percent or

more of all voting interests at least 90 days before the date of

the annual meeting.

Notwithstanding subparagraphs (b)2. and (d)3., an association

may, by the affirmative vote of a majority of the total voting

interests, provide for different voting and election procedures

in its bylaws, which vote may be by a proxy specifically

delineating the different voting and election procedures. The

different voting and election procedures may provide for

elections to be conducted by limited or general proxy.

     (e)  Budget meeting.--

     1.  Any meeting at which a proposed annual budget of an

association will be considered by the board or unit owners shall

be open to all unit owners. At least 14 days prior to such a

meeting, the board shall hand deliver to each unit owner, mail

to each unit owner at the address last furnished to the

association by the unit owner, or electronically transmit to the

location furnished by the unit owner for that purpose a notice

of such meeting and a copy of the proposed annual budget. An

officer or manager of the association, or other person providing

notice of such meeting, shall execute an affidavit evidencing

compliance with such notice requirement, and such affidavit

shall be filed among the official records of the association.

     2.a.  If a board adopts in any fiscal year an annual budget

which requires assessments against unit owners which exceed 115

percent of assessments for the preceding fiscal year, the board

shall conduct a special meeting of the unit owners to consider a

substitute budget if the board receives, within 21 days after

adoption of the annual budget, a written request for a special

meeting from at least 10 percent of all voting interests. The

special meeting shall be conducted within 60 days after adoption

of the annual budget. At least 14 days prior to such special

meeting, the board shall hand deliver to each unit owner, or

mail to each unit owner at the address last furnished to the

association, a notice of the meeting. An officer or manager of

the association, or other person providing notice of such

meeting shall execute an affidavit evidencing compliance with

this notice requirement, and such affidavit shall be filed among

the official records of the association. Unit owners may

consider and adopt a substitute budget at the special meeting. A

substitute budget is adopted if approved by a majority of all

voting interests unless the bylaws require adoption by a greater

percentage of voting interests. If there is not a quorum at the

special meeting or a substitute budget is not adopted, the

annual budget previously adopted by the board shall take effect

as scheduled.

     b.  Any determination of whether assessments exceed 115

percent of assessments for the prior fiscal year shall exclude

any authorized provision for reasonable reserves for repair or

replacement of the condominium property, anticipated expenses of

the association which the board does not expect to be incurred

on a regular or annual basis, or assessments for betterments to

the condominium property.

     c.  If the developer controls the board, assessments shall

not exceed 115 percent of assessments for the prior fiscal year

unless approved by a majority of all voting interests.

     (f)  Annual budget.--

     1.  The association shall prepare an annual budget of

estimated revenues and expenses. The adopted budget of the prior

fiscal year shall remain in effect until the association has

adopted a new budget for the current fiscal year. The proposed

annual budget of estimated revenues and common expenses shall be

detailed and shall show the amounts budgeted by accounts and

expense classifications, including, if applicable, but not

limited to, those expenses listed in s. 718.504(21). A

multicondominium association shall adopt a separate budget of

common expenses for each condominium the association operates

and shall adopt a separate budget of common expenses for the

association. In addition, if the association maintains limited

common elements with the cost to be shared only by those

entitled to use the limited common elements as provided for in

s. 718.113(1), the budget or a schedule attached thereto shall

show amounts budgeted therefor. If, after turnover of control of

the association to the unit owners, any of the expenses listed

in s. 718.504(21) are not applicable, they need not be listed.

     2.  In addition to annual operating expenses, the budget

shall include reserve accounts for capital expenditures and

deferred maintenance. These accounts shall include, but are not

limited to, structural repairs, roof replacement, building

painting, and pavement resurfacing, regardless of the amount of

deferred maintenance expense or replacement cost, and for any

other item for which the deferred maintenance expense or

replacement cost exceeds $10,000. The amount to be reserved

shall be computed by means of a formula which is based upon

estimated remaining useful life and estimated replacement cost

or deferred maintenance expense of each reserve item. The

association may adjust replacement reserve assessments annually

to take into account any changes in estimates or extension of

the useful life of a reserve item caused by deferred

maintenance. This subsection does not apply to an adopted budget

in which the members of an association have determined, by a

majority vote at a duly called meeting of the association, to

provide no reserves or less reserves than required by this

subsection. However, prior to turnover of control of an

association by a developer to unit owners other than a developer

pursuant to s. 718.301, the developer may vote to waive the

reserves or reduce the funding of reserves for the first 2

fiscal years of the association's operation, beginning with the

fiscal year in which the initial declaration is recorded, after

which time reserves may be waived or reduced only upon the vote

of a majority of all nondeveloper voting interests voting in

person or by limited proxy at a duly called meeting of the

association. If a meeting of the unit owners has been called to

determine whether to waive or reduce the funding of reserves,

and no such result is achieved or a quorum is not attained, the

reserves as included in the budget shall go into effect. After

the turnover, the developer may vote its voting interest to

waive or reduce the funding of reserves.

     3.  Reserve funds and any interest accruing thereon shall

remain in the reserve account or accounts, and shall be used

only for authorized reserve expenditures unless their use for

other purposes is approved in advance by a majority vote at a

duly called meeting of the association. Prior to turnover of

control of an association by a developer to unit owners other

than the developer pursuant to s. 718.301, the developer-

controlled association shall not vote to use reserves for

purposes other than that for which they were intended without

the approval of a majority of all nondeveloper voting interests,

voting in person or by limited proxy at a duly called meeting of

the association.

     4.  The only voting interests which are eligible to vote on

questions that involve waiving or reducing the funding of

reserves, or using existing reserve funds for purposes other

than purposes for which the reserves were intended, are the

voting interests of the units subject to assessment to fund the

reserves in question. The face of all ballots that involve

questions relating to waiving or reducing the funding of

reserves, or using existing reserve funds for purposes other

than purposes for which the reserves were intended, shall

contain the following statement in capitalized, bold letters in

a font size larger than any other used on the face of the

ballot: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING

ALTERNATE USES OF EXISTING RESERVES, MAY RESULT IN UNIT OWNER

LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS

REGARDING THOSE RESERVE ITEMS.

     5.  A vote to provide for no reserves or a percentage of

reserves shall be made at the annual meeting of the unit owners

called under paragraph (d). The division shall adopt the form

for the ballot for no reserves and a percentage of reserves.

     6.  Notwithstanding subparagraph 3., the association after

turnover of control of the association may, in case of a

catastrophic event, use reserve funds for nonscheduled purposes

to mitigate further damage to units or common elements or to

make the condominium accessible for repairs.

     7.  Except in cases of emergency, or unless otherwise

provided for in the bylaws or approved by a vote of a majority

of the unit owners in advance, the board of administration may

not apply for or accept a loan or line of credit in an amount

that exceeds 10 percent of the association's annual budget for

the current year.

     (g)  Assessments.--After the declaration has been recorded,

and until such time as the association has been created, all

common expenses shall be paid by the developer. Assessments

shall be levied in an amount determined by the adopted budget or

an authorized special assessment. The manner of collecting from

the unit owners their shares of the common expenses shall be

stated in the bylaws. Assessments shall be made against units on

a quarter-annual, or more frequent, basis not less frequently

than quarterly in an amount which is not less than that required

to provide funds in advance for payment of all of the

anticipated current operating expenses and for all of the unpaid

operating expenses previously incurred. Nothing in this

paragraph shall preclude the right of an association to

accelerate assessments of an owner delinquent in payment of

common expenses against whom a lien has been filed. Accelerated

assessments shall be due and payable after on the date the claim

of lien is filed. Such accelerated assessments shall include the

amounts due for the remainder of the budget year in which the

claim of lien was filed.

     (h)  Amendment of bylaws.--

     1.  The method by which the bylaws may be amended

consistent with the provisions of this chapter shall be stated.

If the bylaws fail to provide a method of amendment, the bylaws

may be amended if the amendment is approved by the owners of not

less than two-thirds of the voting interests.

     2.  No bylaw shall be revised or amended by reference to

its title or number only. Proposals to amend existing bylaws

shall contain the full text of the bylaws to be amended; new

words shall be inserted in the text underlined, and words to be

deleted shall be lined through with hyphens. However, if the

proposed change is so extensive that this procedure would

hinder, rather than assist, the understanding of the proposed

amendment, it is not necessary to use underlining and hyphens as

indicators of words added or deleted, but, instead, a notation

must be inserted immediately preceding the proposed amendment in

substantially the following language: "Substantial rewording of

bylaw. See bylaw _____ for present text."

     3.  Nonmaterial errors or omissions in the bylaw process

will not invalidate an otherwise properly promulgated amendment.

     (i)  Transfer fees.--No charge shall be made by the

association or any body thereof in connection with the sale,

mortgage, lease, sublease, or other transfer of a unit unless

the association is required to approve such transfer and a fee

for such approval is provided for in the declaration, articles,

or bylaws. Any such fee may be preset, but in no event may such

fee exceed $100 per applicant other than husband/wife or

parent/dependent child, which are considered one applicant.

However, if the lease or sublease is a renewal of a lease or

sublease with the same lessee or sublessee, no charge shall be

made. The foregoing notwithstanding, an association may, if the

authority to do so appears in the declaration or bylaws, require

that a prospective lessee place a security deposit, in an amount

not to exceed the equivalent of 1 month's rent, into an escrow

account maintained by the association. The security deposit

shall protect against damages to the common elements or

association property. Payment of interest, claims against the

deposit, refunds, and disputes under this paragraph shall be

handled in the same fashion as provided in part II of chapter

83.

     (k)(l)  Certificate of compliance.--There shall be a

provision that a certificate of compliance from a licensed

electrical contractor or electrician may be accepted by the

association's board as evidence of compliance of the condominium

units with the applicable fire and life safety code.

Notwithstanding the provisions of chapter 633 or of any other

code, statute, ordinance, administrative rule, or regulation, or

any interpretation of the foregoing, an association,

condominium, or unit owner is not obligated to retrofit the

common elements or units of a residential condominium with a

fire sprinkler system or other engineered lifesafety system in a

building that has been certified for occupancy by the applicable

governmental entity, if the unit owners have voted to forego

such retrofitting and engineered lifesafety system by the

affirmative vote of two-thirds of all voting interests in the

affected condominium. However, a condominium association may not

vote to forego the retrofitting with a fire sprinkler system of

common areas in a high-rise building. For purposes of this

subsection, the term "high-rise building" means a building that

is greater than 75 feet in height where the building height is

measured from the lowest level of fire department access to the

floor of the highest occupiable story. For purposes of this

subsection, the term "common areas" means any enclosed hallway,

corridor, lobby, stairwell, or entryway. In no event shall the

local authority having jurisdiction require completion of

retrofitting of common areas with a sprinkler system before the

end of 2014.

     1.  A vote to forego retrofitting may be obtained by

limited proxy or by a ballot personally cast at a duly called

membership meeting, or by execution of a written consent by the

member, and shall be effective upon the recording of a

certificate attesting to such vote in the public records of the

county where the condominium is located. The association shall

mail, hand deliver, or electronically transmit to each unit

owner written notice at least 14 days prior to such membership

meeting in which the vote to forego retrofitting of the required

fire sprinkler system is to take place. Within 30 days after the

association's opt-out vote, notice of the results of the opt-out

vote shall be mailed, hand delivered, or electronically

transmitted to all unit owners. Evidence of compliance with this

30-day notice shall be made by an affidavit executed by the

person providing the notice and filed among the official records

of the association. After such notice is provided to each owner,

a copy of such notice shall be provided by the current owner to

a new owner prior to closing and shall be provided by a unit

owner to a renter prior to signing a lease.

     2.  As part of the information collected annually from

condominiums, the division shall require condominium

associations to report the membership vote and recording of a

certificate under this subsection and, if retrofitting has been

undertaken, the per-unit cost of such work. The division shall

annually report to the Division of State Fire Marshal of the

Department of Financial Services the number of condominiums that

have elected to forego retrofitting.

     (l)(m)  Common elements; limited power to convey.--

     1.  With respect to condominiums created on or after

October 1, 1994, the bylaws shall include a provision granting

the association a limited power to convey a portion of the

common elements to a condemning authority for the purpose of

providing utility easements, right-of-way expansion, or other

public purposes, whether negotiated or as a result of eminent

domain proceedings.

     2.  In any case where the bylaws are silent as to the

association's power to convey common elements as described in

     Section 7.  Section 718.113, Florida Statutes, is amended

to read:

     718.113  Maintenance; limitation upon improvement; display

of flag; display of religious decorations; hurricane shutters.--

     (1)  Maintenance of the common elements is the

responsibility of the association. The declaration may provide

that certain limited common elements shall be maintained by

those entitled to use the limited common elements or that the

association shall provide the maintenance, either as a common

expense or with the cost shared only by those entitled to use

the limited common elements. If the maintenance is to be by the

association at the expense of only those entitled to use the

limited common elements, the declaration shall describe in

detail the method of apportioning such costs among those

entitled to use the limited common elements, and the association

may use the provisions of s. 718.116 to enforce payment of the

shares of such costs by the unit owners entitled to use the

limited common elements.

     (2)(a)  Except as otherwise provided in this section, there

shall be no material alteration or substantial additions to the

common elements or to real property which is association

property, except in a manner provided in the declaration as

originally recorded or as amended under the procedures provided

therein. If the declaration as originally recorded or as amended

under the procedures provided therein does not specify the

procedure for approval of material alterations or substantial

additions, 75 percent of the total voting interests of the

association must approve the alterations or additions.

     (b)  There shall not be any material alteration of, or

substantial addition to, the common elements of any condominium

operated by a multicondominium association unless approved in

the manner provided in the declaration of the affected

condominium or condominiums as originally recorded or as amended

under the procedures provided therein. If a declaration as

originally recorded or as amended under the procedures provided

therein does not specify a procedure for approving such an

alteration or addition, the approval of 75 percent of the total

voting interests of each affected condominium is required. This

subsection does not prohibit a provision in any declaration,

articles of incorporation, or bylaws as originally recorded or

as amended under the procedures provided therein requiring the

approval of unit owners in any condominium operated by the same

association or requiring board approval before a material

alteration or substantial addition to the common elements is

permitted. This paragraph is intended to clarify existing law

and applies to associations existing on the effective date of

this act.

     (c)  There shall not be any material alteration or

substantial addition made to association real property operated

by a multicondominium association, except as provided in the

declaration, articles of incorporation, or bylaws as originally

recorded or as amended under the procedures provided therein.

If the declaration, articles of incorporation, or bylaws as

originally recorded or as amended under the procedures provided

therein do not specify the procedure for approving an alteration

or addition to association real property, the approval of 75

percent of the total voting interests of the association is

required. This paragraph is intended to clarify existing law and

applies to associations existing on the effective date of this

act.

     (3)  A unit owner shall not do anything within his or her

unit or on the common elements which would adversely affect the

safety or soundness of the common elements or any portion of the

association property or condominium property which is to be

maintained by the association.

     (4)  Any unit owner may display one portable, removable

United States flag in a respectful way and, on Armed Forces Day,

Memorial Day, Flag Day, Independence Day, and Veterans Day, may

display in a respectful way portable, removable official flags,

not larger than 41/2 feet by 6 feet, that represent the United

States Army, Navy, Air Force, Marine Corps, or Coast Guard,

regardless of any declaration rules or requirements dealing with

flags or decorations.

     (5)  Each board of administration shall, at each annual

meeting, adopt or restate hurricane shutter specifications for

each building within each condominium operated by the

association which shall include color, style, and other factors

deemed relevant by the board. All specifications adopted or

restated by the board shall comply with the applicable building

code. Notwithstanding any provision to the contrary in the

condominium documents, if approval is required by the documents,

a board shall not refuse to approve the installation or

replacement of hurricane shutters conforming to the

specifications adopted by the board. The board may, subject to

the provisions of s. 718.3026, and the approval of a majority of

voting interests of the condominium, install hurricane shutters

and may maintain, repair, or replace such approved hurricane

shutters or hurricane protection that complies with the

applicable building code, whether on or within common elements,

limited common elements, units, or association property.

However, where laminated glass or window film architecturally

designed to function as hurricane protection which complies with

the applicable building code has been installed, the board may

not install hurricane shutters. The board may operate shutters

installed pursuant to this subsection without permission of the

unit owners only where such operation is necessary to preserve

and protect the condominium property and association property.

The installation, replacement, operation, repair, and

maintenance of such shutters in accordance with the procedures

set forth herein shall not be deemed a material alteration to

the common elements or association property within the meaning

of this section.

     (6)  Every 5 years, the board of administration shall have

the condominium buildings inspected by a professional engineer

or professional architect registered in the state for the

purpose of determining that the building is structurally and

electrically safe. The engineer or architect shall provide a

report indicating the manner and type of inspection forming the

basis for the report and description of any matters identified

as requiring remedial action. The report shall become an

official record of the association to be provided to the members

upon request pursuant to s. 718.111(12).

     (7)  The board of administration may not adopt any rule or

regulation impairing any rights guaranteed by the First

Amendment to the Constitution of the United States or s. 3, Art.

I of the Florida Constitution, including, but not limited to,

the free exercise of religion, nor may any rules or regulations

conflict with the provisions of this chapter or the condominium

instruments. A rule or regulation may not prohibit any

reasonable accommodation for religious practices, including the

attachment of religiously mandated objects to the front-door

area of a condominium unit.

     Section 8.  Paragraph (d) of subsection (1) of section

718.115, Florida Statutes, is amended to read:

     718.115  Common expenses and common surplus.--

     (1)

     (d)  If so provided in the declaration, the cost of a

master antenna television system or duly franchised cable

television service obtained pursuant to a bulk contract for

basic service shall be deemed a common expense. If the

declaration does not provide for the cost of a master antenna

television system or duly franchised basic cable television

service obtained under a bulk contract as a common expense, the

board may enter into such a contract, and the cost of the

service will be a common expense but allocated on a per-unit

basis rather than a percentage basis if the declaration provides

for other than an equal sharing of common expenses, and any

contract entered into before July 1, 1998, in which the cost of

the service is not equally divided among all unit owners, may be

changed by vote of a majority of the voting interests present at

a regular or special meeting of the association, to allocate the

cost equally among all units. The contract shall be for a term

of not less than 2 years.

     1.  Any contract made by the board after the effective date

hereof for a community antenna system or duly franchised basic

cable television service may be canceled by a majority of the

voting interests present at the next regular or special meeting

of the association. Any member may make a motion to cancel said

contract, but if no motion is made or if such motion fails to

obtain the required majority at the next regular or special

meeting, whichever is sooner, following the making of the

contract, then such contract shall be deemed ratified for the

term therein expressed.

     2.  Any such contract shall provide, and shall be deemed to

provide if not expressly set forth, that any hearing-impaired or

legally blind unit owner who does not occupy the unit with a

non-hearing-impaired or sighted person, or any unit owner

receiving supplemental security income under Title XVI of the

Social Security Act or food stamps as administered by the

Department of Children and Family Services pursuant to s.

414.31, may discontinue the service without incurring disconnect

fees, penalties, or subsequent service charges, and, as to such

units, the owners shall not be required to pay any common

expenses charge related to such service. If less than all

members of an association share the expenses of cable

television, the expense shall be shared equally by all

participating unit owners. The association may use the

provisions of s. 718.116 to enforce payment of the shares of

such costs by the unit owners receiving cable television.

     Section 9.  Section 718.1123, Florida Statutes, is created

to read:

     718.1123  Protection against abuse.--

     (1)  In order to protect the safety, health, and welfare of

the people of this state, especially the infirm and elderly, and

to ensure the protection of condominium owners, any complaint of

abuse filed with the Division of Florida Land Sales,

Condominiums, Homeowners' Associations, and Mobile Homes shall

immediately be investigated by the division. When the division

has reasonable cause to believe that abuse has occurred against

any unit owner, the division shall institute enforcement

proceedings pursuant to its power and duties as set forth in s.

718.501.

     (2)  For purposes of this section, the term "abuse" means

any willful act or threat by a member of the board of directors

of a condominium association or any member of a committee or

subcommittee appointed by the board of directors, or any

employee, volunteer, or agent purporting to act on behalf of the

board of directors, or any officer, director, employee, or agent

of any management company acting on behalf of a condominium

association who denies or is likely to deny a condominium unit

owner or dweller any of the rights and protections afforded to

them under applicable state and federal laws, administrative

rules, and the governing documents of their condominium

association.

     Section 10.  Section 718.1224, Florida Statutes, is created

to read:

     718.1224  Prohibition against SLAPP suits.--

     (1)  It is the intent of the Legislature to protect the

right of condominium unit owners to exercise their rights to

instruct their representatives and petition for redress of

grievances before the various governmental entities of this

state as protected by the First Amendment to the United States

Constitution and s. 5, Art. I of the State Constitution. The

Legislature recognizes that strategic lawsuits against public

participation, or "SLAPP" suits as they are typically referred

to, have occurred when association members are sued by

individuals, business entities, or governmental entities arising

out of a condominium unit owner's appearance and presentation

before a governmental entity on matters related to the

condominium association. However, it is the public policy of

this state that governmental entities, business organizations,

and individuals not to engage in SLAPP suits, because such

actions are inconsistent with the right of condominium unit

owners to participate in the state's institutions of government.

Therefore, the Legislature finds and declares that prohibiting

such lawsuits by governmental entities, business entities, and

individuals against condominium unit owners who address matters

concerning their condominium association will preserve this

fundamental state policy, preserve the constitutional rights of

condominium unit owners, and ensure the continuation of

representative government in this state. It is the intent of the

Legislature that such lawsuits be expeditiously disposed of by

the courts. As used in this subsection, the term "governmental

entity" means the state, including the executive, legislative,

and judicial branches of government, the independent

establishments of the state, counties, municipalities,

districts, authorities, boards, or commissions, or any agencies

of these branches which are subject to chapter 286.

     (2)  A governmental entity, business organization, or

individual in this state may not file or cause to be filed

through its employees or agents any lawsuit, cause of action,

claim, cross-claim, or counterclaim against a condominium unit

owner without merit and solely because such condominium unit

owner has exercised the right to instruct his or her

representatives or the right to petition for redress of

grievances before the various governmental entities of this

state, as protected by the First Amendment to the United States

Constitution and s. 5, Art. I of the State Constitution.

     (3)  A condominium unit owner sued by a governmental

entity, business organization, or individual in violation of

this section has a right to an expeditious resolution of a claim

that the suit is in violation of this section. A condominium

unit owner may petition the court for an order dismissing the

action or granting final judgment in favor of that condominium

unit owner. The petitioner may file a motion for summary

judgment, together with supplemental affidavits, seeking a

determination that the governmental entity's, business

organization's, or individual's lawsuit has been brought in

violation of this section. The governmental entity, business

organization, or individual shall thereafter file its response

and any supplemental affidavits. As soon as practicable, the

court shall set a hearing on the petitioner's motion, which

shall be held at the earliest possible time after the filing of

the governmental entity's, business organization's or

individual's response. The court may award the condominium unit

owner sued by the governmental entity, business organization, or

individual actual damages arising from the governmental

entity's, individual's, or business organization's violation of

this section. A court may treble the damages awarded to a

prevailing condominium unit owner and shall state the basis for

the treble damages award in its judgment. The court shall award

the prevailing party reasonable attorney's fees and costs

incurred in connection with a claim that an action was filed in

violation of this section.

     (4)  Condominium associations may not expend association

funds in prosecuting a SLAPP suit against a condominium unit

owner.

     Section 11.  Subsection (4) of section 718.1255, Florida

Statutes, is amended to read:

     718.1255  Alternative dispute resolution; voluntary

mediation; mandatory nonbinding arbitration; legislative

findings.--

     (4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF

DISPUTES.--The Division of Florida Land Sales, Condominiums,

Homeowners' Associations, and Mobile Homes of the Department of

Business and Professional Regulation shall employ full-time

attorneys to act as arbitrators to conduct the arbitration

hearings provided by this chapter. The division may also certify

attorneys who are not employed by the division to act as

arbitrators to conduct the arbitration hearings provided by this

section. No person may be employed by the department as a full-

time arbitrator unless he or she is a member in good standing of

The Florida Bar. The department shall promulgate rules of

procedure to govern such arbitration hearings including

mediation incident thereto. The decision of an arbitrator shall

be final; however, such a decision shall not be deemed final

agency action. Nothing in this provision shall be construed to

foreclose parties from proceeding in a trial de novo unless the

parties have agreed that the arbitration is binding. If such

judicial proceedings are initiated, the final decision of the

arbitrator shall be admissible in evidence in the trial de novo.

     (a)  Prior to the institution of court litigation, a party

to a dispute shall petition the division for nonbinding

arbitration. The petition must be accompanied by a filing fee in

the amount of $50. Filing fees collected under this section must

be used to defray the expenses of the alternative dispute

resolution program.

     (b)  The petition must recite, and have attached thereto,

supporting proof that the petitioner gave the respondents:

     1.  Advance written notice of the specific nature of the

dispute;

     2.  A demand for relief, and a reasonable opportunity to

comply or to provide the relief; and

     3.  Notice of the intention to file an arbitration petition

or other legal action in the absence of a resolution of the

dispute.

Failure to include the allegations or proof of compliance with

these prerequisites requires dismissal of the petition without

prejudice.

     (c)  Upon receipt, the petition shall be promptly reviewed

by the division to determine the existence of a dispute and

compliance with the requirements of paragraphs (a) and (b). If

emergency relief is required and is not available through

arbitration, a motion to stay the arbitration may be filed. The

motion must be accompanied by a verified petition alleging facts

that, if proven, would support entry of a temporary injunction,

and if an appropriate motion and supporting papers are filed,

the division may abate the arbitration pending a court hearing

and disposition of a motion for temporary injunction.

     (d)  Upon determination by the division that a dispute

exists and that the petition substantially meets the

requirements of paragraphs (a) and (b) and any other applicable

rules, a copy of the petition shall forthwith be served by the

division upon all respondents.

     (e)  Either before or after the filing of the respondents'

answer to the petition, any party may request that the

arbitrator refer the case to mediation under this section and

any rules adopted by the division. Upon receipt of a request for

mediation, the division shall promptly refer the case contact

the parties to determine if there is agreement that mediation

would be appropriate. If all parties agree, the dispute must be

referred to mediation. Notwithstanding a lack of an agreement by

all parties, The arbitrator may refer a dispute to mediation at

any time.

     (f)  Upon referral of a case to mediation, the parties must

select a mutually acceptable mediator. To assist in the

selection, the arbitrator shall provide the parties with a list

of both volunteer and paid mediators that have been certified by

the division under s. 718.501. If the parties are unable to

agree on a mediator within the time allowed by the arbitrator,

the arbitrator shall appoint a mediator from the list of

certified mediators. If a case is referred to mediation, the

parties shall attend a mediation conference, as scheduled by the

parties and the mediator. If any party fails to attend a duly

noticed mediation conference, without the permission or approval

of the arbitrator or mediator, the arbitrator must impose

sanctions against the party, including the striking of any

pleadings filed, the entry of an order of dismissal or default

if appropriate, and the award of costs and attorneys' fees

incurred by the other parties. Unless otherwise agreed to by the

parties or as provided by order of the arbitrator, a party is

deemed to have appeared at a mediation conference by the

physical presence of the party or its representative having full

authority to settle without further consultation, provided that

an association may comply by having one or more representatives

present with full authority to negotiate a settlement and

recommend that the board of administration ratify and approve

such a settlement within 5 days from the date of the mediation

conference. The parties shall share equally the expense of

mediation, unless they agree otherwise.

     (g)  The purpose of mediation as provided for by this

section is to present the parties with an opportunity to resolve

the underlying dispute in good faith, and with a minimum

expenditure of time and resources.

     (h)  Mediation proceedings must generally be conducted in

accordance with the Florida Rules of Civil Procedure, and these

proceedings are privileged and confidential to the same extent

as court-ordered mediation. Persons who are not parties to the

dispute are not allowed to attend the mediation conference

without the consent of all parties, with the exception of

counsel for the parties and corporate representatives designated

to appear for a party. If the mediator declares an impasse after

a mediation conference has been held, the arbitration proceeding

terminates, unless all parties agree in writing to continue the

arbitration proceeding, in which case the arbitrator's decision

shall be either binding or nonbinding, as agreed upon by the

parties; in the arbitration proceeding, the arbitrator shall not

consider any evidence relating to the unsuccessful mediation

except in a proceeding to impose sanctions for failure to appear

at the mediation conference. If the parties do not agree to

continue arbitration, the arbitrator shall enter an order of

dismissal, and either party may institute a suit in a court of

competent jurisdiction. The parties may seek to recover any

costs and attorneys' fees incurred in connection with

arbitration and mediation proceedings under this section as part

of the costs and fees that may be recovered by the prevailing

party in any subsequent litigation.

     (i)  Arbitration shall be conducted according to rules

promulgated by the division. The filing of a petition for

arbitration shall toll the applicable statute of limitations.

     (j)  At the request of any party to the arbitration, such

arbitrator shall issue subpoenas for the attendance of witnesses

and the production of books, records, documents, and other

evidence and any party on whose behalf a subpoena is issued may

apply to the court for orders compelling such attendance and

production. Subpoenas shall be served and shall be enforceable

in the manner provided by the Florida Rules of Civil Procedure.

Discovery may, in the discretion of the arbitrator, be permitted

in the manner provided by the Florida Rules of Civil Procedure.

Rules adopted by the division may authorize any reasonable

sanctions except contempt for a violation of the arbitration

procedural rules of the division or for the failure of a party

to comply with a reasonable nonfinal order issued by an

arbitrator which is not under judicial review.

     (k)  The arbitration decision shall be presented to the

parties in writing. An arbitration decision is final in those

disputes in which the parties have agreed to be bound. An

arbitration decision is also final if a complaint for a trial de

novo is not filed in a court of competent jurisdiction in which

the condominium is located within 30 days. The right to file for

a trial de novo entitles the parties to file a complaint in the

appropriate trial court for a judicial resolution of the

dispute. The prevailing party in an arbitration proceeding shall

be awarded the costs of the arbitration and reasonable

attorney's fees in an amount determined by the arbitrator. Such

an award shall include the costs and reasonable attorney's fees

incurred in the arbitration proceeding as well as the costs and

reasonable attorney's fees incurred in preparing for and

attending any scheduled mediation.

     (l)  The party who files a complaint for a trial de novo

shall be assessed the other party's arbitration costs, court

costs, and other reasonable costs, including attorney's fees,

investigation expenses, and expenses for expert or other

testimony or evidence incurred after the arbitration hearing if

the judgment upon the trial de novo is not more favorable than

the arbitration decision. If the judgment is more favorable, the

party who filed a complaint for trial de novo shall be awarded

reasonable court costs and attorney's fees.

     (m)  Any party to an arbitration proceeding may enforce an

arbitration award by filing a petition in a court of competent

jurisdiction in which the condominium is located. A petition may

not be granted unless the time for appeal by the filing of a

complaint for trial de novo has expired. If a complaint for a

trial de novo has been filed, a petition may not be granted with

respect to an arbitration award that has been stayed. If the

petition for enforcement is granted, the petitioner shall

recover reasonable attorney's fees and costs incurred in

enforcing the arbitration award. A mediation settlement may also

be enforced through the county or circuit court, as applicable,

and any costs and fees incurred in the enforcement of a

settlement agreement reached at mediation must be awarded to the

prevailing party in any enforcement action.

     Section 12.  Subsection (1) of section 718.302, Florida

Statutes, is amended to read:

     718.302  Agreements entered into by the association.--

     (1)  Any grant or reservation made by a declaration, lease,

or other document, and any contract made by an association prior

to assumption of control of the association by unit owners other

than the developer, that provides for services, products,

operation, maintenance, or management of a condominium

association or property serving the unit owners of a condominium

shall be fair and reasonable, and such grant, reservation, or

contract may be canceled by unit owners other than the

developer:

     (a)  If the association operates only one condominium and

the unit owners other than the developer have assumed control of

the association, or if unit owners other than the developer own

not less than 75 percent of the voting interests in the

condominium, the cancellation shall be by concurrence of the

owners of not less than 75 percent of the voting interests other

than the voting interests owned by the developer. If a grant,

reservation, or contract is so canceled and the unit owners

other than the developer have not assumed control of the

association, the association shall make a new contract or

otherwise provide for maintenance, management, or operation in

lieu of the canceled obligation, at the direction of the owners

of not less than a majority of the voting interests in the

condominium other than the voting interests owned by the

developer.

     (b)  If the association operates more than one condominium

and the unit owners other than the developer have not assumed

control of the association, and if unit owners other than the

developer own at least 75 percent of the voting interests in a

condominium operated by the association, any grant, reservation,

or contract for maintenance, management, or operation of

buildings containing the units in that condominium or of

improvements used only by unit owners of that condominium may be

canceled by concurrence of the owners of at least 75 percent of

the voting interests in the condominium other than the voting

interests owned by the developer. No grant, reservation, or

contract for maintenance, management, or operation of

recreational areas or any other property serving more than one

condominium, and operated by more than one association, may be

canceled except pursuant to paragraph (d).

     (c)  If the association operates more than one condominium

and the unit owners other than the developer have assumed

control of the association, the cancellation shall be by

concurrence of the owners of not less than 75 percent of the

total number of voting interests in all condominiums operated by

the association other than the voting interests owned by the

developer.

     (d)  If the owners of units in a condominium have the right

to use property in common with owners of units in other

condominiums and those condominiums are operated by more than

one association, no grant, reservation, or contract for

maintenance, management, or operation of the property serving

more than one condominium may be canceled until unit owners

other than the developer have assumed control of all of the

associations operating the condominiums that are to be served by

the recreational area or other property, after which

cancellation may be effected by concurrence of the owners of not

less than 75 percent of the total number of voting interests in

those condominiums other than voting interests owned by the

developer.

     Section 13.  Paragraphs (f) and (g) are added to subsection

(1) of section 718.3025, Florida Statutes, to read:

     718.3025  Agreements for operation, maintenance, or

management of condominiums; specific requirements.--

     (1)  No written contract between a party contracting to

provide maintenance or management services and an association

which contract provides for operation, maintenance, or

management of a condominium association or property serving the

unit owners of a condominium shall be valid or enforceable

unless the contract:

     (f)  Requires that all obligations under the contract be

completed within a 1-year period.

     (g)  Contains a provision expressly prohibiting automatic

renewal of the contract.

     Section 14.  Paragraph (a) of subsection (2) of section

718.3026, Florida Statutes, is amended to read:

     718.3026  Contracts for products and services; in writing;

bids; exceptions.--Associations with less than 100 units may opt

out of the provisions of this section if two-thirds of the unit

owners vote to do so, which opt-out may be accomplished by a

proxy specifically setting forth the exception from this

section.

     (2)(a)1.  Notwithstanding the foregoing, contracts with

employees of the association, and contracts for attorney,

accountant, architect, community association manager, timeshare

management firm, engineering, and landscape architect services

are not subject to the provisions of this section.

     2.  A contract executed before January 1, 1992, and any

renewal thereof, is not subject to the competitive bid

requirements of this section. If a contract was awarded under

the competitive bid procedures of this section, any renewal of

that contract is not subject to such competitive bid

requirements if the contract contains a provision that allows

the board to cancel the contract on 30 days' notice. Materials,

equipment, or services provided to a condominium under a local

government franchise agreement by a franchise holder are not

subject to the competitive bid requirements of this section. A

contract with a manager, if made by a competitive bid, may be

made for up to 3 years. A condominium whose declaration or

bylaws provides for competitive bidding for services may operate

under the provisions of that declaration or bylaws in lieu of

this section if those provisions are not less stringent than the

requirements of this section.

     3.  A contract by and between a service provider and an

association shall not be for a term in excess of 3 years and

shall not contain an automatic renewal clause.

     4.  A contract for construction or repair of the property

that exceeds 10 percent of the total annual budget of the

association, including reserves, should have the approval of an

attorney hired by the association.

     Section 15.  Subsection (3) of section 718.303, Florida

Statutes, is amended and subsection (4) is added to that

section, to read:

     718.303  Obligations of owners; waiver; levy of fine

against unit by association.--

     (3)  If the declaration or bylaws so provide, the

association may levy reasonable fines against a unit for the

failure of the owner of the unit, or its occupant, licensee, or

invitee, to comply with any provision of the declaration, the

association bylaws, or reasonable rules of the association. No

fine will become a lien against a unit. No fine may exceed $100

per violation. However, a fine may be levied on the basis of

each day of a continuing violation, with a single notice and

opportunity for hearing, provided that no such fine shall in the

aggregate exceed $1,000. No fine may be levied except after

giving reasonable notice and opportunity for a hearing to the

unit owner and, if applicable, its licensee or invitee. The

hearing must be held before a committee of other unit owners who

are not members of the board of administration of the

association. If the committee does not agree with the fine, the

fine may not be levied. The provisions of this subsection do not

apply to unoccupied units.

     (4)  Anyone subject to an action under this section shall

be notified of the violation by certified mail, return receipt

requested, and, except in the case of eminent danger to person

or property, have 30 days in which to respond in writing. If no

response is provided and the violation continues or is repeated,

the association may proceed under subsections (1) and (2)

without further notice except as provided in subsection (3).

     Section 16.  Section 718.501, Florida Statutes, is amended

to read:

     718.501  Powers and duties of Division of Florida Land

Sales, Condominiums, Homeowners' Associations, and Mobile

Homes.--

     (1)  The Division of Florida Land Sales, Condominiums,

Homeowners' Associations, and Mobile Homes of the Department of

Business and Professional Regulation, referred to as the

"division" in this part, in addition to other powers and duties

prescribed by chapter 498, has the power to enforce and ensure

compliance with the provisions of this chapter and rules

promulgated pursuant hereto relating to the development,

construction, sale, lease, ownership, operation, and management

of residential condominium units. In performing its duties, the

division has the following powers and duties:

     (a)  The division may make necessary public or private

investigations within or outside this state to determine whether

any person has violated this chapter or any rule or order

hereunder, to aid in the enforcement of this chapter, or to aid

in the adoption of rules or forms hereunder.

     (b)  The division may require or permit any person to file

a statement in writing, under oath or otherwise, as the division

determines, as to the facts and circumstances concerning a

matter to be investigated.

     (c)  For the purpose of any investigation under this

chapter, the division director or any officer or employee

designated by the division director may administer oaths or

affirmations, subpoena witnesses and compel their attendance,

take evidence, and require the production of any matter which is

relevant to the investigation, including the existence,

description, nature, custody, condition, and location of any

books, documents, or other tangible things and the identity and

location of persons having knowledge of relevant facts or any

other matter reasonably calculated to lead to the discovery of

material evidence. Upon the failure by a person to obey a

subpoena or to answer questions propounded by the investigating

officer and upon reasonable notice to all persons affected

thereby, the division may apply to the circuit court for an

order compelling compliance.

     (d)  Notwithstanding any remedies available to unit owners

and associations, if the division has reasonable cause to

believe that a violation of any provision of this chapter or

rule promulgated pursuant hereto has occurred, the division may

institute enforcement proceedings in its own name against any

developer, association, officer, or member of the board of

administration, or its assignees or agents, as follows:

     1.  The division may permit a person whose conduct or

actions may be under investigation to waive formal proceedings

and enter into a consent proceeding whereby orders, rules, or

letters of censure or warning, whether formal or informal, may

be entered against the person.

     2.  The division may issue an order requiring the

developer, association, officer, or member of the board of

administration, or its assignees or agents, to cease and desist

from the unlawful practice and take such affirmative action as

in the judgment of the division will carry out the purposes of

this chapter. Such affirmative action may include, but is not

limited to, an order requiring a developer to pay moneys

determined to be owed to a condominium association.

     3.  The division may bring an action in circuit court on

behalf of a class of unit owners, lessees, or purchasers for

declaratory relief, injunctive relief, or restitution.

     4.  The division may impose a civil penalty against a

developer or association, or its assignee or agent, for any

violation of this chapter or a rule promulgated pursuant hereto.

The division may impose a civil penalty individually against any

officer or board member who willfully and knowingly violates a

provision of this chapter, a rule adopted pursuant hereto, or a

final order of the division. The term "willfully and knowingly"

means that the division informed the officer or board member

that his or her action or intended action violates this chapter,

a rule adopted under this chapter, or a final order of the

division and that the officer or board member refused to comply

with the requirements of this chapter, a rule adopted under this

chapter, or a final order of the division. The division, prior

to initiating formal agency action under chapter 120, shall

afford the officer or board member an opportunity to voluntarily

comply with this chapter, a rule adopted under this chapter, or

a final order of the division. An officer or board member who

complies within 10 days is not subject to a civil penalty. A

penalty may be imposed on the basis of each day of continuing

violation, but in no event shall the penalty for any offense

exceed $5,000. By January 1, 1998, the division shall adopt, by

rule, penalty guidelines applicable to possible violations or to

categories of violations of this chapter or rules adopted by the

division. The guidelines must specify a meaningful range of

civil penalties for each such violation of the statute and rules

and must be based upon the harm caused by the violation, the

repetition of the violation, and upon such other factors deemed

relevant by the division. For example, the division may consider

whether the violations were committed by a developer or owner-

controlled association, the size of the association, and other

factors. The guidelines must designate the possible mitigating

or aggravating circumstances that justify a departure from the

range of penalties provided by the rules. It is the legislative

intent that minor violations be distinguished from those which

endanger the health, safety, or welfare of the condominium

residents or other persons and that such guidelines provide

reasonable and meaningful notice to the public of likely

penalties that may be imposed for proscribed conduct. This

subsection does not limit the ability of the division to

informally dispose of administrative actions or complaints by

stipulation, agreed settlement, or consent order. All amounts

collected shall be deposited with the Chief Financial Officer to

the credit of the Division of Florida Land Sales, Condominiums,

Homeowners' Associations, and Mobile Homes Trust Fund. If a

developer fails to pay the civil penalty, the division shall

thereupon issue an order directing that such developer cease and

desist from further operation until such time as the civil

penalty is paid or may pursue enforcement of the penalty in a

court of competent jurisdiction. If an association fails to pay

the civil penalty, the division shall thereupon pursue

enforcement in a court of competent jurisdiction, and the order

imposing the civil penalty or the cease and desist order will

not become effective until 20 days after the date of such order.

Any action commenced by the division shall be brought in the

county in which the division has its executive offices or in the

county where the violation occurred.

     (e)  The division shall is authorized to prepare and

disseminate a prospectus and other information to assist

prospective owners, purchasers, lessees, and developers of

residential condominiums in assessing the rights, privileges,

and duties pertaining thereto.

     (f)  The division has authority to adopt rules pursuant to

ss. 120.536(1) and 120.54 to implement and enforce the

provisions of this chapter.

     (g)  The division shall establish procedures for providing

notice to an association when the division is considering the

issuance of a declaratory statement with respect to the

declaration of condominium or any related document governing in

such condominium community.

     (h)  The division shall furnish each association which pays

the fees required by paragraph (2)(a) a copy of this act,

subsequent changes to this act on an annual basis, an amended

version of this act as it becomes available from the Secretary

of State's office on a biennial basis, and the rules promulgated

pursuant thereto on an annual basis.

     (i)  The division shall annually provide each association

with a summary of declaratory statements and formal legal

opinions relating to the operations of condominiums which were

rendered by the division during the previous year.

     (j)  The division shall provide training programs for

condominium association board members and unit owners in

conjunction with the recommendations of the ombudsman, at the

associations' expense.

     (k)  The division shall maintain a toll-free telephone

number accessible to condominium unit owners.

     (l)  The division shall develop a program to certify both

volunteer and paid mediators to provide mediation of condominium

disputes. The division shall provide, upon request, a list of

such mediators to any association, unit owner, or other

participant in arbitration proceedings under s. 718.1255

requesting a copy of the list. The division shall include on the

list of volunteer mediators only the names of persons who have

received at least 20 hours of training in mediation techniques

or who have mediated at least 20 disputes. In order to become

initially certified by the division, paid mediators must be

certified by the Supreme Court to mediate court cases in either

county or circuit courts. However, the division may adopt, by

rule, additional factors for the certification of paid

mediators, which factors must be related to experience,

education, or background. Any person initially certified as a

paid mediator by the division must, in order to continue to be

certified, comply with the factors or requirements imposed by

rules adopted by the division.

     (m)  When a complaint is made, the division shall conduct

its inquiry with due regard to the interests of the affected

parties. Within 30 days after receipt of a complaint, the

division shall acknowledge the complaint in writing and notify

the complainant whether the complaint is within the jurisdiction

of the division and whether additional information is needed by

the division from the complainant. The division shall conduct

its investigation and shall, within 90 days after receipt of the

original complaint or of timely requested additional

information, take action upon the complaint. However, the

failure to complete the investigation within 90 days does not

prevent the division from continuing the investigation,

accepting or considering evidence obtained or received after 90

days, or taking administrative action if reasonable cause exists

to believe that a violation of this chapter or a rule of the

division has occurred. If an investigation is not completed

within the time limits established in this paragraph, the

division shall, on a monthly basis, notify the complainant in

writing of the status of the investigation. When reporting its

action to the complainant, the division shall inform the

complainant of any right to a hearing pursuant to ss. 120.569

and 120.57.

     (n)  Upon a finding that any association has committed a

violation within the jurisdiction of the division, the division

shall require the association to:

     1.  Mail and post a notice to all unit owners setting forth

the facts and findings relative to any and all violations, as

well as a description of the corrective action required.

     2.  Participate in a mandatory educational training program

that shall be directly related to the violation, taught by a

division-approved provider, and completed within 90 days from

the date of notification of the finding to the board members.

Failure of the association to comply with this paragraph shall

result in a civil penalty to the association in the amount of

$500 for each week the notice is not mailed and posted or the

educational training is not completed.

     (2)(a)  Effective January 1, 1992, each condominium

association which operates more than two units shall pay to the

division an annual fee in the amount of $4 for each residential

unit in condominiums operated by the association. If the fee is

not paid by March 1, then the association shall be assessed a

penalty of 10 percent of the amount due, and the association

will not have standing to maintain or defend any action in the

courts of this state until the amount due, plus any penalty, is

paid.

     (b)  All fees shall be deposited in the Division of Florida

Land Sales, Condominiums, Homeowners' Associations, and Mobile

Homes Trust Fund as provided by law. One-fifth of all fees

deposited by the division shall be allocated and transferred to

the Office of the Condominium Ombudsman.

     Section 17.  Section 718.5011, Florida Statutes, is amended

to read:

     718.5011  Ombudsman; appointment; administration.--

     (1)  There is created an Office of the Condominium

Ombudsman, to be located, solely for administrative purposes,

within the Division of Florida Land Sales, Condominiums,

Homeowners' Associations, and Mobile Homes. The ombudsman shall

exercise his or her policymaking and other functions delegated

by this chapter independently of the Department of Business and

Professional Regulation and without approval or control of the

department. The department shall render administrative support

to the Office of the Condominium Ombudsman in matters pertaining

to budget, personnel, office space, equipment, and supplies. All

revenues collected for the office by the department shall be

deposited in a separate fund or account from which the

department may not use or divert the revenues. The functions of

the office shall be funded by the Division of Florida Land

Sales, Condominiums, Homeowners' Associations, and Mobile Homes

Trust Fund. The ombudsman shall be a bureau chief of the

division, and the office shall be set within the division in the

same manner as any other bureau is staffed and funded.

     (2)  The Governor shall appoint the ombudsman. The

ombudsman must be an attorney admitted to practice before the

Florida Supreme Court and shall serve at the pleasure of the

Governor. A vacancy in the office shall be filled in the same

manner as the original appointment. An officer or full-time

employee of the ombudsman's office may not actively engage in

any other business or profession; serve as the representative of

any political party, executive committee, or other governing

body of a political party; serve as an executive, officer, or

employee of a political party; receive remuneration for

activities on behalf of any candidate for public office; or

engage in soliciting votes or other activities on behalf of a

candidate for public office. The ombudsman or any employee of

his or her office may not become a candidate for election to

public office unless he or she first resigns from his or her

office or employment.

     Section 18.  Section 718.5012, Florida Statutes, is amended

to read:

     718.5012  Ombudsman; powers and duties.--

     (1)  The ombudsman shall have the powers that are necessary

to carry out the duties of his or her office, including the

following specific powers:

     (a)(1)  To have access to and use of all files and records

of the division.

     (b)(2)  To employ professional and clerical staff as

necessary for the efficient operation of the office.

     (c)(3)  To prepare and issue reports and recommendations to

the Governor, the department, the division, the Advisory Council

on Condominiums, the President of the Senate, and the Speaker of

the House of Representatives on any matter or subject within the

jurisdiction of the division. The ombudsman shall make

recommendations he or she deems appropriate for legislation

relative to division procedures, rules, jurisdiction, personnel,

and functions.

     (d)(4)  To act as liaison between the division, unit

owners, boards of directors, board members, community

association managers, and other affected parties. The ombudsman

shall develop policies and procedures to assist unit owners,

boards of directors, board members, community association

managers, and other affected parties to understand their rights

and responsibilities as set forth in this chapter and the

condominium documents governing their respective association.

The ombudsman shall coordinate and assist in the preparation and

adoption of educational and reference material, and shall

endeavor to coordinate with private or volunteer providers of

these services, so that the availability of these resources is

made known to the largest possible audience.

     (e)(5)  To monitor and review procedures and disputes

concerning condominium elections or meetings, including, but not

limited to, recommending that the division pursue enforcement

action in any manner where there is reasonable cause to believe

that election misconduct has occurred. The division shall

process the ombudsman's recommendations and petitions in an

expedited manner and defer to his or her findings. For the

purpose of fulfilling his or her duties under this chapter, the

ombudsman may administer oaths or affirmations, subpoena

witnesses and compel their attendance, take evidence, and

require the production of any matter that is relevant to the

inquiry, including the existence, description, nature, custody,

condition, and location of any books, documents, or other

tangible things and the identity and location of persons having

knowledge of relevant facts or any other matter reasonably

calculated to lead to the discovery of material evidence. Upon

the failure by a person to obey a subpoena or to answer

questions asked by the ombudsman and upon reasonable notice to

all persons affected thereby, the ombudsman may apply to the

circuit court for an order compelling compliance.

     (f)(6)  To make recommendations to the division for changes

in rules and procedures for the filing, investigation, and

resolution of complaints filed by unit owners, associations, and

managers.

     (g)(7)  To provide resources to assist members of boards of

directors and officers of associations to carry out their powers

and duties consistent with this chapter, division rules, and the

condominium documents governing the association.

     (h)(8)  To order, encourage, and facilitate voluntary

meetings with and between unit owners, boards of directors,

board members, community association managers, and other

affected parties when the meetings may assist in resolving a

dispute within a community association before a person submits a

dispute for a formal or administrative remedy. It is the intent

of the Legislature that the ombudsman act as a neutral resource

for both the rights and responsibilities of unit owners,

associations, and board members.

     (i)  To make recommendations to the division to pursue

enforcement action in circuit court on behalf of a class of unit

owners, lessees, or purchasers for declaratory relief,

injunctive relief, or restitution against any developer,

association, officer, or member of the board of administration,

or its assignees or agents, where there is reasonable cause to

believe misconduct has occurred. The division shall process the

ombudsman's recommendations and petitions in an expedited manner

and defer to his or her findings.

     (2)(9)  Fifteen percent of the total voting interests in a

condominium association, or six unit owners, whichever is

greater, may petition the ombudsman to appoint an election

monitor to attend the annual meeting of the unit owners and

conduct the election of directors. The ombudsman upon petition

may order any aspect of the election process as set forth in s.

718.112(2)(d)3. to be conducted by the election monitor. No

association or person may reject an election monitor appointed

by the ombudsman or interfere with an election monitor in the

performance of his or her duties. The ombudsman may order an

association to implement a known division remedy for a

procedural violation of s. 718.112(2)(d)3. prior to and during a

monitored election. The ombudsman shall appoint a division

employee, a person or persons specializing in condominium

election monitoring, or an attorney licensed to practice in this

state as the election monitor. All costs associated with the

election monitoring process shall be paid by the association.

The division shall adopt a rule establishing procedures for the

appointment of election monitors and the scope and extent of the

monitor's role in the election process.

     (3)  Any unit owner or association acting in good faith on

the advice or opinion of the office of the ombudsman shall be

immune from any penalties or actions.

     (4)  If the ombudsman has reasonable cause to believe that

a violation of any provision of this chapter or rule adopted

under this chapter has occurred, the ombudsman may issue an

order requiring any developer, association, officer, or member

of the board of administration, or its assignees or agents, to

cease and desist from the unlawful practice and to take such

affirmative action that will carry out the purposes of this

chapter.

Section 19.  Section 718.50151, Florida Statutes, is amended

to read:

718.50151  Advisory council; membership functions.--

(1)  There is created the Advisory Council on Condominiums.

The council shall consist of seven appointed members. Two 

members shall be appointed by the President of the Senate,

two members shall be appointed by the Speaker of the 

House of Representatives, and three members shall be 

appointed by the Governor. At least one member that is 

appointed by the Governor shall represent timeshare 

condominiums. Members shall be appointed to 2-year terms;

however, one of the persons initially appointed by the 

Governor, by the President of the Senate, and by the Speaker

of the House of Representatives shall be appointed to a 1-year 

term. The director of the division shall serve as an ex officio 

nonvoting member. The Legislature intends that the persons 

appointed represent a cross-section of persons interested in 

condominium issues. The council shall be located within the 

division for administrative purposes. Members of the council 

shall serve without compensation but are entitled to receive

per diem and travel expenses pursuant to s. 112.061 while on 

official business.

(2)  The functions of the advisory council shall be to:

(a)  Receive, from the public, input regarding issues of concern with 

respect to condominiums and recommendations for changes 

in the condominium law. The issues that the council shall consider 

include, but are not limited to, the rights and responsibilities of 

the unit owners in relation to the rights and responsibilities of 

the association.

(b)  Review, evaluate, and advise the division concerning 

revisions and adoption of rules affecting condominiums.

(c)  Recommend improvements, if needed, in the education 

programs offered by the division.

(3)  The council may elect a chair and vice chair and such other 

officers as it may deem advisable. The council shall meet at the

call of its chair, at the request of a majority of its membership, at 

the request of the division, or at such times as it may prescribe.

A majority of the members of the council shall constitute a quorum.

Council action may be taken by vote of a majority of the voting 

members who are present at a meeting where there is a quorum.

 

     Section 20.  Paragraph (a) of subsection (2) of section

718.502, Florida Statutes, is amended to read:

     718.502  Filing prior to sale or lease.--

     (2)(a)  Prior to filing as required by subsection (1), and

prior to acquiring an ownership, leasehold, or contractual

interest in the land upon which the condominium is to be

developed, a developer shall not offer a contract for purchase

of a unit or lease of a unit for more than 5 years. However, the

developer may accept deposits for reservations upon the approval

of a fully executed escrow agreement and reservation agreement

form properly filed with the Division of Florida Land Sales,

Condominiums, Homeowners' Associations, and Mobile Homes. Each

filing of a proposed reservation program shall be accompanied by

a filing fee of $250. Reservations shall not be taken on a

proposed condominium unless the developer has an ownership,

leasehold, or contractual interest in the land upon which the

condominium is to be developed. The division shall notify the

developer within 20 days of receipt of the reservation filing of

any deficiencies contained therein. Such notification shall not

preclude the determination of reservation filing deficiencies at

a later date, nor shall it relieve the developer of any

responsibility under the law. The escrow agreement and the

reservation agreement form shall include a statement of the

right of the prospective purchaser to an immediate unqualified

refund of the reservation deposit moneys upon written request to

the escrow agent by the prospective purchaser or the developer.

     Section 20.  Section 718.504, Florida Statutes, is amended

to read:

     718.504  Prospectus or offering circular.--Every developer

of a residential condominium which contains more than 20

residential units, or which is part of a group of residential

condominiums which will be served by property to be used in

common by unit owners of more than 20 residential units, shall

prepare a prospectus or offering circular and file it with the

Division of Florida Land Sales, Condominiums, Homeowners'

Associations, and Mobile Homes prior to entering into an

enforceable contract of purchase and sale of any unit or lease

of a unit for more than 5 years and shall furnish a copy of the

prospectus or offering circular to each buyer. In addition to

the prospectus or offering circular, each buyer shall be

furnished a separate page entitled "Frequently Asked Questions

and Answers," which shall be in accordance with a format

approved by the division and a copy of the financial information

required by s. 718.111. This page shall, in readable language,

inform prospective purchasers regarding their voting rights and

unit use restrictions, including restrictions on the leasing of

a unit; shall indicate whether and in what amount the unit

owners or the association is obligated to pay rent or land use

fees for recreational or other commonly used facilities; shall

contain a statement identifying that amount of assessment which,

pursuant to the budget, would be levied upon each unit type,

exclusive of any special assessments, and which shall further

identify the basis upon which assessments are levied, whether

monthly, quarterly, or otherwise; shall state and identify any

court cases in which the association is currently a party of

record in which the association may face liability in excess of

$100,000; and which shall further state whether membership in a

recreational facilities association is mandatory, and if so,

shall identify the fees currently charged per unit type. The

division shall by rule require such other disclosure as in its

judgment will assist prospective purchasers. The prospectus or

offering circular may include more than one condominium,

although not all such units are being offered for sale as of the

date of the prospectus or offering circular. The prospectus or

offering circular must contain the following information:

     (21)  An estimated operating budget for the condominium and

the association, prepared in good faith, and a schedule of the

unit owner's expenses shall be attached as an exhibit and shall

contain the following information:

     (a)  The estimated monthly and annual revenues and expenses

of the condominium and the association that are earned by the

association or collected from unit owners by assessments.

     (d)  The estimated amounts shall be stated for a period of

at least 12 months and may distinguish between the period prior

to the time unit owners other than the developer elect a

majority of the board of administration and the period after

that date.

     Section 21.  Section 718.508, Florida Statutes, is amended

to read:

     718.508  Regulation by Division of Hotels and

Restaurants.--In addition to the authority, regulation, or

control exercised by the Division of Florida Land Sales,

Condominiums, Homeowners' Associations, and Mobile Homes

pursuant to this act with respect to condominiums, buildings

included in a condominium property shall be subject to the

authority, regulation, or control of the Division of Hotels and

Restaurants of the Department of Business and Professional

Regulation, to the extent provided for in chapter 399.

     Section 22.  Section 718.509, Florida Statutes, is amended

to read:

     718.509  Division of Florida Land Sales, Condominiums,

Homeowners' Associations, and Mobile Homes Trust Fund.--All

funds collected by the division and any amount paid for a fee or

penalty under this chapter shall be deposited in the State

Treasury to the credit of the Division of Florida Land Sales,

Condominiums, Homeowners' Associations, and Mobile Homes Trust

Fund created by s. 498.019.

     Section 23.  Paragraph (a) of subsection (2) of section

718.608, Florida Statutes, is amended to read:

     718.608  Notice of intended conversion; time of delivery;

content.--

     (2)(a)  Each notice of intended conversion shall be dated

and in writing. The notice shall contain the following

statement, with the phrases of the following statement which

appear in upper case printed in conspicuous type:

     These apartments are being converted to condominium by  

(name of developer)  , the developer.

     1.  YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF

YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL

AGREEMENT AS FOLLOWS:

     a.  If you have continuously been a resident of these

apartments during the last 180 days and your rental agreement

expires during the next 270 days, you may extend your rental

agreement for up to 270 days after the date of this notice.

     b.  If you have not been a continuous resident of these

apartments for the last 180 days and your rental agreement

expires during the next 180 days, you may extend your rental

agreement for up to 180 days after the date of this notice.

     c.  IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU

MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE

DATE OF THIS NOTICE.

     2.  IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,

you may extend your rental agreement for up to 45 days after the

date of this notice while you decide whether to extend your

rental agreement as explained above. To do so, you must notify

the developer in writing. You will then have the full 45 days to

decide whether to extend your rental agreement as explained

above.

     3.  During the extension of your rental agreement you will

be charged the same rent that you are now paying.

     4.  YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION

OF THE RENTAL AGREEMENT AS FOLLOWS:

     a.  If your rental agreement began or was extended or

renewed after May 1, 1980, and your rental agreement, including

extensions and renewals, has an unexpired term of 180 days or

less, you may cancel your rental agreement upon 30 days' written

notice and move. Also, upon 30 days' written notice, you may

cancel any extension of the rental agreement.

     b.  If your rental agreement was not begun or was not

extended or renewed after May 1, 1980, you may not cancel the

rental agreement without the consent of the developer. If your

rental agreement, including extensions and renewals, has an

unexpired term of 180 days or less, you may, however, upon 30

days' written notice cancel any extension of the rental

agreement.

     5.  All notices must be given in writing and sent by mail,

return receipt requested, or delivered in person to the

developer at this address:   (name and address of developer)  .

     6.  If you have continuously been a resident of these

apartments during the last 180 days:

     a.  You have the right to purchase your apartment and will

have 45 days to decide whether to purchase. If you do not buy

the unit at that price and the unit is later offered at a lower

price, you will have the opportunity to buy the unit at the

lower price. However, in all events your right to purchase the

unit ends when the rental agreement or any extension of the

rental agreement ends or when you waive this right in writing.

     b.  Within 90 days you will be provided purchase

information relating to your apartment, including the price of

your unit and the condition of the building. If you do not

receive this information within 90 days, your rental agreement

and any extension will be extended 1 day for each day over 90

days until you are given the purchase information. If you do not

want this rental agreement extension, you must notify the

developer in writing.

     7.  If you have any questions regarding this conversion or

the Condominium Act, you may contact the developer or the state

agency which regulates condominiums: The Division of Florida

Land Sales, Condominiums, Homeowners' Associations, and Mobile

Homes,   (Tallahassee address and telephone number of division)


CODING: Words stricken are deleted; words underlined are additions