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25         Section 2.  Subsection (2) of section 720.303, Florida
26  Statutes, is amended to read:
27       720.303  Association powers and duties; meetings of
28  board; official records; budgets; financial reporting.--
29         (2)  BOARD MEETINGS.--A meeting of the board of
30  directors of an association occurs whenever a quorum of the
31  board gathers to conduct association business.  All meetings

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 1  of the board must be open to all members except for meetings
 2  between the board and its attorney with respect to proposed or
 3  pending litigation where the contents of the discussion would
 4  otherwise be governed by the attorney-client privilege.
 5  Notices of all board meetings must be posted in a conspicuous
 6  place in the community at least 48 hours in advance of a
 7  meeting, except in an emergency.  In the alternative, if
 8  notice is not posted in a conspicuous place in the community,
 9  notice of each board meeting must be mailed or delivered to
10  each member at least 7 days before the meeting, except in an
11  emergency. Notwithstanding this general notice requirement,
12  for communities with more than 100 members, the bylaws may
13  provide for a reasonable alternative to posting or mailing of
14  notice for each board meeting, including publication of
15  notice, provision of a schedule of board meetings, or the
16  conspicuous posting and repeated broadcasting of the notice on
17  a closed-circuit cable television system serving the
18  homeowners' association. However, if broadcast notice is used
19  in lieu of a notice posted physically in the community, the
20  notice must be broadcast at least four times every broadcast
21  hour of each day that a posted notice is otherwise required.
22  When broadcast notice is provided, the notice and agenda must
23  be broadcast in a manner and for a sufficient continuous
24  length of time so as to allow an average reader to observe the
25  notice and read and comprehend the entire content of the
26  notice and the agenda. The bylaws or amended bylaws may
27  provide for giving notice by electronic transmission in a
28  manner authorized by law for meetings of the board of
29  directors, committee meetings requiring notice under this
30  section, and annual and special meetings of the members;
31  however, a member must consent in writing to receiving notice

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1  by electronic transmission. An assessment may not be levied at
 2  a board meeting unless a written the notice of the meeting is
 3  provided to all members at least 14 days before the meeting,
 4  which notice includes a statement that assessments will be
 5  considered at the meeting and the nature of the assessments.
 6  Rules that regulate the use of parcels in the community may
 7  not be adopted, amended, or revoked at a board meeting unless
 8  a written meeting notice is provided to all members at least
 9  14 days before the meeting, which notice includes a statement
10  that changes to the rules regarding the use of parcels will be
11  considered at the meeting. Directors may not vote by proxy or
12  by secret ballot at board meetings, except that secret ballots
13  may be used in the election of officers.  This subsection also
14  applies to the meetings of any committee or other similar
15  body, when a final decision will be made regarding the
16  expenditure of association funds, and to any body vested with
17  the power to approve or disapprove architectural decisions
18  with respect to a specific parcel of residential property
19  owned by a member of the community.

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 1         Section 11.  Section 720.401, Florida Statutes, is
 2  created to read:
 3       720.401  Preservation of residential communities;
 4  revival of declaration of covenants.--
 5         (1)  Consistent with required and optional elements of
 6  local comprehensive plans and other applicable provisions of
 7  the Local Government Comprehensive Planning and Land
 8  Development Regulation Act, homeowners are encouraged to
 9  preserve existing residential communities, promote available
10  and affordable housing, protect structural and aesthetic
11  elements of their residential community, and, as applicable,
12  maintain roads and streets, easements, water and sewer
13  systems, utilities, drainage improvements, conservation and
14  open areas, recreational amenities, and other infrastructure
15  and common areas that serve and support the residential
16  community by the revival of a previous declaration of
17  covenants and other governing documents that may have ceased
18  to govern some or all parcels in the community.
19       (2)  In order to preserve a residential community and
20  the associated infrastructure and common areas for the
21  purposes described in this section, the parcel owners in a
22  community that was previously subject to a declaration of
23  covenants that has ceased to govern one or more parcels in the
24  community may revive the declaration and the homeowners'
25  association for the community upon approval by the parcel
26  owners to be governed thereby as provided in this act, and
27  upon approval of the declaration and the other governing
28  documents for the association by the Department of Community
29  Affairs in a manner consistent with this act.
30         Section 12.  Section 720.402, Florida Statutes, is
31  created to read:

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 1       720.402  Eligible residential communities; requirements
 2  for revival of declaration.--Parcel owners in a community are
 3  eligible to seek approval from the Department of Community
 4  Affairs to revive a declaration of covenants under this act if
 5  all of the following requirements are met:
 6       (1)  All parcels to be governed by the revived
 7  declaration must have been once governed by a previous
 8  declaration that has ceased to govern some or all of the
 9  parcels in the community;
10       (2)  The revived declaration must be approved in the
11  manner provided in s. 720.403(6); and
12         (3)  The revived declaration may not contain covenants
13  that are more restrictive on the parcel owners than the
14  covenants contained in the previous declaration, except that
15  the declaration may:
16       (a)  Have an effective term of longer duration than the
17  term of the previous declaration;
18       (b)  Omit restrictions contained in the previous
19  declaration;
20       (c)  Govern fewer than all of the parcels governed by
21  the previous declaration;
22       (d)  Provide for amendments to the declaration and
23  other governing documents; and
24       (e)  Contain provisions required by this chapter for
25  new declarations that were not contained in the previous
26  declaration.
27         Section 13.  Section 720.403, Florida Statutes, is
28  created to read:
29       720.403  Organizing committee; parcel owner approval.--
30       (1)  The proposal to revive a declaration of covenants
31  and a homeowners' association for a community under the terms

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 1  of this act shall be initiated by an organizing committee
 2  consisting of not less than three parcel owners located in the
 3  community that is proposed to be governed by the revived
 4  declaration. The name, address, and telephone number of each
 5  member of the organizing committee must be included in any
 6  notice or other document provided by the committee to parcel
 7  owners to be affected by the proposed revived declaration.
 8       (2)  The organizing committee shall prepare or cause to
 9  be prepared the complete text of the proposed revised
10  declaration of covenants to be submitted to the parcel owners
11  for approval. The proposed revived documents must identify
12  each parcel that is to be subject to the governing documents
13  by its legal description, and by the name of the parcel owner
14  or the person in whose name the parcel is assessed on the last
15  completed tax assessment roll of the county at the time when
16  the proposed revived declaration is submitted for approval by
17  the parcel owners.
18       (3)  The organizing committee shall prepare the full
19  text of the proposed articles of incorporation and bylaws of
20  the revived homeowners' association to be submitted to the
21  parcel owners for approval, unless the association is then an
22  existing corporation, in which case the organizing committee
23  shall prepare the existing articles of incorporation and
24  bylaws to be submitted to the parcel owners.
25       (4)  The proposed revived declaration and other
26  governing documents for the community shall:
27         (a)  Provide that the voting interest of each parcel
28  owner shall be the same as the voting interest of the parcel
29  owner under the previous governing documents;
30       (b)  Provide that the proportional-assessment
31  obligations of each parcel owner shall be the same as

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 1  proportional-assessment obligations of the parcel owner under
 2  the previous governing documents;
 3       (c)  Contain the same respective amendment provisions
 4  as the previous governing documents or, if there were no
 5  amendment provisions in the previous governing document,
 6  amendment provisions that require approval of not less than
 7  two-thirds of the affected parcel owners;
 8       (d)  Contain no covenants that are more restrictive on
 9  the affected parcel owners than the covenants contained in the
10  previous governing documents, except as permitted under s.
11  720.402(3); and
12       (e)  Comply with the other requirements for a
13  declaration of covenants and other governing documents as
14  specified in this chapter.
15       (5)  A copy of the complete text of the proposed
16  revised declaration of covenants, the proposed new or existing
17  articles of incorporation and bylaws of the homeowners'
18  association, and a graphic depiction of the property to be
19  governed by the revived declaration shall be presented to all
20  of the affected parcel owners by mail or hand delivery not
21  less than 14 days before the time that the consent of the
22  affected parcel owners to the proposed governing documents is
23  sought by the organizing committee.
24       (6)  A majority of the affected parcel owners must
25  agree in writing to the revived declaration of covenants and
26  governing documents of the homeowners' association or approve
27  the revived declaration and governing documents by a vote at a
28  meeting of the affected parcel owners noticed and conducted in
29  the manner prescribed by s. 720.306. Proof of notice of the
30  meeting to all affected owners of the meeting and the minutes
31  of the meeting recording the votes of the property owners

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 1  shall be certified by a court reporter or an attorney licensed
 2  to practice in the state.
 3         Section 14.  Section 720.404, Florida Statutes, is
 4  created to read:
 5       720.404  Department of Community Affairs; submission;
 6  review and determination.--
 7       (1)  No later than 60 days after the date the proposed
 8  revived declaration and other governing documents are approved
 9  by the affected parcel owners, the organizing committee or its
10  designee must submit the proposed revived governing documents
11  and supporting materials to the Department of Community
12  Affairs to review and determine whether to approve or
13  disapprove of the proposal to preserve the residential
14  community. The submission to the department must include:
15       (a)  The full text of the proposed revived declaration
16  of covenants and articles of incorporation and bylaws of the
17  homeowners' association;
18       (b)  A verified copy of the previous declaration of
19  covenants and other previous governing documents for the
20  community, including any amendments thereto;
21       (c)  The legal description of each parcel to be subject
22  to the revived declaration and other governing documents and a
23  plat or other graphic depiction of the affected properties in
24  the community;
25       (d)  A verified copy of the written consents of the
26  requisite number of the affected parcel owners approving the
27  revived declaration and other governing documents or, if
28  approval was obtained by a vote at a meeting of affected
29  parcel owners, verified copies of the notice of the meeting,
30  attendance, and voting results;
31 

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 1       (e)  An affidavit by a current or former officer of the
 2  association or by a member of the organizing committee
 3  verifying that the requirements for the revived declaration
 4  set forth in s. 720.402 have been satisfied; and
 5       (f)  Such other documentation that the organizing
 6  committee believes is supportive of the policy of preserving
 7  the residential community and operating, managing, and
 8  maintaining the infrastructure, aesthetic character, and
 9  common areas serving the residential community.
10       (2)  No later than 60 days after receiving the
11  submission, the department must determine whether the proposed
12  revived declaration of covenants and other governing documents
13  comply with the requirements of this act.
14       (a)  If the department determines that the proposed
15  revived declaration and other governing documents comply with
16  the act and have been approved by the parcel owners as
17  required by this act, the department shall notify the
18  organizing committee in writing of its approval.
19       (b)  If the department determines that the proposed
20  revived declaration and other governing documents do not
21  comply with this act or have not been approved as required by
22  this act, the department shall notify the organizing committee
23  in writing that it does not approve the governing documents
24  and shall state the reasons for the disapproval.
25         Section 15.  Section 720.405, Florida Statutes, is
26  created to read:
27         720.405  Recording; notice of recording; applicability
28  and effective date.--
29       (1)  No later than 30 days after receiving approval
30  from the department, the organizing committee shall file the
31  articles of incorporation of the association with the Division

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 1  of Corporations of the Department of State if the articles
 2  have not been previously filed with the division.
 3       (2)  No later than 30 days after receiving approval
 4  from the division, the president and secretary of the
 5  association shall execute the revived declaration and other
 6  governing documents approved by the department in the name of
 7  the association and have the documents recorded with the clerk
 8  of the circuit court in the county where the affected parcels
 9  are located.
10       (3)  The recorded documents shall include the full text
11  of the approved declaration of covenants, the articles of
12  incorporation and bylaws of the homeowners' association, the
13  letter of approval by the department, and the legal
14  description of each affected parcel of property. For purposes
15  of chapter 712, the association is deemed to be and shall be
16  indexed as the grantee in a title transaction and the parcel
17  owners named in the revived declaration are deemed to be and
18  shall be indexed as the grantors in the title transaction.
19       (4)  Immediately after recording the documents, a
20  complete copy of all of the approved recorded documents must
21  be mailed or hand delivered to the owner of each affected
22  parcel. The revived declaration and other governing documents
23  shall be effective upon recordation in the public records with
24  respect to each affected parcel subject thereto, regardless of
25  whether the particular parcel owner approved the revived
26  declaration. Upon recordation, the revived declaration shall
27  replace and supersede the previous declaration with respect to
28  all affected parcels then governed by the previous declaration
29  and shall have the same record priority as the superseded
30  previous declaration.  With respect to any affected parcels
31  that had ceased to be governed by the previous declaration as

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 1  of the recording date, the revived declaration may not have
 2  retroactive effect with respect to the parcel and shall take
 3  priority with respect to the parcel as of the recording date.
 4       (5)  With respect to any parcel that has ceased to be
 5  governed by a previous declaration of covenants as of the
 6  effective date of this act, the parcel owner may commence an
 7  action within one year after the effective date of this act
 8  for a judicial determination that the previous declaration did
 9  not govern that parcel as of the effective date of this act
10  and that any revival of such declaration as to that parcel
11  would unconstitutionally deprive the parcel owner of rights or
12  property. A revived declaration that is implemented pursuant
13  to this act shall not apply to or affect the rights of the
14  respective parcel owner recognized by any court order or
15  judgment in any such action commenced within one year after
16  the effective date of this act, and any such rights so
17  recognized may not be subsequently altered by a revived
18  declaration implemented under this act without the consent of
19  the affected property owner.
20         Section 16.  Section 720.301, Florida Statutes, is
21  amended to read:
22         720.301  Definitions.--As used in this chapterss.
23  720.301-720.312, the term:
24         (1)  "Assessment" or "amenity fee" means a sum or sums
25  of money payable to the association, to the developer or other
26  owner of common areas, or to recreational facilities and other
27  properties serving the parcels by the owners of one or more
28  parcels as authorized in the governing documents, which if not
29  paid by the owner of a parcel, can result in a lien against
30  the parcel.
31 

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 1         (2)  "Common area" means all real property within a
 2  community which is owned or leased by an association or
 3  dedicated for use or maintenance by the association or its
 4  members, including, regardless of whether title has been
 5  conveyed to the association:
 6         (a)  Real property the use of which is dedicated to the
 7  association or its members by a recorded plat; or
 8         (b)  Real property committed by a declaration of
 9  covenants to be leased or conveyed to the association.
10         (3)  "Community" means the real property that is or
11  will be subject to a declaration of covenants which is
12  recorded in the county where the property is located.  The
13  term "community" includes all real property, including
14  undeveloped phases, that is or was the subject of a
15  development-of-regional-impact development order, together
16  with any approved modification thereto.
17         (4)  "Declaration of covenants," or "declaration,"
18  means a recorded written instrument in the nature of covenants
19  running with the land which subjects the land comprising the
20  community to the jurisdiction and control of an association or
21  associations in which the owners of the parcels, or their
22  association representatives, must be members.
23       (5)  "Department" means the Department of Business and
24  Professional Regulation.
25       (6)(5)  "Developer" means a person or entity that:
26         (a)  Creates the community served by the association;
27  or
28         (b)  Succeeds to the rights and liabilities of the
29  person or entity that created the community served by the
30  association, provided that such is evidenced in writing.
31 

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 1       (7)  "Division" means the Division of Florida Land
 2  Sales, Condominiums, and Mobile Homes in the Department of
 3  Business and Professional Regulation.
 4       (8)(6)  "Governing documents" means:
 5         (a)  The recorded declaration of covenants for a
 6  community, and all duly adopted and recorded amendments,
 7  supplements, and recorded exhibits thereto; and
 8         (b)  The articles of incorporation and bylaws of the
 9  homeowners' association, and any duly adopted amendments
10  thereto.
11 (9)(7)  "Homeowners' association" or "association"
12  means a Florida corporation responsible for the operation of a
13  community or a mobile home subdivision in which the voting
14  membership is made up of parcel owners or their agents, or a
15  combination thereof, and in which membership is a mandatory
16  condition of parcel ownership, and which is authorized to
17  impose assessments that, if unpaid, may become a lien on the
18  parcel.  The term "homeowners' association" does not include a
19  community development district or other similar special taxing
20  district created pursuant to statute.
21        (10)(8)  "Member" means a member of an association, and
22  may include, but is not limited to, a parcel owner or an
23  association representing parcel owners or a combination
24  thereof, and includes any person or entity obligated by the
25  governing documents to pay an assessment or amenity fee.
26        (11)(9)  "Parcel" means a platted or unplatted lot,
27  tract, unit, or other subdivision of real property within a
28  community, as described in the declaration:
29         (a)  Which is capable of separate conveyance; and
30         (b)  Of which the parcel owner, or an association in
31  which the parcel owner must be a member, is obligated:

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 1         1.  By the governing documents to be a member of an
 2  association that serves the community; and
 3         2.  To pay to the homeowners' association assessments
 4  that, if not paid, may result in a lien.
 5        (12)(10)  "Parcel owner" means the record owner of
 6  legal title to a parcel.
 7        (13)(11)  "Voting interest" means the voting rights
 8  distributed to the members of the homeowners' association,
 9  pursuant to the governing documents.
10         Section 17.  Subsections (1), (2), (3), and (4) of
11  section 720.302, are amended to read:
12        720.302  Purposes, scope, and application.--
13         (1)  The purposes of this chapterss. 720.301-720.312
14  are to give statutory recognition to corporations not for
15  profit that operate residential communities in this state, to
16  provide procedures for operating homeowners' associations, and
17  to protect the rights of association members without unduly
18  impairing the ability of such associations to perform their
19  functions.
20         (2)  The Legislature recognizes that it is not in the
21  best interest of homeowners' associations or the individual
22  association members thereof to create or impose a bureau or
23  other agency of state government to regulate the affairs of
24  homeowners' associations. However, in accordance with s.
25  720.311, the Legislature finds that homeowners' associations
26  and their individual members will benefit from an expedited
27  alternative process for resolution of election and recall
28  disputes and presuit mediation of other disputes involving
29  covenant enforcement and authorizes the department to hear,
30  administer, and determine these disputes as more fully set
31  forth in this chapter. Further, the Legislature recognizes

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 1  that certain contract rights have been created for the benefit
 2  of homeowners' associations and members thereof before the
 3  effective date of this act and that ss. 720.301-720.501 ss.
 4  720.301-720.312 are not intended to impair such contract
 5  rights, including, but not limited to, the rights of the
 6  developer to complete the community as initially contemplated.
 7         (3)  This chapter does Sections 720.301-720.312 do not
 8  apply to:
 9         (a)  A community that is composed of property primarily
10  intended for commercial, industrial, or other nonresidential
11  use; or
12         (b)  The commercial or industrial parcels in a
13  community that contains both residential parcels and parcels
14  intended for commercial or industrial use.
15         (4)  This chapter does Sections 720.301-720.312 do not
16  apply to any association that is subject to regulation under
17  chapter 718, chapter 719, or chapter 721; or to any
18  nonmandatory association formed under chapter 723.
19         Section 18.  Section 720.303, Florida Statutes, is
20  amended to read:
21        720.303  Association powers and duties; meetings of
22  board; official records; budgets; financial reporting;
23  association funds; recalls.--
24         (1)  POWERS AND DUTIES.--An association which operates
25  a community as defined in s. 720.301, must be operated by an
26  association that is a Florida corporation. After October 1,
27  1995, the association must be incorporated and the initial
28  governing documents must be recorded in the official records
29  of the county in which the community is located. An
30  association may operate more than one community. The officers
31  and directors of an association have a fiduciary relationship

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 1  to the members who are served by the association. The powers
 2  and duties of an association include those set forth in this
 3  chapter and, except as expressly limited or restricted in this
 4  chapter, those set forth in the governing documents. After
 5  control of the association is obtained by members unit owners
 6  other than the developer, the association may institute,
 7  maintain, settle, or appeal actions or hearings in its name on
 8  behalf of all members concerning matters of common interest to
 9  the members, including, but not limited to, the common areas;
10  roof or structural components of a building, or other
11  improvements for which the association is responsible;
12  mechanical, electrical, or plumbing elements serving an
13  improvement or building for which the association is
14  responsible; representations of the developer pertaining to
15  any existing or proposed commonly used facility; and
16  protesting ad valorem taxes on commonly used facilities. The
17  association may defend actions in eminent domain or bring
18  inverse condemnation actions. Before commencing litigation
19  against any party in the name of the association involving
20  amounts in controversy in excess of $100,000, the association
21  must obtain the affirmative approval of a majority of the
22  voting interests at a meeting of the membership at which a
23  quorum has been attained. This subsection does not limit any
24  statutory or common-law right of any individual member or
25  class of members to bring any action without participation by
26  the association. A member does not have authority to act for
27  the association by virtue of being a member. An association
28  may have more than one class of members and may issue
29  membership certificates. An association of 15 or fewer parcel
30  owners may enforce only the requirements of those deed
31 

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 1  restrictions established prior to the purchase of each parcel
 2  upon an affected parcel owner or owners.
 3         (2)  BOARD MEETINGS.--
 4        (a)  A meeting of the board of directors of an
 5  association occurs whenever a quorum of the board gathers to
 6  conduct association business.  All meetings of the board must
 7  be open to all members except for meetings between the board
 8  and its attorney with respect to proposed or pending
 9  litigation where the contents of the discussion would
10  otherwise be governed by the attorney-client privilege.
11        (b)  Members have the right to attend all meetings of
12  the board and to speak on any matter placed on the agenda by
13  petition of the voting interests for at least 3 minutes. The
14  association may adopt written reasonable rules expanding the
15  right of members to speak and governing the frequency,
16  duration, and other manner of member statements, which rules
17  must be consistent with this paragraph and may include a
18  sign-up sheet for members wishing to speak. Notwithstanding
19  any other law, the requirement that board meetings and
20  committee meetings be open to the members is inapplicable to
21  meetings between the board or a committee and the
22  association's attorney, with respect to meetings of the board
23  held for the purpose of discussing personnel matters.
24        (c)  The bylaws shall provide for giving notice to
25  parcel owners and members of all board meetings and, if they
26  do not do so, shall be deemed to provide the following:
27         1.  Notices of all board meetings must be posted in a
28  conspicuous place in the community at least 48 hours in
29  advance of a meeting, except in an emergency.  In the
30  alternative, if notice is not posted in a conspicuous place in
31  the community, notice of each board meeting must be mailed or

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 1  delivered to each member at least 7 days before the meeting,
 2  except in an emergency. Notwithstanding this general notice
 3  requirement, for communities with more than 100 members, the
 4  bylaws may provide for a reasonable alternative to posting or
 5  mailing of notice for each board meeting, including
 6  publication of notice, provision of a schedule of board
 7  meetings, or the conspicuous posting and repeated broadcasting
 8  of the notice on a closed-circuit cable television system
 9  serving the homeowners' association. However, if broadcast
10  notice is used in lieu of a notice posted physically in the
11  community, the notice must be broadcast at least four times
12  every broadcast hour of each day that a posted notice is
13  otherwise required. When broadcast notice is provided, the
14  notice and agenda must be broadcast in a manner and for a
15  sufficient continuous length of time so as to allow an average
16  reader to observe the notice and read and comprehend the
17  entire content of the notice and the agenda. The bylaws or
18  amended bylaws may provide for giving notice by electronic
19  transmission in a manner authorized by law for meetings of the
20  board of directors, committee meetings requiring notice under
21  this section, and annual and special meetings of the members;
22  however, a member must consent in writing to receiving notice
23  by electronic transmission.
24        2.  An assessment may not be levied at a board meeting
25  unless the notice of the meeting includes a statement that
26  assessments will be considered and the nature of the
27  assessments. Written notice of any meeting at which special
28  assessments will be considered or at which amendments to rules
29  regarding parcel use will be considered must be mailed,
30  delivered, or electronically transmitted to the members and
31  parcel owners and posted conspicuously on the property or

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 1  broadcast on closed-circuit cable television not less than 14
 2  days before the meeting.
 3         3.  Directors may not vote by proxy or by secret ballot
 4  at board meetings, except that secret ballots may be used in
 5  the election of officers.  This subsection also applies to the
 6  meetings of any committee or other similar body, when a final
 7  decision will be made regarding the expenditure of association
 8  funds, and to any body vested with the power to approve or
 9  disapprove architectural decisions with respect to a specific
10  parcel of residential property owned by a member of the
11  community.
12        (d)  If 20 percent of the total voting interests
13  petition the board to address an item of business, the board
14  shall at its next regular board meeting or at a special
15  meeting of the board, but not later than 60 days after the
16  receipt of the petition, take the petitioned item up on an
17  agenda. The board shall give all members notice of the meeting
18  at which the petitioned item shall be addressed in accordance
19  with the 14-day notice requirement pursuant to subparagraph 2.
20  Each member shall have the right to speak for at least 3
21  minutes on each matter placed on the agenda by petition,
22  provided that the member signs the sign-up sheet, if one is
23  provided, or submits a written request to speak prior to the
24  meeting. Other than addressing the petitioned item at the
25  meeting, the board is not obligated to take any other action
26  requested by the petition.
27         (3)  MINUTES.--Minutes of all meetings of the members
28  of an association and of the board of directors of an
29  association must be maintained in written form or in another
30  form that can be converted into written form within a
31  reasonable time.  A vote or abstention from voting on each

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 1  matter voted upon for each director present at a board meeting
 2  must be recorded in the minutes.
 3         (4)  OFFICIAL RECORDS.--The association shall maintain
 4  each of the following items, when applicable, which constitute
 5  the official records of the association:
 6         (a)  Copies of any plans, specifications, permits, and
 7  warranties related to improvements constructed on the common
 8  areas or other property that the association is obligated to
 9  maintain, repair, or replace.
10         (b)  A copy of the bylaws of the association and of
11  each amendment to the bylaws.
12         (c)  A copy of the articles of incorporation of the
13  association and of each amendment thereto.
14         (d)  A copy of the declaration of covenants and a copy
15  of each amendment thereto.
16         (e)  A copy of the current rules of the homeowners'
17  association.
18         (f)  The minutes of all meetings of the board of
19  directors and of the members, which minutes must be retained
20  for at least 7 years.
21         (g)  A current roster of all members and their mailing
22  addresses and parcel identifications. The association shall
23  also maintain the electronic mailing addresses and the numbers
24  designated by members for receiving notice sent by electronic
25  transmission of those members consenting to receive notice by
26  electronic transmission. The electronic mailing addresses and
27  numbers provided by unit owners to receive notice by
28  electronic transmission shall be removed from association
29  records when consent to receive notice by electronic
30  transmission is revoked. However, the association is not
31  liable for an erroneous disclosure of the electronic mail

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 1  address or the number for receiving electronic transmission of
 2  notices.
 3         (h)  All of the association's insurance policies or a
 4  copy thereof, which policies must be retained for at least 7
 5  years.
 6         (i)  A current copy of all contracts to which the
 7  association is a party, including, without limitation, any
 8  management agreement, lease, or other contract under which the
 9  association has any obligation or responsibility.  Bids
10  received by the association for work to be performed must also
11  be considered official records and must be kept for a period
12  of 1 year.
13         (j)  The financial and accounting records of the
14  association, kept according to good accounting practices.  All
15  financial and accounting records must be maintained for a
16  period of at least 7 years.  The financial and accounting
17  records must include:
18         1.  Accurate, itemized, and detailed records of all
19  receipts and expenditures.
20         2.  A current account and a periodic statement of the
21  account for each member, designating the name and current
22  address of each member who is obligated to pay assessments,
23  the due date and amount of each assessment or other charge
24  against the member, the date and amount of each payment on the
25  account, and the balance due.
26         3.  All tax returns, financial statements, and
27  financial reports of the association.
28         4.  Any other records that identify, measure, record,
29  or communicate financial information.
30        (k)  A copy of the disclosure summary described in s.
31  720.601.

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 1        (l)  All other written records of the association not
 2  specifically included in the foregoing which are related to
 3  the operation of the association.
 4         (5)  INSPECTION AND COPYING OF RECORDS.--The official
 5  records shall be maintained within the state and must be open
 6  to inspection and available for photocopying by members or
 7  their authorized agents at reasonable times and places within
 8  10 business days after receipt of a written request for
 9  access. This subsection may be complied with by having a copy
10  of the official records available for inspection or copying in
11  the community. If the association has a photocopy machine
12  available where the records are maintained, it must provide
13  parcel owners with copies on request during the inspection if
14  the entire request is limited to no more than 25 pages.
15         (a)  The failure of an association to provide access to
16  the records within 10 business days after receipt of a written
17  request creates a rebuttable presumption that the association
18  willfully failed to comply with this subsection.
19         (b)  A member who is denied access to official records
20  is entitled to the actual damages or minimum damages for the
21  association's willful failure to comply with this subsection.
22  The minimum damages are to be $50 per calendar day up to 10
23  days, the calculation to begin on the 11th business day after
24  receipt of the written request.
25         (c)  The association may adopt reasonable written rules
26  governing the frequency, time, location, notice, records to be
27  inspected, and manner of inspections, but may not impose a
28  requirement that a parcel owner demonstrate any proper purpose
29  for the inspection, state any reason for the inspection, or
30  limit a parcel owner's right to inspect records to less than
31  one 8-hour business day per month. The association and may

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 1  impose fees to cover the costs of providing copies of the
 2  official records, including, without limitation, the costs of
 3  copying. The association may charge up to 50 cents per page
 4  for copies made on the association's photocopier. If the
 5  association does not have a photocopy machine available where
 6  the records are kept, or if the records requested to be copied
 7  exceed 25 pages in length, the association may have copies
 8  made by an outside vendor and may charge the actual cost of
 9  copying. The association shall maintain an adequate number of
10  copies of the recorded governing documents, to ensure their
11  availability to members and prospective members, and may
12  charge only its actual costs for reproducing and furnishing
13  these documents to those persons who are entitled to receive
14  them. Notwithstanding the provisions of this paragraph, the
15  following records shall not be accessible to members or parcel
16  owners:
17        1.  Any record protected by the lawyer-client privilege
18  as described in s. 90.502 and any record protected by the
19  work-product privilege, including, but not limited to, any
20  record prepared by an association attorney or prepared at the
21  attorney's express direction which reflects a mental
22  impression, conclusion, litigation strategy, or legal theory
23  of the attorney or the association and was prepared
24  exclusively for civil or criminal litigation or for
25  adversarial administrative proceedings or which was prepared
26  in anticipation of imminent civil or criminal litigation or
27  imminent adversarial administrative proceedings until the
28  conclusion of the litigation or adversarial administrative
29  proceedings.
30 
31 

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 1        2.  Information obtained by an association in
 2  connection with the approval of the lease, sale, or other
 3  transfer of a parcel.
 4        3.  Disciplinary, health, insurance, and personnel
 5  records of the association's employees.
 6        4.  Medical records of parcel owners or community
 7  residents.
 8         (6)  BUDGETS.--The association shall prepare an annual
 9  budget. The budget must reflect the estimated revenues and
10  expenses for that year and the estimated surplus or deficit as
11  of the end of the current year.  The budget must set out
12  separately all fees or charges for recreational amenities,
13  whether owned by the association, the developer, or another
14  person.  The association shall provide each member with a copy
15  of the annual budget or a written notice that a copy of the
16  budget is available upon request at no charge to the member.
17  The copy must be provided to the member within the time limits
18  set forth in subsection (5).
19         (7)  FINANCIAL REPORTING.--The association shall
20  prepare an annual financial report within 60 days after the
21  close of the fiscal year. The association shall, within the
22  time limits set forth in subsection (5), provide each member
23  with a copy of the annual financial report or a written notice
24  that a copy of the financial report is available upon request
25  at no charge to the member. Financial reports shall be
26  prepared as follows The financial report must consist of
27  either:
28         (a)  An association that meets the criteria of this
29  paragraph shall prepare or cause to be prepared a complete set
30  of financial statements in accordance with generally accepted
31 

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 1  accounting principles. The financial statements shall be based
 2  upon the association's total annual revenues, as follows:
 3        1.  An association with total annual revenues of
 4  $100,000 or more, but less than $200,000, shall prepare
 5  compiled financial statements.
 6        2.  An association with total annual revenues of at
 7  least $200,000, but less than $400,000, shall prepare reviewed
 8  financial statements.
 9        3.  An association with total annual revenues of
10  $400,000 or more shall prepare audited financial statements.
11  Financial statements presented in conformity with generally
12  accepted accounting principles; or
13         (b)  A financial report of actual receipts and
14  expenditures, cash basis, which report must show:
15         1.  An association with total annual revenues of less
16  than $100,000 shall prepare a report of cash receipts and
17  expenditures.The amount of receipts and expenditures by
18  classification; and
19         2.  An association in a community of fewer than 50
20  parcels, regardless of the association's annual revenues, may
21  prepare a report of cash receipts and expenditures in lieu of
22  financial statements required by paragraph (a) unless the
23  governing documents provide otherwise. The beginning and
24  ending cash balances of the association.
25         3.  A report of cash receipts and disbursement must
26  disclose the amount of receipts by accounts and receipt
27  classifications and the amount of expenses by accounts and
28  expense classifications, including, but not limited to, the
29  following, as applicable: costs for security, professional,
30  and management fees and expenses; taxes; costs for recreation
31  facilities; expenses for refuse collection and utility

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 1  services; expenses for lawn care; costs for building
 2  maintenance and repair; insurance costs; administration and
 3  salary expenses; and reserves if maintained by the
 4  association.
 5        (c)  If 20 percent of the parcel owners petition 
 6  board for a level of financial reporting higher than that
 7  required by this section, the association shall duly notice
 8  and hold a meeting of members within 30 days of receipt of the
 9  petition for the purpose of voting on raising the level of
10  reporting for that fiscal year. Upon approval of a majority of
11  the total voting interests of the parcel owners, the
12  association shall prepare or cause to be prepared, shall amend
13  the budget or adopt a special assessment to pay for the
14  financial report regardless of any provision to the contrary
15  in the governing documents, and shall provide within 90 days
16  of the meeting or the end of the fiscal year, whichever occurs
17  later:
18        1.  Compiled, reviewed, or audited financial
19  statements, if the association is otherwise required to
20  prepare a report of cash receipts and expenditures;
21        2.  Reviewed or audited financial statements, if the
22  association is otherwise required to prepare compiled
23  financial statements; or
24        3.  Audited financial statements if the association is
25  otherwise required to prepare reviewed financial statements.
26        (d)  If approved by a majority of the voting interests
27  present at a properly called meeting of the association, an
28  association may prepare or cause to be prepared:
29        1.  A report of cash receipts and expenditures in lieu
30  of a compiled, reviewed, or audited financial statement;
31 

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 ENROLLED 2004 Legislature  CS for CS for CS for SB 1184  2nd Engrossed 

 1        2.  A report of cash receipts and expenditures or a
 2  compiled financial statement in lieu of a reviewed or audited
 3  financial statement; or
 4        3.  A report of cash receipts and expenditures, a
 5  compiled financial statement, or a reviewed financial
 6  statement in lieu of an audited financial statement.
 7         (8)  ASSOCIATION FUNDS; COMMINGLING.--
 8         (a)  All association funds held by a developer shall be
 9  maintained separately in the association's name. Reserve and
10  operating funds of the association shall not be commingled
11  prior to turnover except the association may jointly invest
12  reserve funds; however, such jointly invested funds must be
13  accounted for separately.
14         (b)  No developer in control of a homeowners'
15  association shall commingle any association funds with his or
16  her funds or with the funds of any other homeowners'
17  association or community association.
18        (c)  Association funds may not be used by a developer
19  to defend a civil or criminal action, administrative
20  proceeding, or arbitration proceeding that has been filed
21  against the developer or directors appointed to the
22  association board by the developer, even when the subject of
23  the action or proceeding concerns the operation of the
24  developer-controlled association.
25         (9)  APPLICABILITY.--Sections 617.1601-617.1604 do not
26  apply to a homeowners' association in which the members have
27  the inspection and copying rights set forth in this section.
28        (10)  RECALL OF DIRECTORS.--
29        (a)1.  Regardless of any provision to the contrary
30  contained in the governing documents, subject to the
31  provisions of s. 720.307 regarding transition of association

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 1  control, any member of the board or directors may be recalled
 2  and removed from office with or without cause by a majority of
 3  the total voting interests.
 4        2.  When the governing documents, including the
 5  declaration, articles of incorporation, or bylaws, provide
 6  that only a specific class of members is entitled to elect a
 7  board director or directors, only that class of members may
 8  vote to recall those board directors so elected.
 9        (b)1.  Board directors may be recalled by an agreement
10  in writing or by written ballot without a membership meeting.
11  The agreement in writing or the written ballots, or a copy
12  thereof, shall be served on the association by certified mail
13  or by personal service in the manner authorized by chapter 48
14  and the Florida Rules of Civil Procedure.
15        2.  The board shall duly notice and hold a meeting of
16  the board within 5 full business days after receipt of the
17  agreement in writing or written ballots. At the meeting, the
18  board shall either certify the written ballots or written
19  agreement to recall a director or directors of the board, in
20  which case such director or directors shall be recalled
21  effective immediately and shall turn over to the board within
22  5 full business days any and all records and property of the
23  association in their possession, or proceed as described in
24  paragraph (d).
25        3.  When it is determined by the department pursuant to
26  binding arbitration proceedings that an initial recall effort
27  was defective, written recall agreements or written ballots
28  used in the first recall effort and not found to be defective
29  may be reused in one subsequent recall effort. However, in no
30  event is a written agreement or written ballot valid for more
31  than 120 days after it has been signed by the member.

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 ENROLLED 2004 Legislature  CS for CS for CS for SB 1184  2nd Engrossed 

 1        4.  Any rescission or revocation of a member's written
 2  recall ballot or agreement must be in writing and, in order to
 3  be effective, must be delivered to the association before the
 4  association is served with the written recall agreements or
 5  ballots.
 6        5.  The agreement in writing or ballot shall list at
 7  least as many possible replacement directors as there are
 8  directors subject to the recall, when at least a majority of
 9  the board is sought to be recalled; the person executing the
10  recall instrument may vote for as many replacement candidates
11  as there are directors subject to the recall.
12        (c)1.  If the declaration, articles of incorporation,
13  or bylaws specifically provide, the members may also recall
14  and remove a board director or directors by a vote taken at a
15  meeting. If so provided in the governing documents, a special
16  meeting of the members to recall a director or directors of
17  the board of administration may be called by 10 percent of the
18  voting interests giving notice of the meeting as required for
19  a meeting of members, and the notice shall state the purpose
20  of the meeting. Electronic transmission may not be used as a
21  method of giving notice of a meeting called in whole or in
22  part for this purpose.
23        2.  The board shall duly notice and hold a board
24  meeting within 5 full business days after the adjournment of
25  the member meeting to recall one or more directors. At the
26  meeting, the board shall certify the recall, in which case
27  such member or members shall be recalled effective immediately
28  and shall turn over to the board within 5 full business days
29  any and all records and property of the association in their
30  possession, or shall proceed as set forth in subparagraph (d).
31 

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 1        (d)  If the board determines not to certify the written
 2  agreement or written ballots to recall a director or directors
 3  of the board or does not certify the recall by a vote at a
 4  meeting, the board shall, within 5 full business days after
 5  the meeting, file with the department a petition for binding
 6  arbitration pursuant to the applicable procedures in ss.
 7  718.1255 and 718.112(2)(j) and the rules adopted thereunder.
 8  For the purposes of this section, the members who voted at the
 9  meeting or who executed the agreement in writing shall
10  constitute one party under the petition for arbitration. If
11  the arbitrator certifies the recall as to any director or
12  directors of the board, the recall will be effective upon
13  mailing of the final order of arbitration to the association.
14  The director or directors so recalled shall deliver to the
15  board any and all records of the association in their
16  possession within 5 full business days after the effective
17  date of the recall.
18        (e)  If a vacancy occurs on the board as a result of a
19  recall and less than a majority of the board directors are
20  removed, the vacancy may be filled by the affirmative vote of
21  a majority of the remaining directors, notwithstanding any
22  provision to the contrary contained in this subsection or in
23  the association documents. If vacancies occur on the board as
24  a result of a recall and a majority or more of the board
25  directors are removed, the vacancies shall be filled by
26  members voting in favor of the recall; if removal is at a
27  meeting, any vacancies shall be filled by the members at the
28  meeting. If the recall occurred by agreement in writing or by
29  written ballot, members may vote for replacement directors in
30  the same instrument in accordance with procedural rules
31 

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 ENROLLED 2004 Legislature  CS for CS for CS for SB 1184  2nd Engrossed 

 1  adopted by the division, which rules need not be consistent
 2  with this subsection.
 3        (f)  If the board fails to duly notice and hold a board
 4  meeting within 5 full business days after service of an
 5  agreement in writing or within 5 full business days after the
 6  adjournment of the member recall meeting, the recall shall be
 7  deemed effective and the board directors so recalled shall
 8  immediately turn over to the board all records and property of
 9  the association.
10        (g)  If a director who is removed fails to relinquish
11  his or her office or turn over records as required under this
12  section, the circuit court in the county where the association
13  maintains its principal office may, upon the petition of the
14  association, summarily order the director to relinquish his or
15  her office and turn over all association records upon
16  application of the association.
17         (h)  The minutes of the board meeting at which the
18  board decides whether to certify the recall are an official
19  association record. The minutes must record the date and time
20  of the meeting, the decision of the board, and the vote count
21  taken on each board member subject to the recall. In addition,
22  when the board decides not to certify the recall, as to each
23  vote rejected, the minutes must identify the parcel number and
24  the specific reason for each such rejection.
25        (i)  When the recall of more than one board director is
26  sought, the written agreement, ballot, or vote at a meeting
27  shall provide for a separate vote for each board director
28  sought to be recalled.
29         Section 19.  Section 720.304, Florida Statutes, is
30  amended to read:
31 

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 1         720.304  Right of owners to peaceably assemble; display
 2  of flag; SLAPP suits prohibited.--
 3         (1)  All common areas and recreational facilities
 4  serving any homeowners' association shall be available to
 5  parcel owners in the homeowners' association served thereby
 6  and their invited guests for the use intended for such common
 7  areas and recreational facilities.  The entity or entities
 8  responsible for the operation of the common areas and
 9  recreational facilities may adopt reasonable rules and
10  regulations pertaining to the use of such common areas and
11  recreational facilities.  No entity or entities shall
12  unreasonably restrict any parcel owner's right to peaceably
13  assemble or right to invite public officers or candidates for
14  public office to appear and speak in common areas and
15  recreational facilities.
16         (2)  Any homeowner may display one portable, removable
17  United States flag or official flag of the State of Florida in
18  a respectful manner, and on Armed Forces Day, Memorial Day,
19  Flag Day, Independence Day, and Veterans Day may display in a
20  respectful manner portable, removable official flags, not
21  larger than 4 1/2 feet by 6 feet, which represents the United
22  States Army, Navy, Air Force, Marine Corps, or Coast Guard,
23  regardless of any declaration rules or requirements dealing
24  with flags or decorations.
25         (3)  Any owner prevented from exercising rights
26  guaranteed by subsection (1) or subsection (2) may bring an
27  action in the appropriate court of the county in which the
28  alleged infringement occurred, and, upon favorable
29  adjudication, the court shall enjoin the enforcement of any
30  provision contained in any homeowners' association document or
31  rule that operates to deprive the owner of such rights.

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 1        (4)  It is the intent of the Legislature to protect the
 2  right of parcel owners to exercise their rights to instruct
 3  their representatives and petition for redress of grievances
 4  before the various governmental entities of this state as
 5  protected by the First Amendment to the United States
 6  Constitution and s. 5, Art. I of the State Constitution. The
 7  Legislature recognizes that "Strategic Lawsuits Against Public
 8  Participation" or "SLAPP" suits, as they are typically called,
 9  have occurred when members are sued by individuals, business
10  entities, or governmental entities arising out of a parcel
11  owner's appearance and presentation before a governmental
12  entity on matters related to the homeowners' association.
13  However, it is the public policy of this state that government
14  entities, business organizations, and individuals not engage
15  in SLAPP suits because such actions are inconsistent with the
16  right of parcel owners to participate in the state's
17  institutions of government. Therefore, the Legislature finds
18  and declares that prohibiting such lawsuits by governmental
19  entities, business entities, and individuals against parcel
20  owners who address matters concerning their homeowners'
21  association will preserve this fundamental state policy,
22  preserve the constitutional rights of parcel owners, and
23  assure the continuation of representative government in this
24  state. It is the intent of the Legislature that such lawsuits
25  be expeditiously disposed of by the courts.
26         (a)  As used in this subsection, the term "governmental
27  entity" means the state, including the executive, legislative,
28  and judicial branches of government, the independent
29  establishments of the state, counties, municipalities,
30  districts, authorities, boards, or commissions, or any
31  agencies of these branches which are subject to chapter 286.

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 1        (b)  A governmental entity, business organization, or
 2  individual in this state may not file or cause to be filed
 3  through its employees or agents any lawsuit, cause of action,
 4  claim, cross-claim, or counterclaim against a parcel owner
 5  without merit and solely because such parcel owner has
 6  exercised the right to instruct his or her representatives or
 7  the right to petition for redress of grievances before the
 8  various governmental entities of this state, as protected by
 9  the First Amendment to the United States Constitution and s.
10  5, Art. I of the State Constitution.
11        (c)  A parcel owner sued by a governmental entity,
12  business organization, or individual in violation of this
13  section has a right to an expeditious resolution of a claim
14  that the suit is in violation of this section. A parcel owner
15  may petition the court for an order dismissing the action or
16  granting final judgment in favor of that parcel owner. The
17  petitioner may file a motion for summary judgment, together
18  with supplemental affidavits, seeking a determination that the
19  governmental entity's, business organization's, or
20  individual's lawsuit has been brought in violation of this
21  section. The governmental entity, business organization, or
22  individual shall thereafter file its response and any
23  supplemental affidavits. As soon as practicable, the court
24  shall set a hearing on the petitioner's motion, which shall be
25  held at the earliest possible time after the filing of the
26  governmental entity's, business organization's or individual's
27  response. The court may award the parcel owner sued by the
28  governmental entity, business organization, or individual
29  actual damages arising from the governmental entity's,
30  individual's, or business organization's violation of this
31  section. A court may treble the damages awarded to a

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 1  prevailing parcel owner and shall state the basis for the
 2  treble damages award in its judgment. The court shall award
 3  the prevailing party reasonable attorney's fees and costs
 4  incurred in connection with a claim that an action was filed
 5  in violation of this section.
 6        (d)  Homeowners' associations may not expend
 7  association funds in prosecuting a SLAPP suit against a parcel
 8  owner.
 9        (5)(a)  Any parcel owner may construct an access ramp
10  if a resident or occupant of the parcel has a medical
11  necessity or disability that requires a ramp for egress and
12  ingress under the following conditions:
13        1.  The ramp must be as unobtrusive as possible, be
14  designed to blend in aesthetically as practicable, and be
15  reasonably sized to fit the intended use.
16        2.  Plans for the ramp must be submitted in advance to
17  the homeowners' association. The association may make
18  reasonable requests to modify the design to achieve
19  architectural consistency with surrounding structures and
20  surfaces.
21        (b)  The parcel owner must submit to the association an
22  affidavit from a physician attesting to the medical necessity
23  or disability of the resident or occupant of the parcel
24  requiring the access ramp. Certification used for s. 320.0848
25  shall be sufficient to meet the affidavit requirement.
26        (6)  Any parcel owner may display a sign of reasonable
27  size provided by a contractor for security services within 10
28  feet of any entrance to the home.
29         Section 20.  Subsection (2) of section 720.305, Florida
30  Statutes, is amended to read:

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 1        720.305  Obligations of members; remedies at law or in
 2  equity; levy of fines and suspension of use rights; failure to
 3  fill sufficient number of vacancies on board of directors to
 4  constitute a quorum; appointment of receiver upon petition of
 5  any member.--
 6         (2)  If the governing documents so provide, an
 7  association may suspend, for a reasonable period of time, the
 8  rights of a member or a member's tenants, guests, or invitees,
 9  or both, to use common areas and facilities and may levy
10  reasonable fines, not to exceed $100 per violation, against
11  any member or any tenant, guest, or invitee. A fine may be
12  levied on the basis of each day of a continuing violation,
13  with a single notice and opportunity for hearing, except that
14  no such fine shall exceed $1,000 in the aggregate unless
15  otherwise provided in the governing documents. A fine shall
16  not become a lien against a parcel. In any action to recover a
17  fine, the prevailing party is entitled to collect its
18  reasonable attorney's fees and costs from the nonprevailing
19  party as determined by the court.
20         (a)  A fine or suspension may not be imposed without
21  notice of at least 14 days to the person sought to be fined or
22  suspended and an opportunity for a hearing before a committee
23  of at least three members appointed by the board who are not
24  officers, directors, or employees of the association, or the
25  spouse, parent, child, brother, or sister of an officer,
26  director, or employee.  If the committee, by majority vote,
27  does not approve a proposed fine or suspension, it may not be
28  imposed.
29         (b)  The requirements of this subsection do not apply
30  to the imposition of suspensions or fines upon any member
31  because of the failure of the member to pay assessments or

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 1  other charges when due if such action is authorized by the
 2  governing documents.
 3         (c)  Suspension of common-area-use rights shall not
 4  impair the right of an owner or tenant of a parcel to have
 5  vehicular and pedestrian ingress to and egress from the
 6  parcel, including, but not limited to, the right to park.
 7         Section 21.  Section 720.3055, Florida Statutes, is
 8  created to read:
 9        720.3055  Contracts for products and services; in
10  writing; bids; exceptions.--
11        (1)  All contracts as further described in this section
12  or any contract that is not to be fully performed within 1
13  year after the making thereof for the purchase, lease, or
14  renting of materials or equipment to be used by the
15  association in accomplishing its purposes under this chapter
16  or the governing documents, and all contracts for the
17  provision of services, shall be in writing. If a contract for
18  the purchase, lease, or renting of materials or equipment, or
19  for the provision of services, requires payment by the
20  association that exceeds 10 percent of the total annual budget
21  of the association, including reserves, the association must
22  obtain competitive bids for the materials, equipment, or
23  services. Nothing contained in this section shall be construed
24  to require the association to accept the lowest bid.
25        (2)(a)1.  Notwithstanding the foregoing, contracts with
26  employees of the association, and contracts for attorney,
27  accountant, architect, community association manager,
28  engineering, and landscape architect services are not subject
29  to the provisions of this section.
30        2.  A contract executed before October 1, 2004, and any
31  renewal thereof, is not subject to the competitive bid

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 1  requirements of this section. If a contract was awarded under
 2  the competitive bid procedures of this section, any renewal of
 3  that contract is not subject to such competitive bid
 4  requirements if the contract contains a provision that allows
 5  the board to cancel the contract on 30 days' notice.
 6  Materials, equipment, or services provided to an association
 7  under a local government franchise agreement by a franchise
 8  holder are not subject to the competitive bid requirements of
 9  this section. A contract with a manager, if made by a
10  competitive bid, may be made for up to 3 years. An association
11  whose declaration or bylaws provide for competitive bidding
12  for services may operate under the provisions of that
13  declaration or bylaws in lieu of this section if those
14  provisions are not less stringent than the requirements of
15  this section.
16        (b)  Nothing contained in this section is intended to
17  limit the ability of an association to obtain needed products
18  and services in an emergency.
19        (c)  This section does not apply if the business entity
20  with which the association desires to enter into a contract is
21  the only source of supply within the county serving the
22  association.
23        (d)  Nothing contained in this section shall excuse a
24  party contracting to provide maintenance or management
25  services from compliance with s. 720.309.
26         Section 22.  Present subsections (5) through (8) of
27  section 720.306, Florida Statutes, are renumbered as
28  subsections (7) through (10), respectively, present subsection
29  (7) is amended, and new subsections (5) and (6) are added to
30  that section to read:
31 

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 1         720.306  Meetings of members; voting and election
 2  procedures; amendments.--
 3        (5)  NOTICE OF MEETINGS.--The bylaws shall provide for
 4  giving notice to members of all member meetings, and if they
 5  do not do so shall be deemed to provide the following: The
 6  association shall give all parcel owners and members actual
 7  notice of all membership meetings, which shall be mailed,
 8  delivered, or electronically transmitted to the members not
 9  less than 14 days prior to the meeting. Evidence of compliance
10  with this 14-day notice shall be made by an affidavit executed
11  by the person providing the notice and filed upon execution
12  among the official records of the association. In addition to
13  mailing, delivering, or electronically transmitting the notice
14  of any meeting, the association may, by reasonable rule, adopt
15  a procedure for conspicuously posting and repeatedly
16  broadcasting the notice and the agenda on a closed-circuit
17  cable television system serving the association. When
18  broadcast notice is provided, the notice and agenda must be
19  broadcast in a manner and for a sufficient continuous length
20  of time so as to allow an average reader to observe the notice
21  and read and comprehend the entire content of the notice and
22  the agenda.
23        (6)  RIGHT TO SPEAK.--Members and parcel owners have
24  the right to attend all membership meetings and to speak at
25  any meeting with reference to all items opened for discussion
26  or included on the agenda. Notwithstanding any provision to
27  the contrary in the governing documents or any rules adopted
28  by the board or by the membership, a member and a parcel owner
29  have the right to speak for at least 3 minutes on any item,
30  provided that the member or parcel owner submits a written
31  request to speak prior to the meeting. The association may

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 1  adopt written reasonable rules governing the frequency,
 2  duration, and other manner of member and parcel owner
 3  statements, which rules must be consistent with this
 4  paragraph.
 5        (9)(7)  ELECTIONS.--Elections of directors must be
 6  conducted in accordance with the procedures set forth in the
 7  governing documents of the association.  All members of the
 8  association shall be eligible to serve on the board of
 9  directors, and a member may nominate himself or herself as a
10  candidate for the board at a meeting where the election is to
11  be held.  Except as otherwise provided in the governing
12  documents, boards of directors must be elected by a plurality
13  of the votes cast by eligible voters. Any election dispute
14  between a member and an association must be submitted to
15  mandatory binding arbitration with the division. Such
16  proceedings shall be conducted in the manner provided by s.
17  718.1255 and the procedural rules adopted by the division.
18         Section 23.  Section 720.311, Florida Statutes, is
19  amended to read:
20        720.311  Dispute resolution.--
21        (1)  The Legislature finds that alternative dispute
22  resolution has made progress in reducing court dockets and
23  trials and in offering a more efficient, cost-effective option
24  to litigation. The filing of any petition for mediation or
25  arbitration provided for in this section shall toll the
26  applicable statute of limitations. Any recall dispute filed
27  with the department pursuant to s. 720.303(10) shall be
28  conducted by the department in accordance with the provisions
29  of ss. 718.1255 and 718.112(2)(j) and the rules adopted by the
30  division. In addition, the department shall conduct mandatory
31  binding arbitration of election disputes between a member and

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 1  an association pursuant to s. 718.1255 and rules adopted by
 2  the division. Neither election disputes nor recall disputes
 3  are eligible for mediation; these disputes shall be arbitrated
 4  by the department. At the conclusion of the proceeding, the
 5  department shall charge the parties a fee in an amount
 6  adequate to cover all costs and expenses incurred by the
 7  department in conducting the proceeding. Initially, the
 8  petitioner shall remit a filing fee of at least $200 to the
 9  department. The fees paid to the department shall become a
10  recoverable cost in the arbitration proceeding and the
11  prevailing party in an arbitration proceeding shall recover
12  its reasonable costs and attorney's fees in an amount found
13  reasonable by the arbitrator. The department shall adopt rules
14  to effectuate the purposes of this section.
15        (2)(a)  Disputes between an association and a parcel
16  owner regarding use of or changes to the parcel or the common
17  areas and other covenant enforcement disputes, disputes
18  regarding amendments to the association documents, disputes
19  regarding meetings of the board and committees appointed by
20  the board, membership meetings not including election
21  meetings, and access to the official records of the
22  association shall be filed with the department for mandatory
23  mediation before the dispute is filed in court. Mediation
24  proceedings must be conducted in accordance with the
25  applicable Florida Rules of Civil Procedure, and these
26  proceedings are privileged and confidential to the same extent
27  as court-ordered mediation. An arbitrator or judge may not
28  consider any information or evidence arising from the
29  mediation proceeding except in a proceeding to impose
30  sanctions for failure to attend a mediation session. Persons
31  who are not parties to the dispute may not attend the

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 1  mediation conference without the consent of all parties,
 2  except for counsel for the parties and a corporate
 3  representative designated by the association. When mediation
 4  is attended by a quorum of the board, such mediation is not a
 5  board meeting for purposes of notice and participation set
 6  forth in s. 720.303. The department shall conduct the
 7  proceedings through the use of department mediators or refer
 8  the disputes to private mediators who have been duly certified
 9  by the department as provided in paragraph (c). The parties
10  shall share the costs of mediation equally, including the fee
11  charged by the mediator, if any, unless the parties agree
12  otherwise. If a department mediator is used, the department
13  may charge such fee as is necessary to pay expenses of the
14  mediation, including, but not limited to, the salary and
15  benefits of the mediator and any travel expenses incurred. The
16  petitioner shall initially file with the department upon
17  filing the disputes, a filing fee of $200, which shall be used
18  to defray the costs of the mediation. At the conclusion of the
19  mediation, the department shall charge to the parties, to be
20  shared equally unless otherwise agreed by the parties, such
21  further fees as are necessary to fully reimburse the
22  department for all expenses incurred in the mediation.
23        (b)  If mediation as described in paragraph (a) is not
24  successful in resolving all issues between the parties, the
25  parties may file the unresolved dispute in a court of
26  competent jurisdiction or elect to enter into binding or
27  nonbinding arbitration pursuant to the procedures set forth in
28  s. 718.1255 and rules adopted by the division, with the
29  arbitration proceeding to be conducted by a department
30  arbitrator or by a private arbitrator certified by the
31  department. If all parties do not agree to arbitration

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 1  proceedings following an unsuccessful mediation, any party may
 2  file the dispute in court. A final order resulting from
 3  nonbinding arbitration is final and enforceable in the courts
 4  if a complaint for trial de novo is not filed in a court of
 5  competent jurisdiction within 30 days after entry of the
 6  order.
 7        (c)  The department shall develop a certification and
 8  training program for private mediators and private arbitrators
 9  which shall emphasize experience and expertise in the area of
10  the operation of community associations. A mediator or
11  arbitrator shall be certified by the department only if he or
12  she has attended at least 20 hours of training in mediation or
13  arbitration, as appropriate, and only if the applicant has
14  mediated or arbitrated at least 10 disputes involving
15  community associations within 5 years prior to the date of the
16  application, or has mediated or arbitrated 10 disputes in any
17  area within 5 years prior to the date of application and has
18  completed 20 hours of training in community association
19  disputes. In order to be certified by the department, any
20  mediator must also be certified by the Florida Supreme Court.
21  The department may conduct the training and certification
22  program within the department or may contract with an outside
23  vendor to perform the training or certification. The expenses
24  of operating the training and certification and training
25  program shall be paid by the moneys and filing fees generated
26  by the arbitration of recall and election disputes and by the
27  mediation of those disputes referred to in this subsection and
28  by the training fees.
29        (d)  The mediation procedures provided by this
30  subsection may be used by a Florida corporation responsible
31  for the operation of a community in which the voting members

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 1  are parcel owners or their representatives, in which
 2  membership in the corporation is not a mandatory condition of
 3  parcel ownership, or which is not authorized to impose an
 4  assessment that may become a lien on the parcel.
 5        (3)  The department shall develop an education program
 6  to assist homeowners, associations, board members, and
 7  managers in understanding and increasing awareness of the
 8  operation of homeowners' associations pursuant to chapter 720
 9  and in understanding the use of alternative dispute resolution
10  techniques in resolving disputes between parcel owners and
11  associations or between owners. Such education program may
12  include the development of pamphlets and other written
13  instructional guides, the holding of classes and meetings by
14  department employees or outside vendors, as the department
15  determines, and the creation and maintenance of a website
16  containing instructional materials. The expenses of operating
17  the education program shall be initially paid by the moneys
18  and filing fees generated by the arbitration of recall and
19  election disputes and by the mediation of those disputes
20  referred to in this subsection. At any time after the filing
21  in a court of competent jurisdiction of a complaint relating
22  to a dispute under ss. 720.301-720.312, the court may order
23  that the parties enter mediation or arbitration procedures.

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 1         Section 25.  Section 689.26, Florida Statutes, is
 2  transferred, renumbered as section 720.601, Florida Statutes,
 3  and amended to read:
 4        720.601 689.26  Prospective purchasers subject to
 5  association membership requirement; disclosure required;
 6  covenants; assessments; contract cancellation voidability.--
 7         (1)(a)  A prospective parcel owner in a community must
 8  be presented a disclosure summary before executing the
 9  contract for sale.  The disclosure summary must be in a form
10  substantially similar to the following form:
11 
12                        DISCLOSURE SUMMARY
13                                        FOR
14                        (NAME OF COMMUNITY)
15 
16         1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU
17  WILL(WILL) (WILL NOT) BE OBLIGATED TO BE A MEMBER OF A
18  HOMEOWNERS' ASSOCIATION.
19         2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
20  COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN
21  THIS COMMUNITY.
22         3.  YOU WILL (WILL) (WILL NOT) BE OBLIGATED TO PAY
23  ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO
24  PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $______
25  PER ______. YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL
26  ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL
27  ASSESSMENTS MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE
28  CURRENT AMOUNT IS $______ PER ______.
29         4.  YOU MAY (WILL) (WILL NOT) BE OBLIGATED TO PAY
30  SPECIAL ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR
31 

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1  SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC
 2  CHANGE.
 3        5.4.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR
 4  ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION
 5  COULD RESULT IN A LIEN ON YOUR PROPERTY.
 6        6.5.  THERE MAY BE (IS) (IS NOT) AN OBLIGATION TO PAY
 7  RENT OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED
 8  FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS'
 9  ASSOCIATION. IF APPLICABLE, THE CURRENT AMOUNT IS $______ PER
10  ______.(If such obligation exists, then the amount of the
11  current obligation shall be set forth.)
12        7.6. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
13  RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED WITHOUT THE
14  APPROVAL OF THE ASSOCIATION MEMBERSHIP OR THE APPROVAL OF THE,
15  IF NO MANDATORY ASSOCIATION EXISTS, PARCEL OWNERS.
16        8.7.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM
17  ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER,
18  YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION
19  GOVERNING DOCUMENTS BEFORE PURCHASING PROPERTY.
20        9.8.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC
21  RECORD AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE
22  COUNTY WHERE THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND
23  CAN BE OBTAINED FROM THE DEVELOPER.
24  DATE:                                               PURCHASER:
25                                                      PURCHASER:
26 
27  The disclosure must be supplied by the developer, or by the
28  parcel owner if the sale is by an owner that is not the
29  developer.  Any contract or agreement for sale shall refer to
30  and incorporate the disclosure summary and shall include, in
31  prominent language, a statement that the potential buyer

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 1  should not execute the contract or agreement until they have
 2  received and read the disclosure summary required by this
 3  section.
 4         (b)  Each contract entered into for the sale of
 5  property governed by covenants subject to disclosure required
 6  by this section must contain in conspicuous type a clause that
 7  states:
 8 
 9         IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION
10        720.601 689.26, FLORIDA STATUTES, HAS NOT BEEN
11         PROVIDED TO THE PROSPECTIVE PURCHASER BEFORE
12         EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT
13         IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR
14         SELLER'S AGENT OR REPRESENTATIVE WRITTEN NOTICE
15         OF THE BUYER'S INTENTION TO CANCEL WITHIN 3
16         DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR
17         PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY
18         PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS
19         NO EFFECT. BUYER'S RIGHT TO VOID THIS CONTRACT
20         SHALL TERMINATE AT CLOSING.
21 
22        (c)  If the disclosure summary is not provided to a
23  prospective purchaser before the purchaser executes a contract
24  for the sale of property governed by covenants that are
25  subject to disclosure pursuant to this section, the purchaser
26  may void the contract by delivering to the seller or the
27  seller's agent or representative written notice canceling the
28  contract within 3 days after receipt of the disclosure summary
29  or prior to closing, whichever occurs first. This right may
30  not be waived by the purchaser but terminates at closing. A
31  contract that does not conform to the requirements of this

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 1  subsection is voidable at the option of the purchaser prior to
 2  closing.
 3         (2)  This section does not apply to any association
 4  regulated under chapter 718, chapter 719, chapter 721, or
 5  chapter 723 or to a subdivider registered under chapter 498;
 6  and also does not apply if disclosure regarding the
 7  association is otherwise made in connection with the
 8  requirements of chapter 718, chapter 719, chapter 721, or
 9  chapter 723.
10         Section 26.  Section 689.265, Florida Statutes, is
11  transferred and renumbered as section 720.3086, Florida
12  Statutes, to read:
13        720.3086 689.265  Financial report.--In a residential
14  subdivision in which the owners of lots or parcels must pay
15  mandatory maintenance or amenity fees to the subdivision
16  developer or to the owners of the common areas, recreational
17  facilities, and other properties serving the lots or parcels,
18  the developer or owner of such areas, facilities, or
19  properties shall make public, within 60 days following the end
20  of each fiscal year, a complete financial report of the
21  actual, total receipts of mandatory maintenance or amenity
22  fees received by it, and an itemized listing of the
23  expenditures made by it from such fees, for that year.  Such
24  report shall be made public by mailing it to each lot or
25  parcel owner in the subdivision, by publishing it in a
26  publication regularly distributed within the subdivision, or
27  by posting it in prominent locations in the subdivision.  This
28  section does not apply to amounts paid to homeowner
29  associations pursuant to chapter 617, chapter 718, chapter
30  719, chapter 721, or chapter 723, or to amounts paid to local
31  governmental entities, including special districts.

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 1         Section 27.  Paragraphs (g) and (h) of subsection (2)
 2  of section 498.025, Florida Statutes, are amended to read:
 3        498.025  Exemptions.--
 4         (2)  Except as provided in s. 498.022, the provisions
 5  of this chapter do not apply to offers or dispositions of
 6  interests in lots, parcels, or units contained in a recorded
 7  subdivision plat, or resulting from the subdivision of land in
 8  accordance with applicable local land development laws and
 9  regulations pursuant to part II of chapter 163, including
10  lots, parcels, units, or interest vested under such part, if
11  all of the following conditions exist:
12         (g)  The contract for purchase or lease contains, and
13  the subdivider complies with, the following provisions:
14         1.  The purchaser must inspect the subdivided land
15  prior to the execution of the contract or lease.
16         2.  The purchaser shall have an absolute right to
17  cancel the contract or lease for any reason whatsoever for a
18  period of 7 business days following the date on which the
19  contract or lease was executed by the purchaser.
20         3.  In the event the purchaser elects to cancel within
21  the period provided, all funds or other property paid by the
22  purchaser shall be refunded without penalty or obligation
23  within 20 days of the receipt of the notice of cancellation by
24  the developer.
25         4.  All funds or property paid by the purchaser shall
26  be put in escrow until closing has occurred and the lease or
27  deed has been recorded.
28         5.  Unless otherwise timely canceled, closing shall
29  occur within 180 days of the date of execution of the contract
30  by the purchaser.
31 

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 1         6.  When title is conveyed, said title shall be
 2  conveyed by statutory warranty deed unencumbered by any lien
 3  or mortgage except for any first purchase money mortgage given
 4  by the purchaser and restrictions, covenants, or easements of
 5  record.
 6         7.  The subdivider presents to the purchaser the
 7  disclosure required by s. 720.601 s. 689.26 prior to the
 8  execution of the contract or lease.
 9         (h)  The agreement for deed contains, and the
10  subdivider complies with, the following provisions:
11         1.  The purchaser must inspect the subdivided land
12  prior to the execution of the agreement for deed.
13         2.  The purchaser shall have an absolute right to
14  cancel the agreement for deed for any reason whatsoever for a
15  period of 7 business days following the date on which the
16  agreement for deed was executed by the purchaser.
17         3.  If the purchaser elects to cancel within the period
18  provided, all funds or other property paid by the purchaser
19  shall be refunded without penalty or obligation within 20 days
20  after the receipt of the notice of cancellation by the
21  developer.
22         4.  All funds or for property paid by the purchaser
23  shall be put in escrow until the agreement for deed has been
24  recorded in the county in which the subdivision is located.
25         5.  Unless otherwise timely canceled, the agreement for
26  deed shall be recorded within 180 days after its execution by
27  the purchaser.
28         6.  Sale of lots in the subdivision shall be restricted
29  solely to residents of the state.
30 
31 

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 1         7.  The underlying mortgage or other ancillary
 2  documents shall contain release provisions for the individual
 3  lot purchased.
 4         8.  The subdivider presents to the purchaser the
 5  disclosure required by s. 720.601 s. 689.26 prior to the
 6  execution of the agreement for deed.
 7         Section 28.  Section 720.602, Florida Statutes, is
 8  created to read:
 9        720.602  Publication of false and misleading
10  information.--
11        (1)  Any person who, in reasonable reliance upon any
12  material statement or information that is false or misleading
13  and published by or under authority from the developer in
14  advertising and promotional materials, including, but not
15  limited to, a contract of purchaser, the declaration of
16  covenants, exhibits to a declaration of covenants, brochures,
17  and newspaper advertising, pays anything of value toward the
18  purchase of a parcel in a community located in this state has
19  a cause of action to rescind the contract or collect damages
20  from the developer for his or her loss before the closing of
21  the transaction. After the closing of the transaction, the
22  purchaser has a cause of action against the developer for
23  damages under this section from the time of closing until 1
24  year after the date upon which the last of the events
25  described in paragraphs (a) through (d) occur:
26         (a)  The closing of the transaction;
27        (b)  The issuance by the applicable governmental
28  authority of a certificate of occupancy or other evidence of
29  sufficient completion of construction of the purchaser's
30  residence to allow lawful occupancy of the residence by the
31  purchaser. In counties or municipalities in which certificates

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 1  of occupancy or other evidences of completion sufficient to
 2  allow lawful occupancy are not customarily issued, for the
 3  purpose of this section, evidence of lawful occupancy shall be
 4  deemed to be given or issued upon the date that such lawful
 5  occupancy of the residence may be allowed under prevailing
 6  applicable laws, ordinances, or statutes;
 7        (c)  The completion by the developer of the common
 8  areas and such recreational facilities, whether or not the
 9  same are common areas, which the developer is obligated to
10  complete or provide under the terms of the written contract,
11  governing documents, or written agreement for purchase or
12  lease of the parcel; or
13        (d)  In the event there is not a written contract or
14  agreement for sale or lease of the parcel, then the completion
15  by the developer of the common areas and such recreational
16  facilities, whether or not they are common areas, which the
17  developer would be obligated to complete under any rule of law
18  applicable to the developer's obligation.
19 
20  Under no circumstances may a cause of action created or
21  recognized under this section survive for a period of more
22  than 5 years after the closing of the transaction.
23        (2)  In any action for relief under this section, the
24  prevailing party may recover reasonable attorney's fees. A
25  developer may not expend association funds in the defense of
26  any suit under this section.
27         Section 29.  Subsection (1) of section 34.01, Florida
28  Statutes, is amended to read:
29         34.01  Jurisdiction of county court.--
30         (1)  County courts shall have original jurisdiction:
31 

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 1         (a)  In all misdemeanor cases not cognizable by the
 2  circuit courts;
 3         (b)  Of all violations of municipal and county
 4  ordinances; and
 5         (c)  Of all actions at law in which the matter in
 6  controversy does not exceed the sum of $15,000, exclusive of
 7  interest, costs, and attorney's fees, except those within the
 8  exclusive jurisdiction of the circuit courts. The party
 9  instituting any civil action, suit, or proceeding pursuant to
10  this paragraph where the amount in controversy is in excess of
11  $5,000 shall pay to the clerk of the county court the filing
12  fees and service charges in the same amounts and in the same
13  manner as provided in s. 28.241; and.
14         (d)  Of disputes occurring in the homeowners'
15  associations as described in s. 720.311(2)(a), which shall be
16  concurrent with jurisdiction of the circuit courts.
17         Section 30.  Paragraph (a) of subsection (1) of section
18  316.00825, Florida Statutes, is amended to read:
19         316.00825  Closing and abandonment of roads; optional
20  conveyance to homeowners' association; traffic control
21  jurisdiction.--
22         (1)(a)  In addition to the authority provided in s.
23  336.12, the governing body of the county may abandon the roads
24  and rights-of-way dedicated in a recorded residential
25  subdivision plat and simultaneously convey the county's
26  interest in such roads, rights-of-way, and appurtenant
27  drainage facilities to a homeowners' association for the
28  subdivision, if the following conditions have been met:
29         1.  The homeowners' association has requested the
30  abandonment and conveyance in writing for the purpose of
31 

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 1  converting the subdivision to a gated neighborhood with
 2  restricted public access.
 3         2.  No fewer than four-fifths of the owners of record
 4  of property located in the subdivision have consented in
 5  writing to the abandonment and simultaneous conveyance to the
 6  homeowners' association.
 7         3.  The homeowners' association is both a corporation
 8  not for profit organized and in good standing under chapter
 9  617, and a "homeowners' association" as defined in s.
10  720.301(9) s. 720.301(7) with the power to levy and collect
11  assessments for routine and periodic major maintenance and
12  operation of street lighting, drainage, sidewalks, and
13  pavement in the subdivision.
14         4.  The homeowners' association has entered into and
15  executed such agreements, covenants, warranties, and other
16  instruments; has provided, or has provided assurance of, such
17  funds, reserve funds, and funding sources; and has satisfied
18  such other requirements and conditions as may be established
19  or imposed by the county with respect to the ongoing
20  operation, maintenance, and repair and the periodi
21  reconstruction or replacement of the roads, drainage, street
22  lighting, and sidewalks in the subdivision after the
23  abandonment by the county.
24         Section 31.  Subsection (2) of section 558.002, Florida
25  Statutes, is amended to read:
26         558.002  Definitions.--As used in this act, the term:
27         (2)  "Association" has the same meaning as in s.
28  718.103(2), s. 719.103(2), s. 720.301(9) s. 720.301(7), or s.
29  723.025.
30         Section 32.  The Division of Statutory Revision is
31  requested to designate sections 720.301-720.312, Florida

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 1  Statutes, as part I of chapter 720, Florida Statutes; to
 2  designate sections 720.401-720.405, Florida Statutes, as part
 3  II of chapter 720, Florida Statutes, and entitle that part as
 4  "Covenant Revitalization;" to designate sections 720.601 and
 5  720.602, Florida Statutes, as part IV of chapter 720, Florida
 6  Statutes, and entitle that part "DISCLOSURE PRIOR TO SALE OF
 7  RESIDENTIAL PARCELS"; and to designate section 720.501,
 8  Florida Statutes, as part III of chapter 720, Florida
 9  Statutes, and entitle that part "RIGHTS AND OBLIGATIONS OF
10  DEVELOPERS."
 

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