CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 1 of 102 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 condominium and cooperative 2 associations; amending s. 468.4334, F.S.; requiring 3 community association managers and community 4 association management firms to comply with specified 5 provisions under certain circumstances; amending s. 6 468.436, F.S.; providing grounds for disciplinary 7 action; amending ss. 718.103 and 719.103, F.S.; 8 providing definitions; amending ss. 718.104 and 9 719.1035, F.S.; requiring certain associations to 10 provide certain information to the Division of Florida 11 Condominiums, Timeshares, and Mobile Homes within a 12 specified time; amending s. 718.111, F.S.; revising 13 documents that constitute official records; requiring 14 certain official records to be maintained for a 15 specified period of time; providing that a renter of a 16 unit has a right to copy and inspect certain written 17 reports; revising documents that must be posted 18 online; conforming a cross -reference; amending ss. 19 718.112 and 719.106, F.S.; specifying the method for 20 determining reserve amounts; prohibiting certain 21 members and associations from waiving or reducing 22 reserves for certain items after a specified date; 23 requiring certain associations to receive approval 24 before waiving or reducing reserves for certain items; 25 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 2 of 102 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 prohibiting certain associations from using reserve 26 funds, or any interest accruing thereon, for certain 27 purposes after a specified date; requiring certain 28 associations to have a structural integrity reserve 29 study completed at specified intervals and for certain 30 buildings by a specified date; providing requireme nts 31 for such study; conforming provisions to changes made 32 by the act; amending s. 718.116, F.S.; conforming a 33 cross-reference; amending s. 718.117, F.S.; providing 34 that certain condominiums may be terminated by a 35 majority vote under certain circumstances; providing 36 requirements for meetings in which a plan of 37 termination will be considered; specifying the method 38 for determining a condominium's fair market value; 39 conforming a cross-reference; creating ss. 718.132 and 40 719.132, F.S.; providing definitions; req uiring 41 certain associations to have specified buildings 42 recertified at specified intervals; requiring phase 2 43 inspections under certain circumstances; providing 44 requirements for such recertifications and 45 inspections; providing notice requirements; providin g 46 requirements for certain associations and local 47 building officials; authorizing local building 48 officials to prescribe penalties, which must be posted 49 on the building department's website; amending ss. 50 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 3 of 102 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 718.301 and 719.301, F.S.; requiring developers to 51 deliver certain information to certain associations 52 when transferring control; amending ss. 718.501 and 53 719.501, F.S.; providing that the division has 54 jurisdiction to investigate specified complaints; 55 requiring certain associations to provide certain 56 information and updates to the division by a specified 57 date and within a specified time; requiring the 58 division to compile a list with certain information 59 and post such list on its website; amending ss. 60 718.503 and 719.503, F.S.; requiring a developer or 61 unit owner, as applicable, to deliver certain 62 documents to a buyer or lessee of a unit; amending ss. 63 718.504 and 719.504, F.S.; requiring certain 64 information to be included in a prospectus or an 65 offering circular; amending s. 719.104, F.S.; revising 66 documents that constitute official records; amending 67 ss. 720.303, 720.311, and 721.15, F.S.; conforming 68 cross-references; providing an appropriation; 69 providing an effective date. 70 71 Be It Enacted by the Legislature of the State of Florida: 72 73 Section 1. Subsection ( 1) of section 468.4334, Florida 74 Statutes, is amended to read: 75 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 4 of 102 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 468.4334 Professional practice standards; liability. — 76 (1)(a) A community association manager or a community 77 association management firm is deemed to act as agent on behalf 78 of a community association as principal within the scope of 79 authority authorized by a written contract or under this 80 chapter. A community association manager and a community 81 association management firm shall discharge duties performed on 82 behalf of the association as authori zed by this chapter loyally, 83 skillfully, and diligently; dealing honestly and fairly; in good 84 faith; with care and full disclosure to the community 85 association; accounting for all funds; and not charging 86 unreasonable or excessive fees. 87 (b) If a community association manager or a community 88 association management firm has a contract with a community 89 association with a building on the association's property that 90 is subject to recertification under s. 718.132 or s. 719.132, 91 the community association manager o r the community association 92 management firm must comply with such sections. 93 Section 2. Paragraph (b) of subsection (2) of section 94 468.436, Florida Statutes, is amended to read: 95 468.436 Disciplinary proceedings. — 96 (2) The following acts constitute gr ounds for which the 97 disciplinary actions in subsection (4) may be taken: 98 (b)1. Violation of any provision of this part. 99 2. Violation of any lawful order or rule rendered or 100 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 5 of 102 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 adopted by the department or the council. 101 3. Being convicted of or pleading n olo contendere to a 102 felony in any court in the United States. 103 4. Obtaining a license or certification or any other 104 order, ruling, or authorization by means of fraud, 105 misrepresentation, or concealment of material facts. 106 5. Committing acts of gross misco nduct or gross negligence 107 in connection with the profession. 108 6. Contracting, on behalf of an association, with any 109 entity in which the licensee has a financial interest that is 110 not disclosed. 111 7. Violating any provision of chapter 718, chapter 719, or 112 chapter 720 during the course of performing community 113 association management services pursuant to a contract with a 114 community association as defined in s. 468.431(1). 115 8. Failing to provide a written recertification report to 116 a local building official, if the community association manager 117 or the community association management firm receives the 118 report, in accordance with s. 718.132 or s. 719.132 during the 119 course of performing community association management services 120 pursuant to a contract with a condomi nium, as defined in s. 121 718.103, or a cooperative, as defined in s. 719.103. 122 Section 3. Subsections (22), (23), and (24) and (25) 123 through (30) of section 718.103, Florida Statutes, are 124 renumbered as subsections (23), (24), and (25) and (27) through 125 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 6 of 102 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 (32), respectively, and new subsections (22) and (26) are added 126 to that section to read: 127 718.103 Definitions. —As used in this chapter, the term: 128 (22) "Primary structural member" has the same meaning as 129 in s. 627.706(2). 130 (26) "Structural integrity reserve study" means a study of 131 the reserve funds required for future major repairs and 132 replacement of the common elements based on a visual inspection 133 of the common elements. A structural integrity reserve study may 134 be performed by any person or entity qualified to perform such 135 study. However, the visual inspection portion of the structural 136 integrity reserve study must be performed by an engineer 137 licensed under chapter 471 or an architect licensed under 138 chapter 481. At a minimum, a structural integrity reserve st udy 139 must identify the common elements being visually inspected, 140 state the estimated remaining useful life and the estimated 141 replacement cost or deferred maintenance expense of the common 142 elements being visually inspected, and provide a recommended 143 annual reserve amount that achieves the estimated replacement 144 cost or deferred maintenance expense of each common element 145 being visually inspected by the end of the estimated remaining 146 useful life of each common element. 147 Section 4. Subsection (2) of section 71 8.104, Florida 148 Statutes, is amended to read: 149 718.104 Creation of condominiums; contents of 150 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 7 of 102 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 declaration.—Every condominium created in this state shall be 151 created pursuant to this chapter. 152 (2) A condominium is created by recording a declaration in 153 the public records of the county where the land is located, 154 executed and acknowledged with the requirements for a deed. All 155 persons who have record title to the interest in the land being 156 submitted to condominium ownership, or their lawfully authorized 157 agents, must join in the execution of the declaration. Upon the 158 recording of the declaration, or an amendment adding a phase to 159 the condominium under s. 718.403(6), all units described in the 160 declaration or phase amendment as being located in or on the 161 land then being submitted to condominium ownership shall come 162 into existence, regardless of the state of completion of planned 163 improvements in which the units may be located or any other 164 requirement or description that a declaration may provide. Upon 165 recording the declaration of condominium pursuant to this 166 section, the developer shall file the recording information with 167 the division within 120 calendar days on a form prescribed by 168 the division. If the condominium is subject to s. 718.132 and 169 has at least one building on condominium property that is three 170 stories or higher in height, the developer must also provide 171 information to the division indicating the number of buildings 172 described in the declaration located on the condominium property 173 that are three stories or hig her in height, the total number of 174 units in all such buildings, and the addresses of such buildings 175 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 8 of 102 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 within 120 calendar days after recording the declaration on a 176 form prescribed by the division. 177 Section 5. Paragraph (b) of subsection (7) and paragraphs 178 (a), (b), (c), and (g) of subsection (12) of section 718.111, 179 Florida Statutes, are amended to read: 180 718.111 The association. — 181 (7) TITLE TO PROPERTY. — 182 (b) Subject to s. 718.112(2)(n) the provisions of s. 183 718.112(2)(m), the association, through its b oard, has the 184 limited power to convey a portion of the common elements to a 185 condemning authority for the purposes of providing utility 186 easements, right-of-way expansion, or other public purposes, 187 whether negotiated or as a result of eminent domain proceedi ngs. 188 (12) OFFICIAL RECORDS. — 189 (a) From the inception of the association, the association 190 shall maintain each of the following items, if applicable, which 191 constitutes the official records of the association: 192 1. A copy of the plans, permits, warranties, and other 193 items provided by the developer under s. 718.301(4). 194 2. A photocopy of the recorded declaration of condominium 195 of each condominium operated by the association and each 196 amendment to each declaration. 197 3. A photocopy of the recorded bylaws of t he association 198 and each amendment to the bylaws. 199 4. A certified copy of the articles of incorporation of 200 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 9 of 102 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 the association, or other documents creating the association, 201 and each amendment thereto. 202 5. A copy of the current rules of the association. 203 6. A book or books that contain the minutes of all 204 meetings of the association, the board of administration, and 205 the unit owners. 206 7. A current roster of all unit owners and their mailing 207 addresses, unit identifications, voting certifications, and, if 208 known, telephone numbers. The association shall also maintain 209 the e-mail addresses and facsimile numbers of unit owners 210 consenting to receive notice by electronic transmission. The e -211 mail addresses and facsimile numbers are not accessible to unit 212 owners if consent to receive notice by electronic transmission 213 is not provided in accordance with sub -subparagraph (c)3.e. 214 However, the association is not liable for an inadvertent 215 disclosure of the e-mail address or facsimile number for 216 receiving electronic transmission of notices. 217 8. All current insurance policies of the association and 218 condominiums operated by the association. 219 9. A current copy of any management agreement, lease, or 220 other contract to which the association is a party or under 221 which the association or the unit owners have an obligation or 222 responsibility. 223 10. Bills of sale or transfer for all property owned by 224 the association. 225 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 10 of 102 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 11. Accounting records for the association and separate 226 accounting records for each condominium that the association 227 operates. Any person who knowingly or intentionally defaces or 228 destroys such records, or who knowingly or intentionally fails 229 to create or maintain such records, with the intent of causing 230 harm to the association or one or more of its members, is 231 personally subject to a civil penalty pursuant to s. 232 718.501(1)(d). The accounting records must include, but are not 233 limited to: 234 a. Accurate, itemized, and detailed records of all 235 receipts and expenditures. 236 b. A current account and a monthly, bimonthly, or 237 quarterly statement of the account for each unit designating the 238 name of the unit owner, the due date and amount of each 239 assessment, the amount paid on the account, and the balance due. 240 c. All audits, reviews, accounting statements, structural 241 integrity reserve studies, and financial reports of the 242 association or condominium. 243 d. All contracts for work to be performed. Bids for work 244 to be performed are also considered official records and must be 245 maintained by the association for at least 1 year after receipt 246 of the bid. 247 12. Ballots, sign-in sheets, voting proxies, and all other 248 papers and electronic records relating to voting by unit owners, 249 which must be maintained for 1 year from the date of the 250 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 11 of 102 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 election, vote, or meeting to which the document relates, 251 notwithstanding paragraph (b). 252 13. All rental records if the association is acting as 253 agent for the rental of condominium units. 254 14. A copy of the current question and answer sheet as 255 described in s. 718.504. 256 15. A copy of the inspection report as describ ed in s. 257 718.301(4)(p). 258 16. Bids for materials, equipment, or services. 259 17. All affirmative acknowledgments made pursuant to s. 260 718.121(4)(c). 261 18. All written recertification reports and written phase 262 2 inspection reports if required under s. 718.132 . 263 19.18. All other written records of the association not 264 specifically included in the foregoing which are related to the 265 operation of the association. 266 (b) The official records specified in subparagraphs (a)1. -267 6. and 18. must be permanently maintained from the inception of 268 the association. Bids for work to be performed or for materials, 269 equipment, or services must be maintained for at least 1 year 270 after receipt of the bid. Structural integrity reserve studies 271 must be maintained for at least 15 years aft er the study is 272 completed. All other official records must be maintained within 273 the state for at least 7 years, unless otherwise provided by 274 general law. The records of the association shall be made 275 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 12 of 102 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 available to a unit owner within 45 miles of the condomin ium 276 property or within the county in which the condominium property 277 is located within 10 working days after receipt of a written 278 request by the board or its designee. However, such distance 279 requirement does not apply to an association governing a 280 timeshare condominium. This paragraph may be complied with by 281 having a copy of the official records of the association 282 available for inspection or copying on the condominium property 283 or association property, or the association may offer the option 284 of making the records available to a unit owner electronically 285 via the Internet or by allowing the records to be viewed in 286 electronic format on a computer screen and printed upon request. 287 The association is not responsible for the use or misuse of the 288 information provided to an association member or his or her 289 authorized representative in compliance with this chapter unless 290 the association has an affirmative duty not to disclose such 291 information under this chapter. 292 (c)1. The official records of the association are open to 293 inspection by any association member or the authorized 294 representative of such member at all reasonable times. The right 295 to inspect the records includes the right to make or obtain 296 copies, at the reasonable expense, if any, of the member or 297 authorized representative of such member. A renter of a unit has 298 a right to inspect and copy only the declaration of condominium , 299 and the association's bylaws and rules , and, if applicable, the 300 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 13 of 102 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 association's written recertification reports and written phase 301 2 inspection reports as described in s. 718.132 . The association 302 may adopt reasonable rules regarding the frequency, time, 303 location, notice, and manner of record inspections and copying 304 but may not require a member to demonstrate any purpose or state 305 any reason for the inspection. The failure of an association to 306 provide the records within 10 working days after receipt of a 307 written request creates a rebuttable presumption that the 308 association willfully failed to comply with this paragraph. A 309 unit owner who is denied acc ess to official records is entitled 310 to the actual damages or minimum damages for the association's 311 willful failure to comply. Minimum damages are $50 per calendar 312 day for up to 10 days, beginning on the 11th working day after 313 receipt of the written request . The failure to permit inspection 314 entitles any person prevailing in an enforcement action to 315 recover reasonable attorney fees from the person in control of 316 the records who, directly or indirectly, knowingly denied access 317 to the records. 318 2. Any person who knowingly or intentionally defaces or 319 destroys accounting records that are required by this chapter to 320 be maintained during the period for which such records are 321 required to be maintained, or who knowingly or intentionally 322 fails to create or maintain acc ounting records that are required 323 to be created or maintained, with the intent of causing harm to 324 the association or one or more of its members, is personally 325 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 14 of 102 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 subject to a civil penalty under pursuant to s. 718.501(1)(d). 326 3. The association must shall maintain an adequate number 327 of copies of the declaration, articles of incorporation, bylaws, 328 and rules, and all amendments to each of the foregoing, as well 329 as the question and answer sheet as described in s. 718.504 and 330 year-end financial information requir ed under this section, on 331 the condominium property to ensure their availability to unit 332 owners and prospective purchasers, and may charge its actual 333 costs for preparing and furnishing these documents to those 334 requesting the documents. An association must shall allow a 335 member or his or her authorized representative to use a portable 336 device, including a smartphone, tablet, portable scanner, or any 337 other technology capable of scanning or taking photographs, to 338 make an electronic copy of the official records in lieu of the 339 association's providing the member or his or her authorized 340 representative with a copy of such records. The association may 341 not charge a member or his or her authorized representative for 342 the use of a portable device. Notwithstanding this para graph, 343 the following records are not accessible to unit owners: 344 a. Any record protected by the lawyer -client privilege as 345 described in s. 90.502 and any record protected by the work -346 product privilege, including a record prepared by an association 347 attorney or prepared at the attorney's express direction, which 348 reflects a mental impression, conclusion, litigation strategy, 349 or legal theory of the attorney or the association, and which 350 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 15 of 102 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 was prepared exclusively for civil or criminal litigation or for 351 adversarial administrative proceedings, or which was prepared in 352 anticipation of such litigation or proceedings until the 353 conclusion of the litigation or proceedings. 354 b. Information obtained by an association in connection 355 with the approval of the lease, sale, or other transfer of a 356 unit. 357 c. Personnel records of association or management company 358 employees, including, but not limited to, disciplinary, payroll, 359 health, and insurance records. For purposes of this sub -360 subparagraph, the term "personnel records" does not include 361 written employment agreements with an association employee or 362 management company, or budgetary or financial records that 363 indicate the compensation paid to an association employee. 364 d. Medical records of unit owners. 365 e. Social security number s, driver license numbers, credit 366 card numbers, e-mail addresses, telephone numbers, facsimile 367 numbers, emergency contact information, addresses of a unit 368 owner other than as provided to fulfill the association's notice 369 requirements, and other personal ide ntifying information of any 370 person, excluding the person's name, unit designation, mailing 371 address, property address, and any address, e -mail address, or 372 facsimile number provided to the association to fulfill the 373 association's notice requirements. Notwith standing the 374 restrictions in this sub -subparagraph, an association may print 375 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 16 of 102 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 and distribute to unit owners a directory containing the name, 376 unit address, and all telephone numbers of each unit owner. 377 However, an owner may exclude his or her telephone numbe rs from 378 the directory by so requesting in writing to the association. An 379 owner may consent in writing to the disclosure of other contact 380 information described in this sub -subparagraph. The association 381 is not liable for the inadvertent disclosure of informa tion that 382 is protected under this sub -subparagraph if the information is 383 included in an official record of the association and is 384 voluntarily provided by an owner and not requested by the 385 association. 386 f. Electronic security measures that are used by the 387 association to safeguard data, including passwords. 388 g. The software and operating system used by the 389 association which allow the manipulation of data, even if the 390 owner owns a copy of the same software used by the association. 391 The data is part of the off icial records of the association. 392 h. All affirmative acknowledgments made pursuant to s. 393 718.121(4)(c). 394 (g)1. By January 1, 2019, An association managing a 395 condominium with 150 or more units which does not contain 396 timeshare units must shall post digital copies of the documents 397 specified in subparagraph 2. on its website or make such 398 documents available through an application that can be 399 downloaded on a mobile device. 400 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 17 of 102 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. The association's website or application must be: 401 (I) An independent website, ap plication, or web portal 402 wholly owned and operated by the association; or 403 (II) A website, application, or web portal operated by a 404 third-party provider with whom the association owns, leases, 405 rents, or otherwise obtains the right to operate a web page, 406 subpage, web portal, collection of subpages or web portals, or 407 an application which is dedicated to the association's 408 activities and on which required notices, records, and documents 409 may be posted or made available by the association. 410 b. The association's website or application must be 411 accessible through the Internet and must contain a subpage, web 412 portal, or other protected electronic location that is 413 inaccessible to the general public and accessible only to unit 414 owners and employees of the association. 415 c. Upon a unit owner's written request, the association 416 must provide the unit owner with a username and password and 417 access to the protected sections of the association's website or 418 application which contain any notices, records, or documents 419 that must be electronically provided. 420 2. A current copy of the following documents must be 421 posted in digital format on the association's website or 422 application: 423 a. The recorded declaration of condominium of each 424 condominium operated by the association and each amendment to 425 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 18 of 102 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 each declaration. 426 b. The recorded bylaws of the association and each 427 amendment to the bylaws. 428 c. The articles of incorporation of the association, or 429 other documents creating the association, and each amendment to 430 the articles of incorpora tion or other documents. The copy 431 posted pursuant to this sub -subparagraph must be a copy of the 432 articles of incorporation filed with the Department of State. 433 d. The rules of the association. 434 e. A list of all executory contracts or documents to which 435 the association is a party or under which the association or the 436 unit owners have an obligation or responsibility and, after 437 bidding for the related materials, equipment, or services has 438 closed, a list of bids received by the association within the 439 past year. Summaries of bids for materials, equipment, or 440 services which exceed $500 must be maintained on the website or 441 application for 1 year. In lieu of summaries, complete copies of 442 the bids may be posted. 443 f. The annual budget required by s. 718.112(2)(f) a nd any 444 proposed budget to be considered at the annual meeting. 445 g. The financial report required by subsection (13) and 446 any monthly income or expense statement to be considered at a 447 meeting. 448 h. The certification of each director required by s. 449 718.112(2)(d)4.b. 450 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 19 of 102 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 i. All contracts or transactions between the association 451 and any director, officer, corporation, firm, or association 452 that is not an affiliated condominium association or any other 453 entity in which an association director is also a director or 454 officer and financially interested. 455 j. Any contract or document regarding a conflict of 456 interest or possible conflict of interest as provided in ss. 457 468.436(2)(b)6. and 718.3027(3). 458 k. The notice of any unit owner meeting and the agenda for 459 the meeting, as required by s. 718.112(2)(d)3., no later than 14 460 days before the meeting. The notice must be posted in plain view 461 on the front page of the website or application, or on a 462 separate subpage of the website or application labeled "Notices" 463 which is conspicuously visible and linked from the front page. 464 The association must also post on its website or application any 465 document to be considered and voted on by the owners during the 466 meeting or any document listed on the agenda at least 7 days 467 before the meeting a t which the document or the information 468 within the document will be considered. 469 l. Notice of any board meeting, the agenda, and any other 470 document required for the meeting as required by s. 471 718.112(2)(c), which must be posted no later than the date 472 required for notice under s. 718.112(2)(c). 473 m. The association's most recent structural integrity 474 reserve study, if applicable. 475 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 20 of 102 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 n. The association's most recent written recertification 476 report and written phase 2 inspection report as described in s. 477 718.132, if applicable. 478 3. The association shall ensure that the information and 479 records described in paragraph (c), which are not allowed to be 480 accessible to unit owners, are not posted on the association's 481 website or application. If protected information or in formation 482 restricted from being accessible to unit owners is included in 483 documents that are required to be posted on the association's 484 website or application, the association must shall ensure the 485 information is redacted before posting the documents. 486 Notwithstanding the foregoing, the association or its agent is 487 not liable for disclosing information that is protected or 488 restricted under this paragraph unless such disclosure was made 489 with a knowing or intentional disregard of the protected or 490 restricted nature of such information. 491 4. The failure of the association to post information 492 required under subparagraph 2. is not in and of itself 493 sufficient to invalidate any action or decision of the 494 association's board or its committees. 495 Section 6. Paragraphs ( g) through (o) of subsection (2) of 496 section 718.112, Florida Statutes, are redesignated as 497 paragraphs (h) through (p), respectively, paragraphs (d) and (f) 498 of that subsection are amended, and a new paragraph (g) is added 499 to that subsection, to read: 500 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 21 of 102 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 718.112 Bylaws.— 501 (2) REQUIRED PROVISIONS. —The bylaws shall provide for the 502 following and, if they do not do so, shall be deemed to include 503 the following: 504 (d) Unit owner meetings. — 505 1. An annual meeting of the unit owners must be held at 506 the location provided in the association bylaws and, if the 507 bylaws are silent as to the location, the meeting must be held 508 within 45 miles of the condominium property. However, such 509 distance requirement does not apply to an association governing 510 a timeshare condominium. 511 2. Unless the bylaws provide otherwise, a vacancy on the 512 board caused by the expiration of a director's term must be 513 filled by electing a new board member, and the election must be 514 by secret ballot. An election is not required if the number of 515 vacancies equals or exceeds the number of candidates. For 516 purposes of this paragraph, the term "candidate" means an 517 eligible person who has timely submitted the written notice, as 518 described in sub-subparagraph 4.a., of his or her intention to 519 become a candidate. Except in a timeshare or nonresidential 520 condominium, or if the staggered term of a board member does not 521 expire until a later annual meeting, or if all members' terms 522 would otherwise expire but there are no candidates, the terms of 523 all board members expire at th e annual meeting, and such members 524 may stand for reelection unless prohibited by the bylaws. Board 525 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 22 of 102 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 members may serve terms longer than 1 year if permitted by the 526 bylaws or articles of incorporation. A board member may not 527 serve more than 8 consecutive year s unless approved by an 528 affirmative vote of unit owners representing two -thirds of all 529 votes cast in the election or unless there are not enough 530 eligible candidates to fill the vacancies on the board at the 531 time of the vacancy. Only board service that occu rs on or after 532 July 1, 2018, may be used when calculating a board member's term 533 limit. If the number of board members whose terms expire at the 534 annual meeting equals or exceeds the number of candidates, the 535 candidates become members of the board effective upon the 536 adjournment of the annual meeting. Unless the bylaws provide 537 otherwise, any remaining vacancies shall be filled by the 538 affirmative vote of the majority of the directors making up the 539 newly constituted board even if the directors constitute less 540 than a quorum or there is only one director. In a residential 541 condominium association of more than 10 units or in a 542 residential condominium association that does not include 543 timeshare units or timeshare interests, co -owners of a unit may 544 not serve as members of the board of directors at the same time 545 unless they own more than one unit or unless there are not 546 enough eligible candidates to fill the vacancies on the board at 547 the time of the vacancy. A unit owner in a residential 548 condominium desiring to be a cand idate for board membership must 549 comply with sub-subparagraph 4.a. and must be eligible to be a 550 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 23 of 102 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 candidate to serve on the board of directors at the time of the 551 deadline for submitting a notice of intent to run in order to 552 have his or her name listed as a pr oper candidate on the ballot 553 or to serve on the board. A person who has been suspended or 554 removed by the division under this chapter, or who is delinquent 555 in the payment of any assessment due to the association, is not 556 eligible to be a candidate for board membership and may not be 557 listed on the ballot. For purposes of this paragraph, a person 558 is delinquent if a payment is not made by the due date as 559 specifically identified in the declaration of condominium, 560 bylaws, or articles of incorporation. If a due dat e is not 561 specifically identified in the declaration of condominium, 562 bylaws, or articles of incorporation, the due date is the first 563 day of the assessment period. A person who has been convicted of 564 any felony in this state or in a United States District or 565 Territorial Court, or who has been convicted of any offense in 566 another jurisdiction which would be considered a felony if 567 committed in this state, is not eligible for board membership 568 unless such felon's civil rights have been restored for at least 569 5 years as of the date such person seeks election to the board. 570 The validity of an action by the board is not affected if it is 571 later determined that a board member is ineligible for board 572 membership due to having been convicted of a felony. This 573 subparagraph does not limit the term of a member of the board of 574 a nonresidential or timeshare condominium. 575 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 24 of 102 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 3. The bylaws must provide the method of calling meetings 576 of unit owners, including annual meetings. Written notice of an 577 annual meeting must include an agenda; b e mailed, hand 578 delivered, or electronically transmitted to each unit owner at 579 least 14 days before the annual meeting; and be posted in a 580 conspicuous place on the condominium property or association 581 property at least 14 continuous days before the annual me eting. 582 Written notice of a meeting other than an annual meeting must 583 include an agenda; be mailed, hand delivered, or electronically 584 transmitted to each unit owner; and be posted in a conspicuous 585 place on the condominium property or association property wi thin 586 the timeframe specified in the bylaws. If the bylaws do not 587 specify a timeframe for written notice of a meeting other than 588 an annual meeting, notice must be provided at least 14 589 continuous days before the meeting. Upon notice to the unit 590 owners, the board shall, by duly adopted rule, designate a 591 specific location on the condominium property or association 592 property where all notices of unit owner meetings must be 593 posted. This requirement does not apply if there is no 594 condominium property for posting not ices. In lieu of, or in 595 addition to, the physical posting of meeting notices, the 596 association may, by reasonable rule, adopt a procedure for 597 conspicuously posting and repeatedly broadcasting the notice and 598 the agenda on a closed -circuit cable television sy stem serving 599 the condominium association. However, if broadcast notice is 600 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 25 of 102 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 used in lieu of a notice posted physically on the condominium 601 property, the notice and agenda must be broadcast at least four 602 times every broadcast hour of each day that a posted not ice is 603 otherwise required under this section. If broadcast notice is 604 provided, the notice and agenda must be broadcast in a manner 605 and for a sufficient continuous length of time so as to allow an 606 average reader to observe the notice and read and comprehend the 607 entire content of the notice and the agenda. In addition to any 608 of the authorized means of providing notice of a meeting of the 609 board, the association may, by rule, adopt a procedure for 610 conspicuously posting the meeting notice and the agenda on a 611 website serving the condominium association for at least the 612 minimum period of time for which a notice of a meeting is also 613 required to be physically posted on the condominium property. 614 Any rule adopted shall, in addition to other matters, include a 615 requirement that the association send an electronic notice in 616 the same manner as a notice for a meeting of the members, which 617 must include a hyperlink to the website where the notice is 618 posted, to unit owners whose e -mail addresses are included in 619 the association's official records. Unless a unit owner waives 620 in writing the right to receive notice of the annual meeting, 621 such notice must be hand delivered, mailed, or electronically 622 transmitted to each unit owner. Notice for meetings and notice 623 for all other purposes must be mailed to each unit owner at the 624 address last furnished to the association by the unit owner, or 625 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 26 of 102 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 hand delivered to each unit owner. However, if a unit is owned 626 by more than one person, the association must provide notice to 627 the address that the dev eloper identifies for that purpose and 628 thereafter as one or more of the owners of the unit advise the 629 association in writing, or if no address is given or the owners 630 of the unit do not agree, to the address provided on the deed of 631 record. An officer of the association, or the manager or other 632 person providing notice of the association meeting, must provide 633 an affidavit or United States Postal Service certificate of 634 mailing, to be included in the official records of the 635 association affirming that the notice was mailed or hand 636 delivered in accordance with this provision. 637 4. The members of the board of a residential condominium 638 shall be elected by written ballot or voting machine. Proxies 639 may not be used in electing the board in general elections or 640 elections to fill vacancies caused by recall, resignation, or 641 otherwise, unless otherwise provided in this chapter. This 642 subparagraph does not apply to an association governing a 643 timeshare condominium. 644 a. At least 60 days before a scheduled election, the 645 association shall mail, deliver, or electronically transmit, by 646 separate association mailing or included in another association 647 mailing, delivery, or transmission, including regularly 648 published newsletters, to each unit owner entitled to a vote, a 649 first notice of the date of the election. A unit owner or other 650 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 27 of 102 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 eligible person desiring to be a candidate for the board must 651 give written notice of his or her intent to be a candidate to 652 the association at least 40 days before a scheduled election. 653 Together with the writ ten notice and agenda as set forth in 654 subparagraph 3., the association shall mail, deliver, or 655 electronically transmit a second notice of the election to all 656 unit owners entitled to vote, together with a ballot that lists 657 all candidates not less than 14 da ys or more than 34 days before 658 the date of the election. Upon request of a candidate, an 659 information sheet, no larger than 8 1/2 inches by 11 inches, 660 which must be furnished by the candidate at least 35 days before 661 the election, must be included with the m ailing, delivery, or 662 transmission of the ballot, with the costs of mailing, delivery, 663 or electronic transmission and copying to be borne by the 664 association. The association is not liable for the contents of 665 the information sheets prepared by the candidates . In order to 666 reduce costs, the association may print or duplicate the 667 information sheets on both sides of the paper. The division 668 shall by rule establish voting procedures consistent with this 669 sub-subparagraph, including rules establishing procedures for 670 giving notice by electronic transmission and rules providing for 671 the secrecy of ballots. Elections shall be decided by a 672 plurality of ballots cast. There is no quorum requirement; 673 however, at least 20 percent of the eligible voters must cast a 674 ballot in order to have a valid election. A unit owner may not 675 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 28 of 102 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 authorize any other person to vote his or her ballot, and any 676 ballots improperly cast are invalid. A unit owner who violates 677 this provision may be fined by the association in accordance 678 with s. 718.303. A unit owner who needs assistance in casting 679 the ballot for the reasons stated in s. 101.051 may obtain such 680 assistance. The regular election must occur on the date of the 681 annual meeting. Notwithstanding this sub -subparagraph, an 682 election is not required unl ess more candidates file notices of 683 intent to run or are nominated than board vacancies exist. 684 b. Within 90 days after being elected or appointed to the 685 board of an association of a residential condominium, each newly 686 elected or appointed director shall certify in writing to the 687 secretary of the association that he or she has read the 688 association's declaration of condominium, articles of 689 incorporation, bylaws, and current written policies; that he or 690 she will work to uphold such documents and policies to the best 691 of his or her ability; and that he or she will faithfully 692 discharge his or her fiduciary responsibility to the 693 association's members. In lieu of this written certification, 694 within 90 days after being elected or appointed to the board, 695 the newly elected or appointed director may submit a certificate 696 of having satisfactorily completed the educational curriculum 697 administered by a division -approved condominium education 698 provider within 1 year before or 90 days after the date of 699 election or appointment. The written certification or 700 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 29 of 102 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 educational certificate is valid and does not have to be 701 resubmitted as long as the director serves on the board without 702 interruption. A director of an association of a residential 703 condominium who fails to timely file the writ ten certification 704 or educational certificate is suspended from service on the 705 board until he or she complies with this sub -subparagraph. The 706 board may temporarily fill the vacancy during the period of 707 suspension. The secretary shall cause the association t o retain 708 a director's written certification or educational certificate 709 for inspection by the members for 5 years after a director's 710 election or the duration of the director's uninterrupted tenure, 711 whichever is longer. Failure to have such written certifica tion 712 or educational certificate on file does not affect the validity 713 of any board action. 714 c. Any challenge to the election process must be commenced 715 within 60 days after the election results are announced. 716 5. Any approval by unit owners called for by t his chapter 717 or the applicable declaration or bylaws, including, but not 718 limited to, the approval requirement in s. 718.111(8), must be 719 made at a duly noticed meeting of unit owners and is subject to 720 all requirements of this chapter or the applicable condom inium 721 documents relating to unit owner decisionmaking, except that 722 unit owners may take action by written agreement, without 723 meetings, on matters for which action by written agreement 724 without meetings is expressly allowed by the applicable bylaws 725 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 30 of 102 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 or declaration or any law that provides for such action. 726 6. Unit owners may waive notice of specific meetings if 727 allowed by the applicable bylaws or declaration or any law. 728 Notice of meetings of the board of administration, unit owner 729 meetings, except unit owner meetings called to recall board 730 members under paragraph (k) (j), and committee meetings may be 731 given by electronic transmission to unit owners who consent to 732 receive notice by electronic transmission. A unit owner who 733 consents to receiving notices by elect ronic transmission is 734 solely responsible for removing or bypassing filters that block 735 receipt of mass e-mails sent to members on behalf of the 736 association in the course of giving electronic notices. 737 7. Unit owners have the right to participate in meetings 738 of unit owners with reference to all designated agenda items. 739 However, the association may adopt reasonable rules governing 740 the frequency, duration, and manner of unit owner participation. 741 8. A unit owner may tape record or videotape a meeting o f 742 the unit owners subject to reasonable rules adopted by the 743 division. 744 9. Unless otherwise provided in the bylaws, any vacancy 745 occurring on the board before the expiration of a term may be 746 filled by the affirmative vote of the majority of the remaining 747 directors, even if the remaining directors constitute less than 748 a quorum, or by the sole remaining director. In the alternative, 749 a board may hold an election to fill the vacancy, in which case 750 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 31 of 102 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 the election procedures must conform to sub -subparagraph 4.a. 751 unless the association governs 10 units or fewer and has opted 752 out of the statutory election process, in which case the bylaws 753 of the association control. Unless otherwise provided in the 754 bylaws, a board member appointed or elected under this section 755 shall fill the vacancy for the unexpired term of the seat being 756 filled. Filling vacancies created by recall is governed by 757 paragraph (k) (j) and rules adopted by the division. 758 10. This chapter does not limit the use of general or 759 limited proxies, require the use of general or limited proxies, 760 or require the use of a written ballot or voting machine for any 761 agenda item or election at any meeting of a timeshare 762 condominium association or nonresidential condominium 763 association. 764 765 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an 766 association of 10 or fewer units may, by affirmative vote of a 767 majority of the total voting interests, provide for different 768 voting and election procedures in its bylaws, which may be by a 769 proxy specifically delineating the d ifferent voting and election 770 procedures. The different voting and election procedures may 771 provide for elections to be conducted by limited or general 772 proxy. 773 (f) Annual budget.— 774 1. The proposed annual budget of estimated revenues and 775 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 32 of 102 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 expenses must be detailed and must show the amounts budgeted by 776 accounts and expense classifications, including, at a minimum, 777 any applicable expenses listed in s. 718.504(21). The board 778 shall adopt the annual budget at least 14 days before prior to 779 the start of the associat ion's fiscal year. In the event that 780 the board fails to timely adopt the annual budget a second time, 781 it is shall be deemed a minor violation and the prior year's 782 budget shall continue in effect until a new budget is adopted. A 783 multicondominium association must shall adopt a separate budget 784 of common expenses for each condominium the association operates 785 and must shall adopt a separate budget of common expenses for 786 the association. In addition, if the association maintains 787 limited common elements with the c ost to be shared only by those 788 entitled to use the limited common elements as provided for in 789 s. 718.113(1), the budget or a schedule attached to it must show 790 the amount budgeted for this maintenance. If, after turnover of 791 control of the association to the unit owners, any of the 792 expenses listed in s. 718.504(21) are not applicable, they do 793 need not need to be listed. 794 2.a. In addition to annual operating expenses, the budget 795 must include reserve accounts for capital expenditures and 796 deferred maintenance. These accounts must include, but are not 797 limited to, roof replacement, building painting, and pavement 798 resurfacing, regardless of the amount of deferred maintenance 799 expense or replacement cost, and any other item that has a 800 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 33 of 102 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 deferred maintenance expense or replacement cost that exceeds 801 $10,000. The amount to be reserved for an item is determined by 802 the association's most recent structural integrity reserve 803 study. If the amount to be reserved for an item is not in the 804 association's most recent structural inte grity reserve study or 805 the association has not completed a structural integrity reserve 806 study, the amount must be computed using a formula based upon 807 estimated remaining useful life and estimated replacement cost 808 or deferred maintenance expense of the each reserve item. The 809 association may adjust replacement reserve assessments annually 810 to take into account any changes in estimates or extension of 811 the useful life of a reserve item caused by deferred 812 maintenance. This subsection does not apply to an adopted budget 813 in which The members of a unit-owner controlled an association 814 may determine have determined, by a majority vote at a duly 815 called meeting of the association, to provide no reserves or 816 less reserves than required by this subsection. Effective July 817 1, 2024, the members of a unit -owner controlled association may 818 not determine to provide no reserves or less reserves than 819 required by this subsection for items listed in paragraph (g). 820 b. Before turnover of control of an association by a 821 developer to unit owners other than a developer under pursuant 822 to s. 718.301, the developer-controlled association developer 823 may not vote the voting interests allocated to its units to 824 waive the reserves or reduce the funding of the reserves through 825 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 34 of 102 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 the period expiring at the end of the second fiscal year after 826 the fiscal year in which the certificate of a surveyor and 827 mapper is recorded pursuant to s. 718.104(4)(e) or an instrument 828 that transfers title to a unit in the condominium which is not 829 accompanied by a recorded ass ignment of developer rights in 830 favor of the grantee of such unit is recorded, whichever occurs 831 first, after which time reserves may be waived or reduced only 832 upon the vote of a majority of all nondeveloper voting interests 833 voting in person or by limited pr oxy at a duly called meeting of 834 the association. If a meeting of the unit owners has been called 835 to determine whether to waive or reduce the funding of reserves 836 and no such result is achieved or a quorum is not attained, the 837 reserves included in the budget shall go into effect. After the 838 turnover, the developer may vote its voting interest to waive or 839 reduce the funding of reserves. 840 3. Reserve funds and any interest accruing thereon shall 841 remain in the reserve account or accounts, and may be used only 842 for authorized reserve expenditures unless their use for other 843 purposes is approved in advance by a majority vote at a duly 844 called meeting of the association. Before turnover of control of 845 an association by a developer to unit owners other than the 846 developer pursuant to s. 718.301, the developer -controlled 847 association may not vote to use reserves for purposes other than 848 those for which they were intended . Effective July 1, 2024, 849 members of a unit-owner controlled association may not vote to 850 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 35 of 102 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 use reserve funds, or any interest accruing thereon, that are 851 reserved for items listed in paragraph (g) for any other purpose 852 other than their intended purpose without the approval of a 853 majority of all nondeveloper voting interests, voting in person 854 or by limited proxy at a duly called meeting of the association . 855 4. The only voting interests that are eligible to vote on 856 questions that involve waiving or reducing the funding of 857 reserves, or using existing reserve funds for purposes other 858 than purposes for which the reserves were intended, are the 859 voting interests of the units subject to assessment to fund the 860 reserves in question. Proxy questions relating to waiving or 861 reducing the funding of reserves or using existing reserve funds 862 for purposes other than purposes for which the reserves were 863 intended must contain the following statement in capitalized, 864 bold letters in a font size larger than any other used on the 865 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 866 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESE RVES MAY 867 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED 868 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 869 (g) Structural integrity reserve study. — 870 1. An association must have a structural integrity reserve 871 study completed at least every 10 years after the condominium's 872 creation for each building on the condominium property that is 873 three stories or higher in height which includes, at a minimum, 874 a study of the following items as related to the structural 875 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 36 of 102 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 integrity and safety of the building: 876 a. Roof. 877 b. Load-bearing walls or other primary structural members. 878 c. Floor. 879 d. Foundation. 880 e. Fireproofing and fire protection systems. 881 f. Plumbing. 882 g. Electrical systems. 883 h. Waterproofing and exterior painting. 884 i. Windows. 885 j. Any other item that has a deferred maintenance expense 886 or replacement cost that exceeds $10,000 and the failure to 887 replace or maintain such item negatively affects the items 888 listed in subparagraphs a. -i., as determined by the licensed 889 engineer or architect performing th e visual inspection portion 890 of the structural integrity reserve study. 891 2. Before a developer turns over control of an association 892 to unit owners other than the developer, the developer must have 893 a structural integrity reserve study completed for each bui lding 894 on the condominium property that is three stories or higher in 895 height. 896 3. Associations existing on or before July 1, 2022, which 897 are controlled by unit owners other than the developer, must 898 have a structural integrity reserve study completed by Jul y 1, 899 2024, for each building on the condominium property that is 900 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 37 of 102 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 three stories or higher in height. 901 4. If an association fails to complete a structural 902 integrity reserve study pursuant to this paragraph, such failure 903 is a breach of an officer's and direc tor's fiduciary 904 relationship to the unit owners under s. 718.111(1). 905 Section 7. Paragraph (f) of subsection (8) of section 906 718.116, Florida Statutes, is amended to read: 907 718.116 Assessments; liability; lien and priority; 908 interest; collection. — 909 (8) Within 10 business days after receiving a written or 910 electronic request therefor from a unit owner or the unit 911 owner's designee, or a unit mortgagee or the unit mortgagee's 912 designee, the association shall issue the estoppel certificate. 913 Each association shall designate on its website a person or 914 entity with a street or e -mail address for receipt of a request 915 for an estoppel certificate issued pursuant to this section. The 916 estoppel certificate must be provided by hand delivery, regular 917 mail, or e-mail to the requestor on the date of issuance of the 918 estoppel certificate. 919 (f) Notwithstanding any limitation on transfer fees 920 contained in s. 718.112(2)(j) s. 718.112(2)(i), an association 921 or its authorized agent may charge a reasonable fee for the 922 preparation and delivery of an estoppel certificate, which may 923 not exceed $250, if, on the date the certificate is issued, no 924 delinquent amounts are owed to the association for the 925 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 38 of 102 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 applicable unit. If an estoppel certificate is requested on an 926 expedited basis and deliver ed within 3 business days after the 927 request, the association may charge an additional fee of $100. 928 If a delinquent amount is owed to the association for the 929 applicable unit, an additional fee for the estoppel certificate 930 may not exceed $150. 931 Section 8. Paragraph (c) of subsection (2) of section 932 718.117, Florida Statutes, is redesignated as paragraph (d), 933 paragraph (b) of subsection (8) is amended, and a new paragraph 934 (c) is added to subsection (2) of that section, to read: 935 718.117 Termination of condo minium.— 936 (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR 937 IMPOSSIBILITY.— 938 (c)1. Notwithstanding paragraph (a), a condominium that 939 has a building that has received a phase 2 inspection under s. 940 718.132 with recommended repairs for substantial structural 941 deterioration, as defined in s. 718.132(1), that exceed 65 942 percent of the combined fair market value of the units in the 943 condominium after completion of the construction or repairs may 944 be terminated pursuant to a plan of termination approved by a 945 majority of the total voting interests of the condominium. Such 946 termination must be approved at a properly called meeting of the 947 association with the voting interests voting in person or by 948 limited proxy. A bulk owner has the same number of voting 949 interests as a singl e unit owner under this paragraph. For 950 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 39 of 102 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 purposes of this paragraph, the term "bulk owner" has the same 951 meaning as in paragraph (3)(c). 952 2. Written notice of the meeting must include an agenda 953 that conspicuously states that a plan of termination of the 954 condominium will be considered. The written notice must be 955 mailed, hand delivered, or electronically transmitted to each 956 unit owner at least 14 days before the meeting and must be 957 posted in a conspicuous place on the condominium property or the 958 association property at least 14 continuous days before the 959 meeting. 960 3. The fair market value of the units in the condominium 961 must be determined by an independent appraiser selected by the 962 termination trustee no earlier than 90 days before the date on 963 which the plan of termination is recorded. 964 (8) REPORTS AND REPLACEMENT OF RECEIVER. — 965 (b) The unit owners of an association in termination may 966 recall or remove members of the board of administration with or 967 without cause at any time as provided in s. 718.112(2)(k) s. 968 718.112(2)(j). 969 Section 9. Section 718.132, Florida Statutes, is created 970 to read: 971 718.132 Building recertification. — 972 (1) As used in this section, the term: 973 (a) "Coastline" has the same meaning as in the Submerged 974 Lands Act, 43 U.S.C. s. 1301(c). 975 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 40 of 102 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) "Phase 2 inspection" means an inspection that includes 976 destructive and nondestructive testing at the discretion of the 977 person performing the inspection and a written report of such 978 inspection. A phase 2 inspection must be performed by an 979 engineer licensed under chapter 471 or an architect licensed 980 under chapter 481. 981 (c) "Recertification" or "recertify" means a visual 982 inspection of a building's general structural condition and the 983 general condition of its electrical system, including a written 984 report of such inspection, performed by an engineer licensed 985 under chapter 471 or an architect licensed under chapter 481. 986 (d) "Substantial structural deterioration" means 987 substantial structural distress that negatively affects a 988 building's general structural con dition and integrity. Surface 989 imperfections such as cracks, distortion, sagging, deflections, 990 misalignment, signs of leakage, or peeling of finishes are not 991 considered substantial structural deterioration unless the 992 licensed engineer or architect performin g the recertification or 993 phase 2 inspection determines that such surface imperfections 994 are a sign of substantial structural distress. 995 (e) "Visual inspection" means a visual examination of the 996 items listed in s. 718.112(2)(g). 997 (2)(a) An association must have any building on 998 condominium property that is three stories or higher in height 999 and that has been occupied for at least 30 years, or 25 years if 1000 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 41 of 102 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 the building is within 3 miles of the coastline of the state, 1001 recertified as determined by the local build ing official. 1002 (b) An association must have any building on condominium 1003 property that is required to be recertified under paragraph (a) 1004 recertified at least every 10 years after its first 1005 recertification. 1006 (3) Upon determining that a building on condomin ium 1007 property must be recertified, the local building official must 1008 provide written notice of such required recertification to the 1009 association by certified mail, return receipt requested. 1010 (4)(a) Within 90 days after receiving the written notice 1011 under subsection (3), or within 180 days if the association 1012 receives the written notice before July 1, 2023, the association 1013 or the association's manager must provide the written 1014 recertification report by e -mail, United States Postal Service, 1015 or commercial delivery service to the local building official 1016 and state the date on which the association received such report 1017 from the licensed engineer or architect who performed the 1018 recertification. 1019 (b) Within 14 days after receiving the written 1020 recertification report from the licensed engineer or architect 1021 who performed the recertification, the association must provide 1022 the written recertification report by e -mail, United States 1023 Postal Service, or commercial delivery service to each unit 1024 owner. 1025 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 42 of 102 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 (5) Upon completing a recert ification, the licensed 1026 engineer or architect who performed the recertification must 1027 provide a written recertification report by e -mail, United 1028 States Postal Service, or commercial delivery service to the 1029 association. The written recertification report mus t, at a 1030 minimum: 1031 (a) Bear the seal and signature, or the electronic 1032 signature, of the licensed engineer or architect who performed 1033 the inspection. 1034 (b) Indicate the manner and type of inspection forming the 1035 basis for the written recertification report a nd a description 1036 of any items identified as requiring further inspection or 1037 remedial action. 1038 (c) Indicate whether there is damage to the items listed 1039 in s. 718.112(2)(g), within a reasonable professional 1040 probability based on the scope of the inspection, and list any 1041 recommended repairs for such damage. 1042 (d) Indicate whether there is substantial structural 1043 deterioration within a reasonable professional probability based 1044 on the scope of the inspection. 1045 (e) State whether unsafe or dangerous conditions, as those 1046 terms are defined in the Florida Building Code, were observed. 1047 (6)(a) If a written recertification report indicates that 1048 there is substantial structural deterioration within a 1049 reasonable professional probability based on the scope of the 1050 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 43 of 102 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 inspection, the local building official must provide written 1051 notice to the association by certified mail, return receipt 1052 requested, that the association must have a phase 2 inspection 1053 performed. 1054 (b) Within 60 days after receiving the written notice 1055 under paragraph (a), the association must provide written notice 1056 to the local building official by e -mail, United States Postal 1057 Service, or commercial delivery service that includes the start 1058 date of the phase 2 inspection and the name and contact 1059 information of the licensed engineer or architect who will 1060 perform the phase 2 inspection. 1061 (c) The written phase 2 inspection report must, at a 1062 minimum: 1063 1. Bear the seal and signature, or the electronic 1064 signature, of the licensed engineer or architect who performed 1065 the inspection. 1066 2. Indicate the manner and type of inspection forming the 1067 basis for the written report. 1068 3. State whether there is substantial structural 1069 deterioration, within a reasonable professional probability 1070 based on the scope of the inspection, and the extent of such 1071 deterioration and list any recommended repairs for such 1072 deterioration. 1073 4. State whether unsafe or dangerous conditions, as those 1074 terms are defined in the Florida Building Code, were observed. 1075 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 44 of 102 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 (d) The licensed engineer or architec t performing the 1076 phase 2 inspection must provide the written phase 2 inspection 1077 report by e-mail, United States Postal Service, or commercial 1078 delivery service to the local building official and the 1079 association upon completion. 1080 (e) Within 14 days after re ceiving the written phase 2 1081 inspection report from the licensed engineer or architect who 1082 performed the phase 2 inspection, the association must provide 1083 the written phase 2 inspection report by e -mail, United States 1084 Postal Service, or commercial delivery s ervice to each unit 1085 owner. 1086 (7)(a) A local building official may prescribe penalties, 1087 which must be posted on the building department's website, for 1088 failure to comply with this section. 1089 (b) If an association fails to schedule or begin repairs 1090 that are identified in the written phase 2 inspection report 1091 within a time period to be determined by the county 1092 commissioners of the county where the building is located, which 1093 time period may not exceed 365 days after the local building 1094 official receives the writ ten phase 2 inspection report, the 1095 local building official must determine that the building is 1096 unsafe for human occupancy until such repairs are scheduled or 1097 begin. 1098 (8) If an association fails to complete a recertification 1099 or phase 2 inspection pursuant to this section, such failure is 1100 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 45 of 102 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 breach of an officer's and director's fiduciary relationship 1101 to the unit owners under s. 718.111(1). 1102 Section 10. Paragraphs (r), (s), and (t) are added to 1103 subsection (4) of section 718.301, Florida Statutes, to read: 1104 718.301 Transfer of association control; claims of defect 1105 by association.— 1106 (4) At the time that unit owners other than the developer 1107 elect a majority of the members of the board of administration 1108 of an association, the developer shall relinquish contro l of the 1109 association, and the unit owners shall accept control. 1110 Simultaneously, or for the purposes of paragraph (c) not more 1111 than 90 days thereafter, the developer shall deliver to the 1112 association, at the developer's expense, all property of the 1113 unit owners and of the association which is held or controlled 1114 by the developer, including, but not limited to, the following 1115 items, if applicable, as to each condominium operated by the 1116 association: 1117 (r) A copy of the association's most recent structural 1118 integrity reserve study. 1119 (s) If a building on the condominium property must be 1120 recertified under s. 718.132, a copy of the association's most 1121 recent written recertification report. 1122 (t) If a building on the condominium property must have a 1123 phase 2 inspection pe rformed under s. 718.132, a copy of the 1124 association's most recent written phase 2 inspection report. 1125 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 46 of 102 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 11. Subsection (1) of section 718.501, Florida 1126 Statutes, is amended, and subsection (3) is added to that 1127 section, to read: 1128 718.501 Authority, responsibility, and duties of Division 1129 of Florida Condominiums, Timeshares, and Mobile Homes. — 1130 (1) The division may enforce and ensure compliance with 1131 this chapter and rules relating to the development, 1132 construction, sale, lease, ownership, operation, a nd management 1133 of residential condominium units. In performing its duties, the 1134 division has complete jurisdiction to investigate complaints and 1135 enforce compliance with respect to associations that are still 1136 under developer control or the control of a bulk a ssignee or 1137 bulk buyer pursuant to part VII of this chapter and complaints 1138 against developers, bulk assignees, or bulk buyers involving 1139 improper turnover or failure to turnover, pursuant to s. 1140 718.301. However, after turnover has occurred, the division has 1141 jurisdiction to investigate complaints related only to financial 1142 issues, elections, and the maintenance of and unit owner access 1143 to association records under s. 718.111(12) , and the procedural 1144 completion of structural integrity reserve studies under s. 1145 718.112(2)(g) and recertifications and phase 2 inspections under 1146 s. 718.132. 1147 (a)1. The division may make necessary public or private 1148 investigations within or outside this state to determine whether 1149 any person has violated this chapter or any rule or order 1150 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 47 of 102 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 hereunder, to aid in the enforcement of this chapter, or to aid 1151 in the adoption of rules or forms. 1152 2. The division may submit any official written report, 1153 worksheet, or other related paper, or a duly certified copy 1154 thereof, compiled, prepared, drafted, or otherwise made by and 1155 duly authenticated by a financial examiner or analyst to be 1156 admitted as competent evidence in any hearing in which the 1157 financial examiner or analyst is available for cross -examination 1158 and attests under oath that such documents were p repared as a 1159 result of an examination or inspection conducted pursuant to 1160 this chapter. 1161 (b) The division may require or permit any person to file 1162 a statement in writing, under oath or otherwise, as the division 1163 determines, as to the facts and circumstanc es concerning a 1164 matter to be investigated. 1165 (c) For the purpose of any investigation under this 1166 chapter, the division director or any officer or employee 1167 designated by the division director may administer oaths or 1168 affirmations, subpoena witnesses and comp el their attendance, 1169 take evidence, and require the production of any matter which is 1170 relevant to the investigation, including the existence, 1171 description, nature, custody, condition, and location of any 1172 books, documents, or other tangible things and the id entity and 1173 location of persons having knowledge of relevant facts or any 1174 other matter reasonably calculated to lead to the discovery of 1175 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 48 of 102 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 material evidence. Upon the failure by a person to obey a 1176 subpoena or to answer questions propounded by the investigatin g 1177 officer and upon reasonable notice to all affected persons, the 1178 division may apply to the circuit court for an order compelling 1179 compliance. 1180 (d) Notwithstanding any remedies available to unit owners 1181 and associations, if the division has reasonable cause to 1182 believe that a violation of any provision of this chapter or 1183 related rule has occurred, the division may institute 1184 enforcement proceedings in its own name against any developer, 1185 bulk assignee, bulk buyer, association, officer, or member of 1186 the board of administration, or its assignees or agents, as 1187 follows: 1188 1. The division may permit a person whose conduct or 1189 actions may be under investigation to waive formal proceedings 1190 and enter into a consent proceeding whereby orders, rules, or 1191 letters of censure or warning, whether formal or informal, may 1192 be entered against the person. 1193 2. The division may issue an order requiring the 1194 developer, bulk assignee, bulk buyer, association, developer -1195 designated officer, or developer -designated member of the board 1196 of administration, developer -designated assignees or agents, 1197 bulk assignee-designated assignees or agents, bulk buyer -1198 designated assignees or agents, community association manager, 1199 or community association management firm to cease and desist 1200 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 49 of 102 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 from the unlawful practice and take such affirmative action as 1201 in the judgment of the division carry out the purposes of this 1202 chapter. If the division finds that a developer, bulk assignee, 1203 bulk buyer, association, officer, or member of the board of 1204 administration, or its as signees or agents, is violating or is 1205 about to violate any provision of this chapter, any rule adopted 1206 or order issued by the division, or any written agreement 1207 entered into with the division, and presents an immediate danger 1208 to the public requiring an imm ediate final order, it may issue 1209 an emergency cease and desist order reciting with particularity 1210 the facts underlying such findings. The emergency cease and 1211 desist order is effective for 90 days. If the division begins 1212 nonemergency cease and desist proceed ings, the emergency cease 1213 and desist order remains effective until the conclusion of the 1214 proceedings under ss. 120.569 and 120.57. 1215 3. If a developer, bulk assignee, or bulk buyer fails to 1216 pay any restitution determined by the division to be owed, plus 1217 any accrued interest at the highest rate permitted by law, 1218 within 30 days after expiration of any appellate time period of 1219 a final order requiring payment of restitution or the conclusion 1220 of any appeal thereof, whichever is later, the division must 1221 bring an action in circuit or county court on behalf of any 1222 association, class of unit owners, lessees, or purchasers for 1223 restitution, declaratory relief, injunctive relief, or any other 1224 available remedy. The division may also temporarily revoke its 1225 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 50 of 102 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 acceptance of the filing for the developer to which the 1226 restitution relates until payment of restitution is made. 1227 4. The division may petition the court for appointment of 1228 a receiver or conservator. If appointed, the receiver or 1229 conservator may take action to implement the court order to 1230 ensure the performance of the order and to remedy any breach 1231 thereof. In addition to all other means provided by law for the 1232 enforcement of an injunction or temporary restraining order, the 1233 circuit court may impound or sequester the pro perty of a party 1234 defendant, including books, papers, documents, and related 1235 records, and allow the examination and use of the property by 1236 the division and a court -appointed receiver or conservator. 1237 5. The division may apply to the circuit court for an 1238 order of restitution whereby the defendant in an action brought 1239 under subparagraph 4. is ordered to make restitution of those 1240 sums shown by the division to have been obtained by the 1241 defendant in violation of this chapter. At the option of the 1242 court, such restitution is payable to the conservator or 1243 receiver appointed under subparagraph 4. or directly to the 1244 persons whose funds or assets were obtained in violation of this 1245 chapter. 1246 6. The division may impose a civil penalty against a 1247 developer, bulk assignee, or bulk buyer, or association, or its 1248 assignee or agent, for any violation of this chapter or related 1249 rule. The division may impose a civil penalty individually 1250 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 51 of 102 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 against an officer or board member who willfully and knowingly 1251 violates this chapter, an adopt ed rule, or a final order of the 1252 division; may order the removal of such individual as an officer 1253 or from the board of administration or as an officer of the 1254 association; and may prohibit such individual from serving as an 1255 officer or on the board of a comm unity association for a period 1256 of time. The term "willfully and knowingly" means that the 1257 division informed the officer or board member that his or her 1258 action or intended action violates this chapter, a rule adopted 1259 under this chapter, or a final order of the division and that 1260 the officer or board member refused to comply with the 1261 requirements of this chapter, a rule adopted under this chapter, 1262 or a final order of the division. The division, before 1263 initiating formal agency action under chapter 120, must aff ord 1264 the officer or board member an opportunity to voluntarily 1265 comply, and an officer or board member who complies within 10 1266 days is not subject to a civil penalty. A penalty may be imposed 1267 on the basis of each day of continuing violation, but the 1268 penalty for any offense may not exceed $5,000. The division 1269 shall adopt, by rule, penalty guidelines applicable to possible 1270 violations or to categories of violations of this chapter or 1271 rules adopted by the division. The guidelines must specify a 1272 meaningful range of civil penalties for each such violation of 1273 the statute and rules and must be based upon the harm caused by 1274 the violation, the repetition of the violation, and upon such 1275 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 52 of 102 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 other factors deemed relevant by the division. For example, the 1276 division may consider whether the violations were committed by a 1277 developer, bulk assignee, or bulk buyer, or owner -controlled 1278 association, the size of the association, and other factors. The 1279 guidelines must designate the possible mitigating or aggravating 1280 circumstances that jus tify a departure from the range of 1281 penalties provided by the rules. It is the legislative intent 1282 that minor violations be distinguished from those which endanger 1283 the health, safety, or welfare of the condominium residents or 1284 other persons and that such gui delines provide reasonable and 1285 meaningful notice to the public of likely penalties that may be 1286 imposed for proscribed conduct. This subsection does not limit 1287 the ability of the division to informally dispose of 1288 administrative actions or complaints by stipu lation, agreed 1289 settlement, or consent order. All amounts collected shall be 1290 deposited with the Chief Financial Officer to the credit of the 1291 Division of Florida Condominiums, Timeshares, and Mobile Homes 1292 Trust Fund. If a developer, bulk assignee, or bulk bu yer fails 1293 to pay the civil penalty and the amount deemed to be owed to the 1294 association, the division shall issue an order directing that 1295 such developer, bulk assignee, or bulk buyer cease and desist 1296 from further operation until such time as the civil penal ty is 1297 paid or may pursue enforcement of the penalty in a court of 1298 competent jurisdiction. If an association fails to pay the civil 1299 penalty, the division shall pursue enforcement in a court of 1300 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 53 of 102 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 competent jurisdiction, and the order imposing the civil penalty 1301 or the cease and desist order is not effective until 20 days 1302 after the date of such order. Any action commenced by the 1303 division shall be brought in the county in which the division 1304 has its executive offices or in the county where the violation 1305 occurred. 1306 7. If a unit owner presents the division with proof that 1307 the unit owner has requested access to official records in 1308 writing by certified mail, and that after 10 days the unit owner 1309 again made the same request for access to official records in 1310 writing by certified mail, and that more than 10 days has 1311 elapsed since the second request and the association has still 1312 failed or refused to provide access to official records as 1313 required by this chapter, the division shall issue a subpoena 1314 requiring production of th e requested records where the records 1315 are kept pursuant to s. 718.112. 1316 8. In addition to subparagraph 6., the division may seek 1317 the imposition of a civil penalty through the circuit court for 1318 any violation for which the division may issue a notice to sho w 1319 cause under paragraph (r). The civil penalty shall be at least 1320 $500 but no more than $5,000 for each violation. The court may 1321 also award to the prevailing party court costs and reasonable 1322 attorney fees and, if the division prevails, may also award 1323 reasonable costs of investigation. 1324 (e) The division may prepare and disseminate a prospectus 1325 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 54 of 102 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 and other information to assist prospective owners, purchasers, 1326 lessees, and developers of residential condominiums in assessing 1327 the rights, privileges, and duties per taining thereto. 1328 (f) The division may adopt rules to administer and enforce 1329 this chapter. 1330 (g) The division shall establish procedures for providing 1331 notice to an association and the developer, bulk assignee, or 1332 bulk buyer during the period in which the developer, bulk 1333 assignee, or bulk buyer controls the association if the division 1334 is considering the issuance of a declaratory statement with 1335 respect to the declaration of condominium or any related 1336 document governing such condominium community. 1337 (h) The division shall furnish each association that pays 1338 the fees required by paragraph (2)(a) a copy of this chapter, as 1339 amended, and the rules adopted thereto on an annual basis. 1340 (i) The division shall annually provide each association 1341 with a summary of declar atory statements and formal legal 1342 opinions relating to the operations of condominiums which were 1343 rendered by the division during the previous year. 1344 (j) The division shall provide training and educational 1345 programs for condominium association board members and unit 1346 owners. The training may, in the division's discretion, include 1347 web-based electronic media, and live training and seminars in 1348 various locations throughout the state. The division may review 1349 and approve education and training programs for board me mbers 1350 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 55 of 102 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 and unit owners offered by providers and shall maintain a 1351 current list of approved programs and providers and make such 1352 list available to board members and unit owners in a reasonable 1353 and cost-effective manner. 1354 (k) The division shall maintain a tol l-free telephone 1355 number accessible to condominium unit owners. 1356 (l) The division shall develop a program to certify both 1357 volunteer and paid mediators to provide mediation of condominium 1358 disputes. The division shall provide, upon request, a list of 1359 such mediators to any association, unit owner, or other 1360 participant in alternative dispute resolution proceedings under 1361 s. 718.1255 requesting a copy of the list. The division shall 1362 include on the list of volunteer mediators only the names of 1363 persons who have rec eived at least 20 hours of training in 1364 mediation techniques or who have mediated at least 20 disputes. 1365 In order to become initially certified by the division, paid 1366 mediators must be certified by the Supreme Court to mediate 1367 court cases in county or circuit courts. However, the division 1368 may adopt, by rule, additional factors for the certification of 1369 paid mediators, which must be related to experience, education, 1370 or background. Any person initially certified as a paid mediator 1371 by the division must, in order t o continue to be certified, 1372 comply with the factors or requirements adopted by rule. 1373 (m) If a complaint is made, the division must conduct its 1374 inquiry with due regard for the interests of the affected 1375 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 56 of 102 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 parties. Within 30 days after receipt of a complaint, the 1376 division shall acknowledge the complaint in writing and notify 1377 the complainant whether the complaint is within the jurisdiction 1378 of the division and whether additional information is needed by 1379 the division from the complainant. The division shall condu ct 1380 its investigation and, within 90 days after receipt of the 1381 original complaint or of timely requested additional 1382 information, take action upon the complaint. However, the 1383 failure to complete the investigation within 90 days does not 1384 prevent the division from continuing the investigation, 1385 accepting or considering evidence obtained or received after 90 1386 days, or taking administrative action if reasonable cause exists 1387 to believe that a violation of this chapter or a rule has 1388 occurred. If an investigation is n ot completed within the time 1389 limits established in this paragraph, the division shall, on a 1390 monthly basis, notify the complainant in writing of the status 1391 of the investigation. When reporting its action to the 1392 complainant, the division shall inform the com plainant of any 1393 right to a hearing under ss. 120.569 and 120.57. The division 1394 may adopt rules regarding the submission of a complaint against 1395 an association. 1396 (n) Condominium association directors, officers, and 1397 employees; condominium developers; bulk ass ignees, bulk buyers, 1398 and community association managers; and community association 1399 management firms have an ongoing duty to reasonably cooperate 1400 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 57 of 102 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 with the division in any investigation under this section. The 1401 division shall refer to local law enforcement au thorities any 1402 person whom the division believes has altered, destroyed, 1403 concealed, or removed any record, document, or thing required to 1404 be kept or maintained by this chapter with the purpose to impair 1405 its verity or availability in the department's investi gation. 1406 (o) The division may: 1407 1. Contract with agencies in this state or other 1408 jurisdictions to perform investigative functions; or 1409 2. Accept grants-in-aid from any source. 1410 (p) The division shall cooperate with similar agencies in 1411 other jurisdictions to establish uniform filing procedures and 1412 forms, public offering statements, advertising standards, and 1413 rules and common administrative practices. 1414 (q) The division shall consider notice to a developer, 1415 bulk assignee, or bulk buyer to be complete when it is delivered 1416 to the address of the developer, bulk assignee, or bulk buyer 1417 currently on file with the division. 1418 (r) In addition to its enforcement authority, the division 1419 may issue a notice to show cause, which must provide for a 1420 hearing, upon writte n request, in accordance with chapter 120. 1421 (s) The division shall submit to the Governor, the 1422 President of the Senate, the Speaker of the House of 1423 Representatives, and the chairs of the legislative 1424 appropriations committees an annual report that includes , but 1425 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 58 of 102 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 need not be limited to, the number of training programs provided 1426 for condominium association board members and unit owners, the 1427 number of complaints received by type, the number and percent of 1428 complaints acknowledged in writing within 30 days and the number 1429 and percent of investigations acted upon within 90 days in 1430 accordance with paragraph (m), and the number of investigations 1431 exceeding the 90-day requirement. The annual report must also 1432 include an evaluation of the division's core business processes 1433 and make recommendations for improvements, including statutory 1434 changes. The report shall be submitted by September 30 following 1435 the end of the fiscal year. 1436 (3)(a) On or before January 1, 2023, condominium 1437 associations existing on or before July 1, 2022, must provide 1438 the following information to the division in writing, by e -mail, 1439 United States Postal Service, commercial delivery service, or 1440 hand delivery, at a physical address or e -mail address provided 1441 by the division and on a form posted on the divisio n's website: 1442 1. The number of buildings on the condominium property 1443 that are three stories or higher in height. 1444 2. The total number of units in all such buildings. 1445 3. The addresses of all such buildings. 1446 4. The counties in which all such buildings are located. 1447 (b) The division must compile a list of the number of 1448 buildings on condominium property that are three stories or 1449 higher in height, which is searchable by county, and must post 1450 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 59 of 102 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 the list on the division's website. This list must include all 1451 of the following information: 1452 1. The name of each association with buildings on the 1453 condominium property that are three stories or higher in height. 1454 2. The number of such buildings on each association's 1455 property. 1456 3. The addresses of all such buildings. 1457 4. The counties in which all such buildings are located. 1458 (c) An association must provide an update in writing to 1459 the division if there are any changes to the information in the 1460 list under paragraph (b) within 6 months after the change. 1461 Section 12. Paragraphs (b) and (c) of subsection (2) of 1462 section 718.503, Florida Statutes, are redesignated as 1463 paragraphs (c) and (d), respectively, and paragraph (b) of 1464 subsection (1) and paragraph (a) of subsection (2) are amended 1465 to read: 1466 718.503 Developer disclosure before prior to sale; 1467 nondeveloper unit owner disclosure before prior to sale; 1468 voidability.— 1469 (1) DEVELOPER DISCLOSURE. — 1470 (b) Copies of documents to be furnished to prospective 1471 buyer or lessee.—Until such time as the developer has furnish ed 1472 the documents listed below to a person who has entered into a 1473 contract to purchase a residential unit or lease it for more 1474 than 5 years, the contract may be voided by that person, 1475 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 60 of 102 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 entitling the person to a refund of any deposit together with 1476 interest thereon as provided in s. 718.202. The contract may be 1477 terminated by written notice from the proposed buyer or lessee 1478 delivered to the developer within 15 days after the buyer or 1479 lessee receives all of the documents required by this section. 1480 The developer may not close for 15 days after following the 1481 execution of the agreement and delivery of the documents to the 1482 buyer as evidenced by a signed receipt for documents unless the 1483 buyer is informed in the 15 -day voidability period and agrees to 1484 close before prior to the expiration of the 15 days. The 1485 developer shall retain in his or her records a separate 1486 agreement signed by the buyer as proof of the buyer's agreement 1487 to close before prior to the expiration of the said voidability 1488 period. Such Said proof must shall be retained for a period of 5 1489 years after the date of the closing of the transaction. The 1490 documents to be delivered to the prospective buyer are the 1491 prospectus or disclosure statement with all exhibits, if the 1492 development is subject to the provisions of s. 718.504, or, if 1493 not, then copies of the following which are applicable: 1494 1. The question and answer sheet described in s. 718.504, 1495 and declaration of condominium, or the proposed declaration if 1496 the declaration has not been recorded, which shall include the 1497 certificate of a surveyor approximately representing the 1498 locations required by s. 718.104. 1499 2. The documents creating the association. 1500 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 61 of 102 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 3. The bylaws. 1501 4. The ground lease or other underlying lease of the 1502 condominium. 1503 5. The management contract, m aintenance contract, and 1504 other contracts for management of the association and operation 1505 of the condominium and facilities used by the unit owners having 1506 a service term in excess of 1 year, and any management contracts 1507 that are renewable. 1508 6. The estimated operating budget for the condominium and 1509 a schedule of expenses for each type of unit, including fees 1510 assessed under pursuant to s. 718.113(1) for the maintenance of 1511 limited common elements where such costs are shared only by 1512 those entitled to use the limited common elements. 1513 7. The lease of recreational and other facilities that 1514 will be used only by unit owners of the subject co ndominium. 1515 8. The lease of recreational and other common facilities 1516 that will be used by unit owners in common with unit owners of 1517 other condominiums. 1518 9. The form of unit lease if the offer is of a leasehold. 1519 10. Any declaration of servitude of prope rties serving the 1520 condominium but not owned by unit owners or leased to them or 1521 the association. 1522 11. If the development is to be built in phases or if the 1523 association is to manage more than one condominium, a 1524 description of the plan of phase development or the arrangements 1525 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 62 of 102 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 for the association to manage two or more condominiums. 1526 12. If the condominium is a conversion of existing 1527 improvements, the statements and disclosure required by s. 1528 718.616. 1529 13. The form of agreement for sale or lease of units. 1530 14. A copy of the floor plan of the unit and the plot plan 1531 showing the location of the residential buildings and the 1532 recreation and other common areas. 1533 15. A copy of all covenants and restrictions that which 1534 will affect the use of the property and which are not contained 1535 in the foregoing. 1536 16. If the developer is required by state or local 1537 authorities to obtain acceptance or approval of any dock or 1538 marina facilities intended to serve the condominium, a copy of 1539 any such acceptance or approval acquired by t he time of filing 1540 with the division under s. 718.502(1), or a statement that such 1541 acceptance or approval has not been acquired or received. 1542 17. Evidence demonstrating that the developer has an 1543 ownership, leasehold, or contractual interest in the land upo n 1544 which the condominium is to be developed. 1545 18. A copy of the association's most recent structural 1546 integrity reserve study or a statement that the association has 1547 not completed a structural integrity reserve study. 1548 19. If the unit is located in a build ing on the 1549 condominium property that must be recertified under s. 718.132, 1550 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 63 of 102 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 copy of the association's most recent written recertification 1551 report or a statement that the association has not completed the 1552 required recertification. 1553 20. If the unit is locat ed in a building on the 1554 condominium property that must have a phase 2 inspection 1555 performed under s. 718.132, a copy of the association's most 1556 recent written phase 2 inspection report or a statement that the 1557 association has not completed the required phase 2 inspection. 1558 (2) NONDEVELOPER DISCLOSURE. — 1559 (a) Each unit owner who is not a developer as defined by 1560 this chapter must shall comply with the provisions of this 1561 subsection before prior to the sale of his or her unit. Each 1562 prospective purchaser who has entered into a contract for the 1563 purchase of a condominium unit is entitled, at the seller's 1564 expense, to a current copy of all of the following: 1565 1. The declaration of condominium ., 1566 2. Articles of incorporation of the association ., 1567 3. Bylaws and rules of the association ., 1568 4. Financial information required by s. 718.111 ., 1569 5. The association's most recent structural integrity 1570 reserve study or a statement that the association has not 1571 completed a structural integrity reserve study. 1572 6. If the unit is located in a building on the condominium 1573 property that must be recertified under s. 718.132, the 1574 association's most recent written recertification report or a 1575 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 64 of 102 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 statement that the association has not completed the required 1576 recertification. 1577 7. If the unit is located in a building on the condominium 1578 property that must have a phase 2 inspection performed under s. 1579 718.132, the association's most recent written phase 2 1580 inspection report or a statemen t that the association has not 1581 completed the required phase 2 inspection. and 1582 8. The document entitled "Frequently Asked Questions and 1583 Answers" required by s. 718.504. 1584 (b) On and after January 1, 2009, The prospective 1585 purchaser is shall also be entitled to receive from the seller a 1586 copy of a governance form. Such form shall be provided by the 1587 division summarizing governance of condominium associations. In 1588 addition to such other information as the division considers 1589 helpful to a prospective purchaser in understanding association 1590 governance, the governance form shall address the following 1591 subjects: 1592 1. The role of the board in conducting the day -to-day 1593 affairs of the association on behalf of, and in the best 1594 interests of, the owners. 1595 2. The board's resp onsibility to provide advance notice of 1596 board and membership meetings. 1597 3. The rights of owners to attend and speak at board and 1598 membership meetings. 1599 4. The responsibility of the board and of owners with 1600 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 65 of 102 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 respect to maintenance of the condominium propert y. 1601 5. The responsibility of the board and owners to abide by 1602 the condominium documents, this chapter, rules adopted by the 1603 division, and reasonable rules adopted by the board. 1604 6. Owners' rights to inspect and copy association records 1605 and the limitations on such rights. 1606 7. Remedies available to owners with respect to actions by 1607 the board which may be abusive or beyond the board's power and 1608 authority. 1609 8. The right of the board to hire a property management 1610 firm, subject to its own primary responsibili ty for such 1611 management. 1612 9. The responsibility of owners with regard to payment of 1613 regular or special assessments necessary for the operation of 1614 the property and the potential consequences of failure to pay 1615 such assessments. 1616 10. The voting rights of own ers. 1617 11. Rights and obligations of the board in enforcement of 1618 rules in the condominium documents and rules adopted by the 1619 board. 1620 1621 The governance form must shall also include the following 1622 statement in conspicuous type: "This publication is intended as 1623 an informal educational overview of condominium governance. In 1624 the event of a conflict, the provisions of chapter 718, Florida 1625 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 66 of 102 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 Statutes, rules adopted by the Division of Florida Condominiums, 1626 Timeshares, and Mobile Homes of the Department of Business and 1627 Professional Regulation, the provisions of the condominium 1628 documents, and reasonable rules adopted by the condominium 1629 association's board of administration prevail over the contents 1630 of this publication." 1631 Section 13. Paragraph (f) of subsection (24) of se ction 1632 718.504, Florida Statutes, is amended, and paragraphs (q) and 1633 (r) are added to that subsection, to read: 1634 718.504 Prospectus or offering circular. —Every developer 1635 of a residential condominium which contains more than 20 1636 residential units, or which i s part of a group of residential 1637 condominiums which will be served by property to be used in 1638 common by unit owners of more than 20 residential units, shall 1639 prepare a prospectus or offering circular and file it with the 1640 Division of Florida Condominiums, Tim eshares, and Mobile Homes 1641 prior to entering into an enforceable contract of purchase and 1642 sale of any unit or lease of a unit for more than 5 years and 1643 shall furnish a copy of the prospectus or offering circular to 1644 each buyer. In addition to the prospectus or offering circular, 1645 each buyer shall be furnished a separate page entitled 1646 "Frequently Asked Questions and Answers," which shall be in 1647 accordance with a format approved by the division and a copy of 1648 the financial information required by s. 718.111. This page 1649 shall, in readable language, inform prospective purchasers 1650 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 67 of 102 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 regarding their voting rights and unit use restrictions, 1651 including restrictions on the leasing of a unit; shall indicate 1652 whether and in what amount the unit owners or the association is 1653 obligated to pay rent or land use fees for recreational or other 1654 commonly used facilities; shall contain a statement identifying 1655 that amount of assessment which, pursuant to the budget, would 1656 be levied upon each unit type, exclusive of any special 1657 assessments, and which shall further identify the basis upon 1658 which assessments are levied, whether monthly, quarterly, or 1659 otherwise; shall state and identify any court cases in which the 1660 association is currently a party of record in which the 1661 association may face liabil ity in excess of $100,000; and which 1662 shall further state whether membership in a recreational 1663 facilities association is mandatory, and if so, shall identify 1664 the fees currently charged per unit type. The division shall by 1665 rule require such other disclosure as in its judgment will 1666 assist prospective purchasers. The prospectus or offering 1667 circular may include more than one condominium, although not all 1668 such units are being offered for sale as of the date of the 1669 prospectus or offering circular. The prospectus o r offering 1670 circular must contain the following information: 1671 (24) Copies of the following, to the extent they are 1672 applicable, shall be included as exhibits: 1673 (f) The estimated operating budget for the condominium , 1674 and the required schedule of unit owners ' expenses, and the 1675 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 68 of 102 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 association's most recent structural integrity reserve study or 1676 a statement that the association has not completed a structural 1677 integrity reserve study . 1678 (q) If the unit is located in a building on the 1679 condominium property that must be recertified under s. 718.132, 1680 the association's most recent written recertification report or 1681 a statement that the association has not completed the required 1682 recertification. 1683 (r) If the unit is located in a building on the 1684 condominium property that must have a phase 2 inspection 1685 performed under s. 718.132, the association's most recent 1686 written phase 2 inspection report or a statement that the 1687 association has not completed the required phase 2 inspection. 1688 Section 14. Subsections (21), (22), and (23) and (24) 1689 through (28) of section 719.103, Florida Statutes, are 1690 renumbered as subsections (22), (23), and (24) and (26) through 1691 (30), respectively, and new subsections (21) and (25) are added 1692 to that section to read: 1693 719.103 Definitions. —As used in this chapter: 1694 (21) "Primary structural member" has the same meaning as 1695 in s. 627.706(2). 1696 (25) "Structural integrity reserve study" means a study of 1697 the reserve funds required for future major repairs and 1698 replacement of the common areas based on a visual ins pection of 1699 the common areas. A structural integrity reserve study may be 1700 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 69 of 102 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 performed by any person qualified to perform such study. 1701 However, the visual inspection portion of the structural 1702 integrity reserve study must be performed by an engineer 1703 licensed under chapter 471 or an architect licensed under 1704 chapter 481. At a minimum, a structural integrity reserve study 1705 must identify the common areas being visually inspected, state 1706 the estimated remaining useful life and the estimated 1707 replacement cost or deferred maintenance expense of the common 1708 areas being visually inspected, and provide a recommended annual 1709 reserve amount that achieves the estimated replacement cost or 1710 deferred maintenance expense of each common area being visually 1711 inspected by the end of the es timated remaining useful life of 1712 each common area. 1713 Section 15. Subsection (1) of section 719.1035, Florida 1714 Statutes, is amended to read: 1715 719.1035 Creation of cooperatives. — 1716 (1) The date when cooperative existence shall commence is 1717 upon commencement of corporate existence of the cooperative 1718 association as provided in s. 607.0203. The cooperative 1719 documents must be recorded in the county in which the 1720 cooperative is located before property may be conveyed or 1721 transferred to the cooperative. All persons w ho have any record 1722 interest in any mortgage encumbering the interest in the land 1723 being submitted to cooperative ownership must either join in the 1724 execution of the cooperative documents or execute, with the 1725 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 70 of 102 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 requirements for deed, and record, a consent to th e cooperative 1726 documents or an agreement subordinating their mortgage interest 1727 to the cooperative documents. Upon creation of a cooperative, 1728 the developer or association shall file the recording 1729 information with the division within 30 working days on a form 1730 prescribed by the division. If the cooperative is subject to s. 1731 719.132 and has at least one building on the cooperative 1732 property that is three stories or higher in height, the 1733 developer or association must also provide information to the 1734 division indicating the number of buildings described in the 1735 recording information located on the cooperative property that 1736 are three stories or higher in height, the total number of units 1737 in all such buildings, and the addresses of all such buildings 1738 within 30 working da ys after creation of the cooperative on a 1739 form prescribed by the division. 1740 Section 16. Paragraph (a) of subsection (2) of section 1741 719.104, Florida Statutes, is amended to read: 1742 719.104 Cooperatives; access to units; records; financial 1743 reports; assessments; purchase of leases. — 1744 (2) OFFICIAL RECORDS. — 1745 (a) From the inception of the association, the association 1746 shall maintain a copy of each of the following, if where 1747 applicable, which shall constitute the official records of the 1748 association: 1749 1. The plans, permits, warranties, and other items 1750 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 71 of 102 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 provided by the developer pursuant to s. 719.301(4). 1751 2. A photocopy of the cooperative documents. 1752 3. A copy of the current rules of the association. 1753 4. A book or books containing the minutes of all meetings 1754 of the association, of the board of directors, and of the unit 1755 owners. 1756 5. A current roster of all unit owners and their mailing 1757 addresses, unit identifications, voting certifications, and, if 1758 known, telephone numbers. The association shall also maintain 1759 the e-mail addresses and the numbers designated by unit owners 1760 for receiving notice sent by electronic transmission of those 1761 unit owners consenting to receive notice by electronic 1762 transmission. The e-mail addresses and numbers provided by unit 1763 owners to receive notice by electronic transmission shall be 1764 removed from association records when consent to receive notice 1765 by electronic transmission is revoked. However, the association 1766 is not liable for an erroneous disclosure of the e -mail address 1767 or the number for receiving electronic transmission of notices. 1768 6. All current insurance policies of the association. 1769 7. A current copy of any management agreement, lease, or 1770 other contract to which the association is a party or under 1771 which the association or the un it owners have an obligation or 1772 responsibility. 1773 8. Bills of sale or transfer for all property owned by the 1774 association. 1775 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 72 of 102 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 9. Accounting records for the association and separate 1776 accounting records for each unit it operates, according to good 1777 accounting practices. The accounting records shall include, but 1778 not be limited to: 1779 a. Accurate, itemized, and detailed records of all 1780 receipts and expenditures. 1781 b. A current account and a monthly, bimonthly, or 1782 quarterly statement of the account for each unit desig nating the 1783 name of the unit owner, the due date and amount of each 1784 assessment, the amount paid upon the account, and the balance 1785 due. 1786 c. All audits, reviews, accounting statements, structural 1787 integrity reserve studies, and financial reports of the 1788 association. Structural integrity reserve studies must be 1789 maintained for at least 15 years after the study is completed. 1790 d. All contracts for work to be performed. Bids for work 1791 to be performed shall also be considered official records and 1792 shall be maintained for a period of 1 year. 1793 10. Ballots, sign-in sheets, voting proxies, and all other 1794 papers and electronic records relating to voting by unit owners, 1795 which shall be maintained for a period of 1 year after the date 1796 of the election, vote, or meeting to which the document relates. 1797 11. All rental records where the association is acting as 1798 agent for the rental of units. 1799 12. A copy of the current question and answer sheet as 1800 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 73 of 102 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 described in s. 719.504. 1801 13. All affirmative acknowledgments made pursuant to s. 1802 719.108(3)(b)3. 1803 14. All written recertification reports and written phase 1804 2 inspection reports as described in s. 719.132, if applicable, 1805 which must be permanently maintained. 1806 15.14. All other written records of the association not 1807 specifically include d in the foregoing which are related to the 1808 operation of the association. 1809 Section 17. Paragraphs (k) through (m) of subsection (1) 1810 of section 719.106, Florida Statutes, are redesignated as 1811 paragraphs (l) through (n), respectively, paragraph (j) of 1812 subsection (1) is amended, and a new paragraph (k) is added to 1813 subsection (1) of that section, to read: 1814 719.106 Bylaws; cooperative ownership. — 1815 (1) MANDATORY PROVISIONS. —The bylaws or other cooperative 1816 documents shall provide for the following, and if they do not, 1817 they shall be deemed to include the following: 1818 (j) Annual budget.— 1819 1. The proposed annual budget of common expenses must 1820 shall be detailed and must shall show the amounts budgeted by 1821 accounts and expense classifications, including, if applicab le, 1822 but not limited to, those expenses listed in s. 719.504(20). The 1823 board of administration shall adopt the annual budget at least 1824 14 days before prior to the start of the association's fiscal 1825 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 74 of 102 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 year. In the event that the board fails to timely adopt the 1826 annual budget a second time, it is shall be deemed a minor 1827 violation and the prior year's budget shall continue in effect 1828 until a new budget is adopted. 1829 2. In addition to annual operating expenses, the budget 1830 must shall include reserve accounts for capital expenditures and 1831 deferred maintenance. These accounts must shall include, but not 1832 be limited to, roof replacement, building painting, and pavement 1833 resurfacing, regardless of the amount of deferred maintenance 1834 expense or replacement cost, and for any other items for which 1835 the deferred maintenance expense or replacement cost exceeds 1836 $10,000. The amount to be reserved for an item is determined by 1837 the association's most recent structural integrity reserve 1838 study. If the amount to be reserved for an item is not in the 1839 association's most recent structural integrity reserve study or 1840 the association has not completed a structural integrity reserve 1841 study, the amount must shall be computed by means of a formula 1842 which is based upon estimated remaining useful life and 1843 estimated replacement cost or deferred maintenance expense of 1844 the each reserve item. The association may adjust replacement 1845 reserve assessments annually to take into account any changes in 1846 estimates or extension of the useful life of a reserve item 1847 caused by deferred maintenance. This paragraph shall not apply 1848 to any budget in which The members of a unit-owner controlled an 1849 association may determine have, at a duly called meeting of the 1850 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 75 of 102 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 association, determined for a fiscal year to provide no reserves 1851 or reserves less adequate than required by this subsection. 1852 Before turnover of control of an association by a developer to 1853 unit owners other than a developer under s. 719.301, the 1854 developer-controlled association may not vote to waive the 1855 reserves or reduce fundi ng of the reserves. Effective July 1, 1856 2024, a unit-owner controlled association may not determine to 1857 provide no reserves or reserves less adequate than required by 1858 this paragraph for items listed in paragraph (k) However, prior 1859 to turnover of control of an association by a developer to unit 1860 owners other than a developer pursuant to s. 719.301, the 1861 developer may vote to waive the reserves or reduce the funding 1862 of reserves for the first 2 years of the operation of the 1863 association after which time reserves may only be waived or 1864 reduced upon the vote of a majority of all nondeveloper voting 1865 interests voting in person or by limited proxy at a duly called 1866 meeting of the association . If a meeting of the unit owners has 1867 been called to determine to provide no reserve s, or reserves 1868 less adequate than required, and such result is not attained or 1869 a quorum is not attained, the reserves as included in the budget 1870 shall go into effect. 1871 3. Reserve funds and any interest accruing thereon shall 1872 remain in the reserve account o r accounts, and shall be used 1873 only for authorized reserve expenditures unless their use for 1874 other purposes is approved in advance by a vote of the majority 1875 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 76 of 102 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 of the voting interests, voting in person or by limited proxy at 1876 a duly called meeting of the associ ation. Before Prior to 1877 turnover of control of an association by a developer to unit 1878 owners other than the developer under s. 719.301, the developer 1879 may not vote to use reserves for purposes other than that for 1880 which they were intended without the approval of a majority of 1881 all nondeveloper voting interests, voting in person or by 1882 limited proxy at a duly called meeting of the association . 1883 Effective July 1, 2024, members of a unit -owner controlled 1884 association may not vote to use reserve funds, or any interest 1885 accruing thereon, that are reserved for items listed in 1886 paragraph (k) for purposes other than their intended purpose. 1887 (k) Structural integrity reserve study. — 1888 1. An association must have a structural integrity reserve 1889 study completed at least every 10 years for each building on the 1890 cooperative property that is three stories or higher in height 1891 that includes, at a minimum, a study of the following items as 1892 related to the structural integrity and safety of the building: 1893 a. Roof. 1894 b. Load-bearing walls or other primary structural members. 1895 c. Floor. 1896 d. Foundation. 1897 e. Fireproofing and fire protection systems. 1898 f. Plumbing. 1899 g. Electrical systems. 1900 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 77 of 102 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 h. Waterproofing and exterior painting. 1901 i. Windows. 1902 j. Any other item that has a deferred mainten ance expense 1903 or replacement cost that exceeds $10,000 and the failure to 1904 replace or maintain such item negatively affects the items 1905 listed in subparagraphs a. -i., as determined by the licensed 1906 engineer or architect performing the visual inspection portion 1907 of the structural integrity reserve study. 1908 2. Before a developer turns over control of an association 1909 to unit owners other than the developer, the developer must have 1910 a structural integrity reserve study completed for each building 1911 on the cooperative pro perty that is three stories or higher in 1912 height. 1913 3. Associations existing on or before July 1, 2022, which 1914 are controlled by unit owners other than the developer, must 1915 have a structural integrity reserve study completed by July 1, 1916 2024, for each building on the cooperative property that is 1917 three stories or higher in height. 1918 4. If an association fails to complete a structural 1919 integrity reserve study pursuant to this paragraph, such failure 1920 is a breach of an officer's and director's fiduciary 1921 relationship to the unit owners under s. 719.104(8). 1922 Section 18. Section 719.132, Florida Statutes, is created 1923 to read: 1924 719.132 Building recertification. — 1925 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 78 of 102 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) As used in this section, the term: 1926 (a) "Coastline" has the same meaning as in the Submerged 1927 Lands Act, 43 U.S.C. s. 1301(c). 1928 (b) "Phase 2 inspection" means an inspection that includes 1929 destructive and nondestructive testing at the discretion of the 1930 person performing the inspection and a written report of such 1931 inspection. A phase 2 inspection must be performed by an 1932 engineer licensed under chapter 471 or an architect licensed 1933 under chapter 481. 1934 (c) "Recertification" or "recertify" means a visual 1935 inspection of a building's general structural condition and 1936 general condition of its electrical system, in cluding a written 1937 report of such inspection, performed by an engineer licensed 1938 under chapter 471 or an architect licensed under chapter 481. 1939 (d) "Substantial structural deterioration" means 1940 substantial structural distress that negatively affects a 1941 building's general structural condition and integrity. Surface 1942 imperfections such as cracks, distortion, sagging, deflections, 1943 misalignment, signs of leakage, or peeling of finishes are not 1944 considered substantial structural deterioration unless the 1945 licensed engineer or architect performing the recertification or 1946 phase 2 inspection determines that such surface imperfections 1947 are a sign of substantial structural distress. 1948 (e) "Visual inspection" means a visual examination of the 1949 items listed s. 719.106(1)(k). 1950 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 79 of 102 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 (2)(a) An association must have any building on the 1951 cooperative property that is three stories or higher in height 1952 and that has been occupied for at least 30 years, or 25 years if 1953 the building is within 3 miles of the coastline of the state, 1954 recertified as determined by the local building official. 1955 (b) An association must have any building on the 1956 cooperative property that is required to be recertified under 1957 paragraph (a) recertified at least every 10 years after its 1958 first recertification. 1959 (3) Upon determining that a building on the cooperative 1960 property must be recertified, the local building official must 1961 provide written notice of such required recertification to the 1962 association by certified mail, return receipt requested. 1963 (4)(a) Within 90 days after rec eiving the written notice 1964 under subsection (3), or within 180 days if the association 1965 receives the written notice before July 1, 2023, the association 1966 or the association's manager must provide the written 1967 recertification report by e -mail, United States Pos tal Service, 1968 or commercial delivery service to the local building official 1969 and state the date on which the association received such report 1970 from the licensed engineer or architect who performed the 1971 recertification. 1972 (b) Within 14 days after receiving the written 1973 recertification report from the licensed engineer or architect 1974 who performed the recertification, the association must provide 1975 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 80 of 102 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 the written recertification report by e -mail, United States 1976 Postal Service, or commercial delivery service to each unit 1977 owner. 1978 (5) Upon completing a recertification, the licensed 1979 engineer or architect who performed the recertification must 1980 provide a written recertification report by e -mail, United 1981 States Postal Service, or commercial delivery service to the 1982 association. The written recertification report must, at a 1983 minimum: 1984 (a) Bear the seal and signature, or the electronic 1985 signature, of the licensed engineer or architect who performed 1986 the inspection. 1987 (b) Indicate the manner and type of inspection forming the 1988 basis for the written recertification report and a description 1989 of any items identified as requiring further inspection or 1990 remedial action. 1991 (c) Indicate whether there is damage to the items listed 1992 in s. 719.106(1)(k), within a reasonable professional 1993 probability based on the scope of the inspection, and list any 1994 recommended repairs for such damage. 1995 (d) Indicate whether there is substantial structural 1996 deterioration within a reasonable professional probability based 1997 on the scope of the inspection. 1998 (e) State whether unsafe or dangerous conditions, as those 1999 terms are defined in the Florida Building Code, were observed. 2000 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 81 of 102 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 (6)(a) If a written recertification report indicates that 2001 there is substantial structural deterioration, within a 2002 reasonable professional probabilit y based on the scope of the 2003 inspection, the local building official must provide written 2004 notice to the association by certified mail, return receipt 2005 requested, that the association must have a phase 2 inspection 2006 performed. 2007 (b) Within 60 days after receiv ing the written notice 2008 under paragraph (a), the association must provide written notice 2009 to the local building official by e -mail, United States Postal 2010 Service, or commercial delivery service that includes the start 2011 date of the phase 2 inspection and the na me and contact 2012 information of the licensed engineer or architect who will 2013 perform the phase 2 inspection. 2014 (c) The written phase 2 inspection report must, at a 2015 minimum: 2016 1. Bear the seal and signature, or the electronic 2017 signature, of the licensed enginee r or architect who performed 2018 the inspection. 2019 2. Indicate the manner and type of inspection forming the 2020 basis for the written report. 2021 3. State whether there is substantial structural 2022 deterioration, within a reasonable professional probability 2023 based on the scope of the inspection, and the extent of such 2024 deterioration and list any recommended repairs for such 2025 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 82 of 102 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 deterioration. 2026 4. State whether unsafe or dangerous conditions, as those 2027 terms are defined in the Florida Building Code, were observed. 2028 (d) The licensed engineer or architect performing the 2029 phase 2 inspection must provide the written phase 2 inspection 2030 report by e-mail, United States Postal Service, or commercial 2031 delivery service to the local building official and the 2032 association upon completion. 2033 (e) Within 14 days after receiving the written phase 2 2034 inspection report from the licensed engineer or architect who 2035 performed the phase 2 inspection, the association must provide 2036 the written phase 2 inspection report by e -mail, United States 2037 Postal Service, or commercial delivery service to each unit 2038 owner. 2039 (7)(a) A local building official may prescribe penalties, 2040 which must be posted on the building department's website, for 2041 failure to comply with this section. 2042 (b) If an association fails to schedul e or begin repairs 2043 that are identified in the written phase 2 inspection report 2044 within a time period to be determined by the county 2045 commissioners of the county where the building is located, which 2046 time period may not exceed 365 days after the local buildin g 2047 official receives the written phase 2 inspection report, the 2048 local building official must determine that the building is 2049 unsafe for human occupancy until such repairs are scheduled or 2050 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 83 of 102 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 begin. 2051 (8) If an association fails to complete a recertification 2052 or phase 2 inspection pursuant to this section, such failure is 2053 a breach of an officer's and director's fiduciary relationship 2054 to the unit owners under s. 719.104(8). 2055 Section 19. Paragraphs (p), (q), and (r) are added to 2056 subsection (4) of section 719.301, Florida Statutes, to read: 2057 719.301 Transfer of association control. — 2058 (4) When unit owners other than the developer elect a 2059 majority of the members of the board of administration of an 2060 association, the developer shall relinquish control of the 2061 association, and the unit owners shall accept control. 2062 Simultaneously, or for the purpose of paragraph (c) not more 2063 than 90 days thereafter, the developer shall deliver to the 2064 association, at the developer's expense, all property of the 2065 unit owners and of the association held or controlled by the 2066 developer, including, but not limited to, the following items, 2067 if applicable, as to each cooperative operated by the 2068 association: 2069 (p) A copy of the association's most recent structural 2070 integrity reserve study. 2071 (q) If a building on the cooperative property must be 2072 recertified under s. 719.132, a copy of the association's most 2073 recent written recertification report or a statement that the 2074 association has not completed the required recertification. 2075 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 84 of 102 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 (r) If a building on the cooperative property must have a 2076 phase 2 inspection performed under s. 719.132, a copy of the 2077 association's most recent written phase 2 inspection report or a 2078 statement that the association has not completed the required 2079 phase 2 inspection. 2080 Section 20. Subsection (1) of section 719.501, Florida 2081 Statutes, is amended, and subsection (3) is added to that 2082 section, to read: 2083 719.501 Powers and duties of Division of Florida 2084 Condominiums, Timeshares, and Mobile Homes. — 2085 (1) The Division of Florida Condominiums, Timeshares, and 2086 Mobile Homes of the Department of Business and Professional 2087 Regulation, referred to as the "division" in this part, in 2088 addition to other powers and duties prescribed by chapter 718, 2089 has the power to enforce and ensure complian ce with this chapter 2090 and adopted rules relating to the development, construction, 2091 sale, lease, ownership, operation, and management of residential 2092 cooperative units, and complaints related to the procedural 2093 completion of the structural integrity reserve st udies under s. 2094 719.106(1)(k) and recertifications and phase 2 inspections under 2095 s. 719.132. In performing its duties, the division shall have 2096 the following powers and duties: 2097 (a) The division may make necessary public or private 2098 investigations within or outside this state to determine whether 2099 any person has violated this chapter or any rule or order 2100 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 85 of 102 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 hereunder, to aid in the enforcement of this chapter, or to aid 2101 in the adoption of rules or forms hereunder. 2102 (b) The division may require or permit any pers on to file 2103 a statement in writing, under oath or otherwise, as the division 2104 determines, as to the facts and circumstances concerning a 2105 matter to be investigated. 2106 (c) For the purpose of any investigation under this 2107 chapter, the division director or any of ficer or employee 2108 designated by the division director may administer oaths or 2109 affirmations, subpoena witnesses and compel their attendance, 2110 take evidence, and require the production of any matter which is 2111 relevant to the investigation, including the existe nce, 2112 description, nature, custody, condition, and location of any 2113 books, documents, or other tangible things and the identity and 2114 location of persons having knowledge of relevant facts or any 2115 other matter reasonably calculated to lead to the discovery of 2116 material evidence. Upon failure by a person to obey a subpoena 2117 or to answer questions propounded by the investigating officer 2118 and upon reasonable notice to all persons affected thereby, the 2119 division may apply to the circuit court for an order compelling 2120 compliance. 2121 (d) Notwithstanding any remedies available to unit owners 2122 and associations, if the division has reasonable cause to 2123 believe that a violation of any provision of this chapter or 2124 related rule has occurred, the division may institute 2125 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 86 of 102 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 enforcement proceedings in its own name against a developer, 2126 association, officer, or member of the board, or its assignees 2127 or agents, as follows: 2128 1. The division may permit a person whose conduct or 2129 actions may be under investigation to waive formal proceedings 2130 and enter into a consent proceeding whereby orders, rules, or 2131 letters of censure or warning, whether formal or informal, may 2132 be entered against the person. 2133 2. The division may issue an order requiring the 2134 developer, association, officer, or member of the boar d, or its 2135 assignees or agents, to cease and desist from the unlawful 2136 practice and take such affirmative action as in the judgment of 2137 the division will carry out the purposes of this chapter. Such 2138 affirmative action may include, but is not limited to, an or der 2139 requiring a developer to pay moneys determined to be owed to a 2140 condominium association. 2141 3. The division may bring an action in circuit court on 2142 behalf of a class of unit owners, lessees, or purchasers for 2143 declaratory relief, injunctive relief, or res titution. 2144 4. The division may impose a civil penalty against a 2145 developer or association, or its assignees or agents, for any 2146 violation of this chapter or related rule. The division may 2147 impose a civil penalty individually against any officer or board 2148 member who willfully and knowingly violates a provision of this 2149 chapter, a rule adopted pursuant to this chapter, or a final 2150 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 87 of 102 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 order of the division. The term "willfully and knowingly" means 2151 that the division informed the officer or board member that his 2152 or her action or intended action violates this chapter, a rule 2153 adopted under this chapter, or a final order of the division, 2154 and that the officer or board member refused to comply with the 2155 requirements of this chapter, a rule adopted under this chapter, 2156 or a final order of the division. The division, before prior to 2157 initiating formal agency action under chapter 120, shall afford 2158 the officer or board member an opportunity to voluntarily comply 2159 with this chapter, a rule adopted under this chapter, or a final 2160 order of the division. An officer or board member who complies 2161 within 10 days is not subject to a civil penalty. A penalty may 2162 be imposed on the basis of each day of continuing violation, but 2163 in no event shall the penalty for any offense exceed $5,000. By 2164 January 1, 1998, the division shall adopt, by rule, penalty 2165 guidelines applicable to possible violations or to categories of 2166 violations of this chapter or rules adopted by the division. The 2167 guidelines must specify a meaningful range of civil penalties 2168 for each such violation of the statute and rules and must be 2169 based upon the harm caused by the violation, the repetition of 2170 the violation, and upon such other factors deemed relevant by 2171 the division. For example, the division may consider whether the 2172 violations were committed by a developer or owner -controlled 2173 association, the size of the association, and other factors. The 2174 guidelines must designate the possible mitigating or aggravating 2175 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 88 of 102 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 circumstances that justify a departure from the range of 2176 penalties provided by th e rules. It is the legislative intent 2177 that minor violations be distinguished from those which endanger 2178 the health, safety, or welfare of the cooperative residents or 2179 other persons and that such guidelines provide reasonable and 2180 meaningful notice to the pub lic of likely penalties that may be 2181 imposed for proscribed conduct. This subsection does not limit 2182 the ability of the division to informally dispose of 2183 administrative actions or complaints by stipulation, agreed 2184 settlement, or consent order. All amounts co llected shall be 2185 deposited with the Chief Financial Officer to the credit of the 2186 Division of Florida Condominiums, Timeshares, and Mobile Homes 2187 Trust Fund. If a developer fails to pay the civil penalty, the 2188 division shall thereupon issue an order directing that such 2189 developer cease and desist from further operation until such 2190 time as the civil penalty is paid or may pursue enforcement of 2191 the penalty in a court of competent jurisdiction. If an 2192 association fails to pay the civil penalty, the division shall 2193 thereupon pursue enforcement in a court of competent 2194 jurisdiction, and the order imposing the civil penalty or the 2195 cease and desist order shall not become effective until 20 days 2196 after the date of such order. Any action commenced by the 2197 division shall be bro ught in the county in which the division 2198 has its executive offices or in the county where the violation 2199 occurred. 2200 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 89 of 102 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 (e) The division may prepare and disseminate a prospectus 2201 and other information to assist prospective owners, purchasers, 2202 lessees, and developers of residential cooperatives in assessing 2203 the rights, privileges, and duties pertaining thereto. 2204 (f) The division has authority to adopt rules pursuant to 2205 ss. 120.536(1) and 120.54 to implement and enforce the 2206 provisions of this chapter. 2207 (g) The division shall establish procedures for providing 2208 notice to an association when the division is considering the 2209 issuance of a declaratory statement with respect to the 2210 cooperative documents governing such cooperative community. 2211 (h) The division shall furn ish each association which pays 2212 the fees required by paragraph (2)(a) a copy of this act, 2213 subsequent changes to this act on an annual basis, an amended 2214 version of this act as it becomes available from the Secretary 2215 of State's office on a biennial basis, an d the rules adopted 2216 thereto on an annual basis. 2217 (i) The division shall annually provide each association 2218 with a summary of declaratory statements and formal legal 2219 opinions relating to the operations of cooperatives which were 2220 rendered by the division dur ing the previous year. 2221 (j) The division shall adopt uniform accounting 2222 principles, policies, and standards to be used by all 2223 associations in the preparation and presentation of all 2224 financial statements required by this chapter. The principles, 2225 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 90 of 102 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 policies, and standards shall take into consideration the size 2226 of the association and the total revenue collected by the 2227 association. 2228 (k) The division shall provide training and educational 2229 programs for cooperative association board members and unit 2230 owners. The training may, in the division's discretion, include 2231 web-based electronic media, and live training and seminars in 2232 various locations throughout the state. The division may review 2233 and approve education and training programs for board members 2234 and unit owners offered by providers and shall maintain a 2235 current list of approved programs and providers and make such 2236 list available to board members and unit owners in a reasonable 2237 and cost-effective manner. 2238 (l) The division shall maintain a toll -free telephone 2239 number accessible to cooperative unit owners. 2240 (m) When a complaint is made to the division, the division 2241 shall conduct its inquiry with reasonable dispatch and with due 2242 regard to the interests of the affected parties. Within 30 days 2243 after receipt of a complaint , the division shall acknowledge the 2244 complaint in writing and notify the complainant whether the 2245 complaint is within the jurisdiction of the division and whether 2246 additional information is needed by the division from the 2247 complainant. The division shall cond uct its investigation and 2248 shall, within 90 days after receipt of the original complaint or 2249 timely requested additional information, take action upon the 2250 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 91 of 102 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 complaint. However, the failure to complete the investigation 2251 within 90 days does not prevent the divis ion from continuing the 2252 investigation, accepting or considering evidence obtained or 2253 received after 90 days, or taking administrative action if 2254 reasonable cause exists to believe that a violation of this 2255 chapter or a rule of the division has occurred. If a n 2256 investigation is not completed within the time limits 2257 established in this paragraph, the division shall, on a monthly 2258 basis, notify the complainant in writing of the status of the 2259 investigation. When reporting its action to the complainant, the 2260 division shall inform the complainant of any right to a hearing 2261 pursuant to ss. 120.569 and 120.57. 2262 (n) The division shall develop a program to certify both 2263 volunteer and paid mediators to provide mediation of cooperative 2264 disputes. The division shall provide, upo n request, a list of 2265 such mediators to any association, unit owner, or other 2266 participant in arbitration proceedings under s. 718.1255 2267 requesting a copy of the list. The division shall include on the 2268 list of voluntary mediators only persons who have receive d at 2269 least 20 hours of training in mediation techniques or have 2270 mediated at least 20 disputes. In order to become initially 2271 certified by the division, paid mediators must be certified by 2272 the Supreme Court to mediate court cases in county or circuit 2273 courts. However, the division may adopt, by rule, additional 2274 factors for the certification of paid mediators, which factors 2275 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 92 of 102 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 must be related to experience, education, or background. Any 2276 person initially certified as a paid mediator by the division 2277 must, in order to continue to be certified, comply with the 2278 factors or requirements imposed by rules adopted by the 2279 division. 2280 (3)(a) On or before January 1, 2023, cooperative 2281 associations existing on or before July 1, 2022, must provide 2282 the following information to the division in writing, by e -mail, 2283 United States Postal Service, commercial delivery service, or 2284 hand delivery, at a physical address or e -mail address provided 2285 by the division and on a form posted on the division's website: 2286 1. The number of buildings on th e cooperative property 2287 that are three stories or higher in height. 2288 2. The total number of units in all such buildings. 2289 3. The addresses of all such buildings. 2290 4. The counties in which all such buildings are located. 2291 (b) The division must compile a list of the number of 2292 buildings on cooperative property that are three stories or 2293 higher in height, which is searchable by county, and must post 2294 the list on the division's website. This list must include all 2295 of the following information: 2296 1. The name of each association with buildings on the 2297 cooperative property that are three stories or higher in height. 2298 2. The number of such buildings on each association's 2299 property. 2300 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 93 of 102 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 3. The addresses of all such buildings. 2301 4. The counties in which all such buildings are located. 2302 (c) An association must provide an update in writing to 2303 the division if there are any changes to the information in the 2304 list under paragraph (b) within 6 months after the change. 2305 Section 21. Paragraph (b) of subsection (1) and paragraph 2306 (a) of subsection (2) of section 719.503, Florida Statutes, are 2307 amended to read: 2308 719.503 Disclosure before prior to sale.— 2309 (1) DEVELOPER DISCLOSURE. — 2310 (b) Copies of documents to be furnished to prospective 2311 buyer or lessee.—Until such time as the deve loper has furnished 2312 the documents listed below to a person who has entered into a 2313 contract to purchase a unit or lease it for more than 5 years, 2314 the contract may be voided by that person, entitling the person 2315 to a refund of any deposit together with intere st thereon as 2316 provided in s. 719.202. The contract may be terminated by 2317 written notice from the proposed buyer or lessee delivered to 2318 the developer within 15 days after the buyer or lessee receives 2319 all of the documents required by this section. The develop er may 2320 shall not close for 15 days after following the execution of the 2321 agreement and delivery of the documents to the buyer as 2322 evidenced by a receipt for documents signed by the buyer unless 2323 the buyer is informed in the 15 -day voidability period and 2324 agrees to close before prior to the expiration of the 15 days. 2325 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 94 of 102 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 The developer must shall retain in his or her records a separate 2326 signed agreement as proof of the buyer's agreement to close 2327 before prior to the expiration of the said voidability period. 2328 Such Said proof must shall be retained for a period of 5 years 2329 after the date of the closing transaction. The documents to be 2330 delivered to the prospective buyer are the prospectus or 2331 disclosure statement with all exhibits, if the development is 2332 subject to the provisions of s. 719.504, or, if not, then copies 2333 of the following which are applicable: 2334 1. The question and answer sheet described in s. 719.504, 2335 and cooperative documents, or the proposed cooperative documents 2336 if the documents have not been recorded, w hich must shall 2337 include the certificate of a surveyor approximately representing 2338 the locations required by s. 719.104. 2339 2. The documents creating the association. 2340 3. The bylaws. 2341 4. The ground lease or other underlying lease of the 2342 cooperative. 2343 5. The management contract, maintenance contract, and 2344 other contracts for management of the association and operation 2345 of the cooperative and facilities used by the unit owners having 2346 a service term in excess of 1 year, and any management contracts 2347 that are renewable. 2348 6. The estimated operating budget for the cooperative and 2349 a schedule of expenses for each type of unit, including fees 2350 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 95 of 102 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 assessed to a shareholder who has exclusive use of limited 2351 common areas, where such costs are shared only by those entitled 2352 to use such limited common areas. 2353 7. The lease of recreational and other facilities that 2354 will be used only by unit owners of the subject cooperative. 2355 8. The lease of recreational and other common areas that 2356 will be used by unit owners in common with unit o wners of other 2357 cooperatives. 2358 9. The form of unit lease if the offer is of a leasehold. 2359 10. Any declaration of servitude of properties serving the 2360 cooperative but not owned by unit owners or leased to them or 2361 the association. 2362 11. If the development is to be built in phases or if the 2363 association is to manage more than one cooperative, a 2364 description of the plan of phase development or the arrangements 2365 for the association to manage two or more cooperatives. 2366 12. If the cooperative is a conversion of exis ting 2367 improvements, the statements and disclosure required by s. 2368 719.616. 2369 13. The form of agreement for sale or lease of units. 2370 14. A copy of the floor plan of the unit and the plot plan 2371 showing the location of the residential buildings and the 2372 recreation and other common areas. 2373 15. A copy of all covenants and restrictions that which 2374 will affect the use of the property and which are not contained 2375 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 96 of 102 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 in the foregoing. 2376 16. If the developer is required by state or local 2377 authorities to obtain acceptance or approval of any dock or 2378 marina facilities intended to serve the cooperative, a copy of 2379 any such acceptance or approval acquired by the time of filing 2380 with the division under pursuant to s. 719.502(1) or a statement 2381 that such acceptance or approval has not been acquired or 2382 received. 2383 17. Evidence demonstrating that the developer has an 2384 ownership, leasehold, or contractual interest in the land upon 2385 which the cooperative is to be developed. 2386 18. A copy of the association's most recent structural 2387 integrity reserve study or a statement that the association has 2388 not completed a structural integrity reserve study. 2389 19. If the unit is located in a building on the 2390 cooperative property that must be recertified under s. 719.132, 2391 a copy of the association's most recent written recertification 2392 report or a statement that the association has not completed the 2393 required recertification. 2394 20. If the unit is located in a building on the 2395 cooperative property that must have a phase 2 inspection 2396 performed under s. 719.132, a copy of the association's most 2397 recent written phase 2 inspection report or a statement that the 2398 association has not completed the required phase 2 inspection. 2399 (2) NONDEVELOPER DISCLOSURE. — 2400 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 97 of 102 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) Each unit owner who is not a developer as defined by 2401 this chapter must comply with the provisions of this subsection 2402 before prior to the sale of his or her interest in the 2403 association. Each prospective purchaser who has entered into a 2404 contract for the purchase of an interest in a cooperative is 2405 entitled, at the seller's expense, to a current copy of the 2406 articles of incorporation of the association, the bylaws, and 2407 rules of the association, as well as a copy of the question and 2408 answer sheet as provided in s. 719.504 , a copy of the 2409 association's most recent struct ural integrity reserve study or 2410 a statement that the association has not completed a structural 2411 integrity reserve study, and, if applicable, a copy of the 2412 association's most recent written recertification report or most 2413 recent written phase 2 inspection re port or a statement that the 2414 association has not completed the required recertification or 2415 required phase 2 inspection . 2416 Section 22. Paragraphs (q), (r), and (s) are added to 2417 subsection (23) of section 719.504, Florida Statutes, to read: 2418 719.504 Prospectus or offering circular. —Every developer 2419 of a residential cooperative which contains more than 20 2420 residential units, or which is part of a group of residential 2421 cooperatives which will be served by property to be used in 2422 common by unit owners of more tha n 20 residential units, shall 2423 prepare a prospectus or offering circular and file it with the 2424 Division of Florida Condominiums, Timeshares, and Mobile Homes 2425 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 98 of 102 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 prior to entering into an enforceable contract of purchase and 2426 sale of any unit or lease of a unit f or more than 5 years and 2427 shall furnish a copy of the prospectus or offering circular to 2428 each buyer. In addition to the prospectus or offering circular, 2429 each buyer shall be furnished a separate page entitled 2430 "Frequently Asked Questions and Answers," which m ust be in 2431 accordance with a format approved by the division. This page 2432 must, in readable language: inform prospective purchasers 2433 regarding their voting rights and unit use restrictions, 2434 including restrictions on the leasing of a unit; indicate 2435 whether and in what amount the unit owners or the association is 2436 obligated to pay rent or land use fees for recreational or other 2437 commonly used facilities; contain a statement identifying that 2438 amount of assessment which, pursuant to the budget, would be 2439 levied upon each unit type, exclusive of any special 2440 assessments, and which identifies the basis upon which 2441 assessments are levied, whether monthly, quarterly, or 2442 otherwise; state and identify any court cases in which the 2443 association is currently a party of record in wh ich the 2444 association may face liability in excess of $100,000; and state 2445 whether membership in a recreational facilities association is 2446 mandatory and, if so, identify the fees currently charged per 2447 unit type. The division shall by rule require such other 2448 disclosure as in its judgment will assist prospective 2449 purchasers. The prospectus or offering circular may include more 2450 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 99 of 102 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 than one cooperative, although not all such units are being 2451 offered for sale as of the date of the prospectus or offering 2452 circular. The prospectus or offering circular must contain the 2453 following information: 2454 (23) Copies of the following, to the extent they are 2455 applicable, shall be included as exhibits: 2456 (q) The association's most recent structural integrity 2457 reserve study or a statement tha t the association has not 2458 completed a structural integrity reserve study. 2459 (r) If the unit is located in a building on the 2460 cooperative property that must be recertified under s. 719.132, 2461 the association's most recent written recertification report or 2462 a statement that the association has not completed the required 2463 recertification. 2464 (s) If the unit is located in a building on the 2465 cooperative property that must have a phase 2 inspection 2466 performed under s. 719.132, the association's most recent 2467 written phase 2 inspection report or a statement that the 2468 association has not completed the required phase 2 inspection. 2469 Section 23. Paragraphs (d) and (k) of subsection (10) of 2470 section 720.303, Florida Statutes, are amended to read: 2471 720.303 Association powers and duties; meetings of board; 2472 official records; budgets; financial reporting; association 2473 funds; recalls.— 2474 (10) RECALL OF DIRECTORS. — 2475 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 100 of 102 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 (d) If the board determines not to certify the written 2476 agreement or written ballots to recall a director or directors 2477 of the board or does not certify the recall by a vote at a 2478 meeting, the board shall, within 5 full business days after the 2479 meeting, file an action with a court of competent jurisdiction 2480 or file with the department a petition for binding arbitration 2481 under the applicable procedures in ss. 718.112(2)(k) ss. 2482 718.112(2)(j) and 718.1255 and the rules adopted thereunder. For 2483 the purposes of this section, the members who voted at the 2484 meeting or who executed the agreement in writing shall 2485 constitute one party under th e petition for arbitration or in a 2486 court action. If the arbitrator or court certifies the recall as 2487 to any director or directors of the board, the recall will be 2488 effective upon the final order of the court or the mailing of 2489 the final order of arbitration t o the association. The director 2490 or directors so recalled shall deliver to the board any and all 2491 records of the association in their possession within 5 full 2492 business days after the effective date of the recall. 2493 (k) A board member who has been recalled ma y file an 2494 action with a court of competent jurisdiction or a petition 2495 under ss. 718.112(2)(k) ss. 718.112(2)(j) and 718.1255 and the 2496 rules adopted challenging the validity of the recall. The 2497 petition or action must be filed within 60 days after the recall 2498 is deemed certified. The association and the parcel owner 2499 representative shall be named as respondents. 2500 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 101 of 102 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 24. Subsection (1) of section 720.311, Florida 2501 Statutes, is amended to read: 2502 720.311 Dispute resolution. — 2503 (1) The Legislature finds that alternative dispute 2504 resolution has made progress in reducing court dockets and 2505 trials and in offering a more efficient, cost -effective option 2506 to litigation. The filing of any petition for arbitration or the 2507 serving of a demand for presuit mediation as pro vided for in 2508 this section shall toll the applicable statute of limitations. 2509 Any recall dispute filed with the department under s. 2510 720.303(10) shall be conducted by the department in accordance 2511 with the provisions of ss. 718.112(2)(k) ss. 718.112(2)(j) and 2512 718.1255 and the rules adopted by the division. In addition, the 2513 department shall conduct binding arbitration of election 2514 disputes between a member and an association in accordance with 2515 s. 718.1255 and rules adopted by the division. Election disputes 2516 and recall disputes are not eligible for presuit mediation; 2517 these disputes must be arbitrated by the department or filed in 2518 a court of competent jurisdiction. At the conclusion of an 2519 arbitration proceeding, the department shall charge the parties 2520 a fee in an amount adequate to cover all costs and expenses 2521 incurred by the department in conducting the proceeding. 2522 Initially, the petitioner shall remit a filing fee of at least 2523 $200 to the department. The fees paid to the department shall 2524 become a recoverable cost in the arbitration proceeding, and the 2525 CS/HB 7069, Engrossed 1 2022 CODING: Words stricken are deletions; words underlined are additions. hb7069-02-e1 Page 102 of 102 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 prevailing party in an arbitration proceeding shall recover its 2526 reasonable costs and attorney fees in an amount found reasonable 2527 by the arbitrator. The department shall adopt rules to 2528 effectuate the purposes of this sec tion. 2529 Section 25. Subsection (6) of section 721.15, Florida 2530 Statutes, is amended to read: 2531 721.15 Assessments for common expenses. — 2532 (6) Notwithstanding any contrary requirements of s. 2533 718.112(2)(h) s. 718.112(2)(g) or s. 719.106(1)(g), for 2534 timeshare plans subject to this chapter, assessments against 2535 purchasers need not be made more frequently than annually. 2536 Section 26. For the 2022-2023 fiscal year, the sums of 2537 $333,380 in recurring funds and $167,564 in nonrecurring funds 2538 are appropriated from t he Division of Florida Condominiums, 2539 Timeshares, and Mobile Homes Trust Fund to the Department of 2540 Business and Professional Regulation, and four full -time 2541 equivalent positions with associated salary rate of 197,500 are 2542 authorized, for the purpose of implem enting the provisions 2543 related to this act. 2544 Section 27. This act shall take effect July 1, 2022. 2545