Bill Amendment: FL H1187 | 2016 | Regular Session

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: Department of Business and Professional Regulation

Status: 2016-03-11 - Died in Regulated Industries, companion bill(s) passed, see CS/CS/CS/HB 535 (Ch. 2016-129) [H1187 Detail]

Download: Florida-2016-H1187-Senate_Floor_Amendment_118464.html

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       Florida Senate - 2016                          SENATOR AMENDMENT
       Bill No. CS/HB 1187, 1st Eng.
       
       
       
       
       
       
                                Ì1184646Î118464                         
       
                              LEGISLATIVE ACTION                        
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       Senator Hays moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 1130 and 1131
    4  insert:
    5         Section 40. Subsection (2) of section 720.302, Florida
    6  Statutes, is amended to read:
    7         720.302 Purposes, scope, and application.—
    8         (2) The Legislature recognizes that it is not in the best
    9  interest of homeowners’ associations or the individual
   10  association members thereof to allow create or impose a bureau
   11  or other agency of state government to regulate a limited number
   12  of the affairs of homeowners’ associations. However,
   13         (a) In accordance with s. 720.311, the Legislature finds
   14  that homeowners’ associations and their individual members will
   15  benefit from an expedited alternative process for resolution of
   16  election and recall disputes and presuit mediation of other
   17  disputes involving covenant enforcement and authorizes the
   18  department to hear, administer, and determine these disputes as
   19  more fully set forth in this chapter.
   20         (b) The Legislature finds that homeowners’ associations and
   21  their individual members will benefit from having access to all
   22  records and financial documents. Therefore, the Legislature
   23  authorizes the department to receive and make a determination on
   24  complaints against homeowners’ associations, their officers, or
   25  any directors which involve association financial matters,
   26  access to official records, passage of an annual budget, reserve
   27  funds, or misappropriation of funds.
   28         (c) The Legislature recognizes that certain existing
   29  contract rights were created for the benefit of homeowners’
   30  associations and their members before July 1, 2016, and that ss.
   31  720.301-720.407 are not intended to impair such contract rights,
   32  including, but not limited to, the rights of a developer to
   33  complete a community as initially contemplated. Notwithstanding
   34  this, the Legislature finds that homeowners’ associations and
   35  their individual members will benefit from being afforded
   36  reasonable protections of their property through contractual
   37  rights and authorizes the department to receive and make a
   38  determination on complaints against any association or a
   39  director or an officer of an association that is still subject
   40  to developer control Further, the Legislature recognizes that
   41  certain contract rights have been created for the benefit of
   42  homeowners’ associations and members thereof before the
   43  effective date of this act and that ss. 720.301-720.407 are not
   44  intended to impair such contract rights, including, but not
   45  limited to, the rights of the developer to complete the
   46  community as initially contemplated.
   47         Section 41. Subsection (13) of section 720.303, Florida
   48  Statutes, is amended to read:
   49         720.303 Association powers and duties; meetings of board;
   50  official records; budgets; financial reporting; association
   51  funds; recalls.—
   52         (13) REPORTING REQUIREMENT.—The community association
   53  manager or management firm, or the association when there is no
   54  community association manager or management firm, shall submit a
   55  report to the division by November 22, 2016 2013, and each year
   56  thereafter in a manner and form prescribed by the division.
   57         (a) The report must shall include the association’s:
   58         1. Legal name.
   59         2. Federal employer identification number.
   60         3. Mailing and physical addresses.
   61         4. Total number of parcels.
   62         5. Total amount of revenues and expenses from the
   63  association’s annual budget.
   64         (b) For associations in which control of the association
   65  has not been transitioned to nondeveloper members, as set forth
   66  in s. 720.307, the report shall also include the developer’s:
   67         1. Legal name.
   68         2. Mailing address.
   69         3. Total number of parcels owned on the date of reporting.
   70         (c) The reporting requirement provided in this subsection
   71  shall be a continuing obligation on each association until the
   72  required information is reported to the division. The community
   73  association manager or management firm, or the association if
   74  there is no community association manager or management firm,
   75  must resubmit the report required under this subsection upon the
   76  occurrence of a material change in the information required to
   77  be reported pursuant to paragraphs (a) and (b).
   78         (d) By October 1, 2016 2013, the department shall establish
   79  and implement a registration system through a an Internet
   80  website that provides for the reporting requirements of
   81  paragraphs (a) and (b).
   82         (e) The department shall prepare an annual report of the
   83  data reported pursuant to this subsection and present it to the
   84  Governor, the President of the Senate, and the Speaker of the
   85  House of Representatives by December 1, 2016 2013, and each year
   86  thereafter.
   87         (f) The division shall adopt rules pursuant to ss.
   88  120.536(1) and 120.54 to implement the provisions of this
   89  subsection.
   90         (g) This subsection shall expire on July 1, 2026 2016,
   91  unless reenacted by the Legislature.
   92         Section 42. Subsection (2) of section 720.305, Florida
   93  Statutes, is amended to read:
   94         720.305 Obligations of members; remedies at law or in
   95  equity; levy of fines and suspension of use rights.—
   96         (2) The association may levy reasonable fines. A fine may
   97  not exceed $100 per violation against any member or any member’s
   98  tenant, guest, or invitee for the failure of the owner of the
   99  parcel or its occupant, licensee, or invitee to comply with any
  100  provision of the declaration, the association bylaws, or
  101  reasonable rules of the association unless otherwise provided in
  102  the governing documents. A fine may be levied by the board for
  103  each day of a continuing violation, with a single notice and
  104  opportunity for hearing, except that the fine may not exceed
  105  $1,000 in the aggregate unless otherwise provided in the
  106  governing documents. A fine, or an action to collect on a fine,
  107  may not result in foreclosure on of less than $1,000 may not
  108  become a lien against a parcel. In any action to recover a fine,
  109  the prevailing party is entitled to reasonable attorney fees and
  110  costs from the nonprevailing party as determined by the court.
  111         (a) An association may suspend, for a reasonable period of
  112  time, the right of a member, or a member’s tenant, guest, or
  113  invitee, to use common areas and facilities for the failure of
  114  the owner of the parcel or its occupant, licensee, or invitee to
  115  comply with any provision of the declaration, the association
  116  bylaws, or reasonable rules of the association. This paragraph
  117  does not apply to that portion of common areas used to provide
  118  access or utility services to the parcel. A suspension may not
  119  prohibit an owner or tenant of a parcel from having vehicular
  120  and pedestrian ingress to and egress from the parcel, including,
  121  but not limited to, the right to park.
  122         (b) A fine or suspension may not be imposed by the board of
  123  administration without at least 14 days’ notice to the person
  124  sought to be fined or suspended and an opportunity for a hearing
  125  before a committee of at least three members appointed by the
  126  board who are not officers, directors, or employees of the
  127  association, or the spouse, parent, child, brother, or sister of
  128  an officer, director, or employee. If the committee, by majority
  129  vote, does not approve a proposed fine or suspension, it may not
  130  be imposed. The role of the committee is limited to determining
  131  whether to confirm or reject the fine or suspension levied by
  132  the board. If the board of administration imposes a fine or
  133  suspension, the association must provide written notice of such
  134  fine or suspension by mail or hand delivery to the parcel owner
  135  and, if applicable, to any tenant, licensee, or invitee of the
  136  parcel owner.
  137         Section 43. Subsection (1) and paragraph (d) of subsection
  138  (2) of section 720.311, Florida Statutes, are amended to read:
  139         720.311 Dispute resolution.—
  140         (1) The Legislature finds that alternative dispute
  141  resolution has made progress in reducing court dockets and
  142  trials and in offering a more efficient, cost-effective option
  143  to litigation. The filing of any petition for arbitration or the
  144  serving of a demand for presuit mediation as provided for in
  145  this section shall toll the applicable statute of limitations.
  146  Any recall dispute filed with the department pursuant to s.
  147  720.303(10) shall be conducted by the department in accordance
  148  with the provisions of ss. 718.112(2)(j) and 718.1255 and the
  149  rules adopted by the division. In addition, the department shall
  150  conduct mandatory binding arbitration of election disputes
  151  between a member and an association pursuant to s. 718.1255 and
  152  rules adopted by the division. Neither Election disputes and nor
  153  recall disputes are eligible for presuit mediation; these
  154  disputes shall be arbitrated by the department. At the request
  155  of the parcel owner or the homeowners’ association, the
  156  department is authorized to, and shall provide, binding
  157  arbitration in disputes involving covenants, restrictions, rule
  158  enforcement, and duties to maintain and make safe pursuant to
  159  the declaration of covenants, rules and regulations, and other
  160  governing documents; disputes involving assessments; and
  161  disputes involving the official records of the homeowners’
  162  association. At the conclusion of the proceeding, the department
  163  shall charge the parties a fee in an amount adequate to cover
  164  all costs and expenses incurred by the department in conducting
  165  the proceeding. Initially, the petitioner shall remit a filing
  166  fee of at least $200 to the department. The fees paid to the
  167  department shall become a recoverable cost in the arbitration
  168  proceeding, and the prevailing party in an arbitration
  169  proceeding shall recover its reasonable costs and attorney
  170  attorney’s fees in an amount found reasonable by the arbitrator.
  171  The department shall adopt rules to effectuate the purposes of
  172  this section.
  173         (2)
  174         (d) A mediator or arbitrator shall be authorized to conduct
  175  mediation or arbitration under this section only if he or she
  176  has been certified as a county court or circuit court civil
  177  mediator or arbitrator, respectively, pursuant to the
  178  requirements established by the Florida Supreme Court.
  179  Settlement agreements resulting from mediation do shall not have
  180  precedential value in proceedings involving parties other than
  181  those participating in the mediation to support either a claim
  182  or defense in other disputes.
  183         Section 44. Present subsection (2) of section 720.401,
  184  Florida Statutes, is redesignated as subsection (3), and a new
  185  subsection (2) is added to that section, to read:
  186         720.401 Prospective purchasers subject to association
  187  membership requirement; disclosure required; covenants;
  188  assessments; contract cancellation.—
  189         (2) A seller of a parcel for which membership in a
  190  homeowners’ association is a condition of ownership must provide
  191  a prospective buyer with the association’s governing documents,
  192  including the declaration of covenants, the articles and bylaws,
  193  any rules and regulations, the operating budget for the current
  194  year, and any amendments to such documents. The seller must
  195  provide the prospective buyer with such documents at least 7
  196  days before closing. The prospective buyer may terminate the
  197  contract for purchase within 3 days after receipt of such
  198  documents.
  199  
  200  ================= T I T L E  A M E N D M E N T ================
  201  And the title is amended as follows:
  202         Delete line 139
  203  and insert:
  204         adopt rules; amending s. 720.302, F.S.; revising
  205         legislative findings; amending s. 720.303, F.S.;
  206         providing that a community association manager or
  207         management firm, or the association, must submit an
  208         annual report to the Division of Florida Condominiums,
  209         Timeshares, and Mobile Homes beginning on a specified
  210         date; requiring the community association or
  211         management firm, or the association, to resubmit the
  212         report under certain circumstances; revising the date
  213         by which the Department of Business and Professional
  214         Regulation must establish and implement a certain
  215         registration system through a website and the date by
  216         which it must prepare a certain report; revising an
  217         expiration date; amending s. 720.305, F.S.; providing
  218         that an action to collect a fine may not result in
  219         foreclosure on a parcel; deleting a provision
  220         prohibiting a fine less than $1,000 from becoming a
  221         lien against a parcel; amending s. 720.311, F.S.;
  222         providing that election and recall disputes are
  223         eligible for presuit mediation; providing that the
  224         department must provide binding arbitration for
  225         certain disputes at the request of the parcel owner or
  226         homeowners’ association; revising certification
  227         requirements to conduct mediation or arbitration in
  228         such disputes; amending s. 720.401, F.S.; providing
  229         that a seller must provide certain documents to a
  230         prospective buyer if membership in a homeowners’
  231         association is a condition of ownership; authorizing a
  232         prospective buyer to terminate a contract for purchase
  233         within a specified timeframe; providing an effective
  234         date.