Section 2.  Subsections (2), (4), (7), (8), (9), and (10)

of section 720.301, Florida Statutes, are amended, and

subsection (14) is added to that section, to read:

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

     (2)  "Common area" means all real property within a

community which is owned or leased by an association or

dedicated for use or maintenance by the association or its

members, including, regardless of whether title has been

conveyed to the association:

     (a)  Real property the use of which is dedicated to the

association or its members by a recorded plat; or

     (b)  Real property committed by a declaration of covenants

to be leased or conveyed to the association.

     (4)  "Declaration of covenants," or "declaration," means a

recorded written instrument in the nature of covenants running

with the land, according to the recorded plat, which subjects

the land comprising the community to the jurisdiction and

control of an association or associations in which the owners of

the parcels, or their association representatives, must be

members. Upon the execution of the sale of the first lot, a

declaration may not be amended without the vote of approval of

two-thirds majority of the owners of residential parcels that

have been purchased, with a tie vote resulting in a negative

vote. Exceptions shall be amendments identifying additional

phases of the community as they are constructed. These

amendments may not contain any other changes to the existing

declaration.

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

Condominiums, Homeowners' Associations, and Mobile Homes in the

Department of Business and Professional Regulation.

     (8)  "Governing documents" means:

     (a)  Each set of The recorded declaration of covenants for

a community, and all duly adopted and recorded amendments,

supplements, and recorded exhibits thereto; and

     (b)  The articles of incorporation and bylaws of the

homeowners' association, and any duly adopted amendments

thereto.

When different sets of covenants exist for each recorded plat,

those covenants shall only apply to the plat for which they are

recorded and specified. The different sets of covenants may not

be commingled.

     (9)  "Homeowners' association" or "association" means a

Florida corporation, as authorized by chapter 720

responsible for the administration operation of a community or a

mobile home subdivision in compliance with applicable federal,

state, and local laws and the governing documents of the

association. In addition, a homeowners' association means a

Florida corporation in which the voting membership is made up of

parcel owners or their agents, or a combination thereof, and in

which membership is a mandatory condition of parcel ownership,

and which is authorized to impose assessments that, if unpaid,

may become a lien on the parcel. Any homeowners' association or

other named association that administers a residential community

where membership is mandatory shall be required to comply with

this chapter, except if exempted. The term "homeowners'

association" does not include a community development district

or other similar special taxing district created pursuant to

statute.

     (10)  "Member" means a member of an association, and may

include, but is not limited to, a parcel owner or an association

representing parcel owners or a combination thereof, and

includes any person or entity obligated by the governing

documents to pay an assessment or amenity fee.

     (14)  "Homeowners' Association Advisory Council" means a

group of persons appointed to recommend changes in laws that

affect the administration of mandatory homeowners' associations.

     Section 3.  Subsections (1) and (2) of section 720.302,

Florida Statutes, are amended to read:

     720.302  Purposes, scope, and application.--

     (1)  The purposes of this chapter are to give statutory

recognition to corporations not for profit that administer or

operate residential communities in this state, to provide

regulations procedures for operating homeowners' associations,

and to protect the rights of association members without unduly

impairing the ability of such associations to perform their

functions as authorized by federal, state, and local laws and

the governing documents of the association.

     (2)  Having provided certain powers and authority to

homeowners' associations and deed restrictions created by

developers of mandated properties in residential communities,

the Legislature recognizes that it is necessary to provide

regulatory oversight to ensure compliance with federal, state,

and local laws. It is the intent of the Legislature to protect

the rights of parcel owners by ensuring that the powers and

authority granted to homeowners' associations and deed

restrictions created by developers of mandated properties in

residential communities conform to a system of checks and

balances to prevent abuses of governmental authority. The

Department of Business and Professional Regulation shall create

a Division of Mandated Properties. No later than July 1, 2009,

the division shall establish a process for collecting an annual

fee which shall not exceed $4 for each association member in

communities administered by the association during each of the

following 2 years and, thereafter, shall not exceed the Cost of

Living Index. Funds collected shall be deposited in the Division

of Florida Land Sales, Condominiums, Homeowners' Associations,

and Mobile Homes Trust Fund Trust Fund. Funds shall be utilized

by the division for, but not limited to, the review and approval

of deed restrictions before releasing for recording at the

county level by the developer or owner of the initial lots to be

developed; education; enforcement; investigation; and

prosecution of policies and procedures related to mandated

properties. Upon transition of authorities, duties,

responsibilities, and rights from the developer to the parcel

owners, all amendments, alterations, or modifications to the

governing documents must be approved by at least two-thirds of

the parcel owners or homeowners' association members. The

governing documents may not contain provisions that reduce this

percentage of majority approval for changes to the governing

documents. The ombudsman may not engage the services of industry

partisans with a vested interest in the administration of deed-

restricted communities or in the mandatory homeowners'

association to implement its powers, who have practiced in this

field within the last 3 years. Furthermore not in the best

interest of homeowners' associations or the individual

association members thereof to create or impose a bureau or

other agency of state government to regulate the affairs of

homeowners' associations. However, in accordance with s.

720.311, the Legislature finds that homeowners' associations and

their individual members will benefit from an expedited

alternative process for resolution of election and recall

disputes and presuit mediation of other disputes involving

covenant enforcement, disputes relating to the transition of

control of the association from the developer or owner to

members of the association, and authorizes the department to

hear, administer, and determine these disputes as more fully set

forth in this chapter. Further, the Legislature recognizes that

certain contract rights have been created for the benefit of

homeowners' associations and members thereof before the

effective date of this act and that ss. 720.301-720.407 are not

intended to impair such contract rights, so long as they are

accepted by a two-thirds majority of the homeowners' association

members, including, but not limited to, the rights of the

developer to complete the community as initially contemplated.

     Section 4.  Section 720.303, Florida Statutes, is amended

to read:

     720.303  Association powers and duties; meetings of board;

official records; budgets; financial reporting; association

funds; recalls.--

     (1)  POWERS AND DUTIES.--

     (a)  An association which operates a community as defined

in s. 720.301, must be incorporated in this state, operated by

an association that is a Florida corporation. After October 1,

1995, the association must be incorporated and the initial

governing documents must be recorded in the official records of

the county in which the community is located. An association may

operate more than one community.

     (b)  The officers and directors of an association have a

fiduciary relationship of to the members who are served by the

association.

     (c)  The powers and duties of an association include those

set forth in this chapter and, except as expressly limited or

restricted in this chapter, those specifically set forth in the

governing documents. The officers and directors of the

association may not take any action that is inconsistent with

the declaration of covenants.

     (d)  After control of the association is obtained by

members from other than the developer, the association may

institute, maintain, or settle on , or appeal actions or

hearings in its name on behalf of the all members concerning

matters of common interest to the members, including, but not

limited to, the common areas; roof or structural components of a

building, or other improvements for which the association is

responsible; mechanical, electrical, or plumbing elements

serving an improvement or building for which the association is

responsible; representations of the developer pertaining to any

existing or proposed commonly used facility; and protesting ad

valorem taxes on commonly used facilities. The association may

defend actions in eminent domain or bring inverse condemnation

actions. Before commencing litigation any legal action, except

construction defects actions against the developer which shall

of the association involving amounts in controversy in excess of 

approval of a majority of the members of the association

voting interests at a meeting of the membership at which

a quorum is present has been attained.

     (e)  The association may enter into contracts for the

benefit of the members of the association, including, but not

limited to, contracts for maintaining, repairing, or improving

the common areas of the association. All contracts to which the

law right of any individual member or class of members to bring

any action without participation by the association.

     (f)  A member does not have the authority to act for the

association by virtue of being a member of the association. An

association may have more than one class of members and may

issue membership certificates.

     (g)  In any civil or criminal action between a member and

the association, it shall not be a defense by the association

that the association's actions, although incompatible with the

declaration of covenants, have been uniformly applied.

     (h)  An association may not restrict a member's freedom of

association and may not limit the number of guests a member may

have within a 24-hour period.

     (i)  An association of 15 or fewer parcels parcel owners

may enforce only the requirements of those deed restrictions

established prior to the purchase of each parcel upon an

affected parcel owner or owners.

     (j)  The officers and directors of an association may be

personally liable for damages to a member if the actions of the

officers and directors demonstrate a pattern of behavior inconsistent

fiduciary duty or intended to harass a member of the association.

     (k)  Any action of the association by and through the

officers and directors that limits the legal use of any portion

of a member's property that is incompatible with the declaration

of covenants shall entitle the member to compensation for the

fair market value of that portion of the member's property, the

use of which is being restricted.

     (l)  In any association with more than 50 but fewer than 75

parcels, for purposes of establishing setback limits, any parcel

of 1 acre or less shall be deemed to have one front for purposes

of determining the required front setback, if any. Only those

setbacks specifically set forth in the declaration of covenants

may be enforced by the association. Where the covenants are

silent, the applicable county or municipal setbacks shall apply.

     (2)  BOARD MEETINGS.--

     (a)  A meeting of the board of directors of an association

occurs whenever a quorum of the board gathers to conduct

association business. All meetings of the board must be open to

all members except for meetings between the board and its

attorney with respect to proposed or pending litigation where

the contents of the discussion would otherwise be governed by

the attorney-client privilege.

     (b)  Members have the right to attend all meetings of the

board and to speak on any each matter placed on the agenda by

petition of the voting interests for at least 3 minutes. The

association may adopt written reasonable rules expanding the

right of members to speak and governing the frequency, duration,

and other manner of member statements, which rules must be

consistent with this paragraph and may include a sign-up sheet

for members wishing to speak. Notwithstanding any other law, the

requirement that board meetings and committee meetings be open

to the members is inapplicable to meetings between the board or

a committee and the association's attorney, with respect to

meetings of the board held for the purpose of discussing

personnel matters.

     (c)  The bylaws shall provide for giving notice to parcel

owners and members of all board meetings and, if they do not do

so, shall be deemed to provide the following:

     1.  Notices of all board meetings and the agendas must be

posted in a conspicuous place in the community at least 48 hours

in advance of a meeting, except in an emergency. In the

alternative, if notice is not posted in a conspicuous place in

the community, notice of each board meeting and agenda must be

mailed or delivered to each member at least 7 days before the

meeting, except in an emergency. Notwithstanding this general

notice requirement, for communities with more than 100 members,

the bylaws may provide for a reasonable alternative to posting

or mailing of notice for each board meeting, including

publication of notice, provision of a schedule of board

meetings, or the conspicuous posting and repeated broadcasting

of the notice on a closed-circuit cable television system

serving the homeowners' association. However, if broadcast

notice is used in lieu of a notice posted physically in the

community, the notice must be broadcast at least four times

every broadcast hour of each day that a posted notice is

otherwise required. 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. The bylaws or amended

bylaws may provide for giving notice by electronic transmission

in a manner authorized by law for meetings of the board of

directors, committee meetings requiring notice under this

section, and annual and special meetings of the members;

however, a member must consent in writing to receiving notice by

electronic transmission.

     2.  An assessment may not be levied at a board meeting

unless the notice of the meeting includes a statement that

assessments will be considered and the nature of the

assessments. Written notice of any meeting at which special

assessments will be considered or at which amendments to rules

regarding parcel use will be considered must be mailed,

delivered, or electronically transmitted to the members and

parcel owners and posted conspicuously on the property or

broadcast on closed-circuit cable television not less than 14

days before the meeting.

     3.  Directors may not vote by proxy or by secret ballot at

board meetings, except that secret ballots may be used in the

election of officers. This subsection also applies to the

meetings of any committee or other similar body, when a final

decision will be made regarding the expenditure of association

funds, and to any body vested with the power to approve or

disapprove architectural decisions with respect to a specific

parcel of residential property owned by a member of the

community.

     (d)  If 10 20 percent of the total voting interests

petition the board to address an item of business, the board

shall at its next regular board meeting or at a special meeting

of the board, but not later than 60 days after the receipt of

the petition, take the petitioned item up on an agenda. The

board shall give all members notice of the meeting at which the

petitioned item shall be addressed in accordance with the 14-day

notice requirement pursuant to subparagraph (c)2. Each member

shall have the right to speak for at least 3 minutes on each

matter placed on the agenda by petition. The board shall address

all items on the agenda , provided that the member signs the

sign-up sheet, if one is provided, or submits a written request

to speak prior to the meeting. Other than addressing the

petitioned item at the meeting, the board is not obligated to

take any other action requested by the petition.

     (e)  Detailed agendas for board meetings with specific

items that will be addressed shall be published and made

available to all members no less than 7 days prior to the date

of the board meeting.

     (3)  MINUTES.--Minutes of all meetings of the members of an

association and of the board of directors of an association must

be maintained in written form or in another form that can be

converted into written form within a reasonable time. A vote or

abstention from voting on each matter voted upon by for each

director present at a board meeting shall must be recorded in

the minutes.

     (4)  OFFICIAL RECORDS.-- All records of the association

, when applicable, which constitute the of the following items

 association:

     (a)  Copies of any all plans, specifications, permits, and

warranties related to all improvements constructed on the common

areas or other property in the development as platted and recorded

that the association is obligated to maintain, repair, or replace. If

such documents do not exist, the association shall obtain the

documents or forfeit the right to assess any fees to maintain

the common areas of property.

     (b)  A copy of the bylaws of the association and of each

amendment to the bylaws.

     (c)  A copy of the articles of incorporation of the

association and of each amendment thereto.

     (d)  A copy of each set of the declaration of covenants and

a copy of each amendment thereto.

     (e)  A copy of the current rules of the homeowners'

association.

     (f)  The minutes of all meetings of the board of directors

and of the members, which minutes must be retained for at least

7 years.

     (g)  A current roster of all members and their mailing

addresses and parcel identifications. The association shall also

maintain the electronic mailing addresses and the numbers

designated by members for receiving notice sent by electronic

transmission of those members consenting to receive notice by

electronic transmission. The electronic mailing addresses and

numbers provided by unit owners to receive notice by electronic

transmission shall be removed from association records when

consent to receive notice by electronic transmission is revoked.

However, the association is not liable for an erroneous

disclosure of the electronic mail address or the number for

receiving electronic transmission of notices.

     (h)  All of the association's insurance policies or a copy

thereof, which policies must be retained for at least 7 years.

     (i)  A current copy of all contracts to which the

association is a party, including, without limitation, any

management agreement, lease, or other contract under which the

association has any obligation or responsibility. A contract or

written agreement may not be allowed to maintain property that

is not owned by and deeded to the association. Bids received by

the association for work to be performed must also be considered

official records and must be kept for a period of 1 year.

     (j)  The financial and accounting records of the

association, kept according to good accounting practices. All

financial and accounting records shall must be maintained for a

period of at least 7 years. All work product of a director or officer of the

     1.  Accurate, itemized, and detailed records of all

receipts and expenditures.

     2.  A current account and a periodic statement of the

account for each member, designating the name and current

address of each member who is obligated to pay assessments, the

due date and amount of each assessment or other charge against

the member, the date and amount of each payment on the account,

and the balance due.

     3.  All tax returns, financial statements, and financial

reports of the association.

     4.  Any other records that identify, measure, record, or

communicate financial information.

 5.  All information regarding salaries and/or benefits of employees

of the association.

     (k)  A copy of the disclosure summary described in s.

720.401(1).

     (l)  All other written records of the association not

specifically included in the foregoing which are related to the

operation of the association.

     (m)  All interpretations of any governing documents, as

provided by any legal source or attorney as long as they are not

part of a pending lawsuit.

     (n)  All architectural requests and approvals or denials,

which shall be maintained as long as the association exists or

is active.

     (5)  INSPECTION AND COPYING OF RECORDS.--The official

records shall be maintained within the county in which the

governing documents are recorded state and must be open to

inspection and available for photocopying by machine, video,

digital cameras, or any other methods available to members or

their authorized agents at reasonable times and places within 10

business days after receipt of a written request for access.

This subsection may be complied with by having a copy of the

official records available for inspection or copying in the

community. If the association has a photocopy machine available

where the records are maintained, it must provide parcel owners

with copies on request during the inspection if the entire

request is limited to no more than 25 pages.

     (a)  The failure of an association to provide access to the

records within 10 business days after receipt of a written

request creates a rebuttable presumption that the association

willfully failed to comply with this subsection. The association shall

     (b)  A member 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 subsection.

The minimum damages are to be $100 $50 per calendar day up to 10

days, the calculation to begin on the 11th business day after

receipt of the written request.

     (c)  The association may adopt reasonable written rules

governing the frequency, time, location, notice, records to be

inspected, and manner of inspections, but may not impose a

requirement that a parcel owner demonstrate any proper purpose

for the inspection, state any reason for the inspection, or

limit a parcel owner's right to inspect records to less than one

8-hour business day per month. The association may only impose

fees to cover the actual costs of providing copies of the

official records, including, without limitation, the costs of

copying. The association may charge up to 5 50 cents per page

for copies made on the association's photocopier. If the

association does not have a photocopy machine available where

the records are kept, or if the records requested to be copied

exceed 25 pages in length, the association may have copies made

by an outside vendor and may charge the actual cost of copying

only. The association may impose a one-time fee not to exceed 1

cent per page and limited to a total of $5 if the parcel owner

provides the necessary equipment and materials for copying and

the labor to make the requested copies. The association shall

maintain an adequate number of copies of the recorded governing

documents, to ensure their availability to members and

prospective members. Notwithstanding the provisions of this

paragraph, the following records shall not be accessible to

members or parcel 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, but not limited to, 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