THE BILL ITSELF
CS/HB 465
Community Association Management
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A bill to be entitled
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An act relating to community association management;
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amending s. 468.432, F.S.; requiring community
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association managers and community association firms
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to obtain a specified amount of insurance separate
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from insurance provided by an association; amending s.
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468.436, F.S.; providing for the revocation of a
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community association manager's license under certain
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circumstances; barring a community association manager
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from being licensed under certain circumstances;
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amending ss. 718.111, 718.405, 719.106, and 720.303,
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F.S.; requiring certain community associations to
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contract with a community association management firm;
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requiring the community association firm to possess
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all applicable licenses; providing that association
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board members, officers, and directors have a duty to
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ensure such community association firm or community
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association manager is properly licensed; amending s.
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721.03, F.S.; providing that timeshare management
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firms and certain licensed individuals are only
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subject to certain licensing and disciplinary
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requirements; amending s. 721.13, F.S.; providing that
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timeshare management firms and certain licensed
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individuals are only subject to certain licensing and
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disciplinary requirements unless certain provisions of
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law expressly apply; providing that certain
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accommodations managed by a timeshare management firm
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or licensed individual are governed under specified
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provisions of law; providing for priority of
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application in case of conflict; amending s. 721.14,
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F.S.; conforming a provision to changes made by the
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act; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Subsection (4) is added to section 468.432,
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Florida Statutes, to read:
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468.432 Licensure of community association managers and
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community association management firms; exceptions.—
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(4) Before contracting with or being employed by a
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condominium association, cooperative association, or homeowners'
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association, a community association manager or community
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association management firm must obtain coverage under an errors
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or omissions insurance policy with a minimum combined single
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limit of $1 million, which is separate from any insurance
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coverage provided by the association.
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Section 2. Subsection (6) is added to section 468.436,
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Florida Statutes, to read:
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468.436 Disciplinary proceedings.—
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(6) If a community association manager is convicted of, or
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enters a plea of guilty or nolo contendere, regardless of
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adjudication, in any jurisdiction, to a felony of the first
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degree, a capital felony, a felony involving money laundering,
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or a felony involving theft or embezzlement, the department must
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immediately revoke the community association manager's license
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issued under this part and the community association manager is
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permanently barred from future licensure under this part.
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Section 3. Paragraph (g) of subsection (3) of section
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718.111, Florida Statutes, is amended to read:
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718.111 The association.—
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(3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
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SUE, AND BE SUED; CONFLICT OF INTEREST.—
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(g) If an association contracts with a community
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association manager or a community association management firm,
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the community association manager or community association
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management firm must possess all applicable licenses required by
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part VIII of chapter 468. An association with total annual
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revenues of $750,000 or more must contract with a community
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association management firm. Each board member or officer All
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board members or officers of an association that contracts with
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a community association manager or a community association
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management firm has have a duty to ensure that the community
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association manager or community association management firm is
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properly licensed before entering into a contract.
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Section 4. Subsection (6) is added to section 718.405,
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Florida Statutes, to read:
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718.405 Multicondominiums; multicondominium associations.—
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(6) An association operating a multicondominium must
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contract with a community association management firm. The
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community association management firm must possess all
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applicable licenses required by part VIII of chapter 468. Each
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board member or officer of an association that contracts with a
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community association manager or a community association
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management firm has a duty to ensure that the community
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association manager or community association management firm is
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properly licensed before entering into a contract.
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Section 5. Paragraph (a) of subsection (1) of section
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719.106, Florida Statutes, is amended to read:
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719.106 Bylaws; cooperative ownership.—
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(1) MANDATORY PROVISIONS.—The bylaws or other cooperative
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documents shall provide for the following, and if they do not,
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they shall be deemed to include the following:
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(a) Administration.—
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1. The form of administration of the association shall be
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described, indicating the titles of the officers and board of
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administration and specifying the powers, duties, manner of
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selection and removal, and compensation, if any, of officers and
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board members. In the absence of such a provision, the board of
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administration shall be composed of five members, unless the
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cooperative has five or fewer units. The board shall consist of
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not fewer than three members in cooperatives with five or fewer
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units that are not-for-profit corporations. In a residential
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cooperative association of more than 10 units, co-owners of a
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unit may not serve as members of the board of directors at the
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same time unless the co-owners own more than one unit or unless
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there are not enough eligible candidates to fill the vacancies
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on the board at the time of the vacancy. In the absence of
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provisions to the contrary, the board of administration shall
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have a president, a secretary, and a treasurer, who shall
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perform the duties of those offices customarily performed by
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officers of corporations. Unless prohibited in the bylaws, the
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board of administration may appoint other officers and grant
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them those duties it deems appropriate. Unless otherwise
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provided in the bylaws, the officers shall serve without
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compensation and at the pleasure of the board. Unless otherwise
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provided in the bylaws, the members of the board shall serve
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without compensation.
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2. A person who has been suspended or removed by the
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division under this chapter, or who is delinquent in the payment
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of any monetary obligation due to the association, is not
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eligible to be a candidate for board membership and may not be
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listed on the ballot. A director or officer charged by
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information or indictment with a felony theft or embezzlement
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offense involving the association's funds or property is
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suspended from office. The board shall fill the vacancy
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according to general law until the end of the period of the
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suspension or the end of the director's term of office,
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whichever occurs first. However, if the charges are resolved
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without a finding of guilt or without acceptance of a plea of
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guilty or nolo contendere, the director or officer shall be
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reinstated for any remainder of his or her term of office. A
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member who has such criminal charges pending may not be
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appointed or elected to a position as a director or officer. A
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person who has been convicted of any felony in this state or in
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any United States District Court, or who has been convicted of
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any offense in another jurisdiction which would be considered a
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felony if committed in this state, is not eligible for board
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membership unless such felon's civil rights have been restored
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for at least 5 years as of the date such person seeks election
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to the board. The validity of an action by the board is not
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affected if it is later determined that a board member is
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ineligible for board membership due to having been convicted of
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a felony.
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3. When a unit owner files a written inquiry by certified
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mail with the board of administration, the board shall respond
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in writing to the unit owner within 30 days of receipt of the
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inquiry. The board's response shall either give a substantive
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response to the inquirer, notify the inquirer that a legal
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opinion has been requested, or notify the inquirer that advice
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has been requested from the division. If the board requests
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advice from the division, the board shall, within 10 days of its
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receipt of the advice, provide in writing a substantive response
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to the inquirer. If a legal opinion is requested, the board
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shall, within 60 days after the receipt of the inquiry, provide
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in writing a substantive response to the inquirer. The failure
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to provide a substantive response to the inquirer as provided
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herein precludes the board from recovering attorney's fees and
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costs in any subsequent litigation, administrative proceeding,
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or arbitration arising out of the inquiry. The association may,
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through its board of administration, adopt reasonable rules and
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regulations regarding the frequency and manner of responding to
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the unit owners' inquiries, one of which may be that the
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association is obligated to respond to only one written inquiry
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per unit in any given 30-day period. In such case, any
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additional inquiry or inquiries must be responded to in the
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subsequent 30-day period, or periods, as applicable.
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4. An association with total annual revenues of $750,000
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or more must contract with a community association management
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firm. The community association management firm must possess all
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applicable licenses required by part VIII of chapter 468.
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5. Each board member or officer of an association that
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contracts with a community association manager or a community
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association management firm has a duty to ensure that the
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community association manager or community association
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management firm is properly licensed before entering into a
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contract.
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Section 6. Subsection (1) of section 720.303, Florida
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Statutes, is amended to read:
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720.303 Association powers and duties; meetings of board;
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official records; budgets; financial reporting; association
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funds; recalls.—
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(1) POWERS AND DUTIES.—An association that operates a
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community as defined in s. 720.301 must be operated by an
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association that is a Florida corporation. After October 1,
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1995, the association must be incorporated and the initial
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governing documents must be recorded in the official records of
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the county in which the community is located. An association may
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operate more than one community. An association with total
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annual revenues of $750,000 or more must contract with a
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community association management firm. The community association
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management firm must possess all applicable licenses required by
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part VIII of chapter 468. The officers and directors of an
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association are subject to s. 617.0830 and have a fiduciary
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relationship to the members who are served by the association.
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Each officer and director of an association that contracts with
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a community association manager or a community association
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management firm has a duty to ensure that the community
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association manager or community association management firm is
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properly licensed before entering into a contract. The powers
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and duties of an association include those set forth in this
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chapter and, except as expressly limited or restricted in this
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chapter, those set forth in the governing documents. After
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control of the association is obtained by members other than the
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developer, the association may institute, maintain, settle, or
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appeal actions or hearings in its name on behalf of all members
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concerning matters of common interest to the members, including,
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but not limited to, the common areas; roof or structural
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components of a building, or other improvements for which the
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association is responsible; mechanical, electrical, or plumbing
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elements serving an improvement or building for which the
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association is responsible; representations of the developer
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pertaining to any existing or proposed commonly used facility;
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and protest of ad valorem taxes on commonly used facilities. The
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association may defend actions in eminent domain or bring
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inverse condemnation actions. Before commencing litigation
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against any party in the name of the association involving
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amounts in controversy in excess of $100,000, the association
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must obtain the affirmative approval of a majority of the voting
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interests at a meeting of the membership at which a quorum has
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been attained. This subsection does not limit any statutory or
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common-law right of any individual member or class of members to
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bring any action without participation by the association. A
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member does not have authority to act for the association by
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virtue of being a member. An association may have more than one
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class of members and may issue membership certificates. An
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association of 15 or fewer parcel owners may enforce only the
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requirements of those deed restrictions established prior to the
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purchase of each parcel upon an affected parcel owner or owners.
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Section 7. Subsection (2) of section 721.03, Florida Statutes, is amended to read:
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721.03 Scope of chapter.—
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(2)(a) When a timeshare plan is subject to both the
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provisions of this chapter and the provisions of chapter 718 or
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chapter 719, the plan shall meet the requirements of both
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chapters unless exempted as provided in this section. The
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division shall have the authority to adopt rules differentiating
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between timeshare condominiums and nontimeshare condominiums,
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and between timeshare cooperatives and nontimeshare
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cooperatives, in the interpretation and implementation of
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chapters 718 and 719, respectively. In the event of a conflict
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between the provisions of this chapter and the provisions of
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chapter 718 or chapter 719, the provisions of this chapter shall
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prevail.
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(b) A timeshare management firm, or an individual licensed
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under part VIII of chapter 468 who is employed by a timeshare
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management firm, is governed by this chapter and, pursuant to s.
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721.13(13)(c)2., is only subject to the licensing and
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disciplinary requirements of chapter 468.
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Section 8. Paragraph (c) of subsection (13) of section
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721.13, Florida Statutes, is amended to read:
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721.13 Management.—
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(13)
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(c)1. If a timeshare management firm or an owners'
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association provides goods or services through a parent,
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affiliate, or subsidiary of the timeshare management firm, the
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fact that a related party is providing goods or services must be
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disclosed annually to the members of that owners' association in
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any of the following ways:
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a. As an explanatory note to the annual budget pursuant to
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subparagraph (3)(c)1.;
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b. In the management contract;
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c. By mail sent to each owner's address on file for
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providing notice;
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d. In the notice of an annual or special meeting of the
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owners;
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e. By posting notice on the website of the applicable
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timeshare plan; or
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f. By any owner communication used by the managing entity.
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2.a. A timeshare management firm and any individual
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licensed under part VIII of chapter 468 employed by the
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timeshare management firm are governed by this section and s.
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468.438.
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b. Unless a provision of part VIII of chapter 468 is made
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expressly applicable to a timeshare management firm, or to an
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individual licensed under part VIII of chapter 468 who is
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employed by a timeshare management firm, a timeshare management
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firm or an individual licensee is governed by this chapter and
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is only subject to the licensing and disciplinary requirements
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of chapter 468.
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c. If a timeshare management firm or an individual
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licensee also manages other accommodations that are not part of
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a timeshare plan, subparagraph b. does not apply to the
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community association management of the other accommodations and
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such accommodations are fully governed by part VIII of chapter
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468.
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d. In the event of a conflict between the provisions of
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this chapter and the provisions of chapter 468, the provisions
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of this chapter prevail.
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Section 9. Paragraph (d) is added to subsection (4) of section 721.14, Florida Statutes, to read:
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721.14 Discharge of managing entity.—
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(4)
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(d) Timeshare management firms are governed by this
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section and not by s. 468.4334(4).
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Section 10. This act shall take effect January 1, 2027.