| 1 |
A bill to be entitled |
| 2 |
An act relating to residential properties;
amending s. |
| 3 |
34.01, F.S.; conforming a cross-reference;
amending s. |
| 4 |
514.011, F.S.; providing definitions; amending
s. |
| 5 |
514.0115, F.S.; providing specified supervision
and |
| 6 |
regulation exemptions for homeowners'
association swimming |
| 7 |
pools; amending s. 515.25, F.S.; conforming a
cross- |
| 8 |
reference; creating s. 515.295, F.S.; providing |
| 9 |
definitions; requiring residential pools and
spas built |
| 10 |
after a specified date to have certain
features; amending |
| 11 |
s. 720.302, F.S.; conforming a cross-reference;
providing |
| 12 |
legislative intent; amending s. 720.303, F.S.;
revising |
| 13 |
provisions relating to homeowners' association
board |
| 14 |
meetings, inspection and copying of records,
and reserve |
| 15 |
accounts of budgets; prohibiting salary or
compensation of |
| 16 |
certain association personnel for certain
duties; |
| 17 |
providing exceptions; amending s. 720.305, F.S.;
revising |
| 18 |
a lien restriction; amending s. 720.306, F.S.;
providing |
| 19 |
absentee ballot voting requirements; requiring
newly |
| 20 |
elected members of a board of directors to make
certain |
| 21 |
certifications in writing to the association;
providing |
| 22 |
for disqualification for failure to make such |
| 23 |
certifications; requiring an association to
retain such |
| 24 |
certifications for a certain time; repealing s.
720.311, |
| 25 |
F.S., relating to dispute resolution; providing
that |
| 26 |
dispute resolution proceedings that are pending
as of the |
| 27 |
date of repeal shall continue under the
repealed |
| 28 |
provisions; amending s. 720.401, F.S.; revising
certain |
| 29 |
prospective parcel owner disclosure summary
requirements; |
| 30 |
creating part IV of ch. 720, F.S.; creating s.
720.501, |
| 31 |
F.S.; providing a short title; creating s.
720.502, F.S.; |
| 32 |
providing legislative findings; creating s.
720.503, F.S.; |
| 33 |
providing applicability; providing for
mediation and |
| 34 |
arbitration of homeowners' association
disputes; providing |
| 35 |
exceptions; authorizing the filing of a motion
for |
| 36 |
temporary injunctive relief; providing for the
tolling of |
| 37 |
applicable statutes of limitations; creating s.
720.504, |
| 38 |
F.S.; providing notification requirements;
creating s. |
| 39 |
720.505, F.S.; providing a statutory notice
form for |
| 40 |
referral to mediation; providing requirements
for the |
| 41 |
service of such notice; requiring parties to
share costs |
| 42 |
of presuit mediation equally; providing
response |
| 43 |
requirements; providing scheduling
requirements; providing |
| 44 |
for impasse under certain conditions;
prohibiting certain |
| 45 |
parties from recovering attorney's fees and
costs in |
| 46 |
subsequent litigation proceedings; creating s.
720.506, |
| 47 |
F.S.; authorizing certain persons to opt out of
presuit |
| 48 |
mediation; providing requirements for a person
to opt out |
| 49 |
of such mediation; creating s. 720.507, F.S.;
providing a |
| 50 |
statutory notice form for referral to
arbitration; |
| 51 |
providing requirements for the service of such
notice; |
| 52 |
requiring parties to share costs of arbitration
equally; |
| 53 |
providing scheduling requirements; providing
for impasse |
| 54 |
under certain conditions; prohibiting certain
parties from |
| 55 |
recovering attorney's fees and costs in
subsequent |
| 56 |
litigation proceedings; creating s. 720.508,
F.S.; |
| 57 |
providing rules of procedure for presuit
mediation and |
| 58 |
presuit arbitration proceedings; providing for |
| 59 |
confidentiality; creating s. 720.509, F.S.;
providing |
| 60 |
qualifications for mediators and arbitrators;
creating s. |
| 61 |
720.510, F.S.; providing for enforcement of
mediation |
| 62 |
settlement agreements and arbitration awards;
requiring |
| 63 |
the department to apply for and implement a
federal grant |
| 64 |
for enforcing swimming pool safety standards;
requiring |
| 65 |
the Department of Health, the Department of
Community |
| 66 |
Affairs, and the Florida Building Commission to
assess |
| 67 |
state statutes and the Florida Building Code to
determine |
| 68 |
if changes are needed to comply with federal
standards |
| 69 |
pertaining to swimming pool and spa safety;
requiring the |
| 70 |
Department of Health to present the assessment
to the |
| 71 |
Legislature by a specified date; providing
effective |
| 72 |
dates. |
| 73 |
|
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Be It Enacted by the Legislature of the State
of Florida: |
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|
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Section 1. Paragraph
(d) of subsection (1) of section |
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34.01, Florida Statutes, is amended to read: |
| 78 |
34.01 Jurisdiction
of county court.-- |
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(1) County
courts shall have original jurisdiction: |
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(d) Of
disputes occurring in the homeowners' associations |
| 81 |
as described in part IV of chapter 720 s.
720.311(2)(a), which |
| 82 |
shall be concurrent with jurisdiction of the
circuit courts. |
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Section 2. Section
514.011, Florida Statutes, is amended |
| 84 |
to read: |
| 85 |
514.011 Definitions.--As
used in this chapter, the term: |
| 86 |
(1) "Department"
means the Department of Health. |
| 87 |
(2) "Homeowners'
association" means a homeowners' |
| 88 |
association as defined in s. 720.301. |
| 89 |
(3)(5) "Portable
pool" means a pool or spa, and related |
| 90 |
equipment systems of any kind, which is
designed or intended to |
| 91 |
be movable from location to location. |
| 92 |
(4)(3) "Private
pool" means a facility used only by an |
| 93 |
individual, family, or living unit members and
their guests |
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which does not serve any type of cooperative
housing or joint |
| 95 |
tenancy of five or more living units. |
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(5)(4) "Public
bathing place" means a body of water, |
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natural or modified by humans, for swimming,
diving, and |
| 98 |
recreational bathing, together with adjacent
shoreline or land |
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area, buildings, equipment, and appurtenances
pertaining |
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thereto, used by consent of the owner or owners
and held out to |
| 101 |
the public by any person or public body,
irrespective of whether |
| 102 |
a fee is charged for the use thereof. The
bathing water areas of |
| 103 |
public bathing places include, but are not
limited to, lakes, |
| 104 |
ponds, rivers, streams, artificial
impoundments, and waters |
| 105 |
along the coastal and intracoastal beaches and
shores of the |
| 106 |
state. |
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(6)(2) "Public
swimming pool" or "public pool" means a |
| 108 |
watertight structure of concrete, masonry, or
other approved |
| 109 |
materials which is located either indoors or
outdoors, used for |
| 110 |
bathing or swimming by humans, and filled with
a filtered and |
| 111 |
disinfected water supply, together with
buildings, |
| 112 |
appurtenances, and equipment used in connection
therewith. A |
| 113 |
public swimming pool or public pool shall mean
a conventional |
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pool, spa-type pool, wading pool, special
purpose pool, or water |
| 115 |
recreation attraction, to which admission may
be gained with or |
| 116 |
without payment of a fee and includes, but is
not limited to, |
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pools operated by or serving camps, churches,
cities, counties, |
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day care centers, group home facilities for
eight or more |
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clients, health spas, institutions, parks,
state agencies, |
| 120 |
schools, subdivisions, or the cooperative
living-type projects |
| 121 |
of five or more living units, such as
apartments, |
| 122 |
boardinghouses, hotels, mobile home parks,
motels, recreational |
| 123 |
vehicle parks, and townhouses. |
| 124 |
Section 3. Subsection
(2) of section 514.0115, Florida |
| 125 |
Statutes, is amended to read: |
| 126 |
514.0115 Exemptions
from supervision or regulation; |
| 127 |
variances.-- |
| 128 |
(2)(a) Pools
serving no more than 32 condominium or |
| 129 |
cooperative units or 32 parcels governed by
a homeowners' |
| 130 |
association which are not operated as a
public lodging |
| 131 |
establishment shall be exempt from supervision
under this |
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chapter, except for water quality. |
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(b) Pools
serving condominium or cooperative associations |
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of more than 32 units or homeowners'
associations of more than |
| 135 |
32 parcels
and whose recorded documents
prohibit the rental or |
| 136 |
sublease of the units for periods of less than
60 days are |
| 137 |
exempt from supervision under this chapter,
except that the |
| 138 |
homeowners' association or
condominium
or cooperative owner or |
| 139 |
association must file applications with the
department and |
| 140 |
obtain construction plans approval and receive
an initial |
| 141 |
operating permit. The department shall inspect
the swimming |
| 142 |
pools at such places annually, at the fee set
forth in s. |
| 143 |
514.033(3), or upon request by a unit owner, to
determine |
| 144 |
compliance with department rules relating to
water quality and |
| 145 |
lifesaving equipment. The department may not
require compliance |
| 146 |
with rules relating to swimming pool lifeguard
standards. |
| 147 |
Section 4. Subsection
(9) of section 515.25, Florida |
| 148 |
Statutes, is amended to read: |
| 149 |
515.25 Definitions.--As
used in this chapter, the term: |
| 150 |
(9) "Public
swimming pool" means a swimming pool, as |
| 151 |
defined in s. 514.011(6)(2),
which is operated, with or without |
| 152 |
charge, for the use of the general public;
however, the term |
| 153 |
does not include a swimming pool located on the
grounds of a |
| 154 |
private residence. |
| 155 |
Section 5. Effective
January 1, 2009, section 515.295, |
| 156 |
Florida Statutes, is created to read: |
| 157 |
515.295 Residential
swimming pool and spa drain-cover |
| 158 |
safety.-- |
| 159 |
(1) For
purposes of this section, the term: |
| 160 |
(a) "ASME/ANSI"
as applied to a safety standard means a |
| 161 |
standard that is accredited by the American
National Standards |
| 162 |
Institute and published by the American
Society of Mechanical |
| 163 |
Engineers. |
| 164 |
(b) "Main
drain" means a submerged suction outlet |
| 165 |
typically located at the bottom of a
swimming pool or spa to |
| 166 |
conduct water to a recirculating pump. |
| 167 |
(c) "Safety
vacuum release system" means a vacuum release |
| 168 |
system capable of providing vacuum release
at a suction outlet |
| 169 |
caused by a high vacuum occurrence due to a
suction outlet flow |
| 170 |
blockage. |
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(d) "Unblockable
drain" means a drain of any size and |
| 172 |
shape which a human body cannot sufficiently
block to create a |
| 173 |
suction-entrapment hazard. |
| 174 |
(2) All
residential swimming pools and spas constructed on |
| 175 |
or after January 1, 2009, must have more
than one drain, one or |
| 176 |
more unblockable drains, or no main drain. |
| 177 |
(3) All
residential swimming pools and spas constructed on |
| 178 |
or after January 1, 2009, must be equipped
with one or more of |
| 179 |
the following devices and systems designed
to prevent entrapment |
| 180 |
by the pool or spa drain: |
| 181 |
(a) A
safety vacuum release system that ceases operation |
| 182 |
of the pump, reverses the circulation flow,
or otherwise |
| 183 |
provides a vacuum release at a suction
outlet when a blockage is |
| 184 |
detected. Such system must have been tested
by an independent |
| 185 |
third party and found to conform to ASME/ANSI
standard |
| 186 |
A112.19.17 or ASTM standard F2387. |
| 187 |
(b) A
suction-limiting vent system that has a tamper- |
| 188 |
resistant atmospheric opening. |
| 189 |
(c) A
gravity drainage system that uses a collector tank. |
| 190 |
(d) An
automatic pump shut-off system. |
| 191 |
(e) A
device or system that disables the drain. |
| 192 |
(f) Any
other system determined by the department to be |
| 193 |
equally effective as, or better than, the
systems described in |
| 194 |
this subsection at preventing or eliminating
the risk of injury |
| 195 |
or death associated with swimming pool and
spa drainage systems. |
| 196 |
(4) Any
device or system described in subsection (3) must |
| 197 |
meet the requirements of any ASME/ANSI or
ASTM performance |
| 198 |
standard, if there is such a standard for
such a device or |
| 199 |
system, or any applicable consumer product
safety standard. |
| 200 |
Section 6. Subsection
(2) of section 720.302, Florida |
| 201 |
Statutes, is amended to read: |
| 202 |
720.302 Purposes,
scope, and application.-- |
| 203 |
(2) The
Legislature recognizes that it is not in the best |
| 204 |
interest of homeowners' associations or the
individual |
| 205 |
association members thereof to create or impose
a bureau or |
| 206 |
other agency of state government to regulate
the affairs of |
| 207 |
homeowners' associations. However, in
accordance with part IV of |
| 208 |
this chapter s. 720.311, the
Legislature finds that homeowners' |
| 209 |
associations and their individual members will
benefit from an |
| 210 |
expedited alternative process for resolution of
election and |
| 211 |
recall disputes and presuit mediation of
other disputes |
| 212 |
involving covenant enforcement in
homeowner's associations and |
| 213 |
deed restricted communities using the
procedures provided in |
| 214 |
part IV of and authorizes the
department to hear, administer, |
| 215 |
and determine these disputes as more fully
set forth in this |
| 216 |
chapter. Further, the Legislature recognizes
that certain |
| 217 |
contract rights have been created for the
benefit of homeowners' |
| 218 |
associations and members thereof as well as
deed-restricted |
| 219 |
communities before the effective date of
this act and that this |
| 220 |
chapter is ss. 720.301-720.407 are
not intended to impair such |
| 221 |
contract rights, including, but not limited to,
the rights of |
| 222 |
the developer to complete the community as
initially |
| 223 |
contemplated. |
| 224 |
Section 7. Paragraph
(b) of subsection (2), paragraphs (a) |
| 225 |
and (c) of subsection (5), and paragraphs (b),
(c), (d), (f), |
| 226 |
and (g) of subsection (6) of section 720.303,
Florida Statutes, |
| 227 |
are amended, and subsection (12) is added to
that section, to |
| 228 |
read: |
| 229 |
720.303 Association
powers and duties; meetings of board; |
| 230 |
official records; budgets; financial reporting;
association |
| 231 |
funds; recalls.-- |
| 232 |
(2) BOARD
MEETINGS.-- |
| 233 |
(b) Members
have the right to attend all meetings of the |
| 234 |
board and to speak on any matter placed on the
agenda by |
| 235 |
petition of the voting interests for at least 3
minutes. The |
| 236 |
association may adopt written reasonable rules
expanding the |
| 237 |
right of members to speak and governing the
frequency, duration, |
| 238 |
and other manner of member statements, which
rules must be |
| 239 |
consistent with this paragraph and may include
a sign-up sheet |
| 240 |
for members wishing to speak. Notwithstanding
any other law, the |
| 241 |
requirement that board meetings and committee
meetings be open |
| 242 |
to the members is inapplicable to meetings
between the board or |
| 243 |
a committee to discuss proposed or pending
litigation with and |
| 244 |
the association's attorney, and with
respect to meetings of the |
| 245 |
board held for the purpose of discussing
personnel matters. |
| 246 |
(5) INSPECTION
AND COPYING OF RECORDS.--The official |
| 247 |
records shall be maintained within the state
and must be open to |
| 248 |
inspection and available for photocopying by
members or their |
| 249 |
authorized agents at reasonable times and
places within 10 |
| 250 |
business days after receipt of a written
request for access. |
| 251 |
This subsection may be complied with by having
a copy of the |
| 252 |
official records available for inspection or
copying in the |
| 253 |
community. If the association has a photocopy
machine available |
| 254 |
where the records are maintained, it must
provide parcel owners |
| 255 |
with copies on request during the inspection if
the entire |
| 256 |
request is limited to no more than 25 pages. |
| 257 |
(a) The
failure of an association to provide access to the |
| 258 |
records within 10 business days after receipt
of a written |
| 259 |
request submitted by certified mail, return
receipt requested, |
| 260 |
creates a rebuttable presumption that the
association willfully |
| 261 |
failed to comply with this subsection. |
| 262 |
(c) The
association may adopt reasonable written rules |
| 263 |
governing the frequency, time, location,
notice, records to be |
| 264 |
inspected, and manner of inspections, but may
not impose a |
| 265 |
requirement that a parcel owner demonstrate any
proper purpose |
| 266 |
for the inspection, state any reason for the
inspection, or |
| 267 |
limit a parcel owner's right to inspect records
to less than one |
| 268 |
8-hour business day per month. The association
may impose fees |
| 269 |
to cover the costs of providing copies of the
official records, |
| 270 |
including, without limitation, the costs of
copying. The |
| 271 |
association may charge up to 50 cents per page
for copies made |
| 272 |
on the association's photocopier. If the
association does not |
| 273 |
have a photocopy machine available where the
records are kept, |
| 274 |
or if the records requested to be copied exceed
25 pages in |
| 275 |
length, the association may have copies made by
an outside |
| 276 |
vendor or association management company
personnel and may |
| 277 |
charge the actual cost of copying, including
any reasonable |
| 278 |
costs involving personnel fees and charges
at an hourly rate for |
| 279 |
employee time to cover administrative costs
to the association. |
| 280 |
The association shall maintain an adequate
number of copies of |
| 281 |
the recorded governing documents, to ensure
their availability |
| 282 |
to members and prospective members.
Notwithstanding the |
| 283 |
provisions of this paragraph, the following
records shall not be |
| 284 |
accessible to members or parcel owners: |
| 285 |
1. Any
record protected by the lawyer-client privilege as |
| 286 |
described in s. 90.502 and any record protected
by the work- |
| 287 |
product privilege, including, but not limited
to, any record |
| 288 |
prepared by an association attorney or prepared
at the |
| 289 |
attorney's express direction which reflects a
mental impression, |
| 290 |
conclusion, litigation strategy, or legal
theory of the attorney |
| 291 |
or the association and was prepared exclusively
for civil or |
| 292 |
criminal litigation or for adversarial
administrative |
| 293 |
proceedings or which was prepared in
anticipation of imminent |
| 294 |
civil or criminal litigation or imminent
adversarial |
| 295 |
administrative proceedings until the conclusion
of the |
| 296 |
litigation or adversarial administrative
proceedings. |
| 297 |
2. Information
obtained by an association in connection |
| 298 |
with the approval of the lease, sale, or other
transfer of a |
| 299 |
parcel. |
| 300 |
3. Disciplinary,
health, insurance, and personnel records |
| 301 |
of the association's employees. |
| 302 |
4. Medical
records of parcel owners or community |
| 303 |
residents. |
| 304 |
(6) BUDGETS.-- |
| 305 |
(b) In
addition to annual operating expenses, the budget |
| 306 |
may include reserve accounts for capital
expenditures and |
| 307 |
deferred maintenance for which the association
is responsible. |
| 308 |
To the extent that such reserve accounts are
not created or |
| 309 |
established pursuant to paragraph (d),
funding of such reserves |
| 310 |
shall be limited to the extent that the
governing documents do |
| 311 |
not limit increases in assessments,
including reserves. If the |
| 312 |
budget of the association includes reserve
accounts created or |
| 313 |
established pursuant to paragraph (d),
such reserves shall be |
| 314 |
determined, maintained, and waived in the
manner provided in |
| 315 |
this subsection. Once an association provides
for reserve |
| 316 |
accounts created or established pursuant to
paragraph (d) in the |
| 317 |
budget, the association shall thereafter
determine, maintain, |
| 318 |
and waive reserves in compliance with this
subsection. Nothing |
| 319 |
in this section precludes termination of a
reserve account |
| 320 |
established pursuant to this paragraph upon
approval of a |
| 321 |
majority of the voting interests of the
association. Upon such |
| 322 |
approval, the terminating reserve account
shall be removed from |
| 323 |
the budget. |
| 324 |
(c)1. If
the budget of the association does not provide |
| 325 |
for reserve accounts created or established
pursuant to |
| 326 |
paragraph (d) governed by this
subsection and the association is |
| 327 |
responsible for the repair and maintenance of
capital |
| 328 |
improvements that may result in a special
assessment if reserves |
| 329 |
are not provided, each financial report for the
preceding fiscal |
| 330 |
year required by subsection (7) shall contain
the following |
| 331 |
statement in conspicuous type: THE BUDGET OF
THE ASSOCIATION |
| 332 |
DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
CAPITAL EXPENDITURES |
| 333 |
AND DEFERRED MAINTENANCE THAT MAY RESULT IN
SPECIAL ASSESSMENTS. |
| 334 |
OWNERS MAY ELECT TO PROVIDE FOR RESERVE
ACCOUNTS PURSUANT TO THE |
| 335 |
PROVISIONS OF SECTION 720.303(6), FLORIDA
STATUTES, UPON THE |
| 336 |
APPROVAL OF NOT LESS THAN A MAJORITY OF THE
TOTAL VOTING |
| 337 |
INTERESTS OF THE ASSOCIATION ATTAINED BY
VOTE OF THE MEMBERS AT |
| 338 |
A MEETING OR BY WRITTEN CONSENT EXECUTED BY
A MAJORITY OF THE |
| 339 |
VOTING INTERESTS. |
| 340 |
2. If
the budget of the association does provide for |
| 341 |
funding of accounts for deferred
expenditures, including, but |
| 342 |
not limited to, funds for capital
expenditures and deferred |
| 343 |
maintenance, but such accounts are not
created or established |
| 344 |
pursuant to paragraph (d), each financial
report for the |
| 345 |
preceding fiscal year required by subsection
(7) shall also |
| 346 |
contain the following statement in
conspicuous type: THE BUDGET |
| 347 |
OF THE ASSOCIATION DOES PROVIDE FOR LIMITED
VOLUNTARY DEFERRED |
| 348 |
EXPENDITURE ACCOUNTS, INCLUDING CAPITAL
EXPENDITURES AND |
| 349 |
DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON
FUNDING CONTAINED IN |
| 350 |
OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS
HAVE NOT ELECTED TO |
| 351 |
PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE
PROVISIONS OF |
| 352 |
SECTION 720.303(6), FLORIDA STATUTES, THESE
FUNDS ARE NOT |
| 353 |
SUBJECT TO THE RESTRICTIONS ON USE OF SUCH
FUNDS SET FORTH IN |
| 354 |
THAT STATUTE, NOR ARE RESERVES CALCULATED IN
ACCORDANCE WITH |
| 355 |
THAT STATUTE. |
| 356 |
(d) An
association shall be deemed to have provided for |
| 357 |
reserve accounts when reserve accounts have
been initially |
| 358 |
established by the developer or when the
membership of the |
| 359 |
association affirmatively elects to provide for
reserves. If |
| 360 |
reserve accounts are not initially provided for
by the |
| 361 |
developer, the membership of the association
may elect to do so |
| 362 |
upon the affirmative approval of not less than
a majority of the |
| 363 |
total voting interests of the association. Such
approval may be |
| 364 |
attained by vote of the members at a duly
called meeting of the |
| 365 |
membership or upon a written consent executed
by not less than a |
| 366 |
majority of the total voting interests in the
community. The |
| 367 |
approval action of the membership shall state
that reserve |
| 368 |
accounts shall be provided for in the budget
and shall designate |
| 369 |
the components for which the reserve accounts
are to be |
| 370 |
established. Upon approval by the membership,
the board of |
| 371 |
directors shall provide for the required
reserve accounts for |
| 372 |
inclusion in the budget in the next fiscal year
following the |
| 373 |
approval and in each year thereafter. Once
established as |
| 374 |
provided in this subsection, the reserve
accounts shall be |
| 375 |
funded or maintained or shall have their
funding waived in the |
| 376 |
manner provided in paragraph (f). |
| 377 |
(f) After
one or more Once a reserve account or reserve |
| 378 |
accounts are established, the membership of the
association, |
| 379 |
upon a majority vote at a meeting at which a
quorum is present, |
| 380 |
may provide for no reserves or less reserves
than required by |
| 381 |
this section. If a meeting of the unit owners
has been called to |
| 382 |
determine whether to waive or reduce the
funding of reserves and |
| 383 |
no such result is achieved or a quorum is not
present, the |
| 384 |
reserves as included in the budget shall go
into effect. After |
| 385 |
the turnover, the developer may vote its voting
interest to |
| 386 |
waive or reduce the funding of reserves. Any
vote taken pursuant |
| 387 |
to this subsection to waive or reduce reserves
shall be |
| 388 |
applicable only to one budget year. |
| 389 |
(g) Funding
formulas for reserves authorized by this |
| 390 |
section shall be based on either a separate
analysis of each of |
| 391 |
the required assets or a pooled analysis of two
or more of the |
| 392 |
required assets. |
| 393 |
1. If
the association maintains separate reserve accounts |
| 394 |
for each of the required assets, the amount of
the contribution |
| 395 |
to each reserve account shall be the sum of the
following two |
| 396 |
calculations: |
| 397 |
a. The
total amount necessary, if any, to bring a negative |
| 398 |
component balance to zero. |
| 399 |
b. The
total estimated deferred maintenance expense or |
| 400 |
estimated replacement cost of the reserve
component less the |
| 401 |
estimated balance of the reserve component as
of the beginning |
| 402 |
of the period for which the budget will be in
effect. The |
| 403 |
remainder, if greater than zero, shall be
divided by the |
| 404 |
estimated remaining useful life of the
component. |
| 405 |
|
| 406 |
The formula may be adjusted each year for
changes in estimates |
| 407 |
and deferred maintenance performed during the
year and may |
| 408 |
include factors such as inflation and earnings
on invested |
| 409 |
funds. |
| 410 |
2. If
the association maintains a pooled account of two or |
| 411 |
more of the required reserve assets, the amount
of the |
| 412 |
contribution to the pooled reserve account as
disclosed on the |
| 413 |
proposed budget shall not be less than that
required to ensure |
| 414 |
that the balance on hand at the beginning of
the period for |
| 415 |
which the budget will go into effect plus the
projected annual |
| 416 |
cash inflows over the remaining estimated
useful life of all of |
| 417 |
the assets that make up the reserve pool are
equal to or greater |
| 418 |
than the projected annual cash outflows over
the remaining |
| 419 |
estimated useful lives of all of the assets
that make up the |
| 420 |
reserve pool, based on the current reserve
analysis. The |
| 421 |
projected annual cash inflows may include
estimated earnings |
| 422 |
from investment of principal and accounts
receivable minus the |
| 423 |
allowance for doubtful accounts. The
reserve funding formula |
| 424 |
shall not include any type of balloon payments. |
| 425 |
(12) COMPENSATION
PROHIBITED.-- A director, officer, or |
| 426 |
committee member of the association may not
receive directly or |
| 427 |
indirectly any salary or compensation from
the association for |
| 428 |
performance of duties as a director,
officer, or committee |
| 429 |
member and such person may not in any other
way benefit |
| 430 |
financially from service to the association.
This subsection |
| 431 |
shall not be construed to preclude: |
| 432 |
(a) Participation
by such person in a financial benefit |
| 433 |
accruing to all or a significant number of
members as a result |
| 434 |
of actions lawfully taken by the board or a
committee of which |
| 435 |
he or she is a member, including, but not
limited to, routine |
| 436 |
maintenance, repair, or replacement of
community assets; |
| 437 |
(b) Reimbursement
for out-of-pocket expenses incurred by |
| 438 |
such person on behalf of the association,
subject to approval of |
| 439 |
such reimbursement in accordance with
procedures established by |
| 440 |
the association's governing documents or, in
the absence of such |
| 441 |
procedures, in accordance with an approval
process established |
| 442 |
by the board; |
| 443 |
(c) Any
recovery of insurance proceeds derived from a |
| 444 |
policy of insurance maintained by the
association for the |
| 445 |
benefit of its members; |
| 446 |
(d) Any
fee or compensation authorized in the governing |
| 447 |
documents; or |
| 448 |
(e) Any
fee or compensation authorized in advance by a |
| 449 |
vote of a majority of the voting interests
voting in person or |
| 450 |
by proxy at the meeting of the members. |
| 451 |
Section 8. Subsection
(2) of section 720.305, Florida |
| 452 |
Statutes, are amended to read: |
| 453 |
720.305 Obligations
of members; remedies at law or in |
| 454 |
equity; levy of fines and suspension of use
rights; failure to |
| 455 |
fill sufficient number of vacancies on board of
directors to |
| 456 |
constitute a quorum; appointment of receiver
upon petition of |
| 457 |
any member.-- |
| 458 |
(2) If
the governing documents so provide, an association |
| 459 |
may suspend, for a reasonable period of time,
the rights of a |
| 460 |
member or a member's tenants, guests, or
invitees, or both, to |
| 461 |
use common areas and facilities and may levy
reasonable fines, |
| 462 |
not to exceed $100 per violation, against any
member or any |
| 463 |
tenant, guest, or invitee. A fine may be levied
on the basis of |
| 464 |
each day of a continuing violation, with a
single notice and |
| 465 |
opportunity for hearing, except that no such
fine shall exceed |
| 466 |
$1,000 in the aggregate unless otherwise
provided in the |
| 467 |
governing documents. A fine of less than
$1,000 shall not become |
| 468 |
a lien against a parcel. In any action to
recover a fine, the |
| 469 |
prevailing party is entitled to collect its
reasonable |
| 470 |
attorney's fees and costs from the
nonprevailing party as |
| 471 |
determined by the court. |
| 472 |
(a) A
fine or suspension may not be imposed without notice |
| 473 |
of at least 14 days to the person sought to be
fined or |
| 474 |
suspended and an opportunity for a hearing
before a committee of |
| 475 |
at least three members appointed by the board
who are not |
| 476 |
officers, directors, or employees of the
association, or the |
| 477 |
spouse, parent, child, brother, or sister of an
officer, |
| 478 |
director, or employee. If the committee, by
majority vote, does |
| 479 |
not approve a proposed fine or suspension, it
may not be |
| 480 |
imposed. |
| 481 |
(b) The
requirements of this subsection do not apply to |
| 482 |
the imposition of suspensions or fines upon any
member because |
| 483 |
of the failure of the member to pay assessments
or other charges |
| 484 |
when due if such action is authorized by the
|