HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 1 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 2 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S $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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 3 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 4 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 5 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 6 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 7 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 8 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 9 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 10 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 11 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 6103 2022 CODING: Words stricken are deletions; words underlined are additions. hb6103-00 Page 12 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S Section 4. This act shall take effect July 1, 2022. 276