HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 1 of 16 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 mobile and manufactured homes; 2 amending s. 212.05, F.S.; providing a tax for the sale 3 of pre-owned mobile homes and pre -owned manufactured 4 homes; amending s. 723.003, F.S.; revising 5 definitions; amending s. 723.005, F.S.; authorizing 6 the Office of the Attorney General, rather than the 7 Division of Florida Condominiums, Timeshares, and 8 Mobile Homes, to enforce certain compliance; amending 9 s. 723.022, F.S.; revising mobile home park owners' 10 obligations; amending s. 723.037, F.S.; authorizing 11 mobile home park owners and mobile home owners to 12 initiate presuit mediation without petitioning the 13 division; making technical changes; amending s. 14 723.038, F.S.; revising the dispute resolution 15 process; removing the requirement that parties 16 petition the division to initiate mediation; 17 authorizing parties to submit certain disputes to 18 presuit mediation; providing that some disputes are 19 not eligible for presuit mediation; removing 20 provisions to conform to changes made by the act; 21 amending s. 723.0381, F.S. ; authorizing parties to 22 file actions in circuit court under certain 23 conditions; amending s. 723.059, F.S.; providing 24 requirements for screening prospective purchasers; 25 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 2 of 16 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 amending s. 723.068, F.S.; authorizing courts to award 26 treble damages in certain procee dings; requiring 27 courts to state basis for treble damages award in 28 their judgments; amending s. 723.079, F.S.; 29 authorizing homeowners' associations to institute, 30 maintain, settle, and appeal certain actions and 31 hearings; providing an effective date. 32 33 Be It Enacted by the Legislature of the State of Florida: 34 35 Section 1. Paragraph (o) is added to subsection (1) of 36 section 212.05, Florida Statutes, to read: 37 212.05 Sales, storage, use tax. —It is hereby declared to 38 be the legislative intent that every person is exercising a 39 taxable privilege who engages in the business of selling 40 tangible personal property at retail in this state, including 41 the business of making or facilitating remote sales; who rents 42 or furnishes any of the things or services taxable under this 43 chapter; or who stores for use or consumption in this state any 44 item or article of tangible personal property as defined herein 45 and who leases or rents such property within the state. 46 (1) For the exercise of such privilege, a tax is levied on 47 each taxable transaction or incident, which tax is due and 48 payable as follows: 49 (o) At the rate of 0 percent of the sales price on the 50 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 3 of 16 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 sale of a pre-owned mobile home, as defined in s. 723.003, or a 51 pre-owned manufactured home, as defined in s. 320.01(2)( b). 52 Section 2. Subsection (7) and subsections (8) through (17) 53 of section 723.003, Florida Statutes, are renumbered as 54 subsection (17) and subsections (7) through (16), respectively, 55 and present subsection (7) and subsection (18) of that section 56 are amended to read: 57 723.003 Definitions. —As used in this chapter, the term: 58 (17)(7)(a) "Presuit mediation" means a process whereby a 59 mediator appointed by the Division of Florida Condominiums, 60 Timeshares, and Mobile Homes, or mutually selected by the 61 parties, acts to encourage and facilitate the resolution of a 62 dispute. It is an informal and nonadversarial process with the 63 objective of helping the disputing parties reach a mutually 64 acceptable agreement. 65 (b) For purposes of presuit mediation under ss. 723.0 37 66 and 723.038, the term "parties" means a park owner as defined in 67 subsection (12)(13) and a homeowners' committee selected 68 pursuant to s. 723.037. 69 (18) "Proportionate share" as used in subsection (16)(17) 70 means an amount calculated by dividing equally among the 71 affected developed lots in the park the total costs for the 72 necessary and actual direct costs and impact or hookup fees 73 incurred for governmentally mandated capital improvements 74 serving the recreational and common areas and all affected 75 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 4 of 16 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 developed lots in the park. 76 Section 3. Section 723.005, Florida Statutes, is amended 77 to read: 78 723.005 Regulation by division and Office of the Attorney 79 General.—The division has the power and duty to enforce and 80 ensure compliance with the provisions of this chapter and rules 81 adopted promulgated pursuant hereto relating to the rental, 82 development, and sale of mobile home parks . However, The Office 83 of the Attorney General has division does not have the power and 84 or duty to enforce compliance with this chapter an d the rules 85 adopted pursuant hereto, including mobile home park rules and 86 regulations or to enforce the provisions of ss. 723.022, 87 723.023, and 723.033. 88 Section 4. Subsections (3), (4), and (5) of section 89 723.022, Florida Statutes, are renumbered as su bsections (4), 90 (5), and (6), respectively, present subsection (3) is amended, 91 and a new subsection (3) and subsections (7) and (8) are added 92 to that section, to read: 93 723.022 Mobile home park owner's general obligations. —A 94 mobile home park owner shall at all times: 95 (3) Maintain improvements located on a mobile home lot for 96 which the park owner is responsible in a good state of repair 97 and maintenance and maintain such improvements in a good state 98 of appearance, safety, and cleanliness. 99 (4)(3) Provide mobile home owners and their guests, 100 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 5 of 16 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 homeowners' associations organized under this chapter, and other 101 groups or entities organized by mobile home owners use and 102 access to the common areas, including buildings and improvements 103 thereto, at all reasonable tim es without charging additional 104 fees or requiring additional insurance coverage, if the use and 105 access is already covered by an existing insurance policy held 106 by the park owner for the benefit of the park residents and 107 their guests. 108 (7) Refrain from enfor cing any park rule or regulation 109 that is not adopted in accordance with ss. 723.035 and 723.037. 110 (8) Refrain from collecting any lot rental increases that 111 are subject to pending mediation or litigation. 112 Section 5. Subsections (4) through (7) of secti on 723.037, 113 Florida Statutes, are amended to read: 114 723.037 Lot rental increases; reduction in services or 115 utilities; change in rules and regulations; presuit mediation.— 116 (4)(a) A committee, not to exceed five in number, 117 designated by a majority of the affected mobile home owners or 118 by the board of directors of the homeowners' association, if 119 applicable, and the park owner shall meet, at a mutually 120 convenient time and place no later than 60 days before the 121 effective date of the change to discuss the reas ons for the 122 increase in lot rental amount, reduction in services or 123 utilities, or change in rules and regulations. The negotiating 124 committee shall make a written request for a meeting with the 125 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 6 of 16 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 park owner or subdivision developer to discuss those matters 126 addressed in the 90-day notice, and may include in the request a 127 listing of any other issue, with supporting documentation, that 128 the committee intends to raise and discuss at the meeting. The 129 committee shall address all lot rental amount increases that are 130 specified in the notice of lot rental amount increase, 131 regardless of the effective date of the increase. 132 (b)1. At the meeting, the park owner or subdivision 133 developer shall in good faith disclose and explain all material 134 factors resulting in the decision to increase the lot rental 135 amount, reduce services or utilities, or change rules and 136 regulations, including how those factors justify the specific 137 change proposed. The park owner or subdivision developer may not 138 limit the discussion of the reasons for the change to 139 generalities only, such as, but not limited to, increases in 140 operational costs, changes in economic conditions, or rents 141 charged by comparable mobile home parks. For example, if the 142 reason for an increase in lot rental amount is an increase in 143 operational costs, the park owner must disclose the item or 144 items which have increased, the amount of the increase, any 145 similar item or items which have decreased, and the amount of 146 the decrease. If an increase is based upon the lot rental amount 147 charged by comparable mobile home parks, the park owner shall 148 disclose, and provide in writing to the committee at or before 149 the meeting, the name, address, lot rental amount, and any other 150 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 7 of 16 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 relevant factors relied upon by the park owner, such as 151 facilities, services, and amenities, concerning the comparable 152 mobile home parks. The information concerning comparable mobile 153 home parks to be exchanged by the parties is to encourage a 154 dialogue concerning the reasons used by the park owner for the 155 increase in lot rental amou nt and to encourage the home owners 156 to evaluate and discuss the reasons for those changes with the 157 park owner. The park owner shall prepare a written summary of 158 the material factors and retain a copy for 3 years. The park 159 owner shall provide the committee a copy of the summary at or 160 before the meeting. 161 2. The park owner may shall not limit the comparable 162 mobile home park disclosure to those mobile home parks that are 163 owned or operated by the same owner or operator as the subject 164 park, except in certain ci rcumstances, which include, but are 165 not limited to: 166 a. That the market area for comparable mobile home parks 167 includes mobile home parks owned or operated by the same entity 168 that have similar facilities, services, and amenities; 169 b. That the subject mobi le home park has unique attributes 170 that are shared with similar mobile home parks; 171 c. That the mobile home park is located in a geographic or 172 market area that contains few comparable mobile home parks; or 173 d. That there are similar considerations or fac tors that 174 would be considered in such a market analysis by a competent 175 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 8 of 16 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 professional and would be considered in determining the 176 valuation of the market rent. 177 (c) If the committee disagrees with a park owner's lot 178 rental amount increase based upon comparab le mobile home parks, 179 the committee shall disclose to the park owner the name, 180 address, lot rental amount, and any other relevant factors 181 relied upon by the committee, such as facilities, services, and 182 amenities, concerning the comparable mobile home parks . The 183 committee shall provide to the park owner the disclosure, in 184 writing, within 15 days after the meeting with the park owner, 185 together with a request for a second meeting. The park owner 186 shall meet with the committee at a mutually convenient time and 187 place within 30 days after receipt by the park owner of the 188 request from the committee to discuss the disclosure provided by 189 the committee. At the second meeting, the park owner may take 190 into account the information on comparable parks provided by the 191 committee, may supplement the information provided to the 192 committee at the first meeting, and may modify his or her 193 position, but the park owner may not change the information 194 provided to the committee at the first meeting. 195 (d) The committee and the park owne r may mutually agree, 196 in writing, to extend or continue any meetings required by this 197 section. 198 (e) Either party may prepare and use additional 199 information to support its position during or subsequent to the 200 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 9 of 16 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 meetings required by this section. 201 202 This subsection is not intended to be enforced by civil or 203 administrative action. Rather, the meetings and discussions are 204 intended to be in the nature of settlement discussions prior to 205 the parties proceeding to presuit mediation of any dispute. 206 (5)(a) Within 30 days after the date of the last scheduled 207 meeting described in subsection (4), the homeowners may petition 208 the division to initiate presuit mediation of the dispute 209 pursuant to s. 723.038 if a majority of the affected homeowners 210 have designated, in writing, that: 211 1. The rental increase is unreasonable; 212 2. The rental increase has made the lot rental amount 213 unreasonable; 214 3. The decrease in services or utilities is not 215 accompanied by a corresponding decrease in rent or is otherwise 216 unreasonable; or 217 4. The change in the rules and regulations is 218 unreasonable. 219 (b) A park owner, within the same time period, may also 220 petition the division to initiate presuit mediation of the 221 dispute pursuant to s. 723.038 . 222 (c) When a dispute involves a rental increase for 223 different home owners and there are different rates or different 224 rental terms for those home owners, all such rent increases in a 225 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 10 of 16 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 calendar year for one mobile home park may be considered in one 226 mediation proceeding. 227 (d) At presuit mediation, the park owner and the 228 homeowners committee may supplement the information provided to 229 each other at the meetings described in subsection (4) and may 230 modify their position, but they may not change the information 231 provided to each other at the first and second meetings. 232 233 The purpose of this subsection is to encourage discussion and 234 evaluation by the parties of the comparable mobile home parks in 235 the competitive market area. The requirements of this subsection 236 are not intended to be enforced by civil or administrative 237 action. Rather, the meetings and discussions are intended to be 238 in the nature of settlement discussions before prior to the 239 parties proceeding to litigation of any dispute. 240 (6) If a party requests presuit mediation and the opposing 241 party refuses to agree to mediate upon proper request, the party 242 refusing to mediate is shall not be entitled to attorney 243 attorney's fees in any action relating to a dispute described in 244 this section. 245 (7) The term "parties," for purposes of presuit mediation 246 under this section and s. 723.038, means a park owner and a 247 homeowners' committee selected pursuant to this section. 248 Section 6. Section 723.038, Florida Statutes, is amended 249 to read: 250 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 11 of 16 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 723.038 Presuit Dispute settlement; mediation.—A party may 251 submit a dispute arising under this chapter to presuit mediation 252 in accordance with s. 720.311. However, election and recall 253 disputes or disputes regarding the inspection and photocopying 254 of official records are not eligible for presuit mediation and 255 must be arbitrated by the division or filed in a court of 256 competent jurisdiction. Disputes relating to evictions under s. 257 723.061 are not eligible for presuit mediation under this 258 section. 259 (1) Either party ma y petition the division to appoint a 260 mediator and initiate mediation proceedings. 261 (2) The division upon petition shall appoint a qualified 262 mediator to conduct mediation proceedings unless the parties 263 timely notify the division in writing that they have s elected a 264 mediator. A person appointed by the division shall be a 265 qualified mediator from a list of circuit court mediators in 266 each judicial circuit who has met training and educational 267 requirements established by the Supreme Court. If such mediators 268 are not available, the division may select a mediator from the 269 list maintained by the Florida Growth Management Conflict 270 Resolution Consortium. The division shall promulgate rules of 271 procedure to govern such proceedings in accordance with the 272 rules of practice and procedure adopted by the Supreme Court. 273 The division shall also establish, by rule, the fee to be 274 charged by a mediator which shall not exceed the fee authorized 275 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 12 of 16 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S by the circuit court. 276 (3) A mediator appointed by the division or selected by 277 the parties shall comply with the rules adopted by the division. 278 The mediator shall also notify the division in writing within 10 279 days after the conclusion of the mediation, that the mediation 280 has been concluded. 281 (4) Upon receiving a petition to mediate a dispute, the 282 division shall, within 20 days, notify the parties that a 283 mediator has been appointed by the division. The parties may 284 accept the mediator appointed by the division or, within 30 285 days, select a mediator to mediate the dispute. The parties 286 shall each pay a $250 filing fee to the mediator appointed by 287 the division or selected by the parties, within 30 days after 288 the division notifies the parties of the appointment of the 289 mediator. The $250 filing fee shall be used by the mediator to 290 defray the hourly rat e charged for mediation of the dispute. Any 291 portion of the filing fee not used shall be refunded to the 292 parties. 293 (5) The parties may agree to select their own mediator, 294 and such mediation shall be governed by the rules of procedure 295 established by the div ision. The parties, by agreement, may 296 waive mediation, or the petitioning party may withdraw the 297 petition prior to mediation. Upon the conclusion of the 298 mediation, the mediator shall notify the division that the 299 mediation has been concluded. 300 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 13 of 16 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) No resolution arising from a mediation proceeding as 301 provided for in s. 723.037 or this section shall be deemed final 302 agency action. Any party, however, may initiate an action in the 303 circuit court to enforce a resolution or agreement arising from 304 a mediation proceeding which has been reduced to writing. The 305 court shall consider such resolution or agreement to be a 306 contract for the purpose of providing a remedy to the 307 complaining party. 308 (7) Mediation pursuant to this section is an informal and 309 nonadversarial proce ss. Either party may submit to the opposing 310 party at least 10 days prior to mediation a written request for 311 information. 312 (8) Each party involved in the mediation proceeding has a 313 privilege to refuse to disclose, and to prevent any person 314 present at the proceeding from disclosing, communications made 315 during such proceeding, whether or not the dispute was 316 successfully resolved. This subsection shall not be construed to 317 prevent or inhibit the discovery or admissibility of any 318 information which is otherwise s ubject to discovery or admission 319 under applicable law or rules of court. There is no privilege as 320 to communications made in furtherance of the commission of a 321 crime or fraud or as part of a plan to commit a crime or a 322 fraud. Nothing in this subsection shal l be construed so as to 323 permit an individual to obtain immunity from prosecution for 324 criminal conduct. 325 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 14 of 16 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) A mediator appointed pursuant to this section shall 326 have judicial immunity in the same manner and to the same extent 327 as a judge. 328 Section 7. Subsection (1) of section 723.0381, Florida 329 Statutes, is amended to read: 330 723.0381 Civil actions; arbitration. — 331 (1) If an aggrieved party serves a demand for presuit 332 mediation and the responding party refuses or fails to 333 participate in presuit mediation, or if presuit after mediation 334 fails of a dispute pursuant to s. 723.038 has failed to provide 335 a resolution of the dispute, either party may file an action in 336 the circuit court. 337 Section 8. Subsection (2) of section 723.059, Florida 338 Statutes, is amended to read: 339 723.059 Purchaser of a mobile home within a mobile home 340 park.— 341 (2) Properly adopted promulgated rules may provide for the 342 screening of any prospective purchaser to determine whether or 343 not such purchaser is qualified to become a tenant of the park. 344 Rules adopted regarding the screening of a prospective purchaser 345 must include all of the following requirements: 346 (a) The screening of a prospective purchaser must be 347 completed within 15 business days after the submission of an 348 application to the pa rk owner or park manager. The park owner or 349 park manager must notify, in writing, the prospective purchaser 350 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 15 of 16 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 15 days after the submission of the application whether 351 the application is approved or denied. If the park owner or park 352 manager does not pro vide written notification to the prospective 353 purchaser as required in this paragraph, the prospective 354 purchaser's application is considered approved. 355 (b) If a park owner or park manager denies an application 356 of a prospective purchaser, the reason for the denial must be 357 disclosed in writing to the prospective purchaser. A park owner 358 or park manager may not deny an application of a prospective 359 purchaser based on discriminatory or retaliatory reasons or for 360 any other reason that is a violation of state or fe deral law. 361 (c)1. If a park owner or park manager charges a fee for 362 purposes of screening a prospective purchaser, such fee may not 363 exceed the actual costs of the screening or $100 per applicant, 364 whichever is less. 365 2. The park owner or park manager may adjust the $100 366 maximum screening fee every 5 years in an amount equal to the 367 total of the annual increases occurring in the Consumer Price 368 Index for All Urban Consumers, U.S. City Average, All Items 369 compiled by the United States Department of Labor during that 5-370 year period. 371 3. For the purpose of calculating the screening fee, 372 spouses, parents, and dependent children are considered one 373 applicant. 374 Section 9. Section 723.068, Florida Statutes, is amended 375 HB 751 2023 CODING: Words stricken are deletions; words underlined are additions. hb0751-00 Page 16 of 16 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 to read: 376 723.068 Attorney Attorney's fees and damages.—Except as 377 provided in s. 723.037, in any proceeding between private 378 parties to enforce the rights and protections provisions of this 379 chapter or for damages arising out of the failure of a party to 380 comply with this chapter , the prevailing party is entitled to a 381 reasonable attorney attorney's fee. A court may award treble 382 damages to a prevailing mobile home owner or homeowners' 383 association and must state the basis for the treble damages 384 award in its judgment. 385 Section 10. Subsection (1) of section 723.079, Florida 386 Statutes, is amended to read: 387 723.079 Powers and duties of homeowners' association. — 388 (1) An association may contract, sue, or be sued with 389 respect to the exercise or nonexercise of its powers. For these 390 purposes, the powers of the association include, but are not 391 limited to, the maintenance, management, and operation of the 392 park property and the power to institute, maintain, settle, or 393 appeal actions or hearings in its name on behalf of all mobile 394 home owners concerning matters of common interest to most or all 395 mobile home owners involving disputes arising under this 396 chapter. 397 Section 11. This act shall take effect July 1, 2023. 398