Florida 2022 Regular Session

Florida House Bill H6103 Latest Draft

Bill / Introduced Version Filed 12/28/2021

                               
 
HB 6103  	2022 
 
 
 
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A bill to be entitled 1 
An act relating to levying of fines by homeowners' 2 
associations; amending s. 720.305, F.S.; removing the 3 
authority of a homeowners' association to levy fines; 4 
removing requirements relating to the levying of 5 
fines; conforming provisions to changes made by the 6 
act; amending ss. 720.306 and 720.311, F.S.; 7 
conforming provisions to changes made by the act; 8 
providing an effective date. 9 
 10 
Be It Enacted by the Legis lature of the State of Florida: 11 
 12 
 Section 1.  Subsections (2), (3), and (4) of section 13 
720.305, Florida Statutes, are amended to read: 14 
 720.305  Obligations of members; remedies at law or in 15 
equity; levy of fines and suspension of use rights. — 16 
 (2)  An association may levy reasonable fines. A fine may 17 
not exceed $100 per violation against any member or any member's 18 
tenant, guest, or invitee for the failure of the owner of the 19 
parcel or its occupant, licensee, or invitee to comply with any 20 
provision of the declaration, the association bylaws, or 21 
reasonable rules of the association unless otherwise provided in 22 
the governing documents. A fine may be levied by the board for 23 
each day of a continuing violation, with a single notice and 24 
opportunity for hearing, e xcept that the fine may not exceed 25     
 
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$1,000 in the aggregate unless otherwise provided in the 26 
governing documents. A fine of less than $1,000 may not become a 27 
lien against a parcel. In any action to recover a fine, the 28 
prevailing party is entitled to reasona ble attorney fees and 29 
costs from the nonprevailing party as determined by the court. 30 
 (a)  An association may suspend, for a reasonable period of 31 
time, the right of a member, or a member's tenant, guest, or 32 
invitee, to use common areas and facilities for t he failure of 33 
the owner of the parcel or its occupant, licensee, or invitee to 34 
comply with any provision of the declaration, the association 35 
bylaws, or reasonable rules of the association. This paragraph 36 
does not apply to that portion of common areas used to provide 37 
access or utility services to the parcel. A suspension may not 38 
prohibit an owner or tenant of a parcel from having vehicular 39 
and pedestrian ingress to and egress from the parcel, including, 40 
but not limited to, the right to park. 41 
 (b)  A fine or suspension levied by the board of 42 
administration may not be imposed unless the board first 43 
provides at least 14 days' notice to the parcel owner and, if 44 
applicable, any occupant, licensee, or invitee of the parcel 45 
owner, sought to be fined or suspended and an opportunity for a 46 
hearing before a committee of at least three members appointed 47 
by the board who are not officers, directors, or employees of 48 
the association, or the spouse, parent, child, brother, or 49 
sister of an officer, director, or employee. If th e committee, 50     
 
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by majority vote, does not approve a proposed fine or 51 
suspension, the proposed fine or suspension may not be imposed. 52 
The role of the committee is limited to determining whether to 53 
confirm or reject the fine or suspension levied by the board. If 54 
the proposed fine or suspension levied by the board is approved 55 
by the committee, the fine payment is due 5 days after notice of 56 
the approved fine is provided to the parcel owner and, if 57 
applicable, to any occupant, licensee, or invitee of the parcel 58 
owner. The association must provide written notice of such fine 59 
or suspension by mail or hand delivery to the parcel owner and, 60 
if applicable, to any occupant, licensee, or invitee of the 61 
parcel owner. 62 
 (3)  If a member is more than 90 days delinquent in pay ing 63 
any fee, fine, or other monetary obligation due to the 64 
association, the association may suspend the rights of the 65 
member, or the member's tenant, guest, or invitee, to use common 66 
areas and facilities until the fee , fine, or other monetary 67 
obligation is paid in full. This subsection does not apply to 68 
that portion of common areas used to provide access or utility 69 
services to the parcel. A suspension may not prohibit an owner 70 
or tenant of a parcel from having vehicular and pedestrian 71 
ingress to and egress from the parcel, including, but not 72 
limited to, the right to park. The notice and hearing 73 
requirements under subsection (2) do not apply to a suspension 74 
imposed under this subsection. 75     
 
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 (4)  An association may suspend the voting rights of a 76 
parcel or member for the nonpayment of any fee , fine, or other 77 
monetary obligation due to the association that is more than 90 78 
days delinquent. A voting interest or consent right allocated to 79 
a parcel or member which has been suspended by the association 80 
shall be subtracted from the total number of voting interests in 81 
the association, which shall be reduced by the number of 82 
suspended voting interests when calculating the total percentage 83 
or number of all voting interests available to take or approve 84 
any action, and the sus pended voting interests shall not be 85 
considered for any purpose, including, but not limited to, the 86 
percentage or number of voting interests necessary to constitute 87 
a quorum, the percentage or number of voting interests required 88 
to conduct an election, or the percentage or number of voting 89 
interests required to approve an action under this chapter or 90 
pursuant to the governing documents. The notice and hearing 91 
requirements under subsection (2) do not apply to a suspension 92 
imposed under this subsection. The s uspension ends upon full 93 
payment of all obligations currently due or overdue to the 94 
association. 95 
 Section 2.  Paragraph (b) of subsection (9) of section 96 
720.306, Florida Statutes, is amended to read: 97 
 720.306  Meetings of members; voting and election 98 
procedures; amendments. — 99 
 (9)  ELECTIONS AND BOARD VACANCIES. — 100     
 
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 (b)  A person who is delinquent in the payment of any fee , 101 
fine, or other monetary obligation to the association on the day 102 
that he or she could last nominate himself or herself or be 103 
nominated for the board may not seek election to the board, and 104 
his or her name shall not be listed on the ballot. A person 105 
serving as a board member who becomes more than 90 days 106 
delinquent in the payment of any fee , fine, or other monetary 107 
obligation to the associa tion shall be deemed to have abandoned 108 
his or her seat on the board, creating a vacancy on the board to 109 
be filled according to law. For purposes of this paragraph, the 110 
term "any fee, fine, or other monetary obligation" means any 111 
delinquency to the associat ion with respect to any parcel. A 112 
person who has been convicted of any felony in this state or in 113 
a United States District or Territorial Court, or has been 114 
convicted of any offense in another jurisdiction which would be 115 
considered a felony if committed in this state, may not seek 116 
election to the board and is not eligible for board membership 117 
unless such felon's civil rights have been restored for at least 118 
5 years as of the date on which such person seeks election to 119 
the board. The validity of any action by the board is not 120 
affected if it is later determined that a person was ineligible 121 
to seek election to the board or that a member of the board is 122 
ineligible for board membership. 123 
 Section 3.  Paragraph (a) of subsection (2) of section 124 
720.311, Florida Sta tutes, is amended to read: 125     
 
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 720.311  Dispute resolution. — 126 
 (2)(a)  Disputes between an association and a parcel owner 127 
regarding use of or changes to the parcel or the common areas 128 
and other covenant enforcement disputes, disputes regarding 129 
amendments to the association documents, disputes regarding 130 
meetings of the board and committees appointed by the board, 131 
membership meetings not including election meetings, and access 132 
to the official records of the association shall be the subject 133 
of a demand for presu it mediation served by an aggrieved party 134 
before the dispute is filed in court. Presuit mediation 135 
proceedings must be conducted in accordance with the applicable 136 
Florida Rules of Civil Procedure, and these proceedings are 137 
privileged and confidential to the same extent as court -ordered 138 
mediation. Disputes subject to presuit mediation under this 139 
section shall not include the collection of any assessment , 140 
fine, or other financial obligation, including attorney's fees 141 
and costs, claimed to be due or any action to enforce a prior 142 
mediation settlement agreement between the parties. Also, in any 143 
dispute subject to presuit mediation under this section where 144 
emergency relief is required, a motion for temporary injunctive 145 
relief may be filed with the court without fir st complying with 146 
the presuit mediation requirements of this section. After any 147 
issues regarding emergency or temporary relief are resolved, the 148 
court may either refer the parties to a mediation program 149 
administered by the courts or require mediation under this 150     
 
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section. An arbitrator or judge may not consider any information 151 
or evidence arising from the presuit mediation proceeding except 152 
in a proceeding to impose sanctions for failure to attend a 153 
presuit mediation session or to enforce a mediated settlemen t 154 
agreement. Persons who are not parties to the dispute may not 155 
attend the presuit mediation conference without the consent of 156 
all parties, except for counsel for the parties and a corporate 157 
representative designated by the association. When mediation is 158 
attended by a quorum of the board, such mediation is not a board 159 
meeting for purposes of notice and participation set forth in s. 160 
720.303. An aggrieved party shall serve on the responding party 161 
a written demand to participate in presuit mediation in 162 
substantially the following form: 163 
STATUTORY OFFER TO PARTICIPATE 164 
IN PRESUIT MEDIATION 165 
The alleged aggrieved party, ................, hereby demands 166 
that ................, as the responding party, engage in 167 
mandatory presuit mediation in connection with the follow ing 168 
disputes, which by statute are of a type that are subject to 169 
presuit mediation: 170 
(List specific nature of the dispute or disputes to be mediated 171 
and the authority supporting a finding of a violation as to each 172 
dispute.) 173 
Pursuant to section 720.311, Flor ida Statutes, this demand to 174 
resolve the dispute through presuit mediation is required before 175     
 
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a lawsuit can be filed concerning the dispute. Pursuant to the 176 
statute, the parties are required to engage in presuit mediation 177 
with a neutral third -party mediator in order to attempt to 178 
resolve this dispute without court action, and the aggrieved 179 
party demands that you likewise agree to this process. If you 180 
fail to participate in the mediation process, suit may be 181 
brought against you without further warning. 182 
The process of mediation involves a supervised negotiation 183 
process in which a trained, neutral third -party mediator meets 184 
with both parties and assists them in exploring possible 185 
opportunities for resolving part or all of the dispute. By 186 
agreeing to participate in presuit mediation, you are not bound 187 
in any way to change your position. Furthermore, the mediator 188 
has no authority to make any decisions in this matter or to 189 
determine who is right or wrong and merely acts as a facilitator 190 
to ensure that each party un derstands the position of the other 191 
party and that all options for reasonable settlement are fully 192 
explored. 193 
If an agreement is reached, it shall be reduced to writing and 194 
becomes a binding and enforceable commitment of the parties. A 195 
resolution of one or more disputes in this fashion avoids the 196 
need to litigate these issues in court. The failure to reach an 197 
agreement, or the failure of a party to participate in the 198 
process, results in the mediator declaring an impasse in the 199 
mediation, after which the aggr ieved party may proceed to court 200     
 
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on all outstanding, unsettled disputes. If you have failed or 201 
refused to participate in the entire mediation process, you will 202 
not be entitled to recover attorney's fees, even if you prevail. 203 
The aggrieved party has selecte d and hereby lists five certified 204 
mediators who we believe to be neutral and qualified to mediate 205 
the dispute. You have the right to select any one of these 206 
mediators. The fact that one party may be familiar with one or 207 
more of the listed mediators does no t mean that the mediator 208 
cannot act as a neutral and impartial facilitator. Any mediator 209 
who cannot act in this capacity is required ethically to decline 210 
to accept engagement. The mediators that we suggest, and their 211 
current hourly rates, are as follows: 212 
(List the names, addresses, telephone numbers, and hourly rates 213 
of the mediators. Other pertinent information about the 214 
background of the mediators may be included as an attachment.) 215 
You may contact the offices of these mediators to confirm that 216 
the listed mediators will be neutral and will not show any 217 
favoritism toward either party. The Florida Supreme Court can 218 
provide you a list of certified mediators. 219 
Unless otherwise agreed by the parties, section 720.311(2)(b), 220 
Florida Statutes, requires that the part ies share the costs of 221 
presuit mediation equally, including the fee charged by the 222 
mediator. An average mediation may require three to four hours 223 
of the mediator's time, including some preparation time, and the 224 
parties would need to share equally the media tor's fees as well 225     
 
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as their own attorney's fees if they choose to employ an 226 
attorney in connection with the mediation. However, use of an 227 
attorney is not required and is at the option of each party. The 228 
mediators may require the advance payment of some or all of the 229 
anticipated fees. The aggrieved party hereby agrees to pay or 230 
prepay one-half of the mediator's estimated fees and to forward 231 
this amount or such other reasonable advance deposits as the 232 
mediator requires for this purpose. Any funds deposited wi ll be 233 
returned to you if these are in excess of your share of the fees 234 
incurred. 235 
To begin your participation in presuit mediation to try to 236 
resolve the dispute and avoid further legal action, please sign 237 
below and clearly indicate which mediator is accepta ble to you. 238 
We will then ask the mediator to schedule a mutually convenient 239 
time and place for the mediation conference to be held. The 240 
mediation conference must be held within ninety (90) days of 241 
this date, unless extended by mutual written agreement. In the 242 
event that you fail to respond within 20 days from the date of 243 
this letter, or if you fail to agree to at least one of the 244 
mediators that we have suggested or to pay or prepay to the 245 
mediator one-half of the costs involved, the aggrieved party 246 
will be authorized to proceed with the filing of a lawsuit 247 
against you without further notice and may seek an award of 248 
attorney's fees or costs incurred in attempting to obtain 249 
mediation. 250     
 
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Therefore, please give this matter your immediate attention. By 251 
law, your response must be mailed by certified mail, return 252 
receipt requested, and by first -class mail to the address shown 253 
on this demand. 254 
........................ 255 
........................ 256 
RESPONDING PARTY: YOUR SIGNATURE INDICATES YOUR AGREEMENT TO 257 
THAT CHOICE. 258 
AGREEMENT TO MEDIATE 259 
The undersigned hereby agrees to participate in presuit 260 
mediation and agrees to attend a mediation conducted by the 261 
following mediator or mediators who are listed above as someone 262 
who would be acceptable to mediate this dispute: 263 
(List acceptable mediator or mediators.) 264 
I/we further agree to pay or prepay one -half of the mediator's 265 
fees and to forward such advance deposits as the mediator may 266 
require for this purpose. 267 
........................ 268 
Signature of responding party #1 269 
........................ 270 
Telephone contact information 271 
........................ 272 
Signature and telephone contact information of responding party 273 
#2 (if applicable)(if property is owned by more than one person, 274 
all owners must sign) 275     
 
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 Section 4.  This act shall take effect July 1, 2022. 276