Regulatory Reform Subcommittee — Meeting Packet, March 8, 2021
Summary
This meeting packet is for the Regulatory Reform Subcommittee of The Florida House of Representatives Commerce Committee, with Chris Sprowls, Speaker, and Bob Rommel, Chair, named on the cover. The committee meeting notice gives Monday, March 08, 2021, 10:00 am to 12:00 pm at Sumner Hall (404 HOB) for consideration of bills that include HB 21 Construction Defects, HB 855 Barber Services, HB 6053 Doorstep Waste Containers, and HB 6073 Individual Wine Containers. The staff analysis of HB 21 states that the bill limits actionable violations of the Florida Building Code to material violations and provides an effective date of July 1, 2021. The text of HB 6073 provides that Section 564.05, Florida Statutes, is repealed.
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Regulatory Reform Subcommittee
Monday, March 8, 2021
10:00 AM - 12:00 PM
Sumner Hall (404 HOB)
Meeting Packet
Chris Sprowls Bob Rommel
Speaker Chair
The Florida House of Representatives
Commerce Committee
Regulatory Reform Subcommittee
Chris Sprowls Bob Rommel
Speaker Chair
AGENDA
Tuesday, March 8, 2021
Webster Hall (212 Knott)
1:00 PM- 3:00 PM
I. Call to Order & Roll Call
II. Welcoming Remarks
III. Consideration of the following bills(s):
HB 21 by Rep. Andrade
Construction Defects
HB 339 by Rep. Robinson, W
Business Organizations
HB 615 by Rep. Rodriguez
Community Association Assessment Notices
HB 665 by Rep. McClure
Homeowners' Association Rental Agreements
HB 823 by Rep. Mariano
Alarm System Contractors
HB 855 by Rep. Morales
Barber Services
HB 6053 by Rep. Yarborough
Doorstep Waste Containers
HB 6073 by Rep. LaMarca
Individual Wine Containers
IV. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
(850) 717-4870 Fax: (850) 410-0096
Committee Meeting Notice
HOUSE OF REPRESENTATIVES
Regulatory Reform Subcommittee
Start Date and Time: Monday, March 08, 2021 10:00 am
End Date and Time: Monday, March 08, 2021 12:00 pm
Location: Sumner Hall (404 HOB)
Duration: 2.00 hrs
Consideration of the following bill(s):
HB 21 Construction Defects by Andrade
HB 339 Business Organizations by Robinson, W.
HB 615 Community Association Assessment Notices by Rodriguez
HB 665 Homeowners' Association Rental Agreements by McClure
HB 823 Alarm System Contractors by Mariano
HB 855 Barber Services by Morales
HB 6053 Doorstep Waste Containers by Yarborough
HB 6073 Individual Wine Containers by LaMarca
This meeting will be live-streamed on https://thefloridachannel.org/. Persons who wish to attend must
register at www.myfloridahouse.gov, at least three hours before the meeting, and pick up a pass at the
Legislative Welcome Center on the 4th Floor of the Capitol beginning one hour before the start of the
meeting. Audience seating will be socially distanced and will be available on a first-come, first-served basis.
Registration closes three hours before the meeting starts.
NOTICE FINALIZED on 03/04/2021 4:03PM by Rigas.Amanda
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 21 Construction Defects
SPONSOR(S): Andrade and others
TIED BILLS: IDEN./SIM. BILLS: SB 270
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice & Property Rights Subcommittee 10 Y, 8 N Mawn Jones
2) Regulatory Reform Subcommittee
3) Judiciary Committee
SUMMARY ANALYSIS
A "construction defect" is a deficiency in, or arising out of, the design, specifications, surveying, planning,
supervision, or observation of construction, or the construction, repair, alteration, or remodeling of real property
("property"), and includes a Florida Building Code violation. A property owner, including a subsequent
purchaser or a community association ("claimant"), may bring a civil action alleging a construction defect claim
against the person responsible for the construction defect ("respondent") in a court of competent jurisdiction. A
claimant must bring such an action within four years after project completion or, in the case of a latent defect,
within ten years of certain specified events.
At least 60 days before a claimant may bring a construction defect claim in court, or at least 120 days before
bringing such a claim if it involves an association representing more than 20 parcels, the claimant must serve
written notice of the claim on the respondent. The respondent then has the right to inspect the allegedly
defective property and serve a copy of the notice of claim on any person the respondent believes is
responsible for the alleged defect ("secondary respondent"). The respondent must respond to the notice with a
written settlement offer or a statement disputing the claim. A settlement offer may include an offer to repair the
defect, provide monetary payment, or a combination of both. If the respondent disputes the claim, or makes a
settlement offer but does not timely follow through, the claimant may file suit without further notice.
HB 21 :
• Limits actionable violations of the Florida Building Code to material violations.
• Requires a claimant to attempt to resolve a construction defect claim or Florida Building Code violation
claim under any applicable warranty before sending a notice of claim or commencing legal action.
• Increases the specificity of detail a claimant must provide in the notice of claim and requires the
claimant to include photographs of the damage and repair estimates or expert reports.
• Requires a claimant to affirm in the notice of claim that he or she has personal knowledge of the
alleged defect and acknowledge that he or she is aware of the penalties for perjury.
• Requires a claimant to personally sign the notice of claim under penalty of perjury.
• Mandates that the respondent serve a copy of the notice of claim on each person the respondent
believes is responsible for the defect.
• Requires a prevailing claimant to notify any mortgage company with a security interest in the property
of the claim's outcome and the defect's repair.
The bill may have a positive insignificant fiscal impact on state government. The bill does not have a fiscal
impact on local governments.
The bill provides an effective date of July 1, 2021 .
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Florida Building Code
The Florida Building Code is the statewide building code for all construction in the state. The Florida
Building Commission (Commission), housed within the DBPR, implements the Florida Building Code.
The Commission reviews the International Code Council's I-Codes and the National Electric Code
every three years to determine if it needs to update the Florida Building Code. 1
Part IV of ch. 553, F.S., is known as the "Florida Building Codes Act," which provides a mechanism for
the uniform adoption, updating, interpretation, and enforcement of a single, unified state building code
that must be applied, administered, and enforced uniformly and consistently from jurisdiction to
jurisdiction. 2 The Florida Building Code is adopted, updated, and interpreted by the Commission, and is
enforced by local governments. 3
The main purpose of the Florida Building Code is to regulate new construction or proposed
modifications to existing structures in order to give the occupants the highest level of safety and the
least amount of defects. 4 The Florida Building Code sets minimum standards for the design,
construction, erection, alteration, modification, repair, and demolition of buildings, structures, and
facilities in the state.
Construction and Electrical Contractors
The Legislature has determined that it is "necessary in the interest of the public health, safety, and
welfare" to regulate the construction, electrical, and alarm system industry. 5
Construction contractors are either certified by or registered with the Construction Industry Licensing
Board (CILB). The CILB is housed in DBPR and consists of 18 members who are appointed by the
Governor and confirmed by the Senate. The CILB is responsible for licensing, regulating, and
disciplining certified construction contractors. Electrical contractors and alarm system contractors are
certified by or registered with the Electrical Contractors' Licensing Board (ECLB) . The ECLB is also
housed in DBPR consists of 11 members who are appointed by the Governor and confirmed by the
Senate. The ECLB is responsible for licensing, regulating, and disciplining certified electrical and alarm
system contractors. 6
The CILB and the ECLB may take action 7 against a certified contractor if they find the contractor is
guilty of violating the contractor's practice act. Violations include:6
1
S. 553.73(7), F.S.
2 Sees. 553.72(1), F.S.
3 Ss. 553.72, & 553.73, F.S.
4
Florida Building Commission , Advanced Florida Building Code Principals, http://www.floridabuildinq.org/Upload/Courses trp/421 -2-
MATERIAL-Adv%20FL%20Bldg%20Code%20-%20Course%20PDF%20version%207.0.pdf (last visited Feb. 9, 2021).
5
s. 489.101, F.S.
6
See generally Ch. 489, F.S.
7
The C!LB and the ECLB may place a contractor on probation, reprimand him or her, revoke or suspend the contractor's certificate or
registration, or deny the issuance of a renewal certificate or registration. The CILB and the ECLB may also require financial
restitution to a consumer for financial harm directly related to a violation, require continuing education, or assess costs associated with
investigation and prosecution. Ss. 489.129(1), 489.533(1), F.S.
8
Ss. 455.227(l)(k), 489.129(1)(0), and 489.533(1), F.S.
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• Abandoning a construction project;
• Committing financial mismanagement that causes financial harm to a customer;
• Failing to perform any statutory or legal obligation placed upon a licensee;
• Falsely indicating that payment has been made for all subcontracted work, labor, and materials
which results in a financial loss to the owner, purchaser, or contractor;
• Being convicted or found guilty of, or entering a plea of nolo contendere to, regardless of
adjudication, a crime in any jurisdiction which directly relates to the practice of contracting or the
ability to practice contracting ; or
• Proceeding on a job without obtaining applicable local building department permits and
inspections.
In addition to the CILB or ECLB disciplining a contractor, any licensee responsible for a material Florida
Building Code violation who failed to correct the violation within a reasonable time may be fined by a
local jurisdiction at least $500 but no more than $5,000. A failure to pay the fine will result in a
suspension of the licensee's ability to pull building permits. 9
A "material violation" is a violation existing within a completed building, structure, or facility which may
reasonably result, or has resulted, in physical harm to a person or significant damage to the
performance of a building or its systems. 10
Statutory Civil Actions
Any person damaged by a Florida Building Code violation has a civil cause of action against the
culpable party. 11
There is no cause of action against a party who did not know and had no reason to know of the
violation if:
• The party obtained the required building permit;
• The party receive government approval of the plans;
• The construction project passed all required inspections; and
• There was no personal injury or damage to other property.12
However, this does not apply if the culpable party knew or should have known that the violation
existed. 13
Construction Defect Claims
A "construction defect" is a deficiency in, or arising out of, the design , specifications, surveying,
planning, supervision, or observation of construction, or the construction, repair, alteration, or
remodeling of real property 14 ("property") resulting from:
• Defective material, products, or components used in the construction or remodeling;
• A Florida Building Code violation;
• A failure of real property's design to meet the applicable professional standards of care at the
time of governmental approval; or
• A failure to construct or remodel real property in accordance with accepted trade standards for
good and workmanlike construction at the time of construction .15
9
S. 553.781, F.S.
10 Id.
11 S. 553.84, F.S.
12 /d.
13 /d.
14
"Real property" means land that is improved and the improvements thereon, including fixtures, manufactured housing, or mobile
homes. S. 558.002(8), F.S .
15 S. 558.002(5), F.S.
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A property owner, including a subsequent purchaser or a community association 16 ("claimant"), may
bring a civil action alleging a construction defect claim against the contractor, subcontractor, supplier, or
design professional 17 responsible for the construction defect ("respondent") in a court of competent
jurisdiction. 18 A claimant must bring such action within four years after project completion or, in the case
of a latent defect, 19 within ten years after the date of the later of:
• Actual possession by the owner;
• The issuance of a certificate of occupancy;
• Abandonment of construction if not completed ; or
• Completion or termination of the contract between the professional engineer, registered
architect, or licensed contractor and his or her employer. 20
Notice of Claim
Florida law requires a claimant to serve a written notice of claim on the respondent at least 60 days
before bringing a construction defect claim in court, or at least 120 days before bringing such claim if it
involves an association representing more than 20 parcels. The notice of claim must describe in
reasonable detail the alleged defect's nature and, if known, the damage or loss caused by the defect. 21
The notice of claim must also identify the alleged defect's location with enough detail to allow the
respondent to easily locate the defect. 22
Within 10 days after service of the notice of claim, or within 30 days after service if the claim involves
an association representing more than 20 parcels, the respondent may serve a copy of the notice of
claim ("notice copy") to each contractor, subcontractor, supplier, or design professional the respondent
reasonably believes is responsible for each defect specified in the notice ("secondary respondent") and
must note therein the specific defect for which he or she believes each secondary respondent is
responsible. 23
Inspection and Testing
Within 30 days after service of the notice of claim, or within 50 days after service if the claim involves
an association representing more than 20 parcels, the respondent has a right to perform a reasonable
inspection of the property to assess each alleged defect and the extent of any necessary repairs or
replacements. 24 The claimant must give the respondent reasonable access to the property during
normal working hours, and the respondent must reasonably coordinate the timing and manner of the
inspections to minimize the number of inspections. 25 Each secondary respondent is also entitled to
inspect the property. 26
If the respondent determines that destructive testing is necessary to reveal the alleged defect's nature
and cause, the respondent must give the claimant written notice describing the destructive testing to be
performed, the person chosen to do the testing, the estimated amount of time needed for testing and
repairs, and the money offered for repair costs. 27 If the claimant objects to the person chosen to
16 "Community associations" are condominium, cooperative, homeowners', and mobile home park homeowners' associations . S.
558.002(2), F.S.
17 A design professional employed by a business entity or an agent thereof is not individually liable for damages resulting from
negligence occurring within the course and scope of a professional services contract under certain conditions . S. 558.0035, F.S.
16 S. 558.004, F.S.
19 A "latent defect" is a hidden or concealed defect that could not be discovered by reasonable and customary observation or inspection
made with ordinary care. Blacks Law Dictionary 611 (6th ed. 1996).
20 S. 95.11 (3)(c), F.S.
21 S. 558.004(1), F.S.
22 Id.
23 S. 558.004(3), F.S.
24 S. 558.004(2), F.S.
2s Id.
26 S. 558.004(3), F.S.
21 S. 558.004(2)(a) and (b), F.S.
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perform the testing, the respondent must provide the claimant with a list of three qualified persons from
which the claimant may choose one person to perform the testing .28 Any destructive testing must be
done at a mutually agreeable time, must not make the property uninhabitable, and does not give the
party performing the destructive testing or associated repairs construction lien 29 rights unless the
claimant personally contracts with such party. 30 Additionally, the claimant has a right to observe the
destructive testing .31 However, if the claimant refuses to allow reasonable destructive testing, the
claimant loses the right to claim damages which could have been avoided or mitigated by the
destructive testing .32
Disclosures
A claimant and a respondent must exchange, within 30 days after service of a written request, any
design plans; specifications; photographs and videos of the alleged defect; expert reports describing
the alleged defect; subcontracts; purchase orders for the allegedly-defective work or materials; and
maintenance records and other documents related to the alleged defect's discovery, investigation,
causation, and extent. 33 A party may assert any claim of privilege 34 recognized in state law with respect
to a requested disclosure.35
Settlement Offers
Within 15 days after service of a notice copy, or within 30 days of service if the claim involves an
association with more than 20 parcels, the secondary respondent must give the respondent a written
reply. 36 Such reply must include a report, if any, of the scope of any property inspections conducted by
the secondary respondent and the findings and results of such inspections. 37 Additionally, within 45
days of service of the notice of claim, or within 75 days of service if the claim involves an association
representing more than 20 parcels, the respondent must give the claimant a written reply. 38 Such reply
must include a written:
• Offer to remedy the alleged defect at no cost to the claimant, a detailed description of proposed
repairs, and a timetable for repair completion;
• Offer to compromise and settle the claim by monetary payment;
• Offer to compromise and settle the claim by a combination of repairs and monetary payment
that includes a detailed description of proposed repairs and a timetable;
• Statement that the respondent disputes the claim and will not remedy the alleged defect or
settle the claim; or
• Statement that a monetary payment will be determined by the respondent's insurer within 30
days after insurer notification. 39
A claimant who receives a timely settlement offer must accept or reject the offer by serving written
notice within 45 days after receiving the offer. 40 However, a claimant may, without further notice, bring
28 S. 558 .004(2)
29 Under Part I of ch . 713, F.S. , a contractor, subcontractor, material suppl ier, laborer, or professional (such as an architect or
landscape artist) may claim a lien on a property on or for which such person performed work or provided materials even where such
person does not have a direct contract with the property owner.
30 S. 558 .004(2)(d) , (f) , and (g) , F .S.
31 S. 558.004(2)(e) , F.S.
32
S. 558.004(2)(9) , F.S.
33 S. 558 .004(15), F.S.
34 A claim of privilege protects certain information from disclosure or discovery. The Florida Evidence Code recognizes certain
privileges, including the lawyer-client privilege , the husband-wife privilege , and the psychotherapist-patient privilege. See ch. 90 , F.S.
35 /d.
36 S. 558 .004(4), F.S.
37 Id.
38 S. 558 .004(5) , F.S.
39 S. 558.004(4) and (5), F.S .
40 S. 558.004(7) , F.S.
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an action against the respondent if the respondent disputes the claim and will not remedy the alleged
defect or settle the claim, or does not timely respond to the notice of claim. 41
If the claimant timely and properly accepts a repair offer, the claimant must give the respondent
reasonable access to the property during normal working hours to perform the repairs by the agreed-
upon completion date. 42 If the respondent completes the repairs or makes payment within the agreed
time and in the agreed manner, the claimant cannot bring an action for the claim .43 However, a claimant
may, without further notice, bring an action against the respondent if the claimant timely and properly
accepted a repair or payment offer but the repairs or payment are not made within the agreed time and
in the agreed manner. 44
Opt-Out Provision
The notice and cure provisions of ch. 558 , F.S., described above, do not apply to a construction defect
claim if the claimant and respondent have agreed in writing to opt out of such provisions. 45 This means
that, if a contract is silent, the parties to the contract must comply with the notice and cure provisions;
however, a contract may, by its terms, expressly opt out of such provisions and may provide an
alternative dispute resolution mechanism applicable to claims arising under the contract.
New Home Warranties
New home warranties guarantee the repair or replacement of certain elements of a newly-constructed
home, if necessary, within a specified time . Builders often back new home warranties ; however,
builders sometimes purchase warranties from independent companies that assume responsibility for
the claims, and homeowners may purchase additional coverage from third-party warranty companies. 46
The duration of coverage offered under a new home warranty varies based on the type of element at
issue. Most new home warranties cover workmanship and materials, such as drywall and paint, for one
year after construction. 47 Coverage for elements such as air conditioning, plumbing, and electricity
typically lasts for two years, and some new home warranties cover major structural defects making a
home unsafe for up to ten years .48 However, new home warranties typically do not cover expenses a
homeowner incurs due to a construction defect or repair, such as temporary relocation costs, or
superficial defects, such as small cracks in tile or cement. 49
Generally, a new home warranty contract specifies how a claim must be made under the warranty.
Many new home warranties require mediation 50 of disputed warranty claims, followed by mandatory
binding arbitration 51 if mediation is unsuccessful. 52
Notice to Mortgagee or Assignee
A mortgage is any conveyance, obligation conditioned or defeasible, bill of sale, or other instrument of
writing conveying or selling property to secure the payment of money.53 In Florida, a mortgage gives the
41 S. 558.004(6), F.S.
42 S. 558.004(8) , F.S.
43 Id.
44 Id.
45 S. 558.005, F .S.
46
Federal Trade Commission ("FTC"), Warranties for Newly Built Homes, https://www.consumer.ftc.gov/articles/0186-warranties-newly-
built-homes (last visited Feb. 9, 2021 ).
47 Id.
4a Id.
49 Id.
50 Mediation is a process whereby a neutral third person helps the parties discuss and try to voluntarily resolve their dispute.
51
Mandatory binding arbitration is a process wheret:Jy parties to a contract agree to submit their disputes to a third party instead of to
the courts, and there are no appellate rights.
s2 FTC, supra note 35.
53 S. 697.01(1), F.S.
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mortgagee or its assignee a specific lien on the property described in the mortgage but does not
convey legal title or the right of possession to the property to the mortgagee or its assignee.54
Some mortgage contracts require the mortgagor to notify the mortgagee if the property is damaged.
Additionally, many payments on a property insurance claim are made out to both the mortgagor and the
mortgagee, giving the mortgagee notice of property damage even where such notice is not required by
contract. However, Florida law does not currently require a mortgagor to notify the mortgagee of any
construction defects to the mortgaged property.
Effect of the Bill
Statutory Civil Actions
The bill limits a statutory civil action, pursuant to s. 553.84, F.S., based on a violation of ch. 553, F.S .,
or the Florida Building Code to only allow suits based on "material" violations. The bill defines "material
violation" means a violation that exists within a completed building, structure, or facility which may
reasonably result, or has resulted, in physical harm to a person or significant damage to the
performance of a building or a system.
The bill also requires any person bringing such claim to first submit a claim for the alleged violation
under any applicable warranty and have such claim denied or an unsatisfactory remedy offered by the
warranty provider within the time limits provided in the warranty.
Construction Defect Claims
Notice of Claim
The bill prohibits a claimant whose contract is subject to ch. 558, F.S., from filing a notice of claim and
commencing litigation on a construction defect claim before first submitting a claim for the alleged
defect under any applicable warranty and having such claim denied or an unsatisfactory remedy
offered by the warranty provider within the time limits provided in the warranty.
The bill also provides that a notice of claim must:
• Describe the alleged defect and its location in specific (instead of "reasonable") detail.
• Include any repair estimates or expert reports the claimant obtained relating to the alleged
defect and , if the alleged defect is visible, at least one photograph of such defect.
• Affirm the claimant has personal knowledge of the alleged defect.
• Acknowledge the claimant is aware of the penalties for perjury. 55
• Be signed by the claimant directly below a statement declaring that, under penalty of perjury,
the claimant has read the notice of claim and the facts alleged are true to the best of his or her
knowledge or belief.
Further, the bill requires a respondent to serve a notice copy on any secondary respondent and
provides that a person who willfully includes a false statement in the notice of claim commits perjury
and is subject to punishment as provided by law.
Inspection and Testing
The bill expressly provides that a secondary respondent may perform a reasonable inspection of the
property and that a respondent must reasonably coordinate the timing of any property inspections with
54 S. 697.02, F.S.
55 Perjury is a false statement made under oath. Perjury not in an official proceeding is a first degree misdemeanor punishable by up to
one year in the county jail and a $1,000 fine . Ss. 775.082, 775.083, and 837.012, F.S.
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the secondary respondents to minimize the number of inspections. The bill also expressly requires a
claimant to give a secondary respondent reasonable access to the property for defect inspections.
Disclosures
The bill modifies what the claimant and the respondent must exchange upon written request prior to the
filing of a construction defect claim to exclude photographs and expert reports already provided in the
notice of claim, so that the claimant does not have to make such disclosures twice .
Notice to Mortgagee or Assignee
The bill provides that, if a construction defect claim results in a monetary settlement or judgment in the
claimant's favor, and a mortgagee or assignee has a security interest in the real property related to the
claim, the claimant must, within 90 days, send written notice to the mortgagee or assignee of:
• The defect's specific nature;
• The claim's outcome , including the amount of any monetary settlement reached or judgment
awarded; and
• Whether the defect was repaired and a repair description or, if repairs have not begun, the
anticipated repair start date.
If defect repairs are completed after the claimant sends such notice, the bill requires the claimant to
supplement the notice within 30 days of repair completion.
The bill provides an effective date of July 1, 2021 .
B. SECTION DIRECTORY:
Section 1: Amends s. 553.84 , F.S., relating to statutory civil action.
Section 2: Amends s. 558.004, F.S., relating to notice and opportunity to repair.
Section 3: Creates s. 558.006, F.S., relating to notice to mortgagee or assignee.
Section 4: Provides an effective date of July 1, 2021 .
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill may have a positive insignificant impact on state government, as it may reduce the number
of construction defect claims and statutory claims filed in the state court system.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues :
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
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The bill may reduce fraudulent construction defect claims and prevent costly litigation in cases where
the builder is willing to repair the defect, resulting in savings for builders and contractors. However, the
bill may increase costs to homeowners unable to bring civil actions and recover damages for
"immaterial" Florida Building Code violations and who may, consequently, bear the cost of repairing any
damage themselves.
D. FISCAL COMMENTS:
None.
111. COMMENTS
A CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
The Florida Constitution provides that "[t]he courts shall be open to every person for redress of any
injury, and justice shall be administered without sale, denial or delay."56 In Kluger v. White, 281 So.
2d 1 (Fla. 1973), the Florida Supreme Court established a test to determine when the Legislature
may restrict a judicial remedy. Where citizens have had a historical right of access to the courts,
whether through statute or common law, 57 the Legislature can only eliminate a judicial remedy under
two circumstances. First, if it asserts a valid public purpose, the Legislature may restrict access to
the courts if it provides a reasonable alternative to litigation.58 Second, if the Legislature finds that
there is an overpowering public necessity and that there is no alternative method for meeting that
necessity, it may restrict access to the courts. 59
Section 553.84, F.S., created a statutory civil cause of action for certain violations of ch. 553, F.S.,
and the Florida Building Code. The bill limits actionable violations to only "material" violations.
However, because s. 553.84, F.S., was not effective until 1974 - after the 1968 Florida Constitution's
Declaration of Rights was adopted - there is no "historical right of access to the courts" in this area
under Kluger, thus, the Legislature may restrict the right.
8. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
se Art. I, s. 21, Fla. Const.
57
A historical right of access to the courts is a right provided by statutory law predating the adoption of the Florida Constitution's
Declaration of Rights in 1968 or a right now part of the state's common law that existed in common law as of July 4, 1776. See Kluger,
281 So. 2d at 4 .
58 fd.
ss Id.
STORAGE NAME: h0021b.RRS.DOCX PAGE: 9
DATE: 3/5/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
1 A bill to be entitled
2 An act relating to construction defects; amending s.
3 553. 84, F. S.; defining the term "material violation";
4 revising cause of action requirements for statutory
5 civil actions relating to certain violations;
6 providing requirements for bringing a cause of action;
7 amending s. 558.004, F.S.; requiring that a claimant
8 submit a construction defect claim to the warranty
9 provider before serving a notice of claim; providing
10 applicability; revising requirements for notices of
11 claims; providing that a person who willfully includes
12 a false statement in a notice of claim commits
13 perjury; authorizing a person served with a copy of a
14 notice of claim to perform a reasonable inspection of
15 the property subject to the claim; requiring, instead
16 of authorizing, a person served with a notice to serve
17 a copy of the notice to specified persons under
18 certain circumstances; creating s. 558.006, F.S.;
19 requiring a claimant to notify a mortgagee or an
20 assignee within a specified timeframe after a
21 settlement or judgment of a construction defect claim;
22 providing notice requirements; requiring a claimant to
23 update the notice within a specified timeframe under
24 certain circumstances; providing an effective date.
25
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Section 553.84, Florida Statutes, is amended to
29 read:
30 553.84 Statutory civil action.-
31 (1) For purposes of this section, the term "material
32 violation" means a violation that exists within a completed
33 building, structure, or facility which may reasonably result, or
34 has resulted, in physical harm to a person or significant damage
35 to the performance of a building or a system.
36 Jll. Notwithstanding any other remedies available, any
37 person or party, in an individual capacity or on behalf of a
38 class of persons or parties, damaged as a result of a material
39 violation of this part or the Florida Building Code, has a cause
40 of action in any court of competent jurisdiction against the
41 person or party who committed the violation~T However, if the
42 person or party obtains the required building permits and any
43 local government or public agency with authority to enforce the
44 Florida Building Code approves the plans, if the construction
45 project passes all required inspections under the code, and if
46 there is no personal injury or damage to property other than the
47 property that is the subject of the permits, plans, and
48 inspections, this section does not apply unless the person or
49 party knew or should have known that the violation existed.
50 (3) A person or party may bring a cause of action under
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
51 this section only after the person or party has submitted a
52 claim for the alleged material violation under an applicable
53 warranty and the warranty provider denies the claim or offers a
54 remedy that is unsatisfactory to the person or party within the
55 time limits provided in the warranty.
56 Section 2. Subsections (1) through (4) and subsection (15)
57 of section 558.004, Florida Statutes, are amended to read:
58 558.004 Notice and opportunity to repair.-
59 ( 1) (a) In actions brought alleging a construction defect,
60 the claimant shall, at least 60 days before filing any action,
61 or at least 120 days before filing an action involving an
62 association representing more than 20 parcels, serve written
63 notice of claim on the contractor, subcontractor, supplier, or
64 design professional, as applicable, which notice shall refer to
65 this chapter. If the construction defect claim arises from work
66 performed under a contract, the written notice of claim must be
67 served on the person with whom the claimant contracted. However,
68 the notice of claim may be served only after the claimant
69 properly submits a claim for the alleged construction defect
70 under an applicable warranty and the warranty provider denies
71 the claim or offers a remedy that is unsatisfactory to the
72 claimant within the time limit provided in the warranty. This
73 chapter provides a notice process for a construction defect
74 claim that has been denied or not otherwise satisfied under an
75 applicable warranty .
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
76 (b) The notice of claim must:
77 1. Describe in specific reasonable detail the nature of
78 each alleged construction defect~ -afia-
79 2. If the alleged construction defect or evidence thereof
80 is vi s i b l e, i ncl ude a t leas t on e phot o g ra ph o f t he al l eged
81 defect or evidence thereof, any repair estimates or expert
82 reports obtained relating to the alleged defect, and a
83 description of, if known, the damage or loss resulting from the
84 alleged defect, if known.
85 3. Based upon at least a visual inspection by the claimant
86 or its agents, the notice of elaiffi must identify the specific
87 location of each alleged construction defect sufficiently to
88 enable the responding parties to locate the alleged defect
89 without undue burden. The claimant has no obligation to perform
90 destructive or other testing for purposes of this notice.
91 4. Affirm that the claimant has personal knowledge of the
92 all ege d construction defect.
93 5. Acknowledge that the claimant is aware of the penalties
94 for perjury imposed under chapter 837.
95 6. Be signed b y the claimant and include the following
96 statement directly above the claimant's signature line in 18-
97 point uppercase and boldfaced type:
98
99 UNDER PENALTY OF PERJURY, I DECLARE THAT I HAVE READ THE
100 FOREGOING STATEMENT AND THE FACTS ALLEGED ARE TRUE TO THE BEST
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
101 OF MY KNOWLEDGE AND BELIEF.
102
103 (c) A person who willfully includes a false statement in
104 the notice of claim under this section commits perjury and, upon
105 conviction, is subject to punishment as provided by law.
106 li.2._-tet The claimant shall endeavor to serve the notice of
107 claim within 15 days after discovery of an alleged construction
108 defect, but the failure to serve notice of claim within 15 days
109 does not bar the filing of an action, subject to s. 558.003.
110 This subsection does not preclude a claimant from filing an
111 action sooner than 60 days, or 120 days as applicable, after
112 service of written notice as expressly provided in subsection
113 (6), subsection (7), or subsection (8).
114 ~+a+ A notice of claim served under pursuant to this
115 chapter shall not toll any statute of repose period under
116 chapter 95.
117 (2) Within 30 days after service of the notice of claim,
118 or within 50 days after service of the notice of claim involving
119 an association representing more than 20 parcels, ~ -Hte person
120 served with the notice of claim under subsection (1), or a copy
121 thereof under subsection (3), may is entitled to perform a
122 reasonable inspection of the property or of each unit subject to
123 the claim to assess each alleged construction defect. An
124 association's right to access property for either maintenance or
125 repair includes the authority to grant access for the
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
126 inspection. The claimant shall provide the person served with
127 notice under subsection (1), or a copy thereof under subsection
128 llL_ and such person's contractors or agents reasonable access
129 to the property during normal working hours to inspect the
130 property to determine the nature and cause of each alleged
131 construction defect and the nature and extent of any repairs or
132 replacements necessary to remedy each defect. The person served
133 with notice under subsection (1), or a copy thereof under
134 subsection (3), shall reasonably coordinate the timing and
135 manner of any and all inspections with the claimant to minimize
136 the number of inspections. The inspection may include
137 destructive testing by mutual agreement under the following
138 reasonable terms and conditions:
139 (a) If the person served with notice under subsection (1)
140 determines that destructive testing is necessary to determine
141 the nature and cause of the alleged defects, the -s-tl-eft person
142 must shall notify the claimant in writing.
143 (b) The notice describes shall describe the destructive
144 testing to be performed, the person selected to do the testing,
145 the estimated anticipated damage and repairs to or restoration
146 of the property resulting from the testing, the estimated amount
147 of time necessary for the testing and to complete the repairs or
148 restoration, and the financial responsibility offered for
149 covering the costs of repairs or restoration.
150 (c) If the claimant promptly objects to the person
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
151 selected to perform the destructive testing, the person served
152 with notice under subsection (1) must shall provide the claimant
153 with a list of three qualified persons from which the claimant
154 may select one such person to perform the testing. The person
155 selected to perform the testing operates shall operate as an
156 agent or subcontractor of the person served with notice under
157 subsection (1) and shall communicate with, submit any reports
158 to, and be solely responsible to the person served with notice.
159 (d) The testing must shall be done at a mutually agreeable
160 time.
161 (e) The claimant or a representative of the claimant may
162 be present to observe the destructive testing.
163 (f) The destructive testing may shall not render the
164 property uninhabitable.
165 (g) There are shall be no construction lien rights under
166 part I of chapter 713 for the destructive testing caused by a
167 person served with notice under subsection (1) or for restoring
168 the area destructively tested to the condition existing before
169 prior to testing, except to the extent the owner contracts for
170 the destructive testing or restoration.
171
172 If the claimant refuses to agree and thereafter permit
173 reasonable destructive testing, the claimant has shall have no
174 claim for damages which could have been avoided or mitigated had
175 destructive testing been allowed when requested and had a
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
176 feasible remedy been promptly implemented.
177 (3) Within 10 days after service of the notice of claim,
178 or within 30 days after service of the notice of claim involving
179 an association representing more than 20 parcels, the person
180 served with notice under subsection (1) must ffiaY serve a copy of
181 the notice of claim to each contractor, subcontractor, supplier,
182 or design professional whom it reasonably believes is
183 responsible for each defect specified in the notice of claim and
184 shall note the specific defect for which it believes the
185 particular contractor, subcontractor, supplier, or design
186 professional is responsible. The notice described in this
187 subsection may not be construed as an admission of any kind.
188 Each such contractor, subcontractor, supplier, and design
189 professional may inspect the property as provided in subsection
190 (2) •
191 (4) Within 15 days after service of a copy of the notice
192 of claim under pursuant to subsection (3), or within 30 days
193 after service of the copy of the notice of claim involving an
194 association representing more than 20 parcels, the contractor,
195 subcontractor, supplier, or design professional must serve a
196 written response to the person who served a copy of the notice
197 of claim. The written response must include a report, if any, of
198 the scope of any inspection of the property and the findings and
199 results of the inspection. The written response must include one
200 or more of the offers or statements specified in paragraphs
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
201 ( 5) (a) - ( e) , as chosen by the responding contractor,
202 subcontractor, supplier, or design professional, with all of the
203 information required for that offer or statement.
204 (15) Upon request, the claimant and any person served with
205 notice under pursuant to subsection (1) shall exchange, within
206 30 days after service of a written request that cites this
207 subsection and includes , ;1hich request must cite this subsection
208 and include an offer to pay the reasonable costs of
209 reproduction, any design plans, specifications, and as-built
210 plans; videos and additional photographs and videos of the
211 alleged construction defect identified in the notice of claim;
212 expert reports not already provided which -t-fta-t- describe any
213 defect upon which the claim is made; subcontracts; purchase
214 orders for the work that is claimed defective or any part of
215 such materials; and maintenance records and other documents
216 related to the discovery, investigation, causation, and extent
217 of the alleged defect identified in the notice of claim and any
218 resulting damages. A party may assert any claim of privilege
219 recognized under the laws of t h e ~ state with respect to any
220 of the disclosure obligations specified in this chapter. In the
221 event of subsequent litigation, any party who fails failed to
222 provide the requested materials is shall be subject to such
223 sanctions as the court may impose for a discovery violation.
224 Expert reports exchanged between the parties may not be used in
225 any subsequent litigation for any purpose, unless the expert, or
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 21 2021
226 a person affiliated with the expert, testifies as a witness or
227 the report is used or relied upon by an expert who testifies on
228 behalf of the party for whom the report was prepared.
229 Section 3. Section 558.006, Florida Statutes, is created
230 to read:
231 558.006 Notice to mortgagee or assignee.-
232 (1) If a notice of claim alleging a construction defect
233 under this chapter results in a monetary settlement or judgment
234 in favor of the claimant, and a mortgagee or an assignee has a
235 security interest in the real property subject to the claim, the
236 claimant must, within 90 days after the resolution of the claim,
237 notify the mortgagee or assignee, in writing, all of the
238 following:
239 (a) The specific nature of the defect.
240 (b) The outcome of the claim, including the amount of any
241 monetary settlement reached or judgment awarded.
242 (c) Whether the defect has been repaired and a description
243 of any repairs made or, if repairs have not yet begun, the
244 anticipated date on which the repairs will begin.
245 (2) If repairs relating to the defect are completed after
246 the claimant notifies the mortgagee or assignee as required
247 under subsection (1), the claimant must update the notice within
248 30 days after completion of the repairs.
249 Section 4. This act shall take effect July 1, 2021.
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REGULATORY REFORM SUBCOMMITTEE
HB 21 by Rep. Andrade
Construction Defects
AMENDMENT SUMMARY
March 8, 2021
Amendment 1 by Rep. Andrade (strike-all):
The amendment:
• Provides that the construct defection alternative dispute resolution process provided in
current law, does not apply unless the parties agree to opt in to the dispute resolution
process.
• Changes the statutory standard for a cause of action based on a Building Code violation
by removing the provision that allowed causes of action if the contractor or licensee
knew or should have known of the violation.
• Clarifies that prior to bringing an action, if an applicable warranty exists then a person
has to submit a construction defect claim under an applicable warranty prior to serving a
notice of claim.
• Provides that a claimant does not have a cause of action for a construction defect, if the
contractor offers to fix the repairs at no cost to the claimant within 90 days, and the
claimant is satisfied with the repairs.
o Allows a claimant to require the contractor to have an independent qualified third
party make the repairs.
o Allows a claimant to bring a cause of action if the claimant determines the repairs
are unsatisfactory.
o Tolls any statute of limitations, if the claimant accepts the contractor's offer.
• Provides that any applicable statute of limitations are tolled, if a claimant submits a
construction defect claim under an existing applicable warranty.
• Requires a claimant to send a notice of claim alleging a construction defect and the
resolution of the claim to a mortgagee or assignee within a certain time-period.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Regulatory Reform
2 Subcommittee
3 Representative Andrade offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7
8 Section 1. Section 553.84, Florida Statutes, is amended to
9 read:
10 553.84 Statutory civil action.-
11 ( 1) For purposes of this section, the term "material
12 violation" means a violation that exists within a completed
13 building structure, or facility which may reasonably result, or
14 has resulted, in personal injury to a person or significant
15 damage to the performance of a building or its system.
16 J1.l Notwithstanding any other remedies available, any
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1 .
17 person or party, in an individual capacity or on behalf of a
18 class of persons or parties, damaged as a result of a material
19 violation of this part or the Florida Building Code, has a cause
20 of action in any court of competent jurisdiction against the
21 person or party who committed the violation~T However, if the
22 person or party obtains the required building permits and any
23 local government or public agency with authority to enforce the
24 Florida Building Code approves the plans, if the construction
25 project passes all required inspections under the code, and if
26 there is no personal injury or damage to property other than the
27 property that is the subject of the permits, plans, and
28 inspections, this section does not apply unless the violation
29 resulted in significant damage to the property that is the
30 subject of the permits , plans, and inspections or may reasonably
31 result in personal injury to a person or significant damage to
32 the performance of a building or its system the person or party
33 knew or should have known tha t t he violation existed .
34 (3) If a defect is covered under an existing applicable
35 warranty, a person or party may bring a cause of action under
36 this section only after the person or party has submitted a
37 written notice of claim for the alleged material violation under
38 an existing applicable warranty and the warranty provider denies
39 the claim or offers a remedy that is unsatisfactory to the
40 person or party within the time limits provided in the warranty.
41 Section 2. Section 558.001, Florida Statutes, is amended
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
42 to read:
43 558.001 Legislative findings and declaration.-The
44 Legislature finds that it is beneficial to have a statutorily
45 defined aft alternative method to resolve construction disputes
46 that would reduce the need for litigation as well as protect the
47 rights of property owners. An effective alternative dispute
48 resolution mechanism in certain construction defect matters
49 should involve the claimant filing a notice of claim with the
50 contractor, subcontractor, supplier, or design professional that
51 the claimant asserts is responsible for the defect, and should
52 provide the contractor, subcontractor, supplier, or design
53 professional, and the insurer of the contractor, subcontractor,
54 supplier, or design professional, with an opportunity to resolve
55 the claim through confidential settlement negotiations without
56 resort to further legal process. If an agreement to provide
57 construction services does not incorporate the dispute
58 resolution mechanism provided in this chapter, or if the parties
59 do not voluntarily agree to participate in the dispute
60 resolution process, the Legislature finds that the right of
61 contracting parties to contemplate and provide for the method of
62 dispute resolution they deem to be most beneficial to their own
63 unique circumstances should not be burdened by the statutorily
64 defined dispute resolution mechanism provided in this chapter.
65 Section 3. Section 558.003, Florida Statutes, is amended
66 to read:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
67 558.003 Action; applicabiLit y and compliance.-
68 (1) Unless a party has entered into an agreement which
69 affirmatively incorporates the dispute resolution mechanism
70 pro v ided i n t hi s c hapter , or a party has voluntarily agreed to
71 participate in the dispute resolution mechanism provided in this
72 chapter, the provisions of s. 558.004 ands. 558.005 do not
73 apply to a cause of action brought by or against a party.
74 J1.l A claimant may not file an action subject to this
75 chapter without first complying with the requirements of this
76 chapter. If a claimant files an action subject to this chapter
77 alleging a construction defect without first complying with the
78 requirements of this chapter, on timely motion by a party to the
79 action the court shall stay the action, without prejudice, and
80 the action may not proceed until the claimant has complied with
81 such requirements. The notice requirement is not intended to
82 interfere with an owner's ability to complete a project that has
83 not been substantially completed. The notice is not required for
84 a project that has not reached the stage of completion of the
85 building or improvement.
86 Section 4. Subsections (6) through (15) of section
87 558.004, Florida statutes, are renumbered (7) through (16),
88 respectively, subsections (1) through (4) and new subsection
89 (11) and (16) of that section are amended, subsection (6) is
90 added, to read:
91 558.004 Notice and opportunity to repair.-
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1 .
92 ( 1) (a) In actions brought alleging a construction defect,
93 the claimant shall, at least 60 days before filing any action,
94 or at least 120 days before filing an action involving an
95 association representing more than 20 parcels, serve written
96 notice of claim on the contractor, subcontractor, supplier, or
97 design professional, as applicable, which notice shall refer to
98 this chapter. If the construction defect claim arises from work
99 performed under a contract, the written notice of claim must be
100 served on the person with whom the claimant contracted. However,
101 if a defect is covered under an existing applicable warranty,
102 the notice of claim may be served only after the claimant
103 properly submits a claim for the alleged construction defect
104 under an existing applicable warranty and the warranty provider
105 denies the claim or offers a remedy that is unsatisfactory to
106 the claimant within the time limit provided in the warranty.
107 (b) The notice of claim must:
108 1. Describe in specific reasonable detail the nature of
109 each alleged construction defect~ aft€i
110 2. If the alleged construction defect or evidence thereof
111 is visible, include at least one photograph of the alleged
112 defect or evidence thereof, any repair estimates or expert
113 reports obtained relating to the alleged defect, and a
114 description of, if known, the damage or loss resulting from the
115 alleged defect, if known.
116 3. Based upon at least a visual inspection by the claimant
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
117 or its agents, the notice of claiffi ffiUSt identify the specific
118 location of each alleged construction defect sufficiently to
119 enable the responding parties to locate the alleged defect
120 without undue burden. The claimant has no obligation to perform
121 destructive or other testing for purposes of this notice.
122 4. Affirm that the claimant has personal knowledge of the
123 alleged construction defect.
124 5. Acknowledge that the claimant is aware of the penalties
125 for perjury imposed under chapter 837.
126 6. Be signed by the claimant and include the following
127 statement directly above the claimant's signature line in 18-
128 point uppercase and boldfaced type:
129
130 UNDER PENALTY OF PERJURY, I DECLARE THAT I HAVE READ THE
131 FOREGOING STATEMENT AND THE FACTS ALLEGED ARE TRUE TO THE BEST
132 OF MY KNOWLEDGE AND BELIEF.
133
134 (c) A person who willfully includes a false statement in
135 the notice of claim under this section commits perjury and, upon
136 conviction, is subject to punishment as provided by law.
137 ~+et The claimant shall endeavor to serve the notice of
138 claim within 15 days after discovery of an alleged construction
139 defect, but the failure to serve notice of claim within 15 days
140 does not bar the filing of an action, subject to s. 558.003.
141 This subsection does not preclude a claimant from filing an
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1 .
142 action sooner than 60 days, or 120 days as applicable, after
143 service of written notice as expressly provided in subsection
144 JJJ.. +6+, subsection~ -R+, or subsection J.11 +s+.
145 ~-fe:t A notice of claim served under pursuant to this
146 chapter shall not toll any statute of repose period under
147 chapter 95.
148 (2) Within 30 days after service of the notice of claim,
14 9 or within 50 days after service of the notice of claim involving
150 an association representing more than 20 parcels, ~ -t-fte person
151 served with the notice of claim under subsection (1) , or a copy
152 thereof under subsection (3), may is entitled to perform a
153 reasonable inspection of the property or of each unit subject to
154 the claim to assess each alleged construction defect. An
155 association's right to access property for either maintenance or
156 repair includes the authority to grant access for the
157 inspection. The claimant shall provide the person served with
158 notice under subsection (1), or a copy thereof under subsection
159 J.l..l.L and such person's contractors or agents reasonable access
160 to the property during normal working hours to inspect the
161 property to determine the nature and cause of each alleged
162 construction defect and the nature and extent of any repairs or
163 replacements necessary to remedy each defect. The person served
164 with notice under subsection (1), or a copy thereof under
165 subsection (3), shall reasonably coordinate the timing and
166 manner of any and all inspections with the claimant to minimize
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
167 the number of inspections. The inspection may include
168 destructive testing by mutual agreement under the following
169 reasonable terms and conditions:
170 (a) If the person served with notice under subsection (1)
171 determines that destructive testing is necessary to determine
172 the nature and cause of the alleged defects, the -etteft person
173 must shall notify the claimant in writing.
174 (b) The notice describes shall describe the destructive
175 testing to be performed, the person selected to do the testing,
176 the estimated anticipated damage and repairs to or restoration
177 of the property resulting from the testing, the estimated amount
178 of time necessary for the testing and to complete the repairs or
179 restoration, and the financial responsibility offered for
180 covering the costs of repairs or restoration.
181 (c) If the claimant promptly objects to the person
182 selected to perform the destructive testing, the person served
183 with notice under subsection (1) must shall provide the claimant
184 with a list of three qualified persons from which the claimant
185 may select one such person to perform the testing. The person
186 selected to perform the testing operates shall operate as an
187 agent or subcontractor of the person served with notice under
188 subsection (1) and shall communicate with, submit any reports
189 to, and be solely responsible to the person served with notice.
190 (d) The testing must shall be done at a mutually agreeable
191 time.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
192 (e) The claimant or a representative of the claimant may
193 be present to observe the destructive testing.
194 (f) The destructive testing may shall not render the
195 property uninhabitable.
196 (g) There are shall be no construction lien rights under
197 part I of chapter 713 for the destructive testing caused by a
198 person served with notice under subsection (1) or for restoring
199 the area destructively tested to the condition existing before
200 prior to testing, except to the extent the owner contracts for
201 the destructive testing or restoration.
202
203 If the claimant refuses to agree and thereafter permit
204 reasonable destructive testing, the claimant has shall have no
205 claim for damages which could have been avoided or mitigated had
206 destructive testing been allowed when requested and had a
207 feasible remedy been promptly implemented.
208 (3) Within 10 days after service of the notice of claim,
209 or within 30 days after service of the notice of claim involving
210 an association representing more than 20 parcels, the person
211 served with notice under subsection (1) must may serve a copy of
212 the notice of claim to each contractor, subcontractor, supplier,
213 or design professional whom it reasonably believes is
214 responsible for each defect specified in the notice of claim and
215 shall note the specific defect for which it believes the
216 particular contractor, subcontractor, supplier, or design
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1 .
217 professional is responsible. The notice described in this
218 subsection may not be construed as an admission of any kind.
219 Each such contractor, subcontractor, supplier, and design
220 professional may inspect the property as provided in subsection
221 (2).
222 (4) Within 15 days after service of a copy of the notice
223 of claim under pursuant to subsection (3), or within 30 days
224 after service of the copy of the notice of claim involving an
225 association representing more than 20 parcels, the contractor,
226 subcontractor, supplier, or design professional must serve a
227 written response to the person who served a copy of the notice
228 of claim. The written response must include a report, if any, of
229 the scope of any inspection of the property and the findings and
230 results of the inspection. The written response must include one
231 or more of the offers or statements specified in paragraphs
232 (5) (a)-(e), as chosen by the responding contractor,
233 subcontractor, supplier, or design professional, with all of the
234 information required for that offer or statement.
235 (6) A claimant may not file an action subject to this
236 chapter if the person served with the notice under subsection
237 (1) offers to remedy the alleged construction defect at no cost
238 to the claimant, and completes the repairs within 90 days of the
239 claimant accepting the offer.
240 (a) The claimant may require the person served with the
241 notice to have an independent qualified third party make the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1 .
242 repairs. The claimant may not deny access to the property to an
243 independent qualified third party hired by the person served
244 with the notice.
245 (b) A claimant is not barred from filing an action subject
246 to this chapter or to accept another offer to repair, if the
247 claimant determines the repairs are unsatisfactory.
248 (c) If a claimant accepts an offer to repair, it tolls the
249 applicable statute of limitations relating to any person covered
250 by this chapter, and any bond surety, until 90 days after the
251 claimant accepts the offer.
252 J..lll-f-±-G-t- A claimant's service of a notice of claim for the
253 alleged construction defect under an existing applicable
254 warranty or the written notice of claim under subsection (1)
255 tolls the applicable statute of limitations relating to any
256 person covered by this chapter and any bond surety until the
257 later of:
258 (a) Ninety days, or 120 days, as applicable, after service
259 of a notice of claim for the alleged construction defect under
260 an existing applicable warranty or the written the notice of
2 61 claim pursuant to subsection (1); or
262 (b) Thirty days after the end of the repair period or
263 payment period stated in the offer, if the claimant has accepted
264 the offer. By stipulation of the parties, the period may be
265 extended and the statute of limitations is tolled during the
266 extension.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
267 J.1....§J__-t±-S+ Upon request, the claimant and any person served
268 with notice under pursuant to subsection (1) shall exchange,
269 within 30 days after service of a written request that cites
270 this subsection and includes , which request must cite this
271 subsection and include an offer to pay the reasonable costs of
272 reproduction, any design plans, specifications, and as-built
273 plans; videos and additional photographs and videos of the
274 alleged construction defect identified in the notice of claim;
275 expert reports not already provided which~ describe any
276 defect upon which the claim is made; subcontracts; purchase
277 orders for the work that is claimed defective or any part of
278 such materials; and maintenance records and other documents
279 related to the discovery, investigation, causation, and extent
280 of the alleged defect identified in the notice of claim and any
281 resulting damages. A party may assert any claim of privilege
282 recognized under the laws of the -t-fl-:i:-s- state with respect to any
283 of the disclosure obligations specified in this chapter. In the
284 event of subsequent litigation, any party who fails failed to
285 provide the requested materials is shall be subject to such
286 sanctions as the court may impose for a discovery violation.
287 Expert reports exchanged between the parties may not be used in
288 any subsequent litigation for any purpose, unless the expert, or
289 a person affiliated with the expert, testifies as a witness or
290 the report is used or relied upon by an expert who testifies on
291 behalf of the party for whom the report was prepared.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1 .
2 92 Section 5. Subsections ( 1) , ( 5) , and ( 6) of section
293 558.005, Florida Statutes, are amended to read:
294 558.005 Contract provisions; application.-
295 (1) Unless a claimant and a potential defendant have
296 agreed in writing to opt in to out of the requirements of this
297 section, the dispute resolution mechanism provided in provisions
298 e-f. this chapter shall not apply to any claim for legal relie f
299 for which the agreement to make the improvement was made after
300 October 1, 2021 ~ ' and for which the basis of the claim is a
301 construction defect that has arisen after completion of a
302 building or improvement.
303 (5) Notwithstanding the notice requirements of this
304 section for contracts entered into on or after October 1, 2021
305 ±G-&6, this chapter applies to all actions accruing before
306 October J.u-±-y 1, 2021 ±B-G-4-, but not yet commenced as of October
307 J.u-±-y 1, 2021 ±B-G-4-, and failure to include such notice
308 requirements in a contract entered into before Oc t obe r J.u-±-y 1,
309 2021 -2--8-G-4, does not operate to bar the procedures of this
310 chapter from applying to all such actions.
311 (6) Notwithstanding s. 558.003, unless the parties agree
312 that this chapter does not apply , after October 1, 2021 ~ '
313 for the dispute resolution mechanism provided this chapter to
314 apply, any written contract for improvement of real property
315 entered into between an owner and a contractor, or between an
316 owner and a design professional, must contain substantially the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
317 following notice: "ANY CLAIMS FOR CONSTRUCTION DEFECTS ARISING
318 FROM THIS CONTRACT ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS
319 OF CHAPTER 558, FLORIDA STATUTES." The failure to include in the
320 contract the notice provided in this subsection does not
321 prohibit subject the contracting owner, contractor, or design
322 professional from opting in to the dispute resolution mechanism
323 provided in this chapter to any penalty. The purpose of the
324 contractual notice is to promote awareness of the desire of the
325 parties to utilize the dispute resolution mechanism provided in
326 this chapter procedure, not to be a penalty.
327 Section 6. Section 558.006, Florida Statutes, is created
328 to read:
329 558.006 Notice to mortgagee or assignee.-
330 (1) If a notice of claim alleging a construction defect
331 under this chapter is made with respect to real property to
332 which a mortgagee or an assignee has a security interest in the
333 real property, the claimant must, within 30 days after service
334 of the notice of the claim on the contractor, subcontractor,
335 supplier, or design professional, serve the mortgagee or
336 assignee with a copy of the notice of claim, via certified mail
337 return receipt requested.
338 ( 2) If repairs relating to the defect are completed after
339 the claimant notifies the mortgagee or assignee as required
340 under subsection (1), or if any settlement, partial settlement,
341 arbitration award, or judgment is obtained by the claimant, the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1 .
342 claimant must provide an additional notice to the mortgagee or
343 assignee within 60 days after the completion of the repairs, or
344 any settlement, partial settlement, arbitration award, or
345 judgement, whichever is later, via certified mail return receipt
346 requested.
347 Section 7. This act shall take effect July 1, 2021 .
348
349
350
351 T I T L E A ME N D ME N T
352 Remove everything before the enacting clause and insert :
353 An act relating to construction defects; amending s.
354 553.84, F.S.; defining the term ''material violation";
355 revising cause of action requirements for statutory
356 civil actions relating to certain violations;
357 providing requirements for bringing a cause of action;
358 amending s. 558.001, F.S.; amending Legislative
359 findings and declaration; amending s. 558.003, F.S.;
360 requiring parties to agree to enter into certain
361 statutory dispute resolution; amending s. 558.004,
362 F.S.; requiring that a claimant submit a construction
363 defect claim to the warranty provider before serving a
364 notice of claim; providing applicability; revising
365 requirements for notices of claims; providing that a
366 person who willfully includes a false statement in a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 21 (2021)
Amendment No. 1.
367 notice of claim commits perjury; authorizing a person
368 served with a copy of a notice of claim to perform a
369 reasonable inspection of the property subject to the
370 claim; requiring, instead of authorizing, a person
371 served with a notice to serve a copy of the notice to
372 specified persons under certain circumstances;
373 prohibiting a person from filing an action in certain
374 circumstances; tolling a statute of limitations in
375 certain circumstances; amending s. 558.005, F.S.;
376 requiring parties to agree to enter into certain
377 statutory disputes; creating s. 558.006, F.S.;
378 requiring a claimant to notify a mortgagee or an
379 assignee within a specified timeframe after a filing a
380 construction defect claim; providing notice
381 requirements; requiring a claimant to update the
382 notice within a specified timeframe under certain
383 circumstances; providing an effective date.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 339 Business Organizations
SPONSOR(S): Robinson, W.
TIED BILLS: IDEN./SIM. BILLS: CS/SB 602
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF
1) Regulatory Reform Subcommittee Wright Anstead
2) Civil Justice & Property Rights
Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
As of October 2020, Florida has approximately 2,500,212 active business entities in the state, regulated under
the Florida Business Corporation Act (FBCA), The Florida Revised Limited Liability Company Act (FRLLCA),
corporations not for profit laws, and limited partnership laws.
In 2014, the Corporations, Securities, and Financial Services Committee of the Florida Bar Business Law
Section (FBBLS) organized a drafting task force to recommend revisions to Florida business entity laws. The
task force's effort resulted in the Legislature passing a comprehensive revision to Florida's entity statutes.
However, the task force subsequently identified issues that needed clarification, in addition to several errors in
the enrolled bill, including grammar, punctuation, and cross reference errors, and statutory inconsistencies.
Some issues were fixed in the 2020 Session, but additional issues have since been identified.
The bill clarifies issues related to the process by which certain shareholders may dissent to corporate or
majority shareholder action by asserting their appraisal rights, which requires a corporation to buy the
shareholders' stock at its "fair value."
The bill:
• amends several provisions related to reducing appraisal rights for minority shareholders and beneficial
owners,
• allows prepayment in appraisal actions,
• makes correcting and conforming changes to corporation provisions, and
• makes correcting changes to not for profit corporation and limited liability company provisions.
The bill does not appear to have a fiscal impact on state or local governments.
The bill is effective upon becoming law.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0339.RRS.DOCX
DATE: 2/28/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
In 1950, the American Bar Association (ABA) promulgated the Model Business Corporations Act
(MBCA), a body of laws designed to uniformly regulate United States corporations. 1 However,
individual states may promulgate laws relating to the creation, organization, operation, and dissolution
of corporations and other entities in their respective jurisdictions. 2
Generally, Florida regulates the following entities: 3
• business corporations;
• nonprofit corporation;
• general partnerships, including limited liability partnerships;
• limited partnerships, including limited liability limited partnerships;
• limited liability companies;
• declarations of trust; and
• foreign entities.
As of October 2020, Florida has approximately 2,500,212 active business entities in the state, 4
regulated under the Florida Business Corporation Act (FBCA), 5 The Florida Revised Limited Liability
Company Act (FRLLCA), 6 corporations not for profit laws, 7 and limited partnership laws, 8 which are now
largely modeled after the MBCA. 9 In 2014, the Corporations, Securities, and Financial Services
Committee of the Florida Bar Business Law Section (FBBLS) organized a drafting task force to
recommend revisions to Florida business entity laws, last overhauled in 1989, as the ABA was in the
process of revising and modernizing the MBCA. 10 The task force's mission statement included a full
FBCA study and the proposal of revisions to:
• Bring the laws in line with MBCA revisions,
• Maintain Florida's competitiveness with other jurisdictions,
• Fix issues in existing law, and
• Encourage the formation and use of Florida corporations. 11
The task force's effort resulted in the Legislature passing a comprehensive revision to Florida's entity
statutes 12 signed into law on June 7, 2019, with a January 1, 2020 effective date. 13 However, the task
force subsequently identified issues that needed clarification, in addition to several errors in the
1 William H. Clark, Jr., The Relationship of the Model Business Corporation Act to Other Entity Laws, Law and
Contemporary Problems Vol. 74, No. 57, https://scholarship.law.duke.edu/cqi/viewcontent.cgi?article=1609&context=lcp
(last visited Feb. 28, 2021 ).
2 Id.
3 S. 605.0102(23), F.S; Title XXXVI, F.S.
4 The Florida Department of State, Division of Corporations, Yearly Statistics, https:1/dos.myflorida.com/sunbiz/about-
us/yearly-statistics/ (last visited Feb. 28, 2021).
s Ch. 607, F.S.
6 Ch. 605, F.S.
7 Ch. 617, F.S.
a Ch. 620, F.S.
9 The Florida Bar Business Law Section, Proposed Modifications to Chapter 607 (Florida Business Corporation Act), (Jan.
24, 2019).
10 Id.
11 Id.
12 These included the Florida Revised Limited Liability Company Act of ch. 605, F.S., and the Florida Not for Profit
Corporation Act of ch. 617, F.S.
13 Ch. 2019-90, L.O.F., in CS/CS/HB 1009 (2019).
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DATE: 2/28/2021
enrolled bill, including grammar, punctuation, cross reference errors, and statutory inconsistencies. 14
Some issues were fixed in the 2020 Session, 15 but additional issues have since been identified. 16
Appraisal Rights for Corporation Shareholders
Triggers of Appraisal Rights for Minority Shareholders - Current Situation
Minority shareholders may dissent to corporate or majority shareholder action by asserting their
appraisal rights, pursuant toss. 607.1301-607.1340, F.S., which requires a corporation to buy the
minority shareholders' stock at its "fair value." 17 This remedy is one of the few protections against
actions that " ... fundamentally change the nature of the shareholders' investments without the check
and balance of informed shareholder approval, and [provide] the opportunity for dissenters to withdraw
from the corporation." 18
The appraisal process is effectuated through a judicial hearing, where a court appraises the fair value
of the shareholder's interests and assesses the corporation for payment of both the fair value and any
accrued interest, calculated according to s. 55.03, F.S.
A minority shareholder may assert his or her appraisal rights only in specific instances where a
fundamental corporate change occurs, including (and subject to substantial restrictions and limits) the
domestication or conversion to another type of business entity, a merger or share exchange, a
disposition of all or substantially all of the corporation's assets, an amendment to the corporation's
articles of incorporation that creates fractional shares, and in other cases involving a corporation's
articles of incorporation, bylaws, or a resolution of its board of directors. 19· 20
For example, ins. 607.1302(1 )(g), F.S., shareholders are entitled to assert appraisal ·rights where an
amendment to the articles of incorporation or bylaws adversely alters or abolishes the shareholder's
voting rights or other rights. 21
Also, ins. 607.1302(1)(h), F.S., a shareholder of a class of shares prescribed in an articles of
incorporation prior to October 1, 2003, including any shares within that class subsequently authorized
by amendment, is entitled to appraisal rights if there is amendment of the articles of incorporation on
which the shareholder is entitled to vote and such amendment would adversely affect such shareholder
by certain actions to reduce shares, value of the shares, and voting rights. 22
Triggers for Appraisal Rights for Minority Shareholders - Effect of the Bill
The bill narrows the instances that trigger a minority shareholder's appraisal rights by removing the
provision that allows shareholders to assert appraisal rights where an amendment to the articles of
incorporation or bylaws adversely alters or abolishes the shareholder's voting rights or other rights.
14 The Florida Bar Business Law Section, White Paper for S.B. [838] & H.B. [495]: "An Act Relating to Business
Organizations," (Oct. 21, 2019).
15 Ch. 2020-32, L.O.F., in CS/SB 838 (2020).
16 Florida Bar Business Law Section, Chapter 607 Drafting Subcommittee, White Paper for S. B. 602 & H.B. 339: An Act
Relating to Corporations and Other Entities, 1-2 (Feb. 2021 ).
17 S. 607.1302(1 ), F.S.; S. 607.1301 (5), F.S., defines "fair value" as the value of the corporation's shares immediately
before the effectiveness of the corporate action in question, using commonly-used valuation concepts and techniques,
without discounting for lack of marketability or minority status of the shares.
18 Gregory Yadley and Christina Nethero, Florida Corporate Practice: Appraisal Rights s. 11: 1 (2020); see also, South End
Improvement Group, Inc. by & through Bank of New York v. Mulliken, 602 So. 2d 1327, 1332 (Fla. 4th DCA 1992).
19 Section 607.1302(1), F.S.
20 Gregory Yadley and Christina Nethero, Florida Corporate Practice: Appraisal Rights s. 11 :2.C (2020).
21 S. 607.1302(1 )(g), F.S.
22 S. 607.1302(1 )(h), F.S.
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The bill allows shareholders in a corporation with 100 or fewer shareholders, whose shares were
authorized on, or after October 1, 2003, the same appraisal rights as granted in s. 607.1302(1)(h), F.S.
Minority shareholders may still assert their appraisal rights under several other bases enumerated in s.
607.1302(1), F.S.
Market Out Exception to Appraisal Rights - Current Situation
What is commonly called the "market out exception" simply means that appraisal rights are unavailable
for certain shareholders in certain situations and must either accept the adverse corporate action or sell
their shares in an organized market. 23 The theory behind the "market out" exception is that the
shareholder, if dissatisfied with the proposed corporate action, can choose to sell the shares into an
organized market that is liquid and where the value of the shares is reasonably calculated to arrive at a
price reflective of an arm's length transaction. 24
Thirty-eight states, including Florida, operate under the market out exception, which restricts the
appraisal rights available to shareholders of stock in large or publicly traded corporations. "[P]ublic
shareholders presumptively have an available market. [W]hen a public market exists ... , public
shareholders must employ market price instead of court-appraisal as the measure of their interests." 25
In Florida, the market out exception excludes shareholders from asserting appraisal rights if: 26
• Their triggering action is:
o Consummation of a domestication or a conversion of such corporation, if shareholder
approval is required for the domestication or the conversion;
o Consummation of a merger to which such corporation is a party, in certain situations;
o Consummation of a share exchange to which the corporation is a party as the corporation
whose shares will be acquired, except any shareholder of the corporation with respect to
any class or series of shares that is not acquired in the share exchange;
o Consummation of a disposition of assets if the shareholder is entitled to vote on the
disposition, including a sale in dissolution, in certain situations; or
o An amendment of the articles of incorporation with respect to a class or series of shares
which reduces the number of shares of a class or series owned by the shareholder to a
fraction of a share if the corporation has the obligation or the right to repurchase such
fractional share; and
• Their shares are:
o a covered security;
o are not a covered security, but are traded in an organized market; or
o are issued by an open end management investment company that is registered with the
Securities and Exchange Commission.
Whether the market out exception applies is determined as of:
• The record date fixed to determine the shareholders entitled to receive notice of the meeting of
shareholders to act upon the corporate action requiring appraisal rights, or the date of offer for a
merger or share exchange; or
• If there will be no meeting of shareholders and no offer of a merger or share exchange is made,
the close of business on the day before the consummation of the corporate action or the
effective date of the amendment of the articles, as applicable.
23 FBBLS, supra note 16, at 4.
24 fd.
25 Gil Matthews, The "Market Exception" in Appraisal Statutes, (Mar. 30, 2020),
https://corpgov.law.harvard .edu/2020/03/30/the-market-exception-in-appraisal-statues/ (last visited Mar. 5, 2021 ).
2s S. 607.1302(2), F.S.
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"Record date" means the date fixed for determining the identity of the corporation's shareholders and
their share holdings. Unless another time is specified when the record date is fixed, the determination is
made as of the close of business at the principal office of the corporation on the date so fixed. 27
Market Out Exception to Appraisal Rights - Effect of the Bill
The bill broadens the market out exception by prohibiting appraisal actions that are asserted in
connection with a corporation's merger, share exchange, or disposition of corporate assets (as
permitted by the corporation's articles of incorporation or bylaws), or those that adversely affect a
shareholder of a closely held corporation or a shareholder who holds shares issued prior to October 1,
2003.
The bill provides that the market out exception applies where the shares held are not a covered
security, not traded in an organized market, but are subject to a "comparable trading process." The bill
defines a "comparable trading process" as one where:
• the share's market price is determined at least quarterly based on an independent valuation and
by following a formalized process that is designed to determine a value for the corporation's
shares that is comparable to the value of a comparable publicly traded companies; and
• the corporation repurchases the shares at pricing set by its board of directors based on the
independent valuation and subject to established terms and conditions that have been provided
to the shareholders.
This will permit companies that meet these requirements to prohibit appraisal actions by their minority
shareholders, and to instead apply the market out exception.
The bill clarifies that, in cases in which the triggering corporate action must be approved by
shareholders' written consent, the applicability of the market share exception must be decided at the
point at which the record date was fixed to determine which shareholders are entitled to sign the
consent.
Assertion of Appraisal Rights by Nominees and Beneficial Owners - Current Situation
"Record shareholder'' means: 28
• The person in whose name shares are registered in the records of the corporation; or
• The person identified as a beneficial owner of shares in the beneficial ownership certificate on
file with the corporation to the extent of the rights granted by such certificate.
"Beneficial shareholder" means a person who owns the beneficial interest in shares. Such person may
be a record shareholder or a person on whose behalf shares are registered in the name of an
intermediary or nominee. 29 Generally, an intermediary or a nominee holds legal ownership of a security,
including shares, while beneficial ownership is held by someone else who receives all dividends and
other benefits of ownership. 30
A record shareholder may assert appraisal rights as to fewer than all the shares registered in the record
shareholder's name but owned by a beneficial shareholder or a voting trust beneficial owner only if the
record shareholder: 31
• objects with respect to all shares of the class or series owned by the beneficial shareholder or
the voting trust beneficial owner, and
27 S. 607.01401(63), F.S.
2a S. 607.01401(64), F.S.
2s S. 607.01401(7), F.S.
30 The Free Dictionary by Farlex, The Financial Dictionary, Nominee, https://financial-
dictionary.thefre.edictionary.com/nominee (last visited Mar. 5, 2021).
31 S. 607.1303(1), F.S.
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• notifies the corporation in writing of the name and address of each beneficial shareholder or
voting trust beneficial owner on whose behalf appraisal rights are being asserted.
The rights of a record shareholder who asserts appraisal rights for only part of the shares held of record
in the record shareholder's name under this subsection are determined as if the shares as to which the
record shareholder objects and the record shareholder's other shares were registered in the names of
different record shareholders. 32
A beneficial shareholder and a voting trust beneficial owner may assert appraisal rights as to shares of
any class or series held on behalf of the shareholder only if such shareholder: 33
• Submits to the corporation the record shareholder's written consent to the assertion of such
rights no later than the date referred to ins. 607.1322(2)(b)2.
• Does so with respect to all shares of the class or series that are beneficially owned by the
beneficial shareholder or the voting trust beneficial owner.
Currently, a shareholder who wishes to demand an appraisal rights payment from the corporation must
take certain actions before the triggering corporate action is effectuated. 34 There is no specific
requirement for when shares must have been beneficially owned to be able to demand payment.
FBBLS has identified perceived abuses associated with appraisal rights being simultaneously bought
and sold (arbitrage), stemming from most of appraisal rights simultaneous buyers and sellers
(arbitrageurs) not being historical shareholders of the corporation, but rather those who purchase their
shares after the announcement date of, or record date for, the meeting at which the corporate action is
to be voted upon, or the effective date of the written consent approving such corporate action. 35
Assertion of Appraisal Rights by Nominees and Beneficial Owners - Effect of the Bill
The bill requires a beneficial shareholder who wishes to assert their appraisal rights and demand
payment to have a beneficial ownership of their shares in the corporation by the record date
established for the triggering corporate action.
The bill provides that a record shareholder asserting appraisal rights as to fewer than all the shares
registered in the record shareholder's name but owned by a beneficial shareholder or a voting trust
beneficial owner may only do so if the beneficial shareholder or voting trust beneficial owner acquired
all of their shares before the record date for the triggering corporate action.
Award of Accrued Interest in an Appraisal Action - Current Situation
Currently, "accrued interest" as it applies to interest on payments made pursuant to an assertion of
one's appraisal rights is calculated at the statutory judgment interest rate as described in s. 55.03,
F.S. 36 The interest rate is set by the Chief Financial Officer on December 1, March 1, June 1, and
September 1 of each year, and is payable on judgments for the calendar quarter beginning January 1,
and is adjusted quarterly on April 1, July 1, and October 1 by averaging the discount rate of the Federal
Reserve Bank of New York for the preceding 12 months, then adding 400 basis points to the averaged
federal discount rate. 37
Award of Accrued Interest in an Appraisal Action - Effect of the Bill
32 Id.
33 S. 607.1303(2), F.S.
34 S. 607.1321
35 FBBLS, supra note 16, at 8.
36 S. 607.1301 (1) , F.S.
37 S. 55.03(1 ), F.S.
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The bill amends the definition of "accrued interest" to require the parties in an appraisal action either to
agree to an interest rate between themselves, or to accept a rate determined by a court to be equitable.
The court's rate may not exceed the statutory judgment rate described ins. 55.03, F.S. Additionally,
this bill permits a court to prohibit the payment of interest where it finds that the shareholder who
asserted his or her appraisal rights acted arbitrarily or not in good faith.
The bill also makes conforming changes to reflect both that the rate of interest is variable, and that a
court may choose not to award accrued interest pursuant to the amended definition of the term.
Prepayment in an Appraisal Action - Current Situation
Currently, there is no provision allowing prepayment of the fair value of the shares that are subject a
shareholder's appraisal action to a shareholder. FBBLS argues that allowing such prepayment would
shorten the amount of time during which interest can accrue, and therefore mitigates risk to the
corporation. 38
Prepayment in an Appraisal Action - Effect of the Bill
The bill gives corporations the option to prepay the fair value of the shares that are subject a
shareholder's appraisal action, and such shareholder must accept such prepayment. Specifically, the
bill allows the corporation to prepay all, or any part of the amount, that it determines is due to the
shareholder. If the corporation makes the prepayment within 90 days after the appraisal notice, then the
corporation may only be liable for the accrued interest on any amount above what it prepaid to the
shareholder. If the corporation makes a payment after the 90-day period, but before a judicial
determination of the interest due, then the corporation must prepay at the statutory judgment rate
provided for ins. 55.03, F.S., and may be liable for additional interest on any excess payment due,
calculated from the date the corporate action became effective.
The bill makes conforming changes to acknowledge the prepayment options provided in the bill.
Name of a Dissolved Entity - Current Situation
Currently, the name of a dissolved corporation is not available for use by another corporation for 1 year
after the effective date of dissolution, unless the dissolved corporation gives certain consent. 39 Previous
°
to 2019, the time period was 120 days. 4 FBBLS indicates that the change was inadvertent and should
go back to 120 days. 41
Name of a Dissolved Entity - Effect of the Bill
The bill reverts to the 120-day period and makes a non-substantive conforming change.
Property Associations and Not-For-Profit Corporations
Committee Requirements - Current Situation
Section 617.0825, F.S., outlines requirements for not for profit corporation board and advisory
committees. Such requirements do not apply to board or advisory committees established under:
• chapter 718, relating to condominium associations, to perform functions under s. 718.303(3),
relating to levying fines for violating the declaration, bylaws, or rules;
3a FBBLS, supra note 16, at 8.
39 S. 607.1405, F.S.
40 Ch. 2019-90, L.O.F.
41 FBBLS, supra note 16, at 9.
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• chapter 719, relating to cooperative associations, to perform the functions under s. 719.303(3),
relating to levying fines for violating the documents or rules; or
• chapter 720, relating to homeowners' associations, to perform functions under s. 720.303(2),
relating to board meetings; ors. 720.3035(1 ), relating to architectural and construction
improvements.
Committee Requirements - Effect of the Bill
The bill revises the property association activity committees which are exempt from the not for profit
corporation advisory committee requirements. The bill removes homeowners' association committees
related to board meetings; and adds homeowners' association committees related to levying fines for
violating the declaration, bylaws, or rules; and related to reviving covenants.
Application of Not For Profit Corporations Chapter to Community Associations - Current Situation
Currently, in the event of any conflict between the provisions of chapter 617 for not for profit
corporations, and chapters regarding community associations (chapter 718 regarding condominiums,
chapter 719 regarding cooperatives, chapter 720 regarding homeowners' associations, chapter 721
regarding timeshares, or chapter 723 regarding mobile home owners' associations), the provisions of
the applicable community association chapter applies. 42
Application of Not For Profit Corporations Chapter to Community Associations - Effect of the Bill
The bill clarifies language that chapter 617 applies to such community associations, except where there
is a conflict, and then the chapters for community associations apply.
Access to Records for Limited Liability Companies - Current Situation
Currently, during regular business hours and at a reasonable location specified by the company, a
member may inspect and copy: 43
• The company records; and
• Full information regarding the activities, affairs, financial condition, and other circumstances of
the company as is just and reasonable if:
• The member seeks the information for a purpose reasonably related to the member's
interest as a member; or
• The member makes a demand in a record received by the company, describing with
reasonable particularity the information sought and the purpose for seeking the
information, and if the information sought is directly connected to the member's purpose.
Access to Records for Limited Liability Companies - Effect of the Bill
The bill clarifies that in order for a member to access full information regarding the activities, affairs,
financial condition, and other circumstances of the company, such member must both:
Seek the information for a purpose reasonably related to the member's interest as a member; and
Make a demand in a record received by the company, describing with reasonable particularity the
information sought and the purpose for seeking the information, and if the information sought is
directly connected to the member's purpose.
The bill updates cross-references to correct scrivener's errors.
The bill takes effect upon becoming law.
42 S. 617.1703, F.S.
43 S. 605.0410(3), F.S.
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B. SECTION DIRECTORY:
Section 1: Amends s. 605.0410, F.S.; relating to requirements relating to inspecting certain records
of limited liability companies.
Section 2: Amends s. 607.1301, F.S.; relating to the definition of "accrued interest."
Section 3: Amends s. 607 .1302, F.S.; relating to shareholder appraisal rights and certain payments.
Section 4: Amends s. 607.1303, F.S.; relating to triggers of shareholder appraisal rights.
Section 5: Amends s. 607.1321, F.S.; relating to triggers of shareholder appraisal rights.
Section 6: Amends s. 607.1322, F.S.; making a technical change.
Section 7: Amends s. 607.1326, F.S.; relating to corporate prepayments to shareholders.
Section 8: Amends s. 607.1330, F.S.; relating to proceedings for demands for payment.
Section 9: Amends s. 607.1405, F.S.; relating to applicability of not for profit corporation provisions
to condominium, cooperative, and homeowners' associations.
Section 10: Amends s. 617.0825, F.S.; relating to applicability of not for profit corporation provisions
to condominium, cooperative, and homeowners' associations.
Section 11 : Amends s. 617.1703, F.S.;
Section 12: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
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None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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1 A bill to be entitled
2 An act relating to business organizations; amending s.
3 605.0410, F.S.; revising requirements relating to
4 inspecting certain records of limited liability
5 companies; amending s. 607.1301, F.S.; revising the
6 definition of the term "accrued interest"; amending s.
7 607.1302, F.S.; revising the circumstances under which
8 shareholders are entitled to appraisal rights and
9 certain payments; revising limitations relating to
10 such rights and payments; revising applicability;
11 amending s. 607.1303, F.S.; revising the circumstances
12 in which certain shareholders may assert specified
13 appraisal rights; amending s. 607.1321, F.S.; revising
14 requirements for shareholders who wish to assert
15 appraisal rights relating to specified corporate
16 actions; amending s. 607.1322, F.S.; making a
17 technical change; amending s. 607.1326, F.S.;
18 entitling corporations to prepay a shareholder if the
19 shareholder makes a demand for payment; specifying
20 when interest is applicable to such prepayments;
21 making technical changes; amending s. 607.1330, F.S.;
22 revising requirements for proceedings relating to
23 unsettled demands for payment; revising the
24 eligibility requirements for shareholders entitled to
25 the fair value of shares during court proceedings;
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26 making technical and conforming changes; amending s.
27 607.1405, F.S.; revising the requirements for eligible
28 entities to use the name of a dissolved corporation;
29 amending ss. 617.0825 and 617.1703, F.S.; revising
30 applicability; providing an effective date.
31
32 Be It Enacted by the Legislature of the State of Florida:
33
34 Section 1. Paragraph (b) of subsection (3) of section
35 605.0410, Florida Statutes, is amended to read:
36 605.0410 Records to be kept; rights of member, manager,
37 and person dissociated to information.-
38 (3) In a manager-managed limited liability company, the
39 following rules apply:
40 (b) During regular business hours and at a reasonable
41 location specified by the company, a member may inspect and
42 copy:
43 1. The records described in subsection (1); and
44 2. Full information regarding the activities, affairs,
45 financial condition, and other circumstances of the company as
46 is just and reasonable if:
47 a. The member seeks the information for a purpose
48 reasonably related to the member's interest as a member; and -e-r
49 b. The member makes a demand in a record received by the
50 company, describing with reasonable particularity the
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51 information sought and the purpose for seeking the information,
52 and if the information sought is directly connected to the
53 member's purpose.
54 Section 2. Subsection (1) of section 607.1301, Florida
55 Statutes, is amended to read:
56 607.1301 Appraisal rights; definitions.-The following
57 definitions apply toss. 607.1301-607.1340:
58 ( 1) "Accrued interest" means interest from the date the
59 corpor-ate action becomes effective unt i l the date of payment , at
60 the rate agreed to by the corporation and the shareholder
61 asserting appraisal rights, or at the rate determined by the
62 court to be equitable, which rate may not be greater than the
63 rate of interest of interest determined for judgments pursuant
64 to s. 55.03; however, if the court finds that the shareholder
65 asserting appraisal rights acted arbitrarily or otherwise not in
66 good faith, no interest shall be allowed by the court 7
67 deterffiined as of the effective date of the corporate action.
68 Section 3. Subsections (1) and (2) of section 607.1302,
69 Florida Statutes, are amended to read:
70 607.1302 Right of shareholders to appraisal.-
71 (1) A shareholder of a domestic corporation is entitled to
72 appraisal rights, and to obtain payment of the fair value of
73 that shareholder's shares, in the event of any of the following
74 corporate actions:
75 (a) Consummation of a domestication or a conversion of
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76 such corporation pursuant to s. 607.11921 ors. 607.11932, as
77 applicable, if shareholder approval is required for the
78 domestication or the conversion;
79 (b) Consummation of a merger to which such corporation is
80 a party:
81 1. If shareholder approval is required for the merger
82 under s. 607.1103 or would be required but for s. 607.11035,
83 except that appraisal rights shall not be available to any
84 shareholder of the corporation with respect to shares of any
85 class or series that remains outstanding after consummation of
86 the merger where the terms of such class or series have not been
87 materially altered; or
88 2. If such corporation is a subsidiary and the merger is
89 governed bys. 607.1104;
90 (c) Consummation of a share exchange to which the
91 corporation is a party as the corporation whose shares will be
92 acquired, except that appraisal rights shall not be are not
93 available to any shareholder of the corporation with respect to
94 any class or series of shares of the corporation that is not
95 acquired in the share exchange;
96 (d) Consummation of a disposition of assets pursuant to s.
97 607.1202 if the shareholder is entitled to vote on the
98 disposition, incl uding a 9 ale in dissolution , except that
99 appraisal rights shall not be available to any shareholder of
100 the corporation with respect to shares or any class or series
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101 if:
102 1. Under the terms of the corporate action approved by the
103 shareholders there is to be distributed to shareholders in cash
104 the corporation's net assets, in excess of a reasonable amount
105 reserved to meet claims of the type described in ss. 607.1406
106 and 607.1407, within 1 year after the shareholders' approval of
107 the action and in accordance with their respective interests
108 determined at the time of distribution; and
109 2. The disposition of assets is not an interested
110 transaction;
111 (e) An amendment of the articles of incorporation with
112 respect to a class or series of shares which reduces the number
113 of shares of a class or series owned by the shareholder to a
114 fraction of a share if the corporation has the obligation or the
115 right to repurchase the fractional share so created;
116 (f) Any other merger, share exchange, disposition of
117 assets, or amendment to the articles of incorporation, in each
118 case to the extent provided as of the record date by the
119 articles of incorporation, bylaws, or a resolution of the board
120 of directors providing for appraisal rights, except that no
121 bylaw or board resolution providing for appraisal rights may be
122 amended or otherwise altered except by shareholder approval;
123 (g) An amendment to the articles of incorporation or
124 bylaws of the corporatioA:, the effect of whicb is to alter or
125 abolish voting or other rights ;1ith respect to such interest iA:
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126 a manner that is adverse to the interest of such shareholder,
127 ettcept as the right fflay be affected by the voting or other
128 rights of ne,1 shares then being authorized of a new class or
129 series of shares,
130 -fl=tt An amendment to the articles of incorporation or
131 bylaws of a corporation, the effect of which is to adversely
132 affect the interest of the shareholder by altering or abolishing
133 appraisal rights under this section;
134 J.b.1+8- With regard to a class of shares prescribed in the
135 articles of incorporation in any corporation as to which that
136 particular class of shares was in existence prior to October 1,
137 2003, including any shares within that class subsequently
138 authorized by amendment, and for classes of shares authorized on
139 or after October 1, 2003, in any corporation with 100 or fewer
140 shareholders prior to Oeteber 1, 2003, including any shares
141 within that class subsequently authorized by amendment, any
142 amendment of the articles of incorporation if the shareholder is
143 entitled to vote on the amendment and if such amendment would
144 adversely affect such shareholder by:
145 1. Altering or abolishing any preemptive rights attached
146 to any of his, her, or its shares;
147 2. Altering or abolishing the voting rights pertaining to
148 any of his, her, or its shares, except as such rights may be
149 affected by the voting rights of new shares then being
150 authorized of any existing or new class or series of shares;
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151 3. Effecting an exchange, cancellation, or
152 reclassification of any of his, her, or its shares, when such
153 exchange, cancellation, or reclassification would alter or
154 abolish the shareholder's voting rig0ts or alter his, her, or
155 its percentage of equity in the corporation, or effecting a
156 reduction or cancellation of accrued dividends or other
157 arrearages in respect to such shares;
158 4. Reducing the stated redemption price of any of the
159 shareholder's redeemable shares, altering or abolishing any
160 provision relating to any sinking fund for the redemption or
161 purchase of any of his, her, or its shares, or making any of
162 his, her, or its shares subject to redemption when they are not
163 otherwise redeemable;
164 5. Making noncumulative, in whole or in part, dividends of
165 any of the shareholder's preferred shares which had theretofore
166 been cumulative;
167 6. Reducing the stated dividend preference of any of the
168 shareholder's preferred shares; or
169 7. Reducing any stated preferential amount payable on any
170 of the shareholder's preferred shares upon voluntary or
171 involuntary liquidation;
172 Ji.l+i+ An amendment of the articles of incorporation of a
173 social purpose corporation to which s. 607.504 ors. 607.505
174 applies;
175 J.il+Jtj- An amendment of the articles of incorporation of a
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176 benefit corporation to which s. 607.604 ors. 607.605 applies;
177 ~-f-l+ A merger, domestication, conversion, or share
178 exchange of a social purpose corporation to which s. 607.504
179 applies; or
180 J..!l_-fffit A merger, domestication, conversion, or share
181 exchange of a benefit corporation to which s. 607.604 applies.
182 (2) Notwithstanding subsection (1), the availability of
183 appraisal rights under paragraphs ( 1) ( a) , (b) , ( c) , (d) , -aM
184 (e), (f), and (h) shall be limited in accordance with the
185 following provisions:
186 (a) Appraisal rights shall not be available for the
187 holders of shares of any class or series of shares which is:
188 1. A covered security under s. 18 (b) (1) (A) or (B) of the
189 Securities Act of 1933;
190 2. Not a covered security, but traded in an organized
191 market (or subject to a comparable trading process) and has at
192 least 2,000 shareholders and the outstanding shares of such
193 class or series have a market value of at least $20 million,
194 exclusive of the value of outstanding shares held by the
195 corporation's subsidiaries, by the corporation's senior
196 executives, by the corporation's directors, and by the
197 corporation's beneficial shareholders and voting trust
198 beneficial owners owning more than 10 percent of the outstanding
199 shares; or
200 3. Issued by an open end management investment company
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201 registered with the Securities and Exchange Commission under the
202 Investment Company Act of 1940 and which may be redeemed at the
203 option of the holder at net asset value.
204 (b) The applicability of paragraph (a) shall be determined
205 as of:
206 1. The record date fixed to determine the shareholders
207 entitled to receive notice of the meeting of shareholders to act
208 upon the corporate action requiring appraisal rights, the record
209 date fixed to determine the shareholders entitled to sign a
210 written consent approving the corporate action requiring
211 appraisal rights, or, in the case of an offer made pursuant to
212 s. 607.11035, the date of such offer; or
213 2. If there will be no meeting of shareholders, no written
214 consent approving the corporate action, and no offer 4-fr made
215 pursuant to s. 607.11035, the close of business on the day
216 before the consummation of the corporate action or the effective
217 date of the amendment of the articles, as applicable.
218 (c) Paragraph (a) is not applicable and appraisal rights
219 shall be available pursuant to subsection (1) for the holders of
220 any class or series of shares where the corporate action is an
221 interested transaction.
222 (d) For the purposes of subparagraph (a)2., a comparable
223 trading process exists if:
224 1. The market price of the corporation's shares is
225 determined at least quarterly based on an independent valuation
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226 and by following a formalized process that is designed to
227 determine a value for the corporation's shares that is
228 comparable to the value of comparable publicly traded companies;
229 and
230 2. The corporation repurchases the shares at the price set
231 by its board of directors based upon the independent valuation
232 and subject to certain terms and conditions established by the
233 corporation and provides the corporation's shareholders with a
234 trading market comparable to that typically available had the
235 corporation's shares been traded in an organized market.
236 Section 4. Subsection (1) of section 607.1303, Florida
237 Statutes, is amended, and paragraph (c) is added to subsection
238 (2) of that section, to read:
239 607.1303 Assertion of rights by nominees and beneficial
240 owners.-
241 (1) A record shareholder may assert appraisal rights as to
242 fewer than all the shares registered in the record shareholder's
243 name but owned by a beneficial shareholder or a voting trust
244 beneficial owner only if~
245 M The record shareholder objects with respect .to all
246 shares of the class or series owned by the beneficial
247 shareholder or the voting trust beneficial owner;
248 (b) The particular beneficial shareholder or voting trust
249 beneficial owner acquired all such shares before the record date
250 established under s. 607.1321 in connection with the applicable
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251 corporate action; and
252 (c) The record shareholder a-Rcl notifies the corporation in
253 writing of its 4=-Re name and address (if the record shareholder
254 beneficially owns the shares as to which appraisal rights are
255 being asserted) or notifies the corporation in writing of the
256 name and address of the particular of each beneficial
257 shareholder or voting trust beneficial owner on whose behalf
258 appraisal rights are being asserted.
259
260 The rights of a record shareholder who asserts appraisal rights
261 for only part of the shares held of record in the record
262 shareholder's name under this subsection shall be determined as
263 if the shares as to which the record shareholder objects and the
264 record shareholder's other shares were registered in the names
265 of different record shareholders.
266 (2) A beneficial shareholder and a voting trust beneficial
267 owner may assert appraisal rights as to shares of any class or
268 series held on behalf of the shareholder only if such
269 shareholder:
270 (c) Acquired all shares of the class or series before the
271 record date established under s. 607.1321 in connection with the
272 applicable corporate action.
273 Section 5. Subsections ( 1) , ( 2) , and ( 3) of section
274 607.1321, Florida Statutes, are amended to read:
275 607.1321 Notice of intent to demand payment.-
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276 (1) If a proposed corporate action requiring appraisal
277 rights under s. 607.1302 is submitted to a vote at a
278 shareholders' meeting, a shareholder who wishes to assert
279 appraisal rights with respect to any class or series of shares:
280 (a) Must have beneficially owned the shares of such class
281 or series as of the record date for the shareholders' meeting at
282 which the proposed corporate action is to be submitted to a
283 vote;
284 (b) Must deliver to the corporation before the vote is
285 taken written notice of the shareholder's intent, if the
286 proposed corporate action is effectuated, to demand payment for
287 all shares of such class or series beneficially owned by the
288 shareholder as of the record date for the shareholders' meeting
289 at which the proposed corporate action is to be submitted to a
290 vote if the proposed corporate action is effectuated; and
291 J..£2_-flet- Must not vote, or cause or permit to be voted, any
292 shares of such class or series in favor of the proposed
293 corporate action.
294 (2) If a proposed corporate action requiring appraisal
295 rights under s. 607.1302 is to be approved by written consent, a
296 shareholder who wishes to assert appraisal rights with respect
297 to any class or series of shares:
298 (a) Must have beneficially owned the shares of such class
299 or series as of the record date established for determining who
300 is entitled to sign a written consent;
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301 (b) Must assert such appraisal rights for all shares of
302 such class or series beneficially owned by the shareholder as of
303 the record date for determining who is entitled to sign the
304 written consent; and
305 ~ Must not sign a consent in favor of the proposed
306 corporate action with respect to that class or series of shares.
307 ( 3) If a proposed corporate action specified ins.
308 607.1302(1) does not require shareholder approval pursuant to s.
309 607.11035, a shareholder who wishes to assert appraisal rights
310 with respect to any class or series of shares:
311 (a) Must have beneficially owned the shares of such class
312 or series as of the date the offer to purchase is made pursuant
313 to s. 607.11035;
314 JEl Must deliver to the corporation before the shares are
315 purchased pursuant to the offer a written notice of the
316 shareholder's intent to demand payment if the proposed corporate
317 action is effected for all shares of such class or series
318 beneficially owned by the shareholder as of the date the offer
319 to purchase is made pursuant to s. 607.11035; and
320 ~-+e-t- Must not. tender, or cause or permit to be tendered,
321 any shares of such class or series in response to such offer.
322 Section 6. Paragraph (a) of subsection (2) of section
323 607.1322, Florida Statutes, is amended to read:
324 607.1322 Appraisal notice and form.-
325 (2) The appraisal notice must be delivered no earlier than
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326 the date the corporate action became effective, and no later
327 than 10 days after such date, and must:
328 (a) Supply a form that specifies the date that the
329 corporate action became effective and that provides for the
330 shareholder to state:
331 1. The shareholder's name and address.
332 2. The number, classes, and series of shares as to which
333 the shareholder asserts appraisal rights.
334 3. That the shareholder did not vote for or consent to the
335 transaction.
336 4. Whether the shareholder accepts the corporation's offer
337 as stated in subparagraph (b)4.
338 5. If the offer is not accepted, the shareholder's
339 estimated fair value of the shares and a demand for payment of
340 the shareholder's estimated value plus accrued interest, if and
341 to the extent applicable.
342 Section 7. Section 607.1326, Florida Statutes, is amended
343 to read:
344 607.1326 Procedure if shareholder is dissatisfied with
345 offer.-
346 (1) A shareholder who is dissatisfied with the
34 7 corporation's offer as set forth pursuant to s. 607. 1322 ( 2) (b) 4.
348 must notify the corporation on the form provided pursuant to s.
349 607.1322(1) of that shareholder's estimate of the fair value of
350 the shares and demand payment of that estimate plus accrued
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351 interest, if and to the extent applicable .
352 (2) A shareholder who fails to notify the corporation in
353 writing of that shareholder's demand to be paid the
354 shareholder's stated estimate of the fair value plus accrued
355 interest, if and to the extent applicable, under subsection (1)
35 6 within the timeframe set forth in s. 607. 1322 ( 2) (b) 2. waives the
357 right to demand payment under this section and shall be entitled
358 only to the payment offered by the corporation pursuant to s.
359 607.1322(2) (b)4.
360 (3) With respect to a shareholder who properly makes
361 demand for payment pursuant to subsection (1), at any time after
362 the shareholder makes such demand, including during a court
363 proceeding under s. 607.1330, the corporation shall have the
364 right to prepay to the shareholder all or any portion of the
365 amount that the co r poration determines to be due under s.
366 607 .1322 (2) (b) 3. and the shareholder shall be obligated to
367 accept such prepayment.
368 (a) If such prepayment is made within 90 days after the
369 earlier of the date on which the appraisal notice is provided by
370 the corporation under s. 607.1322(1) or the deadline date by
371 which the appraisal notice is required to be provided by the
372 corporation under s . 607.1322(2), accrued interest will be
373 payable, if at all, to the shareholder entitled to appraisal
374 rights, calculated and accrued from the date on which the
375 corporate action became effective and only on amounts that are
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376 determined to be due to the shareholder and are above the amount
377 so prepaid. Accrued interest will not be payable to the
378 shareholder entitled to appraisal rights on the prepayment
379 previously made to the shareholder by the corporation pursuant
380 to this paragraph.
381 (b) If such prepayment is made more than 90 days after the
382 earlier of the date on which the appraisal notice is provided by
383 the corporation under s. 607.1322(1) or the deadline date by
384 which the appraisal notice is required to be provided by the
385 corporation under s. 607.1322(2), the prepayment must include
386 accrued interest on the amount of the prepayment, calculated at
387 the rate of interest determined for judgments pursuant to s.
388 55.03 and calculated and accrued from the date that the
389 corporate action became effective through the date of the
390 prepayment previously made to the shareholder by the corporation
391 p ur s u ant to this paragr aph. I n addition , accrued interest will
392 be payable to the shareholder entitled to appraisal rights on
393 such amounts, if an y , determined to be due to the shareholder in
394 excess of the prepaid amount, calculated and accrued from the
395 date on which the corpo rate action became effective.
396 Section 8. Subsections (1) and (5) of section 607.1330,
397 Florida Statutes, are amended to read:
398 607.1330 Court action.-
399 (1) If a shareholder makes demand for payment under s.
400 607.1326 which remains unsettled, the corporation shall commence
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401 a proceeding within 60 days after receiving the payment demand
402 and petition the court to determine the fair value of the shares
403 and accrued interest, if and to the extent applicable,
404 calculated and accrued from the date the corporate action became
405 effective and taking into account the amount of any prepayment
406 previously made to the shareholder by the corporation pursuant
407 to s. 607.1326(3) froffi the date of the corporate action. If the
408 corporation does not commence the proceeding within the 60-day
409 period, any shareholder who has made a demand pursuant to s.
410 607.1326 may commence the proceeding in the name of the
411 corporation.
412 (5) Each shareholder entitled to appraisal rights who is
413 made a party to the proceeding is entitled to judgment for the
414 amount of the fair value of such shareholder's shares as found
415 by the court, plus accrued interest, if and to the extent
416 applicable and as found by the court, taking into account the
417 amount of any prepayment previously made to the shareholder by
418 the corporation pursuant to s. 607.1326(3).
419 Section 9. Subsection (5) of section 607.1405, Florida
420 Statutes, is amended to read:
421 607.1405 Effect of dissolution.-
422 (5) Except as provided ins. 607.1422(4), the name of a
423 dissolved corporation is not available for assumption or use by
424 another eligible entity until 120 days 1 year after the
425 effective date of dissolution unless the dissolved corporation
Page 17 of 19
CODING: Words stricken are deletions; words underlined are additions.
hb0339-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 339 2021
426 provides the department with a record, signed as required bys.
427 607.0120, permitting the immediate assumption or use of the name
428 by another eligible entity.
429 Section 10. Subsection (9) of section 617.0825, Florida
430 Statutes, is amended to read:
431 617.0825 Board committees and advisory committees.-
432 (9) This section does not apply to a committee established
433 under chapter 718, chapter 719, or chapter 720 to perform the
434 functions set forth ins. 718.303(3), s. 719.303(3), ~
435 720.305(2), s. 720.303(2), ors. 720.3035(1), ors. 720.405,
436 respectively.
437 Section 11. Section 617.1703, Florida Statutes, is amended
438 to read:
439 617.1703 Application of chapter.-
440 (1) (a) This chapter is applicable to a corporation that is
441 an association as defined in and regulated by any of chapter 718
442 regarding condominiums , chapt er 719 regarding cooperatives,
443 chapter 720 regarding homeowners' associations, chapter 721
444 regarding timeshares, or chapter 723 regarding mobile
445 homeowners' associations, except:
446 1. For In the event of any conflict between the provisions
447 of this chapter and chapter 718 r egar di ng condominiums, chapter
448 719 regardi ng cooperati ves , chapter 720 re gardi ng homeo wne r s '
449 a s soci ations , chapter 721 r egard i:n g times hares , or chapter 723;
450 or
Page18of19
CODING: Words stricken are deletions; words underlined are additions.
hb0339-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 339 2021
451 2. As otherwise provided for in chapter 718, chapter 719,
452 chapter 720, chapter 721, or chapter 723 .
453 (b) If subparagraph (a)l. or subparagraph (a)2. applies
454 regarding mobile home o.,,.ners' associations, the applicable
455 provisions of such other respective chapters shall apply.
456 Jll The provisions of ss. 617.0605-617.0608 do not apply
457 to corporations regulated by any of the foregoing chapters or to
458 any other corporation where membership in the corporation is
459 required pursuant to a document recorded in the county property
4 60 records.
461 Section 12. This act shall take effect upon becoming a
462 law.
Page 19 of 19
CODING: Words strisken are deletions; words underlined are additions.
hb0339-00
REGULATORY REFORM SUBCOMMITTEE
HB 339 by Rep. Robinson, W.
Business Organizations
AMENDMENT SUMMARY
March 8, 2021
Amendment 1 by Rep. Robinson, W. (line 428):
The amendment provides that requirements to amend not for profit corporation articles of
incorporation or bylaws in a way that changes quorum or voting requirements are not applicable
to corporations that are condominium, cooperative, or homeowners' associations.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 339 (2021)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Regulatory Reform
2 Subcommitt ee
3 Representative Robinson, W. offered the following:
4
5 Amendment (with title amendment)
6 Between lines 428 and 429, ins ert :
7 Section 10. Section 617.0725, Florida Statutes, is amended
8 to read:
9 617.07 25 Quorum.-An amendment to the articles of
10 incorporat i on or the byl aws which adds , cha n ges , or de lete s a
11 greater or lesser quorum or voting requirement must meet the
12 same quorum or voting requi rement and be adopted by the same
13 v o te and vot ing group s re quire d t o take acti on under the quorum
14 and v oting requireme nts then in effect o r proposed to be
15 adopted, whichever is greater. This section does not apply to
16 any corporation that is an assoc iati o n, as defined ins.
7 91929 - h 339- line428 . docx
Pub l is h ed On: 3/5/2021 10:0 9 : 28 AM
Page 1 o f 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 339 (2021)
Amendment No. 1
17 720.301, or a corporation regulated under chapter 718 or chapter
18 719 .
19
20
21
22 T I T L E A ME N D ME N T
23 Between lines 28 and 29, insert:
24 amending s. 617.0725, F.S.; providing applicability;
791929 - h339-line428.docx
Published On: 3/5/2021 10:09:28 AM
Page 2 of 2
I
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 615 Community Association Assessment Notices
SPONSOR(S): Rodriguez
TIED BILLS: IDEN./SIM. BILLS: CS/SB 56
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Brackett O() Anstead t£o-
2) Civil Justice & Property Rights Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
A condominium is a form of ownership of real property comprised of units which may be owned by one or more
persons along with an undivided right of access to common elements. A cooperative is real property owned by
the cooperative association, with individual units leased to the residents who own shares in the cooperative
association. A homeowners' association ("HOA") is an association that is authorized to impose assessments,
responsible for the operation of a community in which voting membership is made up of unit or parcel owners ,
and membership is a mandatory condition of unit or parcel ownership. Condominium associations, cooperative
associations, and HOAs are collectively referred to as "associations."
The bill relates to an association's collection of assessments and notices to owners related to such, it requires:
• Associations to send account statements to owners.
• Associations to deliver written notice to every owner at least 30 days before changing its method of
delivering account statements.
• Owners to affirmatively acknowledge that they understand the association has changed its method of
delivering the account statements before a community association may change its method of delivery.
• Requires associations to maintain the owners' affirmative acknowledgments as an official record .
The bill prohibits associations from collecting attorney's fees related to delinquent assessments without first
delivering a written notice of the delinquent assessments to the unit or parcel owner.
• An association must deliver the written notice at least 30 days before the association takes further
action against the owner's unit or parcel.
• The written notice must specify the amount owed and provide the unit or parcel owner an opportunity to
pay the delinquent assessments without paying attorney fees.
The bill also mirrors condominium and cooperative law to HOA law by increasing the period of time a
condominium or cooperative unit owner has to pay a delinquent assessment after receiving an association's
notice of intent to record a lien or foreclose on a lien from 30 days to 45 days.
The bill does not have a fiscal impact on state and local governments.
The bill provides an effective date of July 1, 2021 .
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0615.RRS.D0CX
DATE: 3/6/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
The Florida Division of Condominiums, Timeshares and Mobile Homes (Division), within the
Department of Business and Professional Regulation (DBPR), provides consumer protection for Florida
residents living in regulated communities through education, complaint resolution, mediation and
arbitration , and developer disclosure. The Division has regulatory authority over the following business
entities and individuals:
• Condominium Associations;
• Cooperative Associations;
• Florida Mobile Home Parks and related associations;
• Vacation Units and Timeshares;
• Yacht and Ship Brokers and related business entities; and
• Homeowners' Associations (limited to arbitration of election and recall disputes).
Condominiums
A condominium is a form of ownership of real property created pursuant to ch . 718, F.S., comprised of
units which may be owned by one or more persons along with an undivided right of access to common
elements. 1 A condominium is created by recording a declaration of condominium in the public records
of the county where the condominium is located. 2 A declaration governs the relationships among
condominium unit owners and the condominium association. All unit owners are members of the
condominium association, an entity responsible for the operation and maintenance of the common
elements owned by the unit owners. The condominium association is overseen by an elected board of
directors, commonly referred to as a "board of administration." The board enacts bylaws which govern
the administration of the association.
Cooperatives
A cooperative is a form of property ownership created pursuant to ch. 719, F.S. The real property is
owned by the cooperative association, and individual units are leased to the residents who own shares
in the cooperative association. 3 The lease payment amount is the pro-rata share of the operational
expenses of the cooperative. Cooperatives operate similarly to condominiums and the laws regulating
cooperatives are in many instances nearly identical to those regulating condominiums .
Homeowners' Associations
A homeowners' association (HOA) is an association of residential property owners in which voting
membership is made up of parcel owners, in which membership is a mandatory condition of parcel
ownership, and which is authorized to impose assessments that, if unpaid, may become a lien on the
parcel. 4 Only HOAs whose covenants and restrictions include mandatory assessments are regulated by
ch. 720, F.S. Like a condominium or cooperative, an HOA is administered by an elected board of
directors. The powers and duties of an HOA includes the powers and duties provided in ch. 720, F.S .,
and in the governing documents of the association, which include the recorded covenants and
restrictions, together with the bylaws, articles of incorporation, and duly adopted amendments to those
1
S. 718.103(11), F.S.
2
S. 718.104(2), F.S.
3
S. 719.103(2)(26), F.S.
4
S. 720.301(9), F.S.
STORAGE NAME: h0615.RRS.DOCX PAGE: 2
DATE: 3/6/2021
documents. No state agency has direct oversight of HOAs. Florida law provides procedures and
minimum requirements for operating and provides for a mandatory binding arbitration program,
administered by the Division, only for certain election disputes.
Official Records
Condominiums, cooperatives, and HOAs (associations) are required to maintain official records for at
least 7 years. The official records must include: 5
• A copy of the articles of incorporation, declaration, bylaws, and rules of the association;
• Meeting minutes;
• A roster of all owners or members, including the electronic mailing addresses and fax numbers
of unit owners consenting to receive notice by electronic transmission;
• A copy of any contracts to which the association is a party or under which the association or the
unit owners or members have an obligation;
• Accounting records for the association, which includes:
o Accurate, itemized, and detailed records of all receipts and expenditures.
o A current account and a periodic statement of the account for each unit or parcel
designating the name of the owner, the due date and amount of each assessment, the
amount paid on the account, and the balance due.
o All audits, reviews, accounting statements, and financial reports of the association or
condominium.
o All contracts for work to be performed. Bids for work to be performed are also
considered official records and must be maintained by the association.
• All contracts for work to be performed, including bids for work, materials, and equipment.
Cooperatives and HOAs are only required to maintain bids for one year;
• A copy of the plans, permits, warranties, and other items provided by the developer; and
• All other written records which are related to the operation of the association.
An association must maintain its official records within the state of Florida and make them available for
inspection within 45 miles of the association or within the county where the association is located. 6
Unit owners may request to inspect and make copies of an association's official records. An association
must make the records available for inspection within 10 business days of receiving a written request.7
Failure to provide an owner or renter the requested records within 10 business days of receiving a
request creates a rebuttable presumption that the association willfully failed to provide the records. A
owner who is denied access to the records is entitled to damages and costs. 8
An association may adopt reasonable rules regarding the frequency, time, location, notice, and manner
of record inspections. An association also has the option to make the official records available
electronically via the Internet or by allowing the records to be viewed in electronic format on a computer
screen. 9 Additionally, condominium associations with 150 or more units must maintain a website with
digital copies of certain official records such as meeting notices, a copy of the articles of incorporation,
declaration, bylaws, and rules of the association. 10
5
Ss. 7 l 8. l l 1(12)(a), 719.104(2), and 720.303(4)-(5), F.S.
6
Ss. 718.111 (12)(b) and (c), 7 l 9.104(2)(b) and (c), and 720.303(5), F.S.
7 Id.
s Id.
9 Id.
10
Ss. 718. l l 1(12)(b), and (g), F.S.
STORAGE NAME: h0615.RRS.DOCX PAGE: 3
DATE: 3/6/2021
However, the following records are not available for inspection by owners:11
• Records protected by the lawyer-client privilege;
• Information obtained by an association in connection with the transfer of a unit or parcel;
• Personnel records of association or management company employees;
• Unit owner medical records;
• Personnel identifying information such as social security numbers, driver license numbers, and
credit card numbers;
• Electronic security measures that are used to safeguard data; and
• The software and operating system used by the association which allow the manipulation of
data.
Statements of the Account
A statement of the account 12 is an account statement that details the outstanding amount that a unit or
parcel owner owes to the association. Associations must maintain a current account and a periodic 13
statement of the account for each unit or parcel, which designates the name of the owner, the due date
and amount of each assessment, the amount paid on the account, and the balance due. 14
Statements of the account for each unit or parcel owner are part of the official records, which are
available for inspection .15 Associations may also deliver statements of the account to the unit or parcel
owners. However, current law does not specify how an association must deliver statements of the
account to owners, e.g., by regular mail or email. Current law also does not provide a process to notify
unit or parcel owners, if an association alters its method of delivering the statement of the account.
Assessments
Current law gives associations the ability to levy and collect assessments from the unit or parcel
owners. This allows the association to carry out its responsibility for the management, operation, and
maintenance of the community association.16
In addition to levying assessments, associations also have the power to establish the time when each
assessment or assessment payment is due including when an assessment or assessment payment
becomes delinquent. 17
The most common assessments are those required to fund an association's common expenses in an
association's annual budget. The amount to fund the common expenses and the assessments required
to meet that amount are determined when an association's budget is adopted. 18 A special assessment
is an assessment levied against unit or parcel owners for unexpected expenses that are over and
above those anticipated by the annual budget. 19
11
Ss. 718.l l 1(12)(c), 719.104(2)(c), and 720.303(5), F.S.
12
A statement of the account is different from an estoppel certificate. An estoppel certificate issued by an association certifies the total
debt owed to the association for unpaid financial obligations by a parcel owner or unit owner as of a specified date. An association is
legally bound by the amount stated in the estoppel certificate. A unit or parcel purchaser or a mortgage holder who relies on an
estoppel certificate is protected from any assessments or other monies owed to the association that are not in the certificate. Ss.
718.116(8), 719.108(6), and 720.30851, F.S.
13
Condominium and cooperative associations must maintain a monthly, bimonthly, or quarterly statement of the account. Ss.
718 .111(12)(a), and 719.104(2), F.S.
14 Ss. 718.111 (12)(a), 719.104(2), and 720.303( 4)-(5), F.S.
1s Id.
16
S. 718.111(4), 719.104(5), 720.301(1), and 720.308(l)F.S.
17
See generally, ch. 718, 719, and 720, F.S.
18 Ss. 718.103(1), 718.112(2)(f), 719.103(9), and 719.106(l)(i), and 720.303(6)(a), F.S.
19
Ss. 718.103(24), 718.116(10), 719.103(23), 719.108(9), and 720.303(6), F.S.
STORAGE NAME: h0615.RRS.D0CX PAGE: 4
DATE: 3/6/2021
When the amount of assessments has been determined, the association must establish a payment
schedule for the owners in accordance with the association's bylaws. For condominium and
cooperative associations, payments must be made in advance and they must be paid at least quarterly.
The payments must be sufficient to provide the funds necessary to pay all the anticipated operating
expenses and all unpaid expenses previously incurred. 20
A unit or parcel owner may not avoid paying assessments by waiving the use of common elements or
common services in the association . No unit or parcel owner may be relieved from liability for all or any
part of an assessment. 21 Boards must keep account of the assessments levied against every unit or
parcel owner and the assessments paid by every owner. These records are a part of the official
records.22
Liability for Assessments
A unit or parcel owner is liable for all assessments coming due while he or she is the owner of the unit
or parcel. The unit or parcel serves as security for the payment of all assessments owed by an owner.23
If a unit or parcel is sold , the buyer becomes jointly and severally liable with the seller for all unpaid
assessments due prior to the time of the sale. The buyer may attempt to recover the unpaid
assessments from the seller, but the association may look to the seller and the buyer for the unpaid
assessments.24
Assessments that are not paid on time bear interest at a rate provided in the declaration, which may not
be higher than the highest rate allowed by law, or at a rate of 18 percent per year if no rate is provided.
Interest begins accruing the date a payment becomes delinquent. Additionally, an association may levy
a late fee for any payment that is delinquent. The amount of the late fee may not exceed $25 or five
percent of the payment, whichever is greater. Associations are entitled to recover any attorney's fees
and costs incurred in the collection of delinquent payments.25
If an association receives a payment for a delinquent assessment, the payment must first be applied to
any accrued interest, then to any late fee , then to any attorney's fees or costs, and finally to the
principle balance of the assessment. 26
Currently, there is no requirement for associations to send a delinquent assessment notice prior to
charging late fees, interest, or attorney's fees. According to news reports, this can result in unit or
parcel owners being charged attorney's fees that exceed the delinquent assessment. 27 According to
industry biogs, allowing associations to collect attorney's fees ensures associations are not left holding
the bill when they take legal action.28 However, industry biogs also state that sending a delinquent
20
S. 7 I 8. l 12(2)(g), 719.106(1 )(g), and 720.30851(1 ), F.S.
21
Ss. 718.111(4), and 718.l 16(l)(a), 719.108(1), and 720.3085(2)(a), F.S.
22
Ss. 718. l I 1(12)(a), 719.104(2), and 720.303( 4)-(5), F.S.
23
Ss. 718.111 (4), and 718. l 16(l)(a), 719.108(1 ), and 720.3085(2)(a), F.S.
24
Id.; Karpay v. Las Brisas Condominium Association, Inc., 517 So. 2d 756, 757 (Fla. 2nd DCA l 987).
25
Ss. 718.116(3), 719.108(3), and 720.3085(3), F.S.
26 Id.
27
Fox 13 Tampa Bay, FOX 13 Investigates: HOA attorney fees a homeowner's nightmare, Fox 13 Tampa Bay (Jan. 20, 2016)
https://www.foxl3news.com/news/fox-13-investigates -hoa-attorney-fees-a-homeowners-nightmare (last visited Mar. 5, 2021); Todd
Ulrich, 'They put me through hell': Homeowner battles HOA, gets thousands in settlement, WFTV (Feb. 16, 2021)
https://www.wftv.com/news/action9/they-pul-me-lhrough-bell-homeowner-battles-hoa-gets-thousands-
seltlement/YD26M ECEZVBITMX7 E31-10S7JT2 I/ (last visited Mar. 5, 2021).
28
Jimerson Birr, Condominium Association Recovery ofAttorneys' Fees in Florida, Jimerson Birr, (Dec. 29, 2015)
https://www .jimersontirm .com/blog/20 15/ 12/condominium-association-recovery-o f-attomeys-fees-in-florida/ (last visited Mar. 5,
2021).
STORAGE NAME: h0615.RRS .DOCX PAGE: 5
DATE : 3/6/2021
assessment notice before taking any action against a unit or parcel owner can help remind owners of
their payment obligation, and the majority of owners make a payment upon receiving the notice. 29
Claim of Lien
An association has a lien for all unpaid assessments, but not unpaid fines 30 . An association may file a
claim of lien for a delinquent assessment with the Clerk of Court in the county where the association is
located. The claim of lien must state the legal description of the unit or parcel, the owner of the unit or
parcel, the name and address of the association, and the assessment amount and the due date. An
officer or agent of the association must sign the claim of lien. A filed claim of lien is valid for one year. 31
Prior to filing a claim of lien, a community association must give a unit or parcel owner the opportunity
to pay a delinquent assessment. At least 30 days before filing a claim of lien, a condominium or
cooperative association must provide written notice of the association's intent to file a lien to the unit
owner. However, an HOA must provide a parcel owner the written notice at least 45 days before filing
the claim of lien. The notice must include the following information: 32
• The amount owed on the owner's account;
• The interest rate for the amounts owed.
• A statement that the owner has 30 or 45 days to pay the amount owed or the association will file
a claim of lien against the unit or parcel;
• A breakdown of the amount owed including:
o Maintenance costs due;
o Late fee;
o Interest; and
o Total amount owed.
The notice must be sent by first class and certified mail to the owner's address listed in the official
records. 33 If the address is different than the unit or parcel address, the notice must also be sent to the
unit or parcel. If the address is different than the unit or parcel address and the address is outside the
United States, the association may send the notice by first class mail, instead of first and certified mail.
Service is deemed delivered upon mailing the notice for condominium and cooperative associations. 34
A unit or parcel owner may challenge a claim of lien by filing a notice of contest of lien with the Clerk of
Court. After a unit owner files a notice of contest, an association has 90 days to commence
enforcement of the lien. The grounds for which a unit owner may not pay an assessment are limited,
such as when the assessment is discriminatory or has been improperly levied by the board. 35
An association may bring an action to foreclose on a unit or parcel for unpaid assessments in circuit
court in the same way that a mortgage on real estate is foreclosed. The homestead protections
provided by Florida's Constitution do not prevent the foreclosure and sale of a unit or parcel. In addition
to an action of foreclosure, an association may also bring a civil action to recover a money judgment for
the unpaid assessments without waiving any claim of lien. 36
29
Jimerson Birr, Five Steps for Collecting Assessment Revenue Through a Condominium Assessment lien, Jimerson Birr, (Aug. 9,
2018) https://www. j imerson firm .com/b log/20 J 8/08/florida-condom in ium-assessment-1 ien/ (last visited Mar. 4, 2021 ); Christopher R.
Moore, Step-By-Step Guide To The HOA Assessment Collections Process, Homeowners Protection Bureau, LLC,
https://www.hopb.co/blog/guide-to-hoa-assessment-collections-process#notice-of-delinquency (last visited Mar. 4, 2021 ).
30
An HOA has a lien on a parcel for a fine that is $1,000 or more. S. 720.305(2), F.S.
31
Ss. 718.116(5), and 718.303(3), 719.108(4), 720.301(1 ), and (11 ), 720.305(2), and 720.3085(1 ), F.S.F.S.
32
S. 718.121(4) and 718.108(4), 719.108(4), and 720.3085(4), F.S.
33
A cooperative association is only required to send the written notice by certified mail. S. 719.108(4).
34 Id.
35
Ss. 718.116(5), 719.108(4), and 720.3085(1), F.S.; Coral Way Condominium Investments, Inc. v. 21/22 Condominium Ass 'n, Inc.,
66 So. 3d 1038, 1041 (Fla. 3rd DCA 2011).
36
S. 718.1 l 6(6)(a), 719.108(5), and 720.3085(1) F.S. Bessemer v. Gersten , 381 So. 2d 1344, 1347 (Fla. 1980).
STORAGE NAME: h0615.RRS.D0CX PAGE: 6
DATE: 3/6/2021
Prior to foreclosing on a lien, a condominium association or an HOA must provide written notice to the
owner of its intent to foreclose on the lien. A condominium association must provide the notice at least
30 days before foreclosing on the lien. However, an HOA must give a parcel owner written notice at
least 45 days before foreclosing on the lien. The notice must include the following information: 37
• A claim of lien has been filed against the owner's property for failing to pay an assessment(s);
• The association intends to foreclose on the lien in 30 or 45 days
• The total amount owed;
• The interest rate and the interest owed; and
• The contact information for the association's attorney/representative.
A condominium association must mail deliver the notice to the unit owner or mail the notice by certified
mail to the unit owner's last known address. Service is deemed delivered upon mailing the notice.38 The
notice must be sent by first class and certified mail to the owner's address listed in the official records.
If the address is different than the unit or parcel address, the notice must also be delivered to unit or
parcel. If the address is different than the unit or parcel address and the address is outside the United
States, the association may send the notice by first class mail.
Effect of the Bill
The bill requires associations to deliver a unit or parcel's statement of the account by first class mail or
email to the owner's email address in the association's official records.
The bill provides that before an association changes the method of delivering the statement of the
account, the association must deliver written notice of such change to every unit or parcel owner and a
unit or parcel owner must acknowledge the association is changing its method of delivery. An owner
may make the acknowledgement in writing or electronically. The written notice must:
• Be delivered to the owner at least 30 days before the association uses the new delivery method
to send the statement of the account; and
• Be sent by first class mail to an owner's address listed in the official records. If the address is
different than the unit or parcel address, the notice must also be delivered to the unit or parcel
owner by first class mail.
o Service is deemed delivered upon mailing the notice.
The bill provides that a unit or parcel owner's written acknowledgment becomes part of an association's
officials records. However, the written acknowledgments are not available for inspection by the
members of the association.
The bill mirrors condominium and cooperative law to HOA law by:
• increasing the period of time a condominium or cooperative association has to wait before filing
a lien from 30 days after delivering the written notice of intent to file a lien to 45 days after
delivering the notice; and
• increasing the period of time a condominium has to wait before foreclosing on a lien from 30
days after delivering the written notice of intent to foreclose to 45 days after delivering the
notice .
. The bill provides that a condominium association must send the notice of intent to file a lien by certified
mail and first class mail to the unit owner's address regardless if the unit owner's address is outside the
United States.
37
Ss. 718. l l 6(6)(a) and 720.3085(5), F.S.
3s Id.
STORAGE NAME: h0615.RRS.DOCX PAGE: 7
DATE: 3/6/2021
The bill provides that before an association can require payment of attorney fees related to a delinquent
assessment, the association must deliver written notice of the delinquent assessment to the unit or
parcel owner. If the owner pays the delinquent assessment within 30 days, the association may not
assess attorney fees. The written notice must include the following information:
• The amount owed on the owner's account;
• The interest rate for the amounts owed .
• A statement that the owner has 30 days to pay the amount owed or the association will take
further collection action against the owner's property in 30 days;
• A breakdown of the amount owed including:
o Maintenance costs due;
o Late fee ;
o Interest; and
o Total amount owed.
The bill requires that the written notice must be sent by first class mail to an owner's address listed in
the official records. If the address is different than the unit or parcel, the notice must also be mailed to
the unit or parcel by first class mail. Service is deemed delivered upon mailing the notice.
8 . SECTION DIRECTORY:
Section 1. Amends s. 718.111, F.S., adding documents that are a part of a condominium
association's official records.
Section 2. Amends s. 718.116, F.S., extending the time a condominium association must wait until
it forecloses on a lien.
Section 3. Amends s. 718.121, F.S., relating to payments for assessments and lien claims.
Section 4. Amends s. 719.104, F.S., adding documents that are a part of a cooperative
association's official records.
Section 5. Amends 719.108, F.S., relating to payments for assessments and lien claims.
Section 6. Amends s. 720.303, F.S., adding documents that are a part of a HOA's official records.
Section 7. Amends s. 720.3085, F.S., relating to payments for assessments and lien claims.
Section 8. Providing an effective date of July 1, 2021.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
8 . FISCAL IMPACT ON LOCAL GOVERNMENTS:
STORAGE NAME: h0615.RRS .D0CX PAGE : B
DATE : 3/6/2021
1. Revenues :
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The additional notice requirements, restrictions on collecting attorney fees, and increased notice period
for a claim of lien may provide a net positive fiscal for community association residents.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
8 . RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill does not provide how a unit or parcel owner must acknowledge an association's written notice
that the association is changing its delivery method for account statements. It also does not state what
happens if a unit or parcel owner does not acknowledge an association's written notice.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h0615.RRS.D0CX PAGE : 9
DATE : 3/6/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 615 2021
1 A bill to be entitled
2 An act relating to community association assessment
3 notices; amending s. 718.111, F.S.; requiring
4 condominium associations to maintain specified
5 affirmative acknowledgments as official records of the
6 association; specifying that such acknowledgments are
7 not accessible to unit owners; amending s. 718.116,
8 F.S.; revising timeframes for foreclosure judgments;
9 conforming provisions to changes made by the act;
10 amending s. 718.121, F.S.; requiring condominium
11 associations to deliver certain statements of account
12 to unit owners in a specified manner; requiring
13 condominium associations to give notice to unit owners
14 before changing the method of delivery for the
15 statements of account; providing requirements for the
16 notice; requiring unit owners to affirmatively
17 acknowledge the changes in delivery methods;
18 prohibiting condominium associations from requiring
19 the payment of attorney fees relating to past due
20 assessments without first providing a specified notice
21 to unit owners; providing requirements for the notice;
22 revising the timeframe for condominium associations to
23 file liens against condominium units; conforming
24 provisions to changes made by the act; amending s.
25 719.104, F.S.; requiring cooperative associations to
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26 maintain specified affirmative acknowledgments as
27 official records of the association; specifying that
28 such acknowledgments are not accessible to unit
29 owners; amending s. 719.108, F.S.; requiring
30 cooperative associations to deliver certain statements
31 of account to unit owners in a specified manner;
32 requiring cooperative associations to give notice to
33 unit owners before changing the method of delivery for
34 the statements of account; providing requirements for
35 the notice; requiring unit owners to affirmatively
36 acknowledge the changes in delivery methods;
37 prohibiting cooperative associations from requiring
38 the payment of attorney fees relating to past due
39 assessments without first providing specified notice
40 to unit owners; providing requirements for the notice;
41 revising the timeframe for cooperative associations to
42 file liens against cooperative parcels; conforming
43 provisions to changes made by the act; amending s.
44 720.303, F.S.; requiring homeowners' associations to
45 maintain specified affirmative acknowledgments as
46 official records of the association; specifying that
47 such acknowledgments are not accessible to parcel
48 owners; amending s. 720.3085, F.S.; requiring
49 homeowners' associations to deliver certain statements
50 of account to parcel owners in a specified manner;
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51 requiring homeowners' associations to give notice to
52 parcel owners before changing the method of delivery
53 for the statements of account; providing requirements
54 for the notice; requiring parcel owners to
55 affirmatively acknowledge the changes in delivery
56 methods; prohibiting homeowners' associations from
57 requiring the payment of attorney fees relating to
58 past due assessments without first providing specified
59 notice to parcel owners; providing requirements for
60 the notice; providing an effective date.
61
62 Be It Enacted by the Legislature of the State of Florida:
63
64 Section 1. Paragraphs (a) and (c) of subsection (12) of
65 section 718.111, Florida Statutes, are amended to read:
66 718.111 The association.-
67 (12) OFFICIAL RECORDS.-
68 (a) From the inception of the association, the association
69 shall maintain each of the following items, if applicable, which
70 constitutes the official records of the association:
71 1. A copy of the plans, permits, warranties, and other
72 items provided by the developer pursuant to s. 718.301(4).
73 2. A photocopy of the recorded declaration of condominium
74 of each condominium operated by the association and each
75 amendment to each declaration.
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76 3. A photocopy of the recorded bylaws of the association
77 and each amendment to the bylaws.
78 4. A certified copy of the articles of incorporation of
79 the association, or other documents creating the association,
80 and each amendment thereto.
81 5. A copy of the current rules of the association.
82 6. A book or books that contain the minutes of all
83 meetings of the association, the board of administration, and
84 the unit owners.
85 7. A current roster of all unit owners and their mailing
86 addresses, unit identifications, voting certifications, and, if
87 known, telephone numbers. The association shall also maintain
88 the e-mail addresses and facsimile numbers of unit owners
89 consenting to receive notice by electronic transmission. Thee-
90 mail addresses and facsimile numbers are not accessible to unit
91 owners if consent to receive notice by electronic transmission
92 is not provided in accordance with sub-subparagraph (c)3.e.
93 However, the association is not liable for an inadvertent
94 disclosure of the e-mail address or facsimile number for
95 receiving electronic transmission of notices.
96 8. All current insurance policies of the association and
97 condominiums operated by the association.
98 9. A current copy of any management agreement, lease, or
99 other contract to which the association is a party or under
100 which the association or the unit owners have an obligation or
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101 responsibility.
102 10. Bills of sale or transfer for all property owned by
103 the association.
104 11. Accounting records for the association and separate
105 accounting records for each condominium that the association
106 operates. Any person who knowingly or intentionally defaces or
107 destroys such records, or who knowingly or intentionally fails
108 to create or maintain such records, with the intent of causing
109 harm to the association or one or more of its members, is
110 personally subject to a civil penalty pursuant to s.
111 718.501(1) (d). The accounting records must include, but are not
112 limited to:
113 a. Accurate, itemized, and detailed records of all
114 receipts and expenditures.
115 b. A current account and a monthly, bimonthly, or
116 quarterly statement of the account for each unit designating the
117 name of the unit owner, the due date and amount of each
118 assessment, the amount paid on the account, and the balance due.
119 c. All audits, reviews, accounting statements, and
120 financial reports of the association or condominium.
121 d. All contracts for work to be performed. Bids for work
122 to be performed are also considered official records and must be
123 maintained by the association.
124 12. Ballots, sign-in sheets, voting proxies, and all other
125 papers and electronic records relating to voting by unit owners,
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126 which must be maintained for 1 year from the date of the
127 election, vote, or meeting to which the document relates,
128 notwithstanding paragraph (b).
129 13. All rental records if the association is acting as
130 agent for the rental of condominium units.
131 14. A copy of the current question and answer sheet as
132 described ins. 718.504.
133 15. All other ',ffitten records of the association not
134 specifically included in the foregoing \~ich arc related to the
135 operation of the association.
136 ±-6-.- A copy of the inspection report as described ins.
137 718. 301 (4) (p).
138 16.-±-+. Bids for materials, equipment, or services.
139 17. All affirmative acknowledgments made pursuant to s.
140 718.121(4) (c).
1 41 18. All other written records of the association not
142 specifically included in the foregoing which are related to the
143 operation of the association.
144 (c)l. The official records of the association arc open to
145 inspection by any association member or the authorized
146 representative of such member at all reasonable times. The right
147 to inspect the records includes the right to make or obtain
148 copies, at the reasonable expense, if any, of the member or
149 authorized representative of such member. A renter of a unit has
150 a right to inspect and copy the association's bylaws and rules.
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151 The association may adopt reasonable rules regarding the
152 frequency, time, location, notice, and manner of record
153 inspections and copying. The failure of an association to
154 provide the records within 10 working days after receipt of a
155 written request creates a rebuttable presumption that the
156 association willfully failed to comply with this paragraph. A
157 unit owner who is denied access to official records is entitled
158 to the actual damages or minimum damages for the association's
159 willful failure to comply. Minimum damages are $50 per calendar
160 day for up to 10 days, beginning on the 11th working day after
161 receipt of the written request. The failure to permit inspection
162 entitles any person prevailing in an enforcement action to
163 recover reasonable attorney fees from the person in control of
164 the records who, directly or indirectly, knowingly denied access
165 to the records.
166 2. Any person who knowingly or intentionally defaces or
167 destroys accounting records that are required by this chapter to
168 be maintained during the period for which such records are
169 required to be maintained, or who knowingly or intentionally
170 fails to create or maintain accounting records that are required
171 to be created or maintained, with the intent of causing harm to
172 the association or one or more of its members, is personally
173 subject to a civil penalty pursuant to s. 718. 501 (1) (d).
174 3. The association shall maintain an adequate number of
175 copies of the declaration, articles of incorporation, bylaws,
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176 and rules, and all amendments to each of the foregoing, as well
177 as the question and answer sheet as described ins. 718.504 and
178 year-end financial information required under this section, on
179 the condominium property to ensure their availability to unit
180 owners and prospective purchasers, and may charge its actual
181 costs for preparing and furnishing these documents to those
182 requesting the documents. An association shall allow a member or
183 his or her authorized representative to use a portable device,
184 including a smartphone, tablet, portable scanner, or any other
185 technology capable of scanning or taking photographs, to make an
186 electronic copy of the official records in lieu of the
187 association's providing the member or his or her authorized
188 representative with a copy of such records. The association may
189 not charge a member or his or her authorized representative for
190 the use of a portable device. Notwithstanding this paragraph,
191 the following records are not accessible to unit owners:
192 a. Any record protected by the lawyer-client privilege as
193 described ins. 90.502 and any record protected by the work-
194 product privilege, including a record prepared by an association
195 attorney or prepared at the attorney's express direction, which
196 reflects a mental impression, conclusion, litigation strategy,
197 or legal theory of the attorney or the association, and which
198 was prepared exclusively for civil or criminal litigation or for
199 adversarial administrative proceedings, or which was prepared in
200 anticipation of such litigation or proceedings until the
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201 conclusion of the litigation or proceedings.
202 b. Information obtained by an association in connection
203 with the approval of the lease, sale, or other transfer of a
204 unit.
205 c. Personnel records of association or management company
206 employees, including, but not limited to, disciplinary, payroll,
207 health, and insurance records. For purposes of this sub-
208 subparagraph, the term "personnel records" does not include
209 written employment agreements with an association employee or
210 management company, or budgetary or financial records that
211 indicate the compensation paid to an association employee.
212 d. Medical records of unit owners.
213 e. Social security numbers, driver license numbers, credit
214 card numbers, e-mail addresses, telephone numbers, facsimile
215 numbers, emergency contact information, addresses of a unit
216 owner other than as provided to fulfill the association's notice
217 requirements, and other personal identifying information of any
218 person, excluding the person's name, unit designation, mailing
219 address, property address, and any address, e-mail address, or
220 facsimile number provided to the association to fulfill the
221 association's notice requirements. Notwithstanding the
222 restrictions in this sub-subparagraph, an association may print
223 and distribute to parcel owners a directory containing the name,
224 parcel address, and all telephone numbers of each parcel owner.
225 However, an owner may exclude his or her telephone numbers from
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226 the directory by so requesting in writing to the association. An
227 owner may consent in writing to the disclosure of other contact
228 information described in this sub-subparagraph. The association
229 is not liable for the inadvertent disclosure of information that
230 is protected under this sub-subparagraph if the information is
231 included in an official record of the association and is
232 voluntarily provided by an owner and not requested by the
233 association.
234 f. Electronic security measures that are used by the
235 association to safeguard data, including passwords.
236 g. The software and operating system used by the
237 association which allow the manipulation of data, even if the
238 owner owns a copy of the same software used by the association.
239 The data is part of the official records of the association.
240 h. All affirmative acknowledgments made pursuant to s .
241 718.121 (4) (c).
242 Section 2. Paragraph (b) of subsection (6) of section
243 718.116, Florida Statutes, is amended to read:
244 718.116 Assessments; liability; lien and priority;
245 interest; collection.-
246 ( 6)
247 (b) No foreclosure judgment may be entered until at least
248 45 -3--G- days after the association gives written notice to the
249 unit owner of its intention to foreclose its lien to collect the
250 unpaid assessments. The notice must be in substantially the
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251 following form:
252
253 DELINQUENT ASSESSMENT
254
255 This letter is to inform you a Claim of Lien has been
256 filed against your property because you have not paid
257 the ... (type of assessment) ... assessment to (name
258 of association) .... The association intends to
259 foreclose the lien and collect the unpaid amount
260 within 45 ~ days of this letter being provided to
261 you.
262
263 You owe the interest accruing from ... (month/year) ...
264 to the present. As of the date of this letter, the
265 total amount due with interest is$ ..... All costs of
266 any action and interest from this day forward will
267 also be charged to your account.
268
269 Any questions concerning this matter should be
270 directed to ... (insert name, addresses, and telephone
271 numbers of association representative) ....
272
273 If this notice is not given at least 45 ~ days before the
274 foreclosure action is filed, and if the unpaid assessments,
275 including those coming due after the claim of lien is recorded,
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276 are paid before the entry of a final judgment of foreclosure,
277 the association shall not recover attorney attorney's fees or
278 costs. The notice must be given by delivery of a copy of it to
279 the unit owner or by certified or registered mail, return
280 receipt requested, addressed to the unit owner at his or her
281 last known address; and, upon such mailing, the notice shall be
282 deemed to have been given, and the court shall proceed with the
283 foreclosure action and may award attorney attorney's fees and
284 costs as permitted by law. The notice requirements of this
285 subsection are satisfied if the unit owner records a notice of
286 contest of lien as provided in subsection (5). The notice
287 requirements of this subsection do not apply if an action to
288 foreclose a mortgage on the condominium unit is pending before
289 any court; if the rights of the association would be affected by
290 such foreclosure; and if actual, constructive, or substitute
291 service of process has been made on the unit owner.
292 Section 3. Subsection (4) of section 718.121, Florida
293 Statutes, is amended, and subsections (5) and (6) are added to
294 that section, to read:
295 718.121 Liens.-
296 (4) (a) The association must deliver a unit's statement of
297 the account described ins. 718.111(12) (a)ll.b. to the unit
298 owner by first-class United States mail or by electronic
299 transmission to the unit owner's e-mail address maintained in
300 the association's official records.
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301 (b) Before changing the method of delivery for the
302 statement of the account , the association must deliver a written
303 notice of such change to each unit owner. The written notice
304 must be delivered to the unit owner at least 30 days before the
305 association sends the statement of the account by the new
306 delivery method. The notice must be sent by first-class United
307 States mail to the unit owner at his or her last address as
308 reflected in the association's records and, if such address is
309 not the unit address, must be sent by first-class United States
310 mail to the unit address. Notice is deemed to have been given
311 upon mailing as required by this paragraph.
312 (c) A unit owner must affirmatively acknowledge his or her
313 understanding that the association will change its method of
314 delivery of the statement of the account before the association
315 may change the method of delivering the statement of the
316 account. The unit owner may make the affirmative acknowledgment
317 electronically or in writing.
318 (5) An association may not require payment of attorney
319 fees related to a past due assessment without first delivering a
320 written notice of late assessment to the unit owner which
321 specifies the amount owed the association and provides the unit
322 owner an opportunity to pay the amount owed without the
323 assessment of attorney fees. The notice of late assessment must
324 be sent by first-class United States mail to the unit owner at
325 his or her last address as reflected in the association's
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326 records and, if such address is not the unit address, must be
327 sent by first-class United States mail to the unit address.
328 Notice is deemed to have been given upon mailing as required by
329 this subsection. The notice must be in substantially the
330 following form:
331
332 NOTICE OF LATE ASSESSMENT
333
334 RE: Unit .... of ... (name of association) ...
335
336 The following amounts are currently due on your
337 account to ... (name of association) ... , and must be
338 paid within 30 days of the date of this letter. This
339 letter shall serve as the association's notice of its
340 intent to proceed with further collection action
341 against your property no sooner than 30 days of the
342 date of this letter, unless you pay in full the
343 amounts set forth below:
344
345 Maintenance due ... (dates) ... $ .....
346 Late fee, if applicable $ .•...
347 Interest through ... (dates) ... * $ .•.. .
348 TOTAL OUTSTANDING $ .....
349
350 *Interest accrues at the rate of .... percent per annum.
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351 J....§.l Except as otherwise provided in this chapter, no lien
352 may be filed by the association against a condominium unit until
353 ~ -3--G- days after the date on which a notice of intent to file a
354 lien has been delivered to the owner by registered or certified
355 mail, return receipt requested, ttfia by first-class United States
356 mail to the owner at his or her last address as reflected in the
357 association's records and, if such address is not the unit
358 address, by first-class United States mail to the unit address
359 of the assoeiatiofl, if the address is withifl the United States,
3 60 ttfia deli·:ered to the mmer at ti,e address of the unit if the
3 61 owner's address as reflected in the records of the assoc-i ation
362 is not the unit address . If the address reflected in the records
3 63 is outside the United States, a.ending the notice to that address
364 and to the Wlit address by first class United States mail is
365 sufficient. Delivery of the notice shall be deemed given upon
366 mailing as required by this subsection. The notice must be in
367 substantially the following form:
368
369 NOTICE OF INTENT
370 TO RECORD A CLAIM OF LIEN
371
372 RE: Unit .... of ... (name of association) ...
373
374 The following amounts are currently due on your
375 account to ... (name of association) ... , and must be
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376 paid within~ -3--9- days after your receipt of this
377 letter. This letter shall serve as the association's
378 notice of intent to record a Claim of Lien against
379 your property no sooner than 45 -3--9- days after your
380 receipt of this letter, unless you pay in full the
381 amounts set forth below:
382
383 Maintenance due ... (dates) ... $ .... .
384 Late fee, if applicable $ .... .
385 Interest through ... (dates) ... * $ .... .
386 Certified mail charges $ .... .
387 Other costs $ .... .
388 TOTAL OUTSTANDING $ .... .
389
390 *Interest accrues at the rate of .... percent per
391 annum.
392 Section 4. Paragraphs (a) and (c) of subsection (2) of
393 section 719.104, Florida Statutes, are amended to read:
394 719.104 Cooperatives; access to units; records; financial
395 reports; assessments; purchase of leases.-
396 (2) OFFICIAL RECORDS.-
397 (a) From the inception of the association, the association
398 shall maintain a copy of each of the following, where
399 applicable, which shall constitute the official records of the
4 00 association:
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401 1. The plans, permits, warranties, and other items
402 provided by the developer pursuant to s. 719.301(4).
403 2. A photocopy of the cooperative documents.
404 3. A copy of the current rules of the association.
405 4. A book or books containing the minutes of all meetings
406 of the association, of the board of directors, and of the unit
407 owners.
408 5. A current roster of all unit owners and their mailing
409 addresses, unit identifications, voting certifications, and, if
410 known, telephone numbers. The association shall also maintain
411 the e-mail addresses and the numbers designated by unit owners
412 for receiving notice sent by electronic transmission of those
413 unit owners consenting to receive notice by electronic
414 transmission. The e-mail addresses and numbers provided by unit
415 owners to receive notice by electronic transmission shall be
416 removed from association records when consent to receive notice
417 by electronic transmission is revoked. However, the association
418 is not liable for an erroneous disclosure of the e-mail address
419 or the number for receiving electronic transmission of notices.
420 6. All current insurance policies of the association.
421 7. A current copy of any management agreement, lease, or
422 other contract to which the association is a party or under
423 which the association or the unit owners have an obligation or
424 responsibility.
425 8. Bills of sale or transfer for all property owned by the
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426 association.
427 9. Accounting records for the association and separate
428 accounting records for each unit it operates, according to good
429 accounting practices. The accounting records shall include, but
430 not be limited to:
431 a. Accurate, itemized, and detailed records of all
432 receipts and expenditures.
433 b. A current account and a monthly, bimonthly, or
434 quarterly statement of the account for each unit .designating the
435 name of the unit owner, the due date and amount of each
436 assessment, the amount paid upon the account, and the balance
437 due.
438 c. All audits, reviews, accounting statements, and
439 financial reports of the association.
440 d. All contracts f o r work to be performed. Bids for work
441 to be performed shall also be considered official records and
442 shall be maintained for a period of 1 year.
443 10. Ballots, sign-in sheets, voting proxies, and all other
444 papers and electronic records relating to voting by unit owners,
445 which shall be maintained for a period of 1 year after the date
446 of the election, vote, or meeting to which the document relates.
447 11. All rental records where the association is acting as
448 agent for the rental of units.
449 12. A copy of the current question and answer sheet as
450 described ins. 719.504.
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451 13. All affirmative acknowledgments made pursuant to s.
452 719.108(3) (b)3.
453 14. All other written records of the association not
454 specifically included in the foregoing which are related to the
455 operation of the association.
456 (c) The official records of the association are open to
457 inspection by any association member or the authorized
458 representative of such member at all reasonable times. The right
459 to inspect the records includes the right to make or obtain
4 60 copies, at the reasonable expense, if any, of the association
461 member. The association may adopt reasonable rules regarding the
4 62 frequency, time, location, notice, and manner of record
4 63 inspections and copying. The failure of an association to
464 provide the records within 10 working days after receipt of a
465 written request creates a rebuttable presumption that the
466 association willfully failed to comply with this paragraph. A
4 67 unit owner who is denied access to official records is entitled
468 to the actual damages or minimum damages for the association's
469 willful failure to comply. The minimum damages are $50 per
470 calendar day for up to 10 days, beginning on the 11th working
471 day after receipt of the written request. The failure to permit
472 inspection entitles any person prevailing in an enforcement
473 action to recover reasonable attorney fees from the person in
474 control of the records who, directly or indirectly, knowingly
475 denied access to the records. Any person who knowingly or
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476 intentionally defaces or destroys accounting records that are
477 required by this chapter to be maintained during the period for
478 which such records are required to be maintained, or who
479 knowingly or intentionally fails to create or maintain
480 accounting records that are required to be created or
481 maintained, with the intent of causing harm to the association
482 or one or more of its members, is personally subject to a civil
483 penalty pursuant to s. 719. 501 ( 1) ( d) . The association shall
484 maintain an adequate number of copies of the declaration,
485 articles of incorporation, bylaws, and rules, and all amendments
486 to each of the foregoing, as well as the question and answer
487 sheet as described ins. 719.504 and year-end financial
488 information required by the department, on the cooperative
489 property to ensure their availability to unit owners and
490 prospective purchasers, and may charge its actual costs for
491 preparing and furnishing these documents to those requesting the
492 same. An association shall allow a member or his or her
493 authorized representative to use a portable device, including a
494 smartphone, tablet, portable scanner, or any other technology
495 capable of scanning or taking photographs, to make an electronic
496 copy of the official records in lieu of the association
497 providing the member or his or her authorized representative
498 with a copy of such records. The association may not charge a
499 member or his or her authorized representative for the use of a
500 portable device. Notwithstanding this paragraph, the following
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501 records shall not be accessible to unit owners:
502 1. Any record protected by the lawyer-client privilege as
503 described ins. 90.502 and any record protected by the work-
504 product privilege, including any record prepared by an
505 association attorney or prepared at the attorney's express
506 direction which reflects a mental impression, conclusion,
507 litigation strategy, or legal theory of the attorney or the
508 association, and which was prepared exclusively for civil or
509 criminal litigation or for adversarial administrative
510 proceedings, or which was prepared in anticipation of such
511 litigation or proceedings until the conclusion of the litigation
512 or proceedings.
513 2. Information obtained by an association in connection
514 with the approval of the lease, sale, or other transfer of a
515 unit.
516 3. Personnel records of association or management company
517 employees, including, but not limited to, disciplinary, payroll,
518 health, and insurance records. For purposes of this
519 subparagraph, the term "personnel records" does not include
520 written employment agreements with an association employee or
521 management company, or budgetary or financial records that
522 indicate the compensation paid to an association employee.
523 4. Medical records of unit owners.
524 5. Social security numbers, driver license numbers, credit
525 card numbers, e-mail addresses, telephone numbers, facsimile
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526 numbers, emergency contact information, addresses of a unit
527 owner other than as provided to fulfill the association's notice
528 requirements, and other personal identifying information of any
529 person, excluding the person's name, unit designation, mailing
530 address, property address, and any address, e-mail address, or
531 facsimile number provided to the association to fulfill the
532 association's notice requirements. Notwithstanding the
533 restrictions in this subparagraph, an association may print and
534 distribute to unit parcel owners a directory containing the
535 name, unit parcel address, and all telephone numbers of each
536 unit parcel owner. However, an owner may exclude his or her
537 telephone numbers from the directory by so requesting in writing
538 to the association. An owner may consent in writing to the
539 disclosure of other contact information described in this
540 subparagraph. The association is not liable for the inadvertent
541 disclosure of information that is protected under this
542 subparagraph if the information is included in an official
543 record of the association and is voluntarily provided by an
544 owner and not requested by the association.
545 6. Electronic security measures that are used by the
546 association to safeguard data, including passwords.
547 7. The software and operating system used by the
548 association which allow the manipulation of data, even if the
549 owner owns a copy of the same software used by the association.
550 The data is part of the official records of the association.
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551 8. All affirmative acknowledgments made pursuant to s.
552 719.108 (3) (b)3.
553 Section 5. Subsections (3) and (4) of section 719.108,
554 Florida Statutes, are amended to read:
555 719.108 Rents and assessments; liability; lien and
556 priority; interest; collection; cooperative ownership.-
557 (3)~ Rents and assessments, and installments on them,
558 not paid when due bear interest at the rate provided in the
559 cooperative documents from the date due until paid. This rate
560 may not exceed the rate allowed by law and, if a rate is not
561 provided in the cooperative documents, accrues at 18 percent per
562 annum. If the cooperative documents or bylaws so provide, the
563 association may charge an administrative late fee in addition to
564 such interest, not to exceed the greater of $25 or 5 percent of
565 each installment of the assessment for each delinquent
566 installment that the payment is late. Any payment received by an
567 association must be applied first to any interest accrued by the
568 association, then to any administrative late fee, then to any
569 costs and reasonable attorney fees incurred in collection, and
570 then to the delinquent assessment. The foregoing applies
571 notwithstanding s. 673.3111, any purported accord and
572 satisfaction, or any restrictive endorsement, designation, or
573 instruction placed on or accompanying a payment. The preceding
574 sentence is intended to clarify existing law. A late fee is not
575 subject to chapter 687 ors. 719.303(4).
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576 (b)l. The association must deliver a unit's statement of
577 the account described in s. 719.104 (2) (a) 9.b. to the unit owner
578 by first-class United States mail or by electronic transmission
579 to the unit owner's e-mail address maintained in the
580 association's official records.
581 2. Before changing the method of delivery for the
582 statement of the account, the association must deliver a written
583 notice of such change to each unit owner. The written notice
584 must be delivered to the unit owner at least 30 days before the
585 association sends the statement of the account by the new
586 delivery method. The notice must be sent by first-class United
587 States mail to the unit owner at his or her last address as
588 reflected in the association's records and, if such address is
589 not the unit address, must be sent by first-class United States
590 mail to the unit address. Notice is deemed to have been given
591 upon mailing as requi red by this s u bparagraph.
592 3. A unit owner must affirmatively acknowledge his or her
593 understanding that the association will change its method of
594 delivery of the statement of the account before the association
595 may change the method of delivering the statement of the
596 account. The unit owner may make the affirmative acknowledgment
597 electronically or in writing.
598 (c) An association may not require payment of attorney
599 fees related to a past due assessment without first delivering a
600 written notice of late assessment to the owner which specifies
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601 the amount owed the association and provides the unit owner an
602 opportunity to pay the amount owed without the assessment of
603 attorney fees. The notice of late assessment must be sent by
604 first-class United States mail to the unit owner at his or her
605 last address as reflected in the association's records and, if
606 such address is not the unit address, must be sent by first-
607 class United States mail to the unit address. Notice is deemed
608 to have been given upon mailing as required by this paragraph.
609 The notice must be in substantially the following form:
610
611 NOTICE OF LATE ASSESSMENT
612
613 RE: Unit .... of ... (name of association) ...
614
615 The following amounts are currently due on your
616 account to ... (name of association) ... , and must be
617 paid within 30 days of the date of this letter. This
618 letter shall serve as the association's notice to
619 proceed with further collection action against your
620 property no sooner than 30 days of the date of this
621 letter, unless you pay in full the amounts set forth
622 below:
623
624 Maintenance due ... (dates) ... $ ...••
625 Late fee, if applicable $ .....
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626 Interest through ... (dates) ... * $ .....
627 TOTAL OUTSTANDING $ .....
628
629 *Interest accrues at the rate of .... percent per annum.
630 (4) The association has a lien on each cooperative parcel
631 for any unpaid rents and assessments, plus interest, and any
632 administrative late fees. If authorized by the cooperative
633 documents, the lien also secures reasonable attorney fees
634 incurred by the association incident to the collection of the
635 rents and assessments or enforcement of such lien. The lien is
636 effective from and after recording a claim of lien in the public
637 records in the county in which the cooperative parcel is located
638 which states the description of the cooperative parcel, the name
639 of the unit owner, the amount due, and the due dates. Except as
640 otherwise provided in this chapter, a lien may not be filed by
641 the association against a cooperative parcel until 45 -3-.e- days
642 after the date on which a notice of intent to file a lien has
643 been delivered to the owner.
644 (a) The notice must be sent to the unit owner at the
645 address of the unit by first-class United States mail, and the
646 notice must be in substantially the following form:
647
648 NOTICE OF INTENT
649 TO RECORD A CLAIM OF LIEN
650
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651 RE: Unit ... (unit number) . . . of ... (name of
652 cooperative) ...
653
654 The following amounts are currently due on your
655 account to ... (name of association) ... , and must be
656 paid within .!2 -3--G- days after your receipt of this
657 letter. This letter shall serve as the association's
658 notice of intent to record a Claim of Lien against
659 your property no sooner than 45 -3--G- days after your
660 receipt of this letter, unless you pay in full the
661 amounts set forth below:
662
663 Maintenance due ... (dates) ... $ .... .
664 Late fee, if applicable $ .... .
665 Interest through ... (dates) ... * $ .... .
666 Certified mail charges $ . . .. .
667 Other costs $ .... .
668 TOTAL OUTSTANDING $ .... .
669
670 *Interest accrues at the rate of .... percent per
671 annum.
672 1. If the most recent address of the unit owner on the
673 records of the association is the address of the unit, the
674 notice must be sent by certified mail, return receipt requested,
675 to the unit owner at the address of the unit.
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676 2. If the most recent address of the unit owner on the
677 records of the association is in the United States, but is not
678 the address of the unit, the notice must be sent by certified
679 mail, return receipt requested, to the unit owner at his or her
680 most recent address.
681 3. If the most recent address of the unit owner on the
682 records of the association is not in the United States, the
683 notice must be sent by first-class United States mail to the
684 unit owner at his or her most recent address.
685 (b) A notice that is sent pursuant to this subsection is
686 deemed delivered upon mailing. A claim of lien must be executed
687 and acknowledged by an officer or authorized agent of the
688 association. The lien is not effective 1 year after the claim of
689 lien was recorded unless, within that time, an action to enforce
690 the lien is commenced. The 1-year period is automatically
691 extended for any length of time during which the association is
692 prevented from filing a foreclosure action by an automatic stay
693 resulting from a bankruptcy petition filed by the parcel owner
694 or any other person claiming an interest in the parcel. The
695 claim of lien secures all unpaid rents and assessments that are
696 due and that may accrue after the claim of lien is recorded and
697 through the entry of a final judgment, as well as interest and
698 all reasonable costs and attorney fees incurred by the
699 association incident to the collection process. Upon payment in
700 full, the person making the payment is entitled to a
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701 satisfaction of the lien.
702 (c) By recording a notice in substantially the following
703 form, a unit owner or the unit owner's agent or attorney may
704 require the association to enforce a recorded claim of lien
705 against his or her cooperative parcel:
706
707 NOTICE OF CONTEST OF LIEN
708
709 TO: ... (Name and address of association) ... :
710
711 You are notified that the undersigned contests the
712 claim of lien filed by you on .... , ... (year) ... , and
713 recorded in Official Records Book .... at Page .... ,
714 of the public records of .... County, Florida, and
715 that the time within which you may file suit to
716 enforce your lien is limited to 90 days from the date
717 of service of this notice. Executed this .... day of
718 .... , ... (year) ....
719 Signed: ... (Owner or Attorney) ...
720
721 After notice of contest of lien has been recorded, the clerk of
722 the circuit court shall mail a copy of the recorded notice to
723 the association by certified mail, return receipt requested, at
724 the address shown in the claim of lien or most recent amendment
725 to it and shall certify to the service on the face of the
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726 notice. Service is complete upon mailing. After service, the
727 association has 90 days in which to file an action to enforce
728 the lien. If the action is not filed within the 90-day period,
729 the lien is void. However, the 90-day period shall be extended
730 for any length of time during which the association is prevented
731 from filing its action because of an automatic stay resulting
732 from the filing of a bankruptcy petition by the unit owner or by
733 any other person claiming an interest in the parcel.
734 (d) A release of lien must be in substantially the
735 following form:
736
737 RELEASE OF LIEN
738
739 The undersigned lienor, in consideration of the final payment in
740 the amount of$ .... , hereby waives and releases its lien and
741 right to claim a lien for unpaid assessments through .... ,
742 ... (year) ... , recorded in the Official Records Book .... at Page
743 .... , of the public records of .... County, Florida, for the
744 following described real property:
745
746 THAT COOPERATIVE PARCEL WHICH INCLUDES UNIT NO . . . . .
747 OF ... (NAME OF COOPERATIVE) ... , A COOPERATIVE AS SET
748 FORTH IN THE COOPERATIVE DOCUMENTS AND THE EXHIBITS
749 ANNEXED THERETO AND FORMING A PART THEREOF, RECORDED
750 IN OFFICIAL RECORDS BOOK .... , PAGE .... , OF THE
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751 PUBLIC RECORDS OF .. .. COUNTY, FLORIDA.
752
753 ... (Signature of Authorized Agent) ... . .. (Signature of
754 Witness) ...
755 ... (Print Name) ... . .. (Print Name) ...
756
757 (Signature of Witness) .. .
758 ... (Print Name) .. .
759
760 Sworn to (or affirmed) and subscribed before me this .... day of
761 .... , ... (year) ... , by ... (name of person making statement) ....
762 ... (Signature of Notary Public) ...
763 ... (Print, type, or stamp commissioned name of Notary Public) ...
764 Personally Known .... OR Produced .... as identification.
765 Section 6. Present paragraph (1) of subsection (4) of
766 section 720.303, Florida Statutes, is redesignated as paragraph
767 (m), a new paragraph (1) is added to that subsection, and
768 paragraph (c) of subsection (5) of that section is amended, to
769 read:
770 720.303 Association powers and duties; meetings of board;
771 official records; budgets; financial reporting; association
772 funds; recalls.-
773 (4) OFFICIAL RECORDS.-The association shall maintain each
774 of the following items, when applicable, which constitute the
775 official records of the association:
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776 (1) All affirmative acknowledgments made pursuant to s.
777 720.3085(3) (c)3.
778 (5) INSPECTION AND COPYING OF RECORDS.-The official
779 records shall be maintained within the state for at least 7
780 years and shall be made available to a parcel owner for
781 inspection or photocopying within 45 miles of the community or
782 within the county in which the association is located within 10
783 business days after receipt by the board or its designee of a
784 written request. This subsection may be complied with by having
785 a copy of the official records available for inspection or
786 copying in the community or, at the option of the association,
787 by making the records available to a parcel owner electronically
788 via the Internet or by allowing the records to be viewed in
789 electronic format on a computer screen and printed upon request.
790 If the association has a photocopy machine available where the
791 records are maintained, it must provide parcel owners with
792 copies on request during the inspection if the entire request is
793 limited to no more than 25 pages. An association shall allow a
794 member or his or her authorized representative to use a portable
795 device, including a smartphone, tablet, portable scanner, or any
796 other technology capable of scanning or taking photographs, to
797 make an electronic copy of the official records in lieu of the
798 association's providing the member or his or her authorized
799 representative with a copy of such records. The association may
800 not charge a fee to a member or his or her authorized
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801 representative for the use of a portable device.
802 (c) The association may adopt reasonable written rules
803 governing the frequency, time, location, notice, records to be
804 inspected, and manner of inspections, but may not require a
805 parcel owner to demonstrate any proper purpose for the
806 inspection, state any reason for the inspection, or limit a
807 parcel owner's right to inspect records to less than one 8-hour
808 business day per month. The association may impose fees to cover
809 the costs of providing copies of the official records, including
810 the costs of copying and the costs required for personnel to
811 retrieve and copy the records if the time spent retrieving and
812 copying the records exceeds one-half hour and if the personnel
813 costs do not exceed $20 per hour. Personnel costs may not be
814 charged for records requests that result in the copying of 25 or
815 fewer pages. The association may charge up to 25 cents per page
816 for copies made on the association's photocopier. If the
817 association does not have a photocopy machine available where
818 the records are kept, or if the records requested to be copied
819 exceed 25 pages in length, the association may have copies made
820 by an outside duplicating service and may charge the actual cost
821 of copying, as supported by the vendor invoice. The association
822 shall maintain an adequate number of copies of the recorded
823 governing documents, to ensure their availability to members and
824 prospective members. Notwithstanding this paragraph, the
825 following records are not accessible to members or parcel
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826 owners:
827 1. Any record protected by the lawyer-client privilege as
828 described ins. 90.502 and any record protected by the work-
829 product privilege, including, but not limited to, a record
830 prepared by an association attorney or prepared at the
831 attorney's express direction which reflects a mental impression,
832 conclusion, litigation strategy, or legal theory of the attorney
833 or the association and which was prepared exclusively for civil
834 or criminal litigation or for adversarial administrative
835 proceedings or which was prepared in anticipation of such
836 litigation or proceedings until the conclusion of the litigation
837 or proceedings.
838 2. Information obtained by an association in connection
839 with the approval of the lease, sale, or other transfer of a
840 parcel.
841 3. Personnel records of association or management company
842 employees, including, but not limited to, disciplinary, payroll,
843 health, and insurance records. For purposes of this
844 subparagraph, the term "personnel records" does not include
845 written employment agreements with an association or management
846 company employee or budgetary or financial records that indicate
847 the compensation paid to an association or management company
848 employee.
849 4. Medical records of parcel owners or community
850 residents.
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851 5. Social security numbers, driver license numbers, credit
852 card numbers, electronic mailing addresses, telephone numbers,
853 facsimile numbers, emergency contact information, any addresses
854 for a parcel owner other than as provided for association notice
855 requirements, and other personal identifying information of any
856 person, excluding the person's name, parcel designation, mailing
857 address, and property address. Notwithstanding the restrictions
858 in this subparagraph, an association may print and distribute to
859 parcel owners a directory containing the name, parcel address,
860 and all telephone numbers of each parcel owner. However, an
861 owner may exclude his or her telephone numbers from the
862 directory by so requesting in writing to the association. An
863 owner may consent in writing to the disclosure of other contact
8 64 information described in this subparagraph. The association is
865 not liable for the disclosure of information that is protected
866 under this subparagraph if the information is included in an
867 official record of the association and is voluntarily· provided
868 by an owner and not requested by the association.
869 6. Any electronic security measure that is used by the
870 association to safeguard data, including passwords.
871 7. The software and operating system used by the
872 association which allows the manipulation of data, even if the
873 owner owns a copy of the same software used by the association.
874 The data is part of the official records of the association.
875 8. All affirmative acknowledgments made pursuant to s.
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876 720.3085(3) (c)3.
877 Section 7. Paragraphs (c) and (d) are added to subsection
878 (3) of section 720.3085, Florida Statutes, to read:
879 720.3085 Payment for assessments; lien claims.-
880 (3) Assessments and installments on assessments that are
881 not paid when due bear interest from the due date until paid at
882 the rate provided in the declaration of covenants or the bylaws
883 of the association, which rate may not exceed the rate allowed
884 by law. If no rate is provided in the declaration or bylaws,
885 interest accrues at the rate of 18 percent per year.
886 (c)l. The association must deliver a parcel owner's
887 periodic statement of the account described ins.
888 7 20. 303 ( 4) ( j) 2. to the parcel owner by first-class United States
889 mail or by electronic transmission to the p arcel owner's e-mail
890 address maintained in the association's official records.
891 2. Before changing the method of delivery for the
892 statement of the account, the association must deliver a written
893 notice such change to each parcel owner. The written notice must
894 be delivered to the parcel owner at least 30 days before the
895 association sends the statement of the account by the new
896 delivery method. The notice must be sent by first-class United
897 States mail to the owner at his or her last address as reflected
898 in the association's records and, if such address is not the
899 parcel address, must be sent by first-class United States mail
900 to the parcel address . Notice is deemed to have been given upon
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901 mailing as required by this subparagraph.
902 3. A parcel owner must affirmatively acknowle dge his or
903 her understanding that the association will change its method of
904 delivery of the statement of the account before the association
905 may change the method of delivering the statement of the
906 account. The parcel owner may make the affirmative
907 acknowledgment electronically or in writing.
908 (d) An association may not require payment of attorney
909 fees related to a past due assessment without first delivering a
910 written notice of late assessment to the parcel owner which
911 specifies the amount owed the association and provides the
912 parcel owner an opportunity to pay the amount owed without the
913 assessment of attorney fees. The notice of late assessment must
914 be sent by first-class United States mail to the owner at his or
915 her last address as reflected in the association's records and,
916 if such address is not the parcel address, must be sent by
917 first-class United States mail to the parcel address. Notice is
918 deemed to have been given upon mailing as required by this
919 paragraph . The notic e must be in substan tially the following
920 form:
921
922 NOTICE OF LATE ASSESSMENT
923
924 RE: Parcel .... of ... (name of association) ...
925
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926 The following amounts are currently due on your
927 account to ... (name of association) ... , and must be
928 paid within 30 days after the date of this letter.
929 This letter shall serve as the association's notice to
930 proceed with further collection action against your
931 property no sooner than 30 days after the date of this
932 letter, unless you pay in full the amounts set forth
933 below:
934
935 Maintenance due ... (dates) ... $ .....
936 Late fee, if applicable $ .....
937 Interest through ... (dates) ... * $ .....
938 TOTAL OUTSTANDING $ .....
939
940 *Interest accrues at the rate of .... percent per annum.
941 Section 8. This act shall take effect July 1, 2021.
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REGULATORY REFORM SUBCOMMITTEE
HB 615 by Rep. Rodriguez
Community Association Assessment Notices
AMENDMENT SUMMARY
March 8, 2021
Amendment 1 by Rep. Rodriguez (strike-all):
The amendment:
• Provides that if associations provide account statements to their unit or parcel owners,
they must comply with the delivery requirements provided in the bill.
• Creates a rebuttable presumption that an association mailed a notice of a late
assessment if a board member, officer, agent of the association, or a licensed
community association manager provides a sworn affidavit attesting to such mailing.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Regulatory Reform
2 Subcommittee
3 Re presentative Rodriguez of f ered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enact ing clause and insert:
7 Section 1. Pa ragraphs (a) and (c) o f subsection (12) of
8 section 718.111, Florida Statutes, are amended to read:
9 718.111 The association.-
10 (12) OFFICIAL RECORDS. -
11 (a) From the inception of the a ssoci ation, the a ssociation
12 shall maintain each of the following items, if applicable, which
13 constitutes the of fi cial records of the asso cia tion:
14 1. A copy of t he plans, permits , warra nties, and other
15 it e ms provided by t he d e v e loper pu rsua nt to s . 718 . 301 (4).
910617 - h0615-strike .docx
Publ ished On: 3/5/2021 2 :0 2 :0 2 PM
Pa ge 1 of 41
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1 .
16 2. A photocopy of the recorded declaration of condominium
17 of each condominium operated by the association and each
18 amendment to each declaration.
19 3. A photocopy of the recorded bylaws of the association
20 and each amendment to the bylaws.
21 4. A certified copy of the articles of incorporation of
22 the association, or other documents creating the association,
23 and each amendment thereto.
24 5. A copy of the current rules of the association.
25 6. A book or books that contain the minutes of all
26 meetings of the association, the board of administration, and
27 the unit owners.
28 7. A current roster of all unit owners and their mailing
29 addresses, unit identifications, voting certifications, and, if
30 known, telephone numbers. The association shall also maintain
31 the e-mail addresses and facsimile numbers of unit owners
32 consenting to receive notice by electronic transmission. Thee-
33 mail addresses and facsimile numbers are not accessible to unit
34 owners if consent to receive notice by electronic transmission
35 is not provided in accordance with sub-subparagraph (c)3.e.
36 However, the association is not liable for an inadvertent
37 disclosure of the e-mail address or facsimile number for
38 receiving electronic transmission of notices.
39 8. All current insurance policies of the association and
40 condominiums operated by the association.
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Bill No. HB 615 (2021)
Amendment No. 1.
41 9. A current copy of any management agreement, lease, or
42 other contract to which the association is a party or under
43 which the association or the unit owners have an obligation or
44 responsibility.
45 10. Bills of sale or transfer for all property owned by
46 the association.
47 11. Accounting records for the association and separate
48 accounting records for each condominium that the association
49 operates. Any person who knowingly or intentionally defaces or
50 destroys such records, or who knowingly or intentionally fails
51 to create or maintain such records, with the intent of causing
52 harm to the association or one or more of its members, is
53 personally subject to a civil penalty pursuant to s.
54 718.501(1) (d). The accounting records must include, but are not
55 limited to:
56 a. Accurate, itemized, and detailed records of all
57 receipts and expenditures.
58 b. A current account and a monthly, bimonthly, or
59 quarterly statement of the account for each unit designating the
60 name of the unit owner, the due date and amount of each
61 assessment, the amount paid on the account, and the balance due.
62 c. All audits, reviews, accounting statements, and
63 financial reports of the association or condominium.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
64 d. All contracts for work to be performed. Bids for work
65 to be performed are also considered official records and must be
66 maintained by the association.
67 12. Ballots, sign-in sheets, voting proxies, and all other
68 papers and electronic records relating to voting by unit owners,
69 which must be maintained for 1 year from the date of the
70 election, vote, or meeting to which the document relates,
71 notwithstanding paragraph (b).
72 13. All rental records if the association is acting as
73 agent for the rental of condominium units.
74 14. A copy of the current question and answer sheet as
75 described ins. 718.504.
76 15. All other written records of the association not
77 specifically included in the foregoing which arc related to the
78 operation of the association.
79 ±-6-:- A copy of the inspection report as described ins.
80 718.301 (4) (p).
81 16.~ Bids for materials, equipment, or services.
82 17. All affirmative acknowledgments made pursuant to s.
83 718.121(4) (c).
84 18. All other written records of the association not
85 specifically included in the foregoing which are related to the
86 operation of the association.
87 (c)l. The official records of the association are open to
88 inspection by any association member or the authorized
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
89 representative of such member at all reasonable times. The right
90 to inspect the records includes the right to make or obtain
91 copies, at the reasonable expense, if any, of the member or
92 authorized representative of such member. A renter of a unit has
93 a right to inspect and copy the association's bylaws and rules.
94 The association may adopt reasonable rules regarding the
95 frequency, time, location, no t ice, and manner of record
96 inspections and copying. The fa ilure of an ass oci ation to
97 provide the records within 10 working days after receipt of a
98 written request creates a rebuttable presumption that the
99 association willfully failed to comply with this paragraph. A
100 unit owner who is denied access to officia l records i s entitled
101 to the actual damages or minimum damages for the association's
102 willful failure to comply. Minimum damages are $50 per calendar
103 day for up t o 10 days, beginning on the 11th working day after
104 receipt of the written r eques t . The failure to permit inspection
105 entitles any person prevailing in an enforcement action to
106 recover reas onable attorney fe e s from the person in control of
107 the records who, directly or indire c tly, knowingly den ied a ccess
108 to the reco r ds.
109 2. Any person who knowingly or intentionally defaces or
110 destroys acco unting records t hat ar e required by this chapter to
1 11 be maintained during the pe riod for which such reco rds are
112 re qui re d to b e ma i ntaine d, o r who knowingly or int ent ionally
113 fails to creat e or maintain accounting r e cords that are required
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Bill No. HB 615 (2021)
Amendment No. 1.
114 to be created or maintained, with the intent of causing harm to
115 the association or one or more of its members, is personally
116 subject to a civil penalty pursuant to s. 718. 501 (1) (d).
117 3. The association shall maintain an adequate number of
118 copies of the declaration, articles of incorporation, bylaws,
119 and rules, and all amendments to each of the foregoing, as well
120 as the question and answer sheet as described ins. 718.504 and
121 y e ar-end financial information required under this section, on
122 the condominium property to ensure their availability to unit
123 owners and prospective purchasers, and may charge its actual
124 costs for preparing and furnishing these documents to those
125 re questing the documents. An association shall allow a member or
126 his or her authorized representative to use a portable device,
127 including a smartphone, tablet, portable scanner, or any other
128 technology capable of sca nning or taking photographs, to make an
12 9 electronic copy o f the official re co rds in li eu of the
130 association's providing the member or his or her authorized
131 re presentative with a copy o f such reco rds. The association may
132 not charge a membe r or his or her autho riz ed rep res entative fo r
133 the u se of a portable d e vice. Notw it hs tanding t his pa rag raph,
134 the following r ecords are not accessible to unit owners:
135 a. Any r ecord prot e cted by the lawye r- c li e nt privilege as
136 described ins. 90.502 and any rec ord pro tected by th e work-
137 product privilege , including a record pr e pared by an asso cia tion
1 38 attorney or prepared at the a tt orney's e xpress direct ion, which
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Bill No. HB 615 (2021)
Amendment No. 1.
139 reflects a mental impression, conclusion, litigation strategy,
140 or legal theory of the attorney or the association, and which
141 was prepared exclusively for civil or criminal litigation or for
142 adversarial administrative proceedings, or which was prepared in
143 anticipation of such litigation or proceedings until the
144 conclusion of the litigation or proceedings.
145 b. Information obtained by an association in connection
146 with the approval of the lease, sale, or other transfer of a
147 unit.
148 c. Personnel records of association or management company
149 employees, including, but not limited to, disciplinary, payroll,
150 health, and insurance records. For purposes of this sub-
151 subparagraph, the term "personnel records" does not include
152 written employment agreements with an association employee or
153 management company, or budgetary or financial records that
154 indicate the compensation paid to an association employee.
155 d. Medical records of unit owners.
156 e. Social security numbers, driver license numbers, credit
157 card numbers, e-mail addresses, telephone numbers, facsimile
158 numbers, emergency contact information, addresses of a unit
159 owner other than as provided to fulfill the association's notice
160 requirements, and other personal identifying information of any
161 person, excluding the person's name, unit designation, mailing
162 address, property address, and any address, e-mail address, or
163 facsimile number provided to the association to fulfill the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
164 association's notice requirements. Notwithstanding the
165 restrictions in this sub-subparagraph, an association may print
166 and distribute to parcel owners a directory containing the name,
167 parcel address, and all telephone numbers of each parcel owner.
168 However, an owner may exclude his or her telephone numbers from
169 the directory by so requesting in writing to the association. An
170 owner may consent in writing to the disclosure of other contact
171 information described in this sub-subparagraph. The association
172 is not liable for the inadvertent disclosure of information that
173 is protected under this sub-subparagraph if the information is
174 included in an official record of the association and is
175 voluntarily provided by an owner and not requested by the
17 6 association.
177 f. Electronic security measures that are used by the
178 association to safeguard data, including passwords.
179 g. The software and operating system used by the
180 association which allow the manipulation of data, even if the
181 owner owns a copy of the same software used by the association.
182 The data is part of the official records of the association.
183 h. All affirmative acknowledgments made pursuant to s.
184 718.121(4) (c).
185 Section 2. Paragraph (b) of subsection (6) of section
186 718.116, Florida Statutes, is amended to read:
187 718.116 Assessments; liability; lien and priority;
188 interest; collection.-
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Bill No. HB 615 (2021)
Amendment No. 1.
189 ( 6)
190 (b) No foreclosure judgment may be entered until at least
191 45 -3-8- days after the association gives written notice to the
192 unit owner of its intention to foreclose its lien to collect the
193 unpaid assessments. The notice must be in substantially the
194 following form:
195
196 DELINQUENT ASSESSMENT
197
198 This letter is to inform you a Claim of Lien has been
199 filed against your property because you have not paid
200 the ... (type of assessment) ... assessment to (name
201 of association) .... The association intends to
202 foreclose the lien and collect the unpaid amount
203 within 45 -3-8- days of this letter being provided to
204 you.
205
206 You owe the interest accruing from ... (month/year) ...
207 to the present. As of the date of this letter, the
208 total amount due with interest is$ ..... All costs of
209 any action and interest from this day forward will
210 also be charged to your account.
211
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
212 Any questions concerning this matter should be
213 directed to ... (insert name, addresses, and telephone
214 numbers of association representative) ....
215
216 If this notice is not given at least~ -3--G- days before the
217 foreclosure action is filed, and if the unpaid assessments,
218 including those coming due after the claim of lien is recorded,
219 are paid before the entry of a final judgment of foreclosure,
220 the association shall not recover attorney attorney's fees or
221 costs. The notice must be given by delivery of a copy of it to
222 the unit owner or by certified or registered mail, return
223 receipt requested, addressed to the unit owner at his or her
224 last known address; and, upon such mailing, the notice shall be
225 deemed to have been given, and the court shall proceed with the
226 foreclosure action and may award attorney attorney's fees and
227 costs as permitted by law. The notice requirements of this
228 subsection are satisfied if the unit owner records a notice of
229 contest of lien as provided in subsection (5). The notice
230 requirements of this subsection do not apply if an action to
231 foreclose a mortgage on the condominium unit is pending before
232 any court; if the rights of the association would be affected by
233 such foreclosure; and if actual, constructive, or substitute
234 service of process has been made on the unit owner.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
235 Section 3. Subsection (4) of section 718.121, Florida
236 Statutes, is amended, and subsections (5) and (6) are added to
237 that section, to read:
238 718.121 Liens.-
239 (4) (a) If an association sends out an invoice for
240 assessments or a unit's statement of the account described ins.
241 718.111(12), the invoice for assessments or the unit's statement
242 of account must be delivered to the unit owner by first-class
243 United States mail or by electronic transmission to the unit
244 owner's e-mail address maintained in the association's official
245 records.
246 (b) Before changing the method of delivery for an invoice
247 for assessments or the statement of the account, the association
248 must deliver a written notice of such change to each unit owner.
249 The written notice must be delivered to the unit owner at least
250 30 days before the association sends the invoice for assessments
251 or the statement of the account by the new delivery method. The
252 notice must be sent by first-class United States mail to the
253 unit owner at his or her last address as reflected in the
254 association's records and, if such address is not the unit
255 address, must be sent by first-class United States mail to the
256 unit address. Notice is deemed to have been delivered upon
257 mailing as required by this paragraph.
258 (c) A unit owner must affirmatively acknowledge his or her
259 understanding that the association will change its method of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1 .
260 delivery of the invoice for assessments or the unit's statement
261 of the account before the association may change the method of
262 delivering the statement of the account. The unit owner may make
263 the affirmative acknowledgment electronically or in writing.
264 (5) An association may not require payment of attorney
265 fees related to a past due assessment without first delivering a
266 written notice of late assessment to the unit owner which
267 specifies the amount owed the association and provides the unit
268 owner an opportunity to pay the amount owed without the
2 69 assessment of attorney fees. The notice of late assessment must
270 be sent by first-class United States mail to the unit owner at
271 his or her last address as reflected in the association's
272 records and, if such address is not the unit address, must also
273 be sent by first-class United States mail to the unit address.
274 Notice is deemed to have been delivered upon mailing as required
275 by this subsection. A rebuttable presumption that an association
276 mailed a notice in accordance with this subsection is
277 established if a board member , officer, or agent of the
278 association, or a manager licensed under part VIII of chapter
279 468, provides a sworn affidavit attesting to such mailing. The
280 notice must be in substantially the following form:
281
282 NOTICE OF LATE ASSESSMENT
283
284 RE: Unit ... . of ... (name of association) . ..
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1 .
285
286 The following amounts are currently due on your
287 account to ... (name of association) ... , and must be
288 paid within 30 days of the date of this letter. This
289 letter shall serve as the association's notice of its
2 90 intent to proceed with further collection action
291 against your property no sooner than 30 days of the
2 92 date of this letter, unless you pay in full the
293 amounts set forth below:
294
295 Maintenance due ... (dates) ... $ . . ...
296 Late fee, if applicable $ • •...
297 Interest through ... (dates) . .. * $ •....
2 98 TOTAL OUTSTANDING $ .....
299
300 *Interest accrues at the rate of .... percent per annum.
301 J_£l_ Except as otherwise provided in this chapter, no lien
302 may be filed by the association against a condominium unit until
303 ~ -3-8- days after the date on which a notice of intent to file a
304 lien has been delivered to the owner by registered or certified
305 mail, return receipt requested, afl€i by first-class United States
306 mail to the owner at his or her last address as reflected in the
307 association's records and, if such address is not the unit
308 address, by first-class United States mail to the unit address
309 of the association , if the address is within the United States ,
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Bill No. HB 615 (2021)
Amendment No. 1.
310 -af'r€i delivered to the o;rner at the address of the unit if the
311 owner's address as reflected in the records of the association
312 is not the unit address. I f the address re f lected in the records
313 is outside the United States , sending the notice to that address
314 and to the unit address by first class United States mail is
315 sufficient. Delivery of the notice shall be deemed given upon
316 mailing as required by this subsection. The notice must be in
317 substantially the following form:
318
319 NOTICE OF INTENT
320 TO RECORD A CLAIM OF LIEN
321
322 RE: Unit .... of ... (name of association) ...
323
324 The following amounts are currently due on your
325 account to ... (name of association) ... , and must be
326 paid within~ -3-8- days after your receipt of this
327 letter. This letter shall serve as the association's
328 notice of intent to record a Claim of Lien against
329 your property no sooner than 45 -3-8- days after your
330 receipt of this letter, unless you pay in full the
331 amounts set forth below:
332
333 Maintenance due ... (dates) ... $ .....
334 Late fee, if applicable $ .•.••
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Bill No. HB 615 (2021)
Amendment No. 1.
335 Interest through ... (dates) ... * $ ..•..
336 Certified mail charges $ .... .
337 Other costs $ .... .
338 TOTAL OUTSTANDING $ ..•.•
339
340 *Interest accrues at the rate of .... percent per
341 annum.
342 Section 4. Paragraphs (a) and (c) of subsection (2) of
343 section 719.104, Florida Statutes, are amended to read:
344 719.104 Cooperatives; access to units; records; financial
345 reports; assessments; purchase of leases.-
346 (2) OFFICIAL RECORDS.-
347 (a) From the inception of the association, the association
348 shall maintain a copy of each of the following, where
349 applicable, which shall constitute the official records of the
350 association:
351 1. The plans, permits, warranties, and other items
352 provided by the developer pursuant to s. 719.301(4).
353 2. A photocopy of the cooperative documents.
354 3. A copy of the current rules of the association.
355 4. A book or books containing the minutes of all meetings
356 of the association, of the board of directors, and of the unit
357 owners.
358 5. A current roster of all unit owners and their mailing
359 addresses, unit identifications, voting certifications, and, if
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
360 known, telephone numbers. The association shall also maintain
361 the e-mail addresses and the numbers designated by unit owners
362 for receiving notice sent by electronic transmission of those
363 unit owners consenting to receive notice by electronic
364 transmission. The e-mail addresses and numbers provided by unit
365 owners to receive notice by electronic transmission shall be
366 removed from association records when consent to receive notice
367 by electronic transmission is revoked. However, the association
368 is not liable for an erroneous disclosure of the e-mail address
369 or the number for receiving electronic transmission of notices.
370 6. All current insurance policies of the association.
371 7. A current copy of any management agreement, lease, or
372 other contract to which the association is a party or under
373 which the association or the unit owners have an obligation or
374 responsibility.
375 8. Bills of sale or transfer for all property owned by the
376 association.
377 9. Accounting records for the association and separate
378 accounting records for each unit it operates, according to good
379 accounting practices. The accounting records shall include, but
380 not be limited to:
381 a. Accurate, itemized, and detailed records of all
382 receipts and expenditures.
383 b. A current account and a monthly, bimonthly, or
384 quarterly statement of the account for each unit designating the
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Bill No. HB 615 (2021)
Amendment No. 1.
385 name of the unit owner, the due date and amount of each
386 assessment, the amount paid upon the account, and the balance
387 due.
388 c. All audits, reviews, accounting statements, and
389 financial reports of the association.
390 d. All contracts for work to be performed. Bids for work
391 to be performed shall also be considered official records and
392 shall be maintained for a period of 1 year.
393 10. Ballots, sign-in sheets, voting proxies, and all other
394 papers and electronic records relating to voting by unit owners,
395 which shall be maintained for a period of 1 year after the date
396 of the election, vote, or meeting to which the document relates.
397 11. All rental records where the association is acting as
398 agent for the rental of units.
399 12. A copy of the current question and answer sheet as
400 described ins. 719.504.
401 13. All affirmative acknowledgments made pursuant to s.
402 719.108(3) (b)3.
403 14. All other written records of the association not
404 specifically included in the foregoing which are related to the
405 operation of the association.
406 (c) The official records of the association are open to
407 inspection by any association member or the authorized
408 representative of such member at all reasonable times. The right
409 to inspect the records includes the right to make or obtain
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Bill No. HB 615 (2021)
Amendment No. 1.
410 copies, at the reasonable expense, if any, of the association
411 member. The association may adopt reasonable rules regarding the
412 frequency, time, location, notice, and manner of record
413 inspections and copying. The failure of an association to
414 provide the records within 10 working days after receipt of a
415 written request creates a rebuttable presumption that the
416 association willfully failed to comply with this paragraph. A
417 unit owner who is denied access to official records is entitled
418 to the actual damages or minimum damages for the association's
419 willful failure to comply. The minimum damages are $50 per
420 calendar day for up to 10 days, beginning on the 11th working
421 day after receipt of the written request. The failure to permit
422 inspection entitles any person prevailing in an enforcement
423 action to recover reasonable attorney fees from the person in
424 control of the records who, directly or indirectly, knowingly
425 denied access to the records. Any person who knowingly or
426 intentionally defaces or destroys accounting records that are
427 required by this chapter to be maintained during the period for
428 which such records are required to be maintained, or who
429 knowingly or intentionally fails to create or maintain
430 accounting records that are required to be created or
431 maintained, with the intent of causing harm to the association
432 or one or more of its members, is personally subject to a civil
433 penalty pursuant to s. 719.501(1) (d). The association shall
434 maintain an adequate number of copies of the declaration,
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Bill No. HB 615 (2021)
Amendment No. 1.
435 articles of incorporation, bylaws, and rules, and all amendments
436 to each of the foregoing, as well as the question and answer
437 sheet as described ins. 719.504 and year-end financial
438 information required by the department, on the cooperative
439 property to ensure their availability to unit owners and
440 prospective purchasers, and may charge its actual costs for
441 preparing and furnishing these documents to those requesting the
442 same. An association shall allow a member or his or her
443 authorized representative to use a portable device, including a
444 smartphone, tablet, portable scanner, or any other technology
445 capable of scanning or taking photographs, to make an electronic
446 copy of the official records in lieu of the association
447 providing the member or his or her authorized representative
448 with a copy of such records. The association may not charge a
449 member or his or her authorized representative for the use of a
450 portable device. Notwithstanding this paragraph, the following
451 records shall not be accessible to unit owners:
452 1. Any record protected by the lawyer-client privilege as
453 described ins. 90.502 and any record protected by the work-
454 product privilege, including any record prepared by an
455 association attorney or prepared at the attorney's express
456 direction which reflects a mental impression, conclusion,
457 litigation strategy, or legal theory of the attorney or the
458 association, and which was prepared exclusively for civil or
459 criminal litigation or for adversarial administrative
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Amendment No. 1.
460 proceedings, or which was prepared in anticipation of such
4 61 litigation or proceedings until the conclusion of the litigation
462 or proceedings.
4 63 2. Information obtained by an association in connection
4 64 with the approval of the lease, sale, or other transfer of a
465 unit.
466 3. Personnel records of association or management company
4 67 employees, including, but not limited to, disciplinary, payroll,
468 health, and insurance records. For purposes of this
469 subparagraph, the term "personnel records" does not include
470 written employment agreements with an association employee or
471 management company, or budgetary or financial records that
472 indicate the compensation paid to an association employee.
473 4. Medical records of unit owners.
474 5. Social security numbers, driver license numbers, credit
475 card numbers, e-mail addresses, telephone numbers, facsimile
476 numbers, emergency contact information, addresses of a unit
477 owner other than as provided to fulfill the association's notice
478 requirements, and other personal identifying information of any
479 person, excluding the person's name, unit designation, mailing
480 address, property address, and any address, e-mail address, or
481 facsimile number provided to the association to fulfill the
482 association's notice requirements. Notwithstanding the
483 restrictions in this subparagraph, an association may print and
484 distribute to unit parcel owners a directory containing the
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Bill No. HB 615 (2021)
Amendment No. 1.
485 name, unit parcel address, and all telephone numbers of each
486 unit parcel owner. However, an owner may exclude his or her
487 telephone numbers from the directory by so requesting in writing
488 to the association. An owner may consent in writing to the
489 disclosure of other contact information described in this
490 subparagraph. The association is not liable for the inadvertent
491 disclosure of information that is protected under this
4 92 subparagraph if the information is included in an official
493 record of the association and is voluntarily provided by an
4 94 owner and not requested by the association.
495 6. Electronic security measures that are used by the
496 association to safeguard data, including passwords.
4 97 7. The software and operating system used by the
498 association which allow the manipulation of data, even if the
499 owner owns a copy of the same software used by the association.
500 The data is part of the official records of the association.
501 8. All affirmative acknowledgments made pursuant to s.
502 719.108 (3) (b) 3.
503 Section 5. Subsections (3) and (4) of section 719.108,
504 Florida Statutes, are amended to read:
505 719.108 Rents and assessments; liability; lien and
506 priority; interest; collection; cooperative ownership.-
507 (3)~ Rents and assessments, and installments on them,
508 not paid when due bear interest at the rate provided in the
509 cooperative documents from the date due until paid. This rate
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Bill No. HB 615 (2021)
Amendment No. 1.
510 may not exceed the rate allowed by law and, if a rate is not
511 provided in the cooperative documents, accrues at 18 percent per
512 annum. If the cooperative documents or bylaws so provide, the
513 association may charge an administrative late fee in addition to
514 such interest, not to exceed the greater of $25 or 5 percent of
515 each installment of the assessment for each delinquent
516 installment that the payment is late. Any payment received by an
517 association must be applied first to any interest accrued by the
518 association, then to any administrative late fee, then to any
519 costs and reasonable attorney fees incurred in collection, and
520 then to the delinquent assessment. The foregoing applies
521 notwithstanding s. 673.3111, any purported accord and
522 satisfaction, or any restrictive endorsement, designation, or
523 instruction placed on or accompanying a payment. The preceding
524 sentence is intended to clarify existing law. A late fee is not
525 subject to chapter 687 ors. 719.303(4).
526 (b)l. If an association sends out an invoice for
527 assessments or a unit's statement of the account described ins.
528 719.104(2) (a)9.b., the invoice for assessments or the unit's
529 statement of account must be delivered to the unit owner by
530 first-class United States mail or by electronic transmission to
531 the unit owner's e-mail address maintained in the association's
532 official records.
533 2. Before changing the method of delivery for an invoice
534 for assessments or the statement of the account , the association
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Bill No. HB 615 (2021)
Amendment No. 1.
535 must deliver a written notice of such change to each unit owner.
536 The written notice must be delivered to the unit owner at least
537 30 days before the association sends the invoice for assessments
538 or the statement of the account by the new delivery method. The
539 notice must be sent by first-class United States mail to the
540 unit owner at his or her last address as reflected in the
541 association's records and, if such address is not the unit
542 address, must be sent by first-class United States mail to the
543 unit address. Notice is deemed to have been delivered upon
544 mailing as required by this subparagraph.
545 3. A unit owner must affirmatively acknowledge his or her
546 understanding that the association will change its method of
547 delivery of the invoice for assessments or the unit's statement
548 of the account before the association may change the method of
549 delivering the invoice for assessments or the statement of the
550 account. The unit owner may make the affirmative acknowledgment
551 electronically or in writing.
552 (c) An association may not require payment of attorney
553 fees related to a past due assessment without first delivering a
554 written notice of late assessment to the owner which specifies
555 the amount owed the association and provides the unit owner an
556 opportunity to pay the amount owed without the assessment of
557 attorney fees. The notice of late assessment must be sent by
558 first-class United States mail to the unit owner at his or her
559 last address as reflected in the association's records and, if
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Bill No. HB 615 (2021)
Amendment No. 1 .
560 such address is not the unit address, must also be sent by
561 first-class United States mail to the unit address. Notice is
562 deemed to have been delivered upon mailing as required by this
563 paragraph. A rebuttable presumption that an association mailed a
564 notice in accordance with this subsection is established if a
565 board member, officer, or agent of the association, or a manager
566 licensed under part VIII of chapter 468, provides a sworn
567 affidavit attesting to such mailing. The notice must be in
568 substantially the following form:
569
570 NOTICE OF LATE ASSESSMENT
571
572 RE: Unit .... of ... (name of association) . ..
573
574 The following amounts are currently due on your
575 account to ... (name of association) ... , and must be
576 paid within 30 days of the date of this letter. This
577 letter shall serve as the association's notice to
578 proceed with further collection action against your
579 property no sooner than 30 days of the date of this
580 letter, unless you pay in full the amounts set forth
581 below:
582
583 Maintenance due ... (dates) .. . $ ... ..
584 Late fee, if applicable $ ..• • .
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Bill No. HB 615 (2021)
Amendment No. 1.
585 Interest through ... (dates) ... * $ ..•..
586 TOTAL OUTSTANDING $ .....
587
588 *Interest accrues at the rate of .... percent per annum.
589 (4) The association has a lien on each cooperative parcel
590 for any unpaid rents and assessments, plus interest, and any
591 administrative late fees. If authorized by the cooperative
592 documents, the lien also secures reasonable attorney fees
593 incurred by the association incident to the collection of the
594 rents and assessments or enforcement of such lien. The lien is
595 effective from and after recording a claim of lien in the public
596 records in the county in which the cooperative parcel is located
597 which states the description of the cooperative parcel, the name
598 of the unit owner, the amount due, and the due dates. Except as
599 otherwise provided in this chapter, a lien may not be filed by
600 the association against a cooperative parcel until 45 -3-G- days
601 after the date on which a notice of intent to file a lien has
602 been delivered to the owner.
603 (a) The notice must be sent to the unit owner at the
604 address of the unit by first-class United States mail, and the
605 notice must be in substantially the following form:
606
607 NOTICE OF INTENT
608 TO RECORD A CLAIM OF LIEN
609
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Bill No. HB 615 (2021)
Amendment No. 1.
610 RE: Unit ... (unit number) ... of ... (name of
611 cooperative) ...
612
613 The following amounts are currently due on your
614 account to ... (name of association) ... , and must be
615 paid within~ -3-G- days after your receipt of this
616 letter. This letter shall serve as the association's
617 notice of intent to record a Claim of Lien against
618 your property no sooner than 45 -3-G- days after your
619 receipt of this letter, unless you pay in full the
620 amounts set forth below:
621
622 Maintenance due ... (dates) ... $ •.•.•
623 Late fee, if applicable $ .....
624 Interest through ... (dates) ... * $ •.•..
625 Certified mail charges $ .... .
626 Other costs $ .... .
627 TOTAL OUTSTANDING $ .... .
628
629 *Interest accrues at the rate of .... percent per
630 annum.
631 1. If the most recent address of the unit owner on the
632 records of the association is the address of the unit, the
633 notice must be sent by certified mail, return receipt requested,
634 to the unit owner at the address of the unit.
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Bill No. HB 615 (2021 )
Amendment No. 1 .
635 2. If the most recent address of the unit owner on the
636 records of the association is in the United States, but is not
637 the address of the unit, the notice must be sent by certified
638 mail, return receipt requested, to the unit owner at his or her
639 most recent address.
640 3. If the most recent address of the unit owner on the
641 re cords of the association is not in the United States, the
642 notice must be sent by first-class United States mail to the
643 unit owner at his or her most recent address.
644 (b) A notice that is sent pursuant to this subsection is
645 deemed delive re d upon mailing. A claim of lien must be executed
64 6 and acknowledged by an officer or authorized agent of the
647 association. The lien is not effective 1 year after the claim of
648 lien was recorded unless, within that t i me, an action to enforce
64 9 the lien is commenced. The 1-year period is automatically
650 ext ended for any l ength of time during which the association is
651 prevented from filing a forec lo sure action by an automatic stay
652 resulting from a bankruptcy pe tition f iled b y the parcel owner
653 or any other person claiming an interest i n the parcel . The
654 claim of lie n secures all unpaid rents and assessments that are
655 due and that may accrue after the claim of lien is recorded and
656 through the entry of a fina l judgment, as well as int erest and
657 all reasonable costs and atto rney fee s incur red by t h e
658 association incide nt t o the col l ection process. Upon payment in
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Bill No. HB 615 (2021)
Amendment No. 1.
659 full, the person making the payment is entitled to a
660 satisfaction of the lien.
661 (c) By recording a notice in substantially the following
662 form, a unit owner or the unit owner's agent or attorney may
663 require the association to enforce a recorded claim of lien
664 against his or her cooperative parcel:
665
666 NOTICE OF CONTEST OF LIEN
667
668 TO: ... (Name and address of association) .. . :
669
670 You are notified that the undersigned contests the
671 claim of lien filed by you on .... , ... (year) ... , and
672 recorded in Official Records Book .... at Page • • • • I
673 of the public records of .... County, Florida, and
674 that the time within which you may file suit to
675 enforce your lien is limited to 90 days from the date
676 of service of this notice. Executed this .... day of
677 .... , ... (year) ....
678 Signed: ... (Owner or Attorney) ...
679
680 After notice of contest of lien has been recorded, the clerk of
681 the circuit court shall mail a copy of the recorded notice to
682 the association by certified mail, return receipt requested, at
683 the address shown in the claim of lien or most recent amendment
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Bill No. HB 615 (2021)
Amendment No. 1.
684 to it and shall certify to the service on the face of the
685 notice. Service is complete upon mailing. After service, the
686 association has 90 days in which to file an action to enforce
687 the lien. If the action is not filed within the 90-day period,
688 the lien is void. However, the 90-day period shall be extended
689 for any length of time during which the association is prevented
690 from filing its action because of an automatic stay resulting
691 from the filing of a bankruptcy petition by the unit owner or by
692 any other person claiming an interest in the parcel.
693 (d) A release of lien must be in substantially the
694 following form:
695
696 RELEASE OF LIEN
697
698 The undersigned lienor, in consideration of the final payment in
699 the amount of$ .... , hereby waives and releases its lien and
700 right to claim a lien for unpaid assessments through .... ,
701 ... (year) ... , recorded in the Official Records Book .... at Page
702 .... , of the public records of .... County, Florida, for the
703 following described real property:
704
705 THAT COOPERATIVE PARCEL WHICH INCLUDES UNIT NO . . . . .
706 OF ... (NAME OF COOPERATIVE) ... , A COOPERATIVE AS SET
707 FORTH IN THE COOPERATIVE DOCUMENTS AND THE EXHIBITS
708 ANNEXED THERETO AND FORMING A PART THEREOF, RECORDED
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1 .
709 IN OFFICIAL RECORDS BOOK .... , PAGE ... . , OF THE
710 PUBLIC RECORDS OF .... COUNTY, FLORIDA.
711
712 ... (Signature of Authorized Agent) .. . . .. ( Signature of
713 Witness) ...
714 ... (Print Name) ... . .. (Print Name) .. .
715
716 ... (Signature of Witness) ...
717 . . . (Print Name) ...
718
719 Sworn to (or affirmed) and subscribed before me this .... day of
720 .... , ... (year) ... , by ... (name of person making statement) ....
721 ... (Signature of Notary Public) ...
722 ... (Print, type, or stamp commissioned name of Notary Public) ...
723 Personally Known .... OR Produced .... as identification.
724 Section 6. Present paragraph (1) of subsection (4) of
725 section 720.303, Florida Statutes, is redesignated as paragraph
726 (m), a new paragraph (1) is added to that subsection, and
727 paragraph (c) of subsection (5) of that section is amended, to
728 read:
729 720.303 Association powers and duties; meetings of board;
730 official records; budgets; financial reporting; association
7 31 funds; recalls. -
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Bill No. HB 615 (2021)
Amendment No. 1.
732 (4) OFFICIAL RECORDS.-The association shall maintain each
733 of the following items, when applicable, which constitute the
734 official records of the association:
735 (1) All affirmative acknowledgments made pursuant to s.
736 720.3085(3) (c)3.
737 (5) INSPECTION AND COPYING OF RECORDS.-The official
738 records shall be maintained within the state for at least 7
739 years and shall be made available to a parcel owner for
740 inspection or photocopying within 45 miles of the community or
741 within the county in which the association is located within 10
742 business days after receipt by the board or its designee of a
743 written request. This subsection may be complied with by having
744 a copy of the official records available for inspection or
745 copying in the community or, at the option of the association,
746 by making the records available to a parcel owner electronically
747 via the Internet or by allowing the records to be viewed in
748 electronic format on a computer screen and printed upon request.
749 If the association has a photocopy machine available where the
750 records are maintained, it must provide parcel owners with
751 copies on request during the inspection if the entire request is
752 limited to no more than 25 pages. An association shall allow a
753 member or his or her authorized representative to use a portable
754 device, including a smartphone, tablet, portable scanner, or any
755 other technology capable of scanning or taking photographs, to
756 make an electronic copy of the official records in lieu of the
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Bill No. HB 615 (2021)
Amendment No. 1.
757 association's providing the member or his or her authorized
758 representative with a copy of such records. The association may
759 not charge a fee to a member or his or her authorized
760 representative for the use of a portable device.
761 (c) The association may adopt reasonable written rules
7·62 governing the frequency, time, location, notice, records to be
763 inspected, and manner of inspections, but may not require a
7 64 parcel owner to demonstrate any proper purpose for the
765 inspection, state any reason for the inspection, or limit a
766 parcel owner's right to inspect records to less than one 8-hour
7 67 business day per month. The association may impose fees to cover
7 68 the costs of providing copies of the official records, including
769 the costs of copying and the costs required for personnel to
770 retrieve and copy the records if the time spent retrieving and
771 copying the records exceeds one-half hour and if the personnel
772 costs do not exceed $20 per hour. Personnel costs may not be
773 charged for records requests that result in the copying of 25 or
774 fewer pages. The association may charge up to 25 cents per page
775 for copies made on the association's photocopier. If the
776 association does not have a photocopy machine available where
777 the records are kept, or if the records requested to be copied
778 exceed 25 pages in length, the association may have copies made
779 by an outside duplicating service and may charge the actual cost
780 of copying, as supported by the vendor invoice. The association
781 shall maintain an adequate number of copies of the recorded
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1 .
782 governing documents, to ensure their availability to members and
783 prospective members. Notwithstanding this paragraph, the
784 following records are not accessible to members or parcel
785 owners:
786 1. Any record protected by the lawyer-client privilege as
787 described ins. 90.502 and any record protected by the work-
788 product privilege, including, but not limited to, a record
789 prepared by an association attorney or prepared at the
790 attorney's express direction which reflects a mental impression,
791 conclusion, litigation strategy, or legal theory of the attorney
7 92 or the association and which was prepared exclusively for civil
7 93 or criminal litigation or for adversarial administrative
7 94 proceedings or which was prepared in anticipation of such
7 95 litigation or proceedings until the conclusion of the litigation
796 or proceedings.
7 97 2. Information obtained by an association in connection
7 98 with the approval of the lease, sale, or other transfer of a
799 parcel.
800 3. Personnel records of association or management company
801 employees, including, but not limited to, disciplinary, payroll,
802 health, and insurance records. For purposes of this
803 subparagraph, the term "personnel records" does not include
804 written employment agreements with an association or management
805 company employee or budgetary or financial records that indicate
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
806 the compensation paid to an association or management company
807 employee.
808 4. Medical records of parcel owners or community
809 residents.
810 5. Social security numbers, driver license numbers, credit
811 card numbers, electronic mailing addresses, telephone numbers,
812 facsimile numbers, emergency contact information, any addresses
813 for a parcel owner other than as provided for association notice
814 requirements, and other personal identifying information of any
815 person, excluding the person's name, parcel designation, mailing
816 address, and property address. Notwithstanding the restrictions
817 in this subparagraph, an association may print and distribute to
818 parcel owners a directory containing the name, parcel address,
819 and all telephone numbers of each parcel owner. However, an
820 owner may exclude his or her telephone numbers from the
821 directory by so requesting in writing to the association. An
822 owner may consent in writing to the disclosure of other contact
823 information described in this subparagraph. The association is
824 not liable for the disclosure of information that is protected
825 under this subparagraph if the information is included in an
826 official record of the association and is voluntarily provided
827 by an owner and not requested by the association.
828 6. Any electronic security measure that is used by the
829 association to safeguard data, including passwords.
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Bill No. HB 615 (2021)
Amendment No. 1 .
830 7. The software and operating system used by the
831 association which allows the manipulation of data, even if the
832 owner owns a copy of the same software used by the association.
833 The data is part of the official records of the association.
834 8. All affirmative acknowledgments made pursuant to s.
835 720.3085(3) (c)3.
836 Section 7. Paragraphs (c) and (d) are added to subsection
837 (3) of section 720.3085, Florida Statutes, to read:
838 720.3085 Payment for assessments; lien claims.-
839 (3) Assessments and installments on assessments that are
840 not paid when due bear interest from the due date until paid at
841 the rate provided in the declaration of covenants or the bylaws
842 of the association, which rate may not exceed the rate allowed
843 by law. If no rate is provided in the declaration or bylaws,
844 interest accrues at the rate of 18 percent per year.
845 (c) 1. If an association sends out an invoice for
846 assessments or a parcel's statement of the account described in
847 s. 720.303(4) (j)2., the invoice for assessments or the parcel's
848 statement of account must be delivered to the parcel owner by
849 first-class United States mail or by electronic transmission to
850 the parcel owner's e-mail address maintained in the
851 association's official records.
852 2. Before changing the method of delivery for an invoice
853 for assessments or the statement of the account, the association
854 must deliver a written notice such change to each parcel owner.
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Bill No. HB 615 (2021)
Amendment No. 1.
855 The written notice must be delivered to the parcel owner at
856 least 30 days before the association sends the invoice for
857 assessments or the statement of the account by the new delivery
858 method. The notice must be sent by first-class United States
859 mail to the owner at his or her last address as reflected in the
860 association's records and, if such address is not the parcel
861 address, must be sent by first-class United States mail to the
862 parcel address. Notice is deemed to have been delivered upon
863 mailing as requi red by this subparagraph.
864 3. A parcel owner must affirmatively acknowledge his or
865 her understanding that the association will change its method of
866 delive ry of the invoice for assessments or the statement of the
867 account before the association may change the method of
868 delivering the statement of the account. The parcel owner may
869 make the affirmative acknowledgment electronically or in
870 writing.
871 (d) An association may not require payment of attorney
872 fees related to a past due assessment without first delivering a
873 written notice of late assessment to the parcel owner which
874 specifies the amount owed the association and provides the
875 parcel owner an opportunity to pay the amount owed without the
876 assessment of attorne y fees. The notice of late assessment must
877 be sent by first-class United States mail to the owner at his or
878 her last address as reflected in the association's records and,
879 if such address is not the parcel address, must also be sent by
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Bill No. HB 615 (2021)
Amendment No. 1.
880 first-class United States mail to the parcel address. Notice is
881 deemed to have been delivered u pon mai lin g as required by this
882 paragraph. A rebuttable presumption that an association mailed a
883 notice in accordance with this subsection is established if a
884 board member, officer, or agent of the association, or a manager
885 licensed under part VIII of chapter 468, provides a sworn
886 affidavit attesting to such mailing. The notice must be in
887 substantially the following form:
888
889 NOTICE OF LATE ASSESSMENT
890
891 RE: Parcel .... of ... (name of association) ...
892
893 The following amounts are currently due on your
894 account to ... (name of association) ... , and must be
895 paid within 30 days after the date of this letter.
896 This letter shall serve as the association's notice to
8 97 proceed with further collection action against your
898 property no sooner than 30 days after the date of this
899 letter, unless you pay in full the amounts set forth
900 below:
901
902 Maintenance due ... (dates) ... $ .... .
903 Late fee, if applicable $ .... .
904 Interest through ... (dates) ... * $ .... .
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Bill No. HB 615 (2021)
Amendment No. 1.
905 TOTAL OUTSTANDING $• • . . •
906
907 *Interest accrues at the rate of .. . . percent per annum.
908 Section 8. This act shall take effect July 1, 2021.
909
910
911
912 T I T L E A ME N D ME N T
913 Remove everything before the enacting clause and insert:
914 An act relating to community association assessment
915 notices; amending s. 718.111, F.S.; requiring
916 condominium associations to maintain specified
917 affirmative acknowledgments as official records of the
918 association; specifying that such acknowledgments are
919 not accessible to unit owners; amending s. 718.116,
920 F.S.; revising timeframes for foreclosure judgments;
921 conforming provisions to changes made by the act;
922 amending s. 718.121, F.S.; requiring condominium
923 associations to deliver certain invoices for
924 assessments or statements of account to unit owners in
925 a specified manner; requiring condominium associations
926 to give notice to unit owners before changing the
927 method of delivery for the invoices for assessments or
928 statements of account; providing requirements for the
929 notice; requiring unit owners to affirmatively
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Bill No. HB 615 (2021)
Amendment No. 1.
930 acknowledge the changes in delivery methods;
931 prohibiting condominium associations from requiring
932 the payment of attorney fees relating to past due
933 assessments without first providing a specified notice
934 to unit owners; providing requirements for the notice;
935 establishing a rebuttable presumption relating to
936 mailing the notice if a certain requirement is met;
937 revising the timeframe for condominium associations to
938 file liens against condominium units; conforming
939 provisions to changes made by the act; amending s.
940 719.104, F.S.; requiring cooperative associations to
941 maintain specified affirmative acknowledgments as
942 official records of the association; specifying that
943 such acknowledgments are not accessible to unit
944 owners; amending s. 719.108, F.S.; requiring
945 cooperative associations to deliver certain invoices
946 for assessments or statements of account to unit
947 owners in a specified manner; requiring cooperative
948 associations to give notice to unit owners before
949 changing the method of delivery for the invoices for
950 assessments or statements of account; providing
951 requirements for the notice; requiring unit owners to
952 affirmatively acknowledge the changes in delivery
953 methods; prohibiting cooperative associations from
954 requiring the payment of attorney fees relating to
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 615 (2021)
Amendment No. 1.
955 past due assessments without first providing specified
956 notice to unit owners; providing requirements for the
957 notice; establishing a rebuttable presumption relating
958 to mailing the notice if a certain requirement is met;
959 revising the timeframe for cooperative associations to
960 file liens against cooperative parcels; conforming
961 provisions to changes made by the act; amending s.
962 720.303, F.S.; requiring homeowners' associations to
963 maintain specified affirmative acknowledgments as
964 official records of the association; specifying that
965 such acknowledgments are not accessible to parcel
966 owners; amending s. 720.3085, F.S.; requiring
967 homeowners' associations to deliver certain invoices
968 for assessments or statements of account to parcel
969 owners in a specified manner; requiring homeowners'
970 associations to give notice to parcel owners before
971 changing the method of delivery for the invoices for
972 assessments or statements of account; providing
973 requirements for the notice; requiring parcel owners
974 to affirmatively acknowledge the changes in delivery
975 methods; prohibiting homeowners' associations from
976 requiring the payment of attorney fees relating to
977 past due assessments without first providing specified
978 notice to parcel owners; providing requirements for
979 the notice; establishing a rebuttable presumption
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Bill No. HB 615 (2021)
Amendment No. 1.
980 relating to mailing the notice if a certain
981 requirement is met; providing an effective date.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 665 Homeowners' Association Rental Agreements
SPONSOR(S): McClure
TIED BILLS: IDEN./SIM. BILLS: SB 872
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Anstead~
2) Civil Justice & Property Rights Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Chapter 720, F.S., also known as the "Homeowners' Association Act," is the chapter of Florida law that
governs homeowners' associations (HOAs) in Florida. The powers and duties of an HOA include the powers
and duties provided in ch. 720, F.S., and in the HOA governing documents, including, but not limited to,
amendments to those documents, which generally apply to all owners.
When an HOA adopts an amendment to its governing documents to restrict members from renting parcels,
such restrictions apply to all parcel owners, regardless of when the title was acquired. However, when a
condominium (condo) association adopts a rental restriction, the restriction applies only to condo unit owners
who consent, or who acquire title after the restriction is imposed. As a result, this "grandfathering" provision
allows certain condo unit owners to rent their units without the burden of rental restrictions that are imposed
prospectively. This provision does not exist for HOAs.
The bill provides that in HOAs with more than 15 parcels, HOA amendments to governing documents
restricting rental for six months or more only apply to:
• Owners who acquire title after the effective date of the governing document; or
• Owners who consent to such amendment.
However, the bill allows HOAs with more than 15 parcels to amend their governing documents to prohibit or
regulate rental agreements for less than six months, and prohibit rentals more than three times a year, and
have such amendments apply to all owners.
The bill provides for change of ownership criteria to be used to determine whether the HOA amendments to
governing documents related to rentals for six months or more apply to certain owners.
The bill is not expected to have a fiscal impact on state or local government.
The bill provides an effective date of July 1, 2021 .
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0665.RRS.DOCX
DATE: 3/5/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Community Associations
The Florida Division of Condominiums, Timeshares and Mobile Homes (Division), within the
Department of Business and Professional Regulation (DBPR), provides consumer protection for Florida
residents living in regulated communities through education, complaint resolution, mediation,
arbitration, and developer disclosure. The Division has regulatory authority over:
• Condominium Associations;
• Cooperative Associations;
• Florida Mobile Home Parks and related associations;
• Vacation Units and Timeshares;
• Yacht and Ship Brokers and related business entities; and
• Homeowners' Associations (limited to arbitration of election and recall disputes). 1
Homeowners' Associations (HOAs)
Chapter 720, F.S., also known as the "Homeowners' Association Act," is the chapter of Florida law that
governs certain types of HOAs in Florida. These laws protect the rights of association members without
unduly impairing the ability of such associations to perform their functions. 2 The law provides
requirements for notices of meetings, 3 recordkeeping, including which records are accessible to the
members of the association, 4 and financial reporting. 5
An HOA is defined as an association of residential property owners in which voting membership is:
• Made up of "parcel owners;"
• A mandatory condition of parcel ownership; and
• Authorized to impose assessments that, if unpaid, may become a lien on the parcel. 6
Only HOAs whose covenants and restrictions include mandatory assessments are regulated by ch.
720, F.S. 7 Like a condominium or cooperative, an HOA is administered by an elected board of
directors. 8 The powers and duties of an HOA include the powers and duties provided in ch. 720, F.S.,
and in the association's governing documents, which include the recorded covenants and restrictions,
together with the bylaws, articles of incorporation, and duly adopted amendments to those documents. 9
Florida law sets procedures and minimum requirements for HOA operation and provides for a
mandatory binding arbitration program, administered by the Division, for certain election and recall
1
Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes
Complaints/Investigations, http://myfloridalicense.custhelp.com/app/answers/detail/a id/2220/- /division-of-florida-
condominiums%2C-timeshares%2C-and-mobile-homes (last visited Mar. 3, 2021).
2
S. 720.302(1), F.S.
3
S. 720.303(2), F.S.
4
S. 720.303(4), F.S.
5
S. 720.303(7), F.S.
6
S. 720.301(9), F.S.
7 Id.
8
Ss. 720.303 and 720.307, F.S.
9
Ss. 720.301 and 720.303, F.S.
STORAGE NAME: h0665.RRS.DOCX PAGE: 2
DATE: 3/5/2021
disputes, 10 but no state agency has direct oversight of HOAs. For HOAs, the Division's authority is
limited to the arbitration of recall election disputes. 11
HOA Rental Restrictions
Unless otherwise provided in the governing documents or required by law, the governing document of a
HOA may be amended by the affirmative vote of two~thirds of the voting interests of the association. 12
Amendments to governing documents generally apply to all owners in the HOA, except that
HOAs with 15 or fewer parcels may only enforce restrictions against a parcel owner that were in place
at the time the owner acquired his or her parcel. 13
Current law does not prevent an HOA from adopting an amendment to its governing documents to
restrict members from renting parcels. If such a provision is adopted by an HOA, the restriction applies
to all parcel owners regardless of when they obtained title to their property or whether they voted
against the restriction.
Condominium Association Rental Restrictions
Conversely, in a condominium association, certain rental restrictions do not apply to all condo unit
owners. Specifically, a condo association rental restriction that alters the duration of the rental term, or
specifies or limits the number of times a unit owner is entitled to rent their unit during a specified period,
applies only to the following:
• Unit owners who consent to the amendment, and
• Unit owners who acquire title to their units after the effective date of the restriction. 14
This type of provision does not exist for HOA parcel owners.
Effect of the Bill
HOA Rental Restrictions
The bill provides that any HOA governing document, or amendment to a governing document, enacted
after July 1, 2021, in an HOA with more than 15 parcels, that prohibits or regulates rental agreements
for rentals of six months or more, applies only to:
• HOA parcel owners who acquire title to the parcel after the effective date of the governing
document or amendment; or
• HOA parcel owners who consent, individually or through a representative, to the governing
document or amendment.
The bill allows HOAs with more than 15 parcels, to amend their governing documents to prohibit or
regulate rental agreements for a term of less than six months. Such amendments apply to all parcel
owners.
The bill allows HOAs with more than 15 parcels, to prohibit the rental of a parcel for more than three
times in a calendar year. Such amendments apply to all parcel owners.
Change of Ownership
10
S. 720.306(9)(c), F.S.
11
Sees. 720.306(9)(c), F.S.
12
S. 720.306(1), F.S.
13
S. 720.303(1), F.S.
14
S. 718.110(13), F.S.
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DATE: 3/5/2021
The bill specifies change of ownership criteria for purposes of determining whether the HOA
amendments to governing documents that prohibit rentals for six months or more apply to certain
owners.
The bill provides that a change of ownership does occur, with respect to a parcel owner that is a
business entity, when each person that owned an interest in the entity at the time of the enactment of
the amendment or rule conveys its interest in the business entity to an unaffiliated party.
The bill provides that a change of ownership does not occur, with respect to a parcel owner that is a
business entity, when a parcel owner conveys the parcel to an affiliated entity or when beneficial
ownership of the parcel does not change.
The bill defines "affiliated entity" as an entity that:
• Controls, is controlled by, or is under common control with the parcel owner; or
• Becomes a parent or successor entity by reason of transfer, merger, consolidation, public
offering, reorganization, dissolution or sale of stock, or transfer of membership partnership
interests.
For a conveyance to be recognized as one made to an affiliated entity, the bill requires the entity to
furnish to the HOA a document certifying that these provisions apply, along with any organizational
documents for the parcel owner and the affiliated entity which support the representations in the
certificate, as requested by the HOA.
B. SECTION DIRECTORY:
Section 1: Amends s. 720.306, F.S., relating to meetings of members; voting and election
procedures; amendments.
Section 2: Provides an effective date of July 1, 2021 .
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill appears to ensure that HOA parcel owners who acquire title prior to the HOA adopting long
term rental restrictions, would not be subject to the restriction unless they consent.
STORAGE NAME: h0665.RRS.D0CX PAGE: 4
DATE: 3/5/2021
D. FISCAL COMMENTS:
None.
111. COMMENTS
A CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to effect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not appear to create a need for rulemaking or rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Lines 50-55 regarding a change of ownership may need to be amended to clarify what was intended
when it specifies that a change of ownership does occur when "each person" that owned an interest in
the entity at the time of the enactment of the amendment or rule conveys its interest in the business
entity to an unaffiliated party. Does this mean a change of ownership occurs when "any" person (on an
individual basis) who owned an interest conveys its interest, or must "all" persons who owned an
interest convey their interest?
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
N/A
STORAGE NAME: h0665.RRS.DOCX PAGE: 5
DATE: 3/5/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 665 2021
1 A bill to be entitled
2 An act relating to homeowners' associations rental
3 agreements; amending s. 720.306, F.S.; providing
4 applicability for governing documents and amendments
5 relating to rental agreements which are enacted after
6 a specified date; providing an exception; providing
7 applicability; specifying when a change of ownership
8 does or does not occur for certain purposes; defining
9 the term "affiliated entity"; providing an effective
10 date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (h) is added to subsection (1) of
15 section 720.306, Florida Statutes, to read:
16 720.306 Meetings of members; voting and election
17 procedures; amendments.-
18 (1) QUORUM; AMENDMENTS.-
19 (h)l. Except as otherwise provided in this paragraph, any
20 governing document, or amendment to a governing document, that
21 is enacted after July 1, 2021, and that prohibits or regulates
22 rental agreements applies only to a parcel owner who acquires
23 title to the parcel after the effective date of the governing
24 document or amendment, or to a parcel owner who consents ,
25 individually or through a representative, to the governing
Page 1 of 3
CODING: Words striokon are deletions; words underlined are additions.
hb0665-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 665 2021
26 document or amendment.
27 2. Notwithstanding subparagraph 1., an association may
28 amend its governing documents to p roh ibit or regulate rental
29 agreements for a term of less than 6 months and may prohibit the
30 rental of a parcel for more than three times in a calendar year,
31 and such amendments shall apply to all parcel owners.
32 3. This paragraph does not affect the amendment
33 restrictions for associations of 15 or fewer parcel owners under
34 s. 720.303(1).
35 4. For purposes of this paragraph, a change of ownership
36 does not occur when a parcel owner conveys the parcel to an
37 affiliated entity or when beneficial ownership of the parcel
38 does not change. For purposes of this subparagraph, the term
39 "affiliated entity" means an entity that controls, is controlled
40 by, or is under common control with the parcel owner or that
41 becomes a parent or successor entity by reason of transfer,
42 merger, consolidation, public offering, reorganization,
43 dissolution or sale of stock, or transfer of membership
44 partnership interests. For a conveyance to be recognized as one
45 made to an affiliated entity, the entity must furnish to the
46 association a document certifying that this paragraph applies
47 and provide any organizational documents for the parcel owner
48 and the affiliated entity which support the representations in
49 the certificate, as requested by the association.
50 5. For purposes of this paragraph, a change of ownership
Page 2 of 3
CODING: Words strisken are deletions; words underlined are additions.
hb0665-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 665 2021
51 does occur when, with respect to a parcel owner that is a
52 b usi ness ent it y, each person that owned an interest in the
53 entity at the time of the enactment of the amendment or rule
54 conveys its interest in the business entity to an unaffiliated
55 party.
56 Section 2. This act shall take effect July 1, 2021.
Page 3 of 3
CODING: Words strioken are deletions; words underlined are additions.
hb0665-00
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 823 Alarm System Contractors
SPONSOR(S): Mariano
TIED BILLS: IDEN./SIM. BILLS: SB 998
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Brackett O{J Anstead
2) Commerce Committee
SUMMARY ANALYSIS
Electrical contractors, alarm system contractors, and electrical specialty contractors are certified by or
registered with the Electrical Contractors' Licensing Board (ECLB) of the Department of Business and
Professional Regulation (DBPR). Certified contractors can practice statewide and are licensed and regulated
by the ECLB. Registered contractors are licensed and regulated by a local jurisdiction and may practice within
that locality. Registered contractors are also required to register their license with the ECLB.
An "alarm system" is defined as "any electrical device, signaling device, or combination of electrical devices
used to signal or detect a burglary, fire, robbery, or medical emergency.
The Florida Building Code (Building Code) must be applied, administered, and enforced uniformly and
consistently from jurisdiction to jurisdiction. Local governments have the power to inspect all buildings,
structures, and facilities within their jurisdiction in protection of the public's health, safety, and welfare, and to
enforce the Building Code. It is unlawful for a person or corporation to construct, alter, repair, or demolish a
building without obtaining a permit from the local enforcing agency.
Current law requires an electrical and alarm system contractor to obtain a building permit before installing,
replacing, or repairing a fire alarm system until they obtain a building permit.
Current law also requires electrical and alarm system contractors to include their license number in every offer
of service, business proposal, or advertisement, regardless of medium. However, advertisement does not
include business stationery or any promotional novelties such as balloons, pencils, trinkets, or articles of
clothing.
The bill :
• Provides that an alarm system contractor does not have to include their license number in an
advertisement, if the advertisement directs consumer's to the contractor's website and the website
includes their license number.
• Provides that an electrical or alarm system contractor is not required to obtain a fire alarm permit before
beginning repairs on a fire alarm system, if the contractor applied for a fire alarm permit prior to
beginning the repairs.
• Clarifies that repairs to a fire alarm system are not considered complete until the required fire alarm
permit has been obtained and approved by the local enforcement agency.
The bill does not have a fiscal impact on state and local governments.
The bill provides for an effective date of July 1, 2021 .
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0B23.RRS .D0CX
DATE: 3/4/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Contractors are regulated by ch. 489, F.S., which outlines the law pertaining to contractors in the state
of Florida. Part I of ch. 489, F.S., covers contracting regulated by the Construction Industry Licensing
Board (GILB) and pt. II of ch. 489, F.S., covers contracting regulated by the Electrical Contractors'
Licensing Board (ECLB). Both boards are housed in the Department of Business and Professional
Regulation (DBPR).
Electrical contractors, alarm system contractors, and electrical specialty contractors are certified by or
registered with the ECLB. Certified contractors can practice statewide and are licensed and regulated
by ECLB. Registered contractors are licensed and regulated by a local jurisdiction and may practice
within that locality. 1
Electrical contractors may work on electrical wiring, fixtures, appliances, apparatus, raceways, and
conduits which generate, transmit, transform, or utilize electrical energy in any form. 2
Alarm system contractors may lay out, fabricate, install, maintain, alter, repair, monitor, inspect,
replace, or service alarm systems. An "alarm system" is defined as "any electrical device, signaling
device, or combination of electrical devices used to signal or detect a burglary, fire, robbery, or medical
emergency." 3
Electrical certified specialty contractors are contractors whose scope of work is limited to a particular
phase of electrical contracting, such as electrical signs. Certified electrical specialty contractors can
practice statewide. The ECLB creates electrical certified specialty contractor licenses through
rulemaking, and has created the following certified specialty contractor licenses: 4
• Lighting maintenance specialty contractor;
• Sign specialty electrical contractor;
• Residential electrical contractor;
• Limited energy systems specialty contractor;
• Utility line electrical contractor; and
• Two-Way Radio Communications Enhancement Systems contractor.
The scope of work for certified electrical contractors includes any work that an alarm system contractor
is able to perform. 5
Registered electrical contractors may install raceways for alarm systems. 6 They may also bid on
electrical contracts, which include alarm systems as part of the contract, but they must subcontract the
work on such alarm systems to an alarm system contractor. 7
State Fire Marshal
Florida's fire prevention and control law, ch. 633, F.S., designates the state's Chief Financial Officer as
the State Fire Marshal. The State Fire Marshal, through the Division of State Fire Marshal (Division
within the Department of Financial Services (DFS), is charged with enforcing the provisions of ch. 633,
1
See generally s. 489.505, F.S.
2
S. 489.505(12), F.S.
3
S. 489.505(1)-(2), F.S.
4
Ss. 489.505(19), and489.511(4), F.S; Rule 6106-7.001, F.A.C.
5
489.537(7), F.S.
6
A "raceway" is an enclosed channel designed to hold wires, cables, or busbars. Mike Holt, Understanding Raceways, EC&M (Feb.
13, 2018) https://www.ecmweb.com/national-electrical-code/code-basics/article/20903 368/understandi ng-
raoeways#:- :text=The%20N EC%20de fi nes%20a%20raceway,perm itted%20in%20this%20Code%20%58Art. (last visited Mar. 3,
2021).
7
489.537(2)(b), F.S.
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DATE: 3/4/2021
F.S., and all other applicable laws relating to fire safety, and has the responsibility to minimize the loss
of life and property in this state due to fire. 8 Pursuant to this authority, the State Fire Marshal regulates,
trains, and certifies fire service personnel and fire safety inspectors; investigates the causes of fires;
enforces arson laws; regulates the installation of fire equipment; conducts fire safety inspections of
state property; and operates the Florida State Fire College.
The State Fire Marshal also adopts by rule the Florida Fire Prevention Code (Fire Code), which
contains all fire safety laws and rules that pertain to the design, construction, erection, alteration,
modification, repair, and demolition of public and private buildings, structures, and facilities, and the
enforcement of such fire safety laws and rules. 9
The State Fire Marshall adopts a new edition of the Fire Code every three years. When adopting a new
edition of the Fire Code, the State Fire Marshal must adopt the most recent version of the National Fire
Protection Association (NFPA) Standard 1, Fire Prevention Code, and the NFPA 101 Life Safety
Code. 10
State law requires all municipalities, counties, and special districts with fire safety responsibilities to
enforce the Fire Code as the minimum fire prevention code to operate uniformly among local
governments and in conjunction with the Florida Building Code. 11 Each county, municipality, and
special district with fire safety enforcement responsibilities must employ or contract with a fire safety
inspector (certified by the State Fire Marshal) to conduct all fire safety inspections required by law. 12
The Florida Building Code
In 1974, Florida adopted legislation requiring all local governments to adopt and enforce a minimum
building code that would ensure that Florida's minimum standards were met. Local governments could
choose from four separate model codes. The state's role was limited to adopting all or relevant parts of
new editions of the four model codes. Local governments could amend and enforce their local codes,
as they desired. 13
In 1992, Hurricane Andrew demonstrated that Florida's system of local codes did not work. Hurricane
Andrew easily destroyed those structures that were allegedly built according to the strongest code. The
Governor eventually appointed a study commission to review the system of local codes and make
recommendations for modernizing the system. The 1998 Legislature adopted the study commission's
recommendations for a single state building code and enhanced the oversight role of the state over
local code enforcement. The 2000 Legislature authorized implementation of the Florida Building Code
(Building Code), and that first edition replaced all local codes on March 1, 2002. 14 The current edition of
the Building Code is the seventh edition, which is referred to as the 2020 Florida Building Code. 15
Part IV of ch. 553, F.S., is known as the "Florida Building Codes Act" (Act). The purpose and intent of
the Act is to provide a mechanism for the uniform adoption, updating, interpretation, and enforcement
of a single, unified state building code. The Building Code must be applied, administered, and enforced
uniformly and consistently from jurisdiction to jurisdiction. 16
8
S. 633.104, F.S.
9
Ss. 633.202(1) and (2), F.S.
10
Id The NFPA is the National Fire Protection Association. Founded in 1896, the NFPA delivers information and knowledge through
no more than 300 consensus codes and standards, research, training, education, outreach and advocacy. NFPA, About NFPA,
httPs://www.nfpa.org/about-nfpa (last visited Feb. 4, 2021).
11
The Florida Building Code is the statewide building code for all construction in the state. Every local government must enforce the
Florida Building Code and issue building permits. See generally ch. 553, F.S.
12
S. 633.216(1), F.S.
13
The Florida Building Commission Report to the 2006 Legislature, Florida Department of Community Affairs, p. 4,
httP://www.floridabuilding.org/fbc/publications/2006 Legislature Rpt rev2.pdf (last visited Feb. 15, 2021 ).
14
Id; DBPR, Building Code Iriformation System, https://floridabuilding.orgic/default.aspx# (last visited on Feb. 15, 2021 ).
15
Florida Building Commission Homepage, https://floridabuilding.org/c/default.aspx (last visited Feb. 21, 2021).
16
See S. 553.72(1), F.S.
STORAGE NAME: h0823.RRS.DOCX PAGE: 3
DATE: 3/4/2021
The Florida Building Commission (Commission) was statutorily created to implement the Building
Code. The Commission, which is housed within the DBPR, is a 19-member technical body made up of
design professionals, contractors, and government experts in various disciplines covered by the
Building Code. The Commission reviews several International Codes published by the International
Code Council, 17 the National Electric Code, and other nationally adopted model codes to determine if
the Building Code needs to be updated and adopts an updated Building Code every three years. 18
Enforcement of the Florida Building Code
It is the intent of the Legislature that local governments have the power to inspect all buildings,
structures, and facilities within their jurisdiction in protection of the public's health, safety, and welfare. 19
Every local government must enforce the Florida Building Code and issue building permits. 20
Current law also requires State universities, Florida College System institutions, and public school
districts to enforce the Building Code for their building projects, including conducting plan review and
inspections. State universities, Florida College System institutions, and public school districts must use
or contract with licensed building officials, inspectors, and plan examiners, and may elect to use a local
government's building department to review plans and perform inspections. 21
It is unlawful for a person, firm, or corporation to construct, erect, alter, repair, secure, or demolish any
building without first obtaining a building permit from the local government or from such persons as
may, by resolution or regulation, be directed to issue such permit, upon the payment of reasonable fees
as set forth in a schedule of fees adopted by the enforcing agency. 22
A building permit is an official document or certificate issued by the local building official that authorizes
performance of a specific activity. 23 A building official is a local government employee or a person
contracted by a government entity who supervises building code activities, including plans review,
enforcement, and inspection. 24 Any construction work that requires a building permit also requires plans
and inspections by the building official to ensure the work complies with the Building Code. 25 Generally
speaking, a permit that passes the required inspections is considered completed or closed. 26
Time-Period to Review Building Permit Applications
Fire protection systems, including fire alarms, must be installed, repaired, operated, and maintained in
accordance with the Fire Code and the Building Code. 27
Current law requires local governments to review certain building permit applications within a specific
time-period of receiving the applications. Current law has established time-periods for local
governments to review applications for the following building permits: 28
• accessory structure;
• alarm permit;
17
The International Code Council (ICC) is an association that develops model codes and standards used in the design, building, and
compliance process to "construct safe, sustainable, affordable and resilient structures." International Code Council, About the ICC,
https://www.iccsafe.org/about/who-we-are/ (last visited Feb. 21, 2021).
18
Ss. 553.73, & 553.74, F.S.
19
S. 553.72, F.S.
20
Ss. 125.0l(l)(bb), 125.56(1), & 553.80(1), F.S.
21
S. 553.80(6), F.S.
22
See Ss. 125.56(4)(a) & 553.79(1), F.S.
23
S. 468.603(2), F.S; S. 202 of the Seventh edition of the Florida Building Code (Building).
24
S. 468.603(2), F.S.; S. 202 of the Seventh edition of the Florida Building Code (Building).
25
Ss. 107, 110.1, and 110.3 ofthe Seventh edition ofthe Florida Building (Building).
26
Doug Wise, Closing Inactive & Excluded Building Permits, Palm Beach County Planning, Zoning & Building Department,
Building Division, http,//discover.pbcgov.org/pzb/build ing/BuildingCodes/ PBO-
l26%20%E2%80%93%20Closing%201nactive%20and%20Excluded%2013uilding%20Permits.pdf (last visited Mar. 15, 2019).
27
Sections 202 and 901.2 of the Seventh edition of the Florida Building Code (Building).
28
S. 553.792(2), F.S.
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DATE: 3/4/2021
• nonresidential buildings less than 25,000 square feet;
• electric;
• irrigation permit;
• landscaping;
• mechanical;
• plumbing;
• residential units other than a single family unit;
• multifamily residential not exceeding 50 units;
• roofing;
• signs;
• site-plan approvals and subdivision plats not requiring public hearings or public notice; and
• lot grading and site alteration associated with the permit application set forth in this subsection.
When a local government receives an application for one of the above building permits, it must: 29
• Inform the applicant within 10 days of receiving the application, what information, if any, is
needed to complete the application.
o If the local government fails to provide written notice to the applicant within the 10-day
window, the application is deemed to be properly completed.
• Notify the applicant within 45 days of the application being deemed complete, if additional
information is necessary to determine the sufficiency of the application;
o If additional information is needed the local government must specify what additional
information is necessary.
o The applicant may submit the additional information to the local government or request
that the local government act on the application without the additional information.
• Approve, approve with conditions, or deny the application within 120 days following receipt of
the completed application.
o This period is tolled during the time an applicant is responding to a request for additional
information and may be extended by mutual consent of the parties.
These time-periods do not apply when a law, agency rule, or local ordinance specify different
timeframes for review of local building permit applications, for permits for wireless communication
facilities, or when both parties agree to an extension. 30
Uniform Fire Alarm Permit
During the 2019 Legislative Session, the Legislature passed HB 1393, which created a uniform fire
alarm permit application. An electrical or alarm system contractor must file a uniform fire alarm permit
application with a local enforcement agency in order to obtain a fire alarm permit. 31
A local enforcement agency is an agency of local government, a local school board, a community
college board of trustees, or a university board of trustees in the State University System with
jurisdiction to make inspections of buildings and to enforce the Building Code. 32
The Uniform Fire Alarm Permit Application must include the following information: 33
• The name and address of the owner of the property;
• The name, address, and license number of the contractor;
• A description sufficient to identify the property to be improved, including the property's address
and legal description;
• A description of the work being performed; and
29
S. 553.792(1), F.S.
30 Id.
31
553.7921(1); See House Analysis of2019 House Bill 1393 (Jun. 27, 2019).
32
553.71(5), F.S.
33
553.7921(2), F.S.
STORAGE NAME: h0823.RRS.D0CX PAGE: 5
DATE: 3/4/2021
• The owner and the contractor's signature.
HB 1393 also provided that an electrical or alarm system contractor cannot install, replace, or repair a
fire alarm until they obtain a fire alarm permit. This resulted in electrical and alarm system contractors
being unable to begin repairs on fire alarms until they obtained a permit. 34
Advertisements
Current law requires construction contractors and electrical and alarm system contractors to have their
license number in every offer of service, business proposal, or advertisement, regardless of medium.
However, advertisement does not include business stationery or any promotional novelties such as
balloons, pencils, trinkets, or articles of clothing. 35
According to DBPR, if an advertisement does not include a contractor's license number, it is a warning
sign that the contractor may be an unlicensed contractor. 36
According to industry members, many states require contractors to include their license number in their
advertisements. This results in alarm system companies that operate in multiple states having to create
separate advertisements, including television, radio, and print ads, for each state or having to list all of
their license numbers in an advertisement. 37
Effect of the Bill
An electrical or alarm system contractor is not required to obtain a fire alarm permit before beginning
repairs on a fire alarm system if:
• the fire alarm was previously permitted by the local enforcement agency; and
• the contractor applied for a fire alarm permit prior to beginning the repairs.
The bill clarifies that repairs to a fire alarm system are not considered complete until the required fire
alarm permit has been obtained and approved by the local enforcement agency.
The bill provides that an alarm system contractor does not have to include their license number in an
advertisement38 if:
• The alarm system contractor maintains a website that contains his or her license number; and
• The alarm system contractor's advertisement directs consumers to the contractor's website.
B. SECTION DIRECTORY:
Section 1. Amends s. 489.521, F.S., providing an exemption to having to include a license number
in an alarm system advertisement.
Section 2. Amends s. 553.7921, F.S., provides that a contractor may begin repairs on a fire alarm
system under certain conditions.
Section 3. Providing an effective date of July 1, 2021 .
34
553.7921(1); See House Analysis of2019 House Bill 1393 (Jun. 27, 2019).
35
Ss. 489.119(5), and 489.521(7)(b), F.S.
36
Any person without a license who advertises himself or herself or a business organization as available to practice electrical or alarm
system contracting commits unlicensed contracting. S. 489.53 l(l)(b), F.S.; DBPR, Tips for Hiring a Contractor,
http://www.myfloridalicense.com/dbpr/reg/documents/Coostruction-Brochure-English.pdf'?x40199 (last visited Mar. 3, 2021).
37
Email from Holly Borgmann, Vice President of Government Affairs, ADT, RE: ADT one pager on advertising, (Mar. 4, 2021).
38
"Advertisement" includes newspaper, magazine, flyer, billboard, phone book, Internet, and broadcast advertisements.
STORAGE NAME: h0B23.RRS.D0CX PAGE: 6
DATE: 3/4/2021
11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive impact on the private sector by allowing electrical and alarm system
contractors to begin repairs on fire alarm systems without having to wait to obtain a permit, and
allowing companies to advertise in multiple states using the same advertisement.
D. FISCAL COMMENTS:
None.
111. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
None.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill exempts alarm system contractors from having to include their license number in
advertisements under certain conditions. However, certified electrical contractors may also work on
alarm systems. The sponsor may want to clarify that an electrical contractor does not have to put their
license number on advertisements for alarm system contracting under certain conditions.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h0823.RRS .DOCX PAGE: 7
DATE: 3/4/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 823 2021
1 A bill to be entitled
2 An act relating to alarm system contractors; amending
3 s. 489.521, F.S.; providing that advertisements for an
4 alarm system contractor do not have to include the
5 contractor's registration or certification number
6 under certain circumstances; amending s. 553.7921,
7 F.S.; authorizing a contractor to begin repairing a
8 specified fire alarm system under certain conditions;
9 providing that a repaired fire alarm system is not
10 compliant with the law until certain conditions are
11 met; conforming provisions to changes made by the act;
12 providing an effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Paragraph (b) of subsection (7) of section
17 489.521, Florida Statutes, is amended to read:
18 489.521 Business organizations; qualifying agents.-
19 (7)
20 (b) The registration or certification number of a
21 contractor shall be stated in each offer of services, business
22 proposal, or advertisement, regardless of medium, used by that
23 contractor. For the purposes of this part, the term
24 "advertisement" does not include business stationery or any
25 promotional novelties such as balloons, pencils, trinkets, or
Page 1 of 5
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hb0823-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 823 2021
26 articles of clothing. This paragraph does not apply to a
27 newspaper, magazine, flyer, billboard, phone book, Internet, or
28 broadcast advertisement for an alarm system contractor as long
29 as the contractor maintains an Internet website that contains
30 the contractor's registration or certification number and the
31 advertisement directs consumers to the contractor's Internet
32 website.
33 J.£l.. The board shall assess a fine of not less than $100 or
34 issue a citation to any contractor who fails to include that
35 contractor's certification or registration number when
36 submitting an advertisement for publication, broadcast, or
37 printing. In addition, any person who claims in any
38 advertisement to be a certified or registered contractor, but
39 who does not hold a valid state certification or registration,
40 commits a misdemeanor of the second degree, punishable as
41 provided ins. 775.082 ors. 775.083.
42 Section 2. Section 553.7921, Florida Statutes, is amended
43 to read:
44 553.7921 Fire alarm permit application to local
45 enforcement agency.-
46 (1) A contractor must file a Uniform Fire Alarm Permit
47 Application as provided in subsection (2) with the local
48 enforcement agency and must receive the fire alarm permit
49 before+
50 +a+ installing or replacing a fire alarm if the local
Page 2 of 5
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hb0823-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 823 2021
51 enforcement agency requires a plan review for the installation
52 or replacement. If the local enforcement agency requires a fire
53 alarm permit in order to repair-t---er
54 (b) Repairing an existing alarm system that was previously
55 permitted by the local enforcement agency, a contractor must
56 file a Uniform Fire Alarm Permit Application as provided in
57 subsection (2) but may begin work before receiving the permit~
58 the local enforcement agency requires a fire alarm permit for
59 the repair. A repaired fire alarm system is not in compliance
60 with the law until the required permit has been issued and the
61 local enforcement agency has approved the repair.
62 (2) A Uniform Fire Alarm Permit Application must be
63 submitted with any drawing, plan, and supporting documentation
64 required by a local enforcement agency for a project for which a
65 plan review or fire alarm permit is required under subsection
66 (1). The application may be submitted electronically or by
67 facsimile and must be signed by the owner, or the owner's
68 authorized representative, and the contractor, or the
69 contractor's agent. The application must contain the following
70 information, in a substantially similar form:
71 UNIFORM FIRE ALARM
72 PERMIT APPLICATION
73 Tax Folio No . . . . . . . . . Application No . . . . . . . . .
74 Owner's or Representative's Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75 Property Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 3 of 5
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hb0823-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 823 2021
76 City . . . . . . . . . . . . . . . . . . . . State . . . . . . . . . . . . . . . . Zip . . . . . . . . . . . .
77 Phone Number . . . . . . . . . . . . . . . . . . . .
78 Fee Simple Titleholder's Name (if other than
79 owner) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
81 Fee Simple Titleholder's Address (if other than
82 owner) .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83
84 Description of
85 Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
86
87 New Install . . . . . . . . Replacement . . . . . . . .
88 Addition . . . . . . . . Other . . . . . . . .
89 Construction Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
90 Proposed Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
91 Alarm Contractor's Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
92 Alarm Contractor's Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
93 City . . . . . . . . . . . . . . . . . . . . State . . . . . . . . . . . . . . . . Zip . . . . . . . . . . . .
94 Phone Number . . . . . . . . . . . . . . . . . . . .
95 Alarm Contractor's License
96 Number . . . . . . . . . . . . . . . . . . . .
97 Application is hereby made to obtain a permit to do the work or
98 installation as indicated. I certify that no work or
99 in s t a l l at ion has c offiffie n c e d before t h e filing of this pe rfflit
100 app l ic ation and t ha t all of the foregoing information is true
Page 4 of 5
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hb0823-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 823 2021
101 and accurate.
102 ... (Signature of Owner or Owner's Representative) ...
103 Printed Name ............................... .
104 ... (Signature of Contractor or Agent) .. .
105 Printed Name ............................... .
106 Section 3. This act shall take effect July 1, 2021.
Page 5 of 5
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hb0823-00
REGULATORY REFORM SUBCOMMITTEE
HB 823 by Rep. Mariano
Alarm System Contractors
AMENDMENT SUMMARY
March 8, 2021
Amendment 1 by Rep. Mariano (line 28):
The amendment:
• Clarifies that electrical contractors that are performing alarm system contracting, in
addition to alarm system contractors, are not required to include their license number in
an advertisement, if the advertisement includes the contractor's website and the website
includes the contractor's license number.
Amendment 2 by Rep. Mariano (line 60):
The amendment:
• Clarifies that a repaired alarm system is not compliant with the Florida Building Code,
Florida Fire Code, and any other applicable codes, until the local enforcement agency
has approved the repair.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 823 (2021)
Amendment No. 1.
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Regulatory Reform
2 Subcommittee
3 Representative Mariano offered the following:
4
5 Amendment (with title amendment)
6 Remove line 28 and insert:
7 broadcast advertisement for alarm system contracting as long
8
9
10 T I T L E A ME N D ME N T
11 Remove lines 3-4 and insert:
12
13 s. 489.521, F.S.; providing that advertisements for alarm system
14 contracting do not have to include the
790685 - h0823-line28.docx
Published On: 3/5/2021 12:49:28 PM
Page 1 of 1
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 823 (2021)
Amendment No. 2.
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Regulatory Reform
2 Subcommittee
3 Representative Mariano offered the following:
4
5 Amendment (with title amendment)
6 Remove line 60 and insert :
7 with appli cable codes and standards until the required permit has
8 been issued and the
9
10 - - --------------------------------- - --------------- - -
11 TITLE AMENDMENT
12 Remove line 10 and insert:
13 Compl iant with applicable codes and standards until certain
14 conditions are
176619 - h0823-line60.docx
Published On: 3/5/2021 1 2 :51:00 PM
Page 1 o f 1
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 855 Barber Services
SPONSOR(S): Morales and others
TIED BILLS: IDEN./SIM. BILLS: SB 1176
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Wright Anstead
2) Commerce Committee
SUMMARY ANALYSIS
Barbers and barbershops are regulated by the Barbers' Board (board) under the Department of Business and
Professional Regulation (DBPR). A barber license is required to perform barbering services, and arrangements
for such services must be made through a registered barbershop.
Generally, all barber services must performed in registered barbershops, except services provided:
• in a location other than a registered barbershop, including, but not limited to, a nursing home, hospital,
or residence, for a client of ill health.
• in connection with the motion picture, fashion photography, theatrical, or television industry; or a
manufacturer trade show demonstration.
The bill allows barbers to shampoo, cut, or arrange hair in a location other than a registered barbershop
without making arrangements to do so through a registered barbershop.
The bill does not have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2021.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0855.RRS .D0CX
DATE: 3/5/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Barbering
Barbers and barbershops are regulated by ch. 476, F.S., and licensed by the Barbers' Board (board)
under the Department of Business and Professional Regulation (DBPR).
'Barbering' means any of the following practices when done for remuneration and for the public, but not
when done for the treatment of disease or physical or mental ailments: shaving, cutting, trimming,
coloring, shampooing, arranging, dressing, curling, or waving the hair or beard or applying oils, creams,
lotions, or other preparations to the face, scalp, or neck, either by hand or by mechanical appliances." 1
A barber license is required to perform barbering services. 2 To be eligible for licensure, barbers must: 3
• be at least 16 years old,
• complete the required training for barbers, which is between 600 and 900 hours, 4
• pass the written examination, 5 and
• pay a $218.50 application fee, 6 plus a $5 unlicensed activity fee. 7
There are 11,713 barbers and 5,434 restricted barbers in the state. For the 2019-2020 Fiscal Year,
DBPR received 845 complaints against barbers, and took 112 disciplinary actions. 8
Barbershops
In Florida, barbershops must be registered. 9 Barbershops are inspected periodically by DBPR, in
accordance with sanitary standards set forth by the board. 10
Generally, all barber services must performed in registered barbershops, except services provided: 11
• in a location other than a registered barbershop, including, but not limited to, a nursing home,
hospital, or residence, for a client of ill health who is unable to go to a registered barbershop.
Arrangements for the performance of such barber services must be made through a registered
barbershop.
• in connection with the motion picture, fashion photography, theatrical, or television industry; or a
manufacturer trade show demonstration.
1 S. 476.034(2), F.S.
2 S. 476.144(1), F.S.
3 S. 476.114, F.S.
4 Barbers are eligible to take the examination after 600 hours. If their examination is not successful, the full 900 hours
must be completed . S. 476.114(2)(c), F.S. There is also an option to be a barber with a restricted license, which is 600
hours training in total and restricts such barbers from applying chemical solutions or preparations to hair. S. 476.144(6),
F.S.; R. 6183-16.006, FAG.
5 R. 61-35.006, FAG.
6 Email from Conner Mann, Legislative Affairs Coordinator, Florida Department of Business and Professional Regulation,
RE: Barbers (Mar. 1, 2021 ).
7 S. 455.2281, F.S.
a DBPR, supra note 6.
9 S. 476.184(1), F.S.
10 S. 476.184(2), F.S.
11 S. 476.188, F.S.
STORAGE NAME: h0855.RRS.D0CX PAGE: 2
DATE: 3/5/2021
Cosmetology and Cosmetology Salons
Cosmetologists, nail specialists, facial specialists, full specialists, and related salons in the state are
regulated in accordance with ch. 477, F.S., and licensed by the Board of Cosmetology under DBPR. A
cosmetology or specialty license is required to perform cosmetology services.12
In Florida, cosmetology and specialty salons must be licensed. 13 Such salons are inspected periodically
by DBPR, in accordance with sanitary standards set forth by the Board of Cosmetology. 14
Currently, cosmetology services must be performed by a cosmetologist or specialist in a licensed
cosmetology or specialty salon, except: 15
• services provided for a special event. 16
• hair shampooing, hair cutting, hair arranging, nail polish removal, nail filing, nail buffing, and
nail cleansing performed at any time outside of a salon, regardless of whether the service is in
connection with a special event.
• services provided for a client who for reasons of ill health is unable to go to a licensed salon.
Arrangements for the performance of such cosmetology services must be made through a
licensed salon.
• services provided for a motion picture, fashion photography, theatrical, or television industry; a
photography studio salon; a manufacturer trade show demonstration; or an educational
seminar.
Prior to 2020, a cosmetologist or specialist was required to work through a salon for special events,
similar to current requirements for barbers. 17 CS/HB 1193 18 allowed cosmetologists and specialists to
perform cosmetology services for a special event without making such arrangements through a salon.
CS/HS 1193 also allowed hair shampooing, hair cutting, hair arranging, nail polish removal, nail filing,
nail buffing, and nail cleansing to be performed outside of a salon by a cosmetologist or specialist,
regardless of whether the service is in connection with a special event, and without making such
appointment through a salon. 19
Effect of the Bill
The bill allows barbers to shampoo, cut, or arrange hair in a location other than a registered barbershop
without making arrangements to do so through a registered barbershop.
The bill provides an effective date of July 1, 2021.
B. SECTION DIRECTORY:
Section 1: Amends s. 476.188, F.S.; providing an exception to the requirement to make outside
bookings through a registered barbershop.
Section 2: Provides an effective date.
12 S. 477.014, F.S.
13 S. 477.025(1), F.S.
14 S. 477 .025(9), F.S.; Ch. 61G5-20, F.A.C .
1s S. 477.0263(1)-(4), F.S.
16 Defined by board rule as a wedding or fashion show. R. 61G5-20.0015(1), F.A.C.
17 S. 477 .0263(4), F.S. (2019) .
1e Ch . 2020-160, L.O.F.
19 /d.
STORAGE NAME : h0855.RRS.DOCX PAGE: 3
DATE: 3/5/2021
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues :
None.·
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill will allow barbers to practice shampooing, hair cutting, or hair arranging without needing to
perform such services in a barbershop or make appointments for such services through a barbershop,
which will bring them in line with current cosmetology requirements . This will provide barbers with more
flexibility to offer their customers more services outside a barbershop.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h0855.RRS .DOCX PAGE: 4
DATE: 3/5/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB855 2021
1 A bill to be entitled
2 An act relating to barber services; amending s.
3 476.188, F.S . ; authorizing a barber to shampoo, cut,
4 or arrange hair in a location other than a registered
5 barbershop without specified arrangements; providing
6 an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Subsection (2 ) of secti on 476.188, Florida
11 Statutes, i s amended to re a d:
12 476.1 8 8 Barbe r service s t o b e performe d in registered
13 barbershop; exception.-
14 (2) Pursuant t o rules establishe d b y the board, barber
15 services ma y be p erformed by a licensed barber in a location
16 other t h an a r e g istered barbershop , i nc l u ding , but n ot limi t ed
17 to, a nursing home, hospital, or residence, when a client for
18 r easons of i ll health is unab l e to go t o a registered
19 b arbershop . Arrangeme nts fo r t h e p erformance of barber serv ices
20 i n a l ocat ion other tha n a re gistere d barbers hop s hall be made
21 only through a registered barb ershop. However, a barber ma y
22 shampoo, c ut, or a rrang e hai r in a l oc ati on ot her tha n a
23 reg iste red barbers h op wi t h out suc h arrang ements .
24 Sectio n 2 . Th is act s ha ll take effect Jul y 1 , 20 2 1 .
Page 1 of 1
CODING: Words strisken are deletions; words underlined are additions.
hb0855-00
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 6053 Doorstep Waste Containers
SPONSOR(S): Yarborough
TIED BILLS: IDEN./SIM. BILLS: SB 904
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Brackett Anstead
2) Commerce Committee
SUMMARY ANALYSIS
Florida's fire prevention and control law, ch. 633, F.S., designates the state's Chief Financial Officer as the
State Fire Marshal, and requires the State Fire Marshal to adopt the Florida Fire Prevention Code (Fire Code)
by rule every three years. The Fire Code sets forth fire safety standards (including certain national codes) for
property, and is enforced by local fire officials within each local government in the state. The Fire Code
provides that a person may not place combustible waste and refuse in a building's means of egress, which
includes a building's exit access corridors.
Currently, there are various providers offering doorstep waste collection services to apartment complexes
throughout the state. Residents in these complexes place waste outside their front door, and the provider picks
it up. An apartment complex resident's front door usually opens to a hallway, corridor, or walkway, which may
be or lead to the building's exit access.
During the 2018 Legislative Session, the Legislature temporarily allowed residents in apartment buildings to
place combustible waste and refuse in an exit access corridor if certain conditions were met. These statutory
changes were not adopted by the State Fire Marshal in the Fire Code. Current law allows waste containers to
be placed in an apartment building's exit access corridors if:
• Waste, which is in a container, is not in an exit access corridor for a single period greater than 5 hours;
• Containers do not exceed 13 gallons for apartment buildings with enclosed corridors and interior or
exterior stairs, or exceed 27 gallons for apartment buildings with open air corridors and exterior stairs or
balconies with exterior exit stairs;
• Containers are not in an exit access corridor for a single period greater than 12 hours for apartment
buildings with enclosed corridors and interior or exterior stairs;
• Containers do not reduce the exit access corridor's width below the width required by the Fire Code;
• Containers can stand upright on their own and do not leak fluids when standing upright; and
• The apartment's management staff have written policies and procedures to ensure compliance with the
above conditions.
Apartment complexes were given a phase-in period to comply with these requirements, which ended on
December 31, 2020.
The provisions allowing the placement of waste and refuse containers in an exit access corridor expire on July
1, 2021.
The bill repeals the July 1, 2021 expiration date for the statutory provisions, thus allowing residents in
apartment complexes to continue placing waste outside their front door for pick up by waste collection
services, which may conflict with the Fire Code.
The bill is not expected to have a significant fiscal impact on state or local government.
The bill provides an effective date of July 1, 2021.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h6053.RRS DOCX
DATE: 3/5/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A EFFECT OF PROPOSED CHANGES:
Current Situation
Florida's fire prevention and control law, ch . 633, F.S ., designates the state's Chief Financial Officer as the
State Fire Marshal. The State Fire Marshal, through the Division of State Fire Marshal within the
Department of Financial Services (DFS) , is charged with enforcing the provisions of ch . 633, F.S., and all
other applicable laws relating to fire safety, and has the responsibility to minimize the loss of life and
property in this state due to fire. 1 Pursuant to this authority, the State Fire Marshal regulates, trains , and
certifies fire service personnel and fire safety inspectors; investigates the causes of fires; enforces arson
laws; regulates the installation of fire equipment; conducts fire safety inspections of state property; and
operates the Florida State Fire College.
Adoption and Interpretation of the Florida Fire Prevention Code
The State Fire Marshal also adopts by rule the Florida Fire Prevention Code (Fire Code), which contains all
fire safety laws and rules that pertain to the design , construction , erection, alteration, modification, repair,
and demolition of public and private buildings, structures, and facilities, and the enforcement of such fire
safety laws and rules, at ch . 69A-60, F.A.C.
The State Fire Marshal adopts a new edition of the Fire Code every three years. 2 When adopting the Fire
Code the Fire Marshal is required to adopt the most current version of the national fire and life safety
standards set forth by the National Fire Protection Association (NFPA) including the:
• NFPA's Fire Code (1 );
• Life Safety Code ( 101 ) ; and
• Guide on Alternative Approaches to Life Safety (101A).3
The State Fire Marshal may modify the national fire safety and life safety standards as needed to
accommodate the specific needs of the state. 4
The most recent Fire Code is the 7th edition, which is referred to as the 2020 Florida Fire Prevention Code.
The 7th edition of the Fire Code took effect on December 31 , 2020. 5
The State Marshal has authority to interpret the Code , and is the only authority that may issue a
declaratory statement relating to the Fire Code.6
Fire Safety Enforcement by Local Governments
State law requires all municipalities, counties, and special districts with fire safety responsibilities to enforce
the Fire Code as the minimum fire prevention code to operate uniformly among local governments and in
1
S. 633 .104, F.S.
2
S. 633 .202, F.S.
3
S. 633 .202(2), F.S. Founded in 1896, the National Fire Protection Association delivers information and knowledge through more
than 300 consensus codes and standards, research, training, education, outreach and advocacy; and by partnering with others who
share an interest in furthering the mission. NFPA, About NFPA, http://www.nfpa.org/about-nf~ (last visited on Feb. 28, 2021).
4 Id.
5 Division of State Fire Marshal, Florida Fire Prevention Code (FFPC),
https://www.myfloridacfo.com/division/sfin/btb/tloridafirepreventioncodepage.htm (last visited Feb. 28, 2021 ).
6
S. 633.104(6), F.S.
STORAGE NAME: h6053.RRS.DOCX PAGE: 2
DATE: 3/5/2021
conjunction with the Florida Building Code.7 These local enforcing authorities may adopt more stringent fire
safety standards, subject to certain requirements ins. 633.208, F.S., but may not enact fire safety
ordinances that conflict with ch. 633, F.S., or any other state law.8
The chiefs of local government fire service providers (or their designees) are authorized to enforce ch . 633,
F.S., and rules within their respective jurisdictions as agents of those jurisdictions, not agents of the State
Fire Marshal. 9 Each county, municipality, and special district with fire safety enforcement responsibilities is
also required to employ or contract with a fire safety inspector (certified by the State Fire Marshal) to
conduct all fire safety inspections required by law.10
Section 633.208(5), F.S. states "With regard to existing buildings, the Legislature recognizes that it is not
always practical to apply any or all of the provisions of the Fire Code and that physical limitations may
require disproportionate effort or expense with little increase in fire or life safety."
Pursuant to s. 633.208(5) , F.S., local fire officials must apply the Fire Code for existing buildings to the
extent practical to ensure a reasonable degree of life safety and safety of property. The local fire officials
are also required to fashion reasonable alternatives that afford an equivalent degree of life safety and
safety of property.
Florida Building Code
The Florida Building Code (Building Code) is the statewide building code for all construction in the state.
The Florida Building Commission (Commission}, housed within the Department of Business and
Professional Regulation (DBPR), implements the Building Code. The Commission reviews the International
Code Council's I-Codes and the National Electric Code every three years to determine if it needs to update
the Building Code. 11
Means of Egress
A means of egress is a path available for a person to leave a building . A means of egress is made up of
three parts, which includes the following :12
• Exit access;
• Exit; and
• Exit discharge.
The exit access is a path, such as a hallway or corridor, from any location in the building to an exit. The exit
is usually a door leading outside, or in a multi-story building, an enclosed stairway. The exit discharge is a
path from the exit to a space that is dedicated to public use such as a street or alley.13
The Fire Code provides that a building 's means of egress must be a certain width determined by the
number of occupants in the building and the use of the building. 14 The Fire Code further provides that a
building's means of egress must be free of all obstructions or impediments in case of fire or other
emergency .15
7
Ss. 633.108 and 633.208, F.S.
8
Ss. 633.208 and 633.214(4), F.S.
9
S.633.118, F.S.
10
S. 633 .216(1), F.S.
11
S. 553.73(7)(a), F.S.
12
Section 3 .3 .182 of the 7th edition of the Florida Fire Prevention Code (NFPA I, Fire Code).
13 Section 202 of the 7th edition of the Florida Building Code (Building); Richmond ICC, 2018 Annual Conference Education
Sessions, Session: 2018 !BC Essentials - Means of Egress & Fire Protection, https://www.iccsafe.org/wp-content/upload /2018-1 BC-
Essentials-%E2%80%93-Means-of- gress-Fire-Protection.pdf (last visited Feb. 28, 2021 ).
14
See Section 7.3.4 of the 7th edition of the Florida Fire Prevention Code (NFPA 101, Life Safety Code).
15
Section 7. I.I 0. I of the 7th edition of the Florida Fire Prevention Code (NFP A IO 1, Life Safety Code).
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DATE: 3/5/2021
The Building Code also provides that a building's means of egress must be a certain width determined by
the number of occupants in the building. 16 The Building Code provides that the required width of a
building's means of egress must be free of all obstructions and impediments. 17
However, the Building Code provides that maintenance of a building's means of egress must be in
accordance with the Fire Code. 18 DBPR has interpreted this to mean that the Fire Code takes precedence
when it comes to people placing objects, such as a trashcan, in a building's means of egress. 19
Combustible Waste and Refuse
The Fire Code defines "combustible waste" as any combustible or loose waste material that is generated
by an establishment or process and, if salvageable, is retained for scrap or reprocessing on the premises
where generated or transported to a plant for processing. 20
The Fire Code defines "combustible refuse" as a combustible or loose rubbish, litter, or waste materials
generated by an occupancy that are refused, rejected, or considered worthless and are disposed of by
incineration on the premises where generated or periodically transported from the premises. 21
Combustible waste and refuse may be stored in an apartment building if the combustible waste and refuse
is:22
• Stored in a container less than 1.5 cubic yards (302 gallons) or in an enclosed area with a 1 hour
fire resistance rating and an automatic sprinkler system;
• Removed from the building once a day unless the waste and refuse is stored in a noncombustible
room; and
• Not stored in the building's exit(s).
Private Doorstep Collection Providers
Currently, there are various providers offering doorstep refuse and recycling collection services to
apartment complexes throughout the state. The basic business model requires the residents of an
apartment building to place their waste outside of their doorstep, in a specified container approved by the
provider. The doorstep refuse and recycling collection providers then come by and collect the waste at a
specified time. 23
An apartment complex resident's front door opens to a hallway, corridor, or walkway, which is usually the
building's exit access and therefore part of the building's means of egress. According to DFS, apartments
that contract with the doorstep refuse and recycling collection providers are violating the Fire Code by
allowing residents to place combustible waste and refuse in their buildings' means of egress. 24
In 2016, the State Fire Marshal issued declaratory statements determining that apartments may not allow
residents to place waste containers outside their front doors regardless of the size of the container or if the
waste is removed daily. The State Fire Marshal determined that the Fire Code prohibits apartment
16
Section 1005 of the 7th edition of the Florida Building Code (Building).
17
Section 1018.1, 1020.3, and 1024.2 ofthe 7th edition of the Florida Building Code (Building).
18
Section 1001.3 of the 61h edition of the Florida Building Code (Building).
19
Email from Vicky Summerhill, Office of Legislative Affairs, Department of Business and Professional Regulation, FW: Florida
Building Code questions (Mar. 4, 2021 ).
20
Section 3.3.63 of the 7th edition of the Florida Fire Prevention Code (NFPA 1, Fire Code).
21
Section 3.3.62 of the 7th edition ofthe Florida Fire Prevention Code (NFPA 1, Fire Code).
22 Section 10.18.4 and 19.2.1 of the 7th edition of the Florida Fire Prevention Code (NFPA 1, Fire Code).
23
Department of Financial Services, Agency Analysis of2018 House Bill 529, p. I (Nov. 29, 2017).
24 Id.
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DATE: 3/5/2021
residents from placing any type of waste container outside their door because the residents are placing an
obstruction in a building's means of egress and combustible waste in a building 's exit. 25
During the 2018 Legislative Session, the Legislature temporarily allowed refuse and recycling containers to
be placed in exit access corridors in apartment buildings if the following conditions are met: 26
• Waste, which is in a doorstep refuse and recycling collection container, is not placed in an exit
access corridor for a single period greater than 5 hours;
• Doorstep refuse and recycling containers do not exceed 13 gallons for apartment buildings with
enclosed corridors and interior or exterior stairs;
• Doorstep refuse and recycling collection containers do not exceed 27 gallons for apartment
buildings with open air corridors and exterior stairs or balconies with exterior exit stairs;
• Doorstep refuse and recycling collection containers are not in an exit access corridor for a single
period greater than 12 hours for apartment buildings with enclosed corridors and interior or exterior
stairs;
• Doorstep refuse and recycling collection containers do not reduce the exit access corridor's width
below the width required by the Fire Code;
• Doorstep refuse and recycling collection containers are able to stand upright on their own and may
not leak fluids when standing upright; and
• The apartment's management staff have written policies and procedures to ensure compliance with
the above conditions. Management staff must enforce the policies and must provide a copy of the
policies to the authority having jurisdiction upon request.
Apartment complexes were given a phase in period to comply with these requirements. Apartments had to
comply with the requirements by December 31, 2020. Local fire marshals were given authority to approve
alternative containers or storage arrangements that are equivalent to these requirements. 27 However, these
requirements sunset on July 1, 2021. The purpose of the sunset date was to give the various providers
time to work with the State Fire Marshal to develop an amendment to the Fire Code, which is the State Fire
Marshal's preferred method for amending the Fire Code.28
According to DFS, the State Fire Marshal adopted an amendment to the Fire Code , which took effect when
the 7th edition of the Fire Code became effective on December 31, 2020, intended to allow the various
doorstep refuse and recycling collection providers to keep operating. 29 The amendment provides that waste
and refuse may be placed in exits, exit passageways, enclosures for stairs or ramps, corridors, elevator
lobbies, or egress balconies if:30
• Waste, which is in a doorstep refuse and recycling collection container, is not placed in an exit
access corridor for a single period greater than 5 hours;
• Doorstep refuse and recycling containers do not exceed 15 gallons;
• Doorstep refuse and recycling collection containers are not in an exit access corridor for a single
period greater than 15 hours;
• Doorstep refuse and recycling collection containers do not reduce the exit access corridor's width
below the width required by the Fire Code;
• Management staff have written policies and procedures to ensure compliance with the above
conditions. Management staff must enforce the policies and must provide a copy of the policies to
the authority having jurisdiction upon request; and
25
See In the matter of William Harrison, Fire Marshal Clermont Fire Department, Case No.: 188696-16-DS (Fla. DFS) (June 21,
2016); In the matter of Steve Strong, Fire Marshal Clearwater Fire & Rescue, Case No.: 196979-16-DS (Fla. DFS) (Dec. 23, 2016).
26
S. 633.202(20), F.S.; See House Analysis of2018 House Bill 529 (Apr. 9, 2018).
21 Id.
28
See The Florida Channel, 1/9/18 House Careers and Competition Subcommittee, https://thefloridachannel.org/videos/1-9-18-house-
careers-competition-subcomm ittee/ (last visited Feb. 28, 2021).
29
Department of Financial Services, Agency Analysis of2021 House Bill 6053, p. 1 (Mar. 2, 2021).
30
Sections 10.18.4. l and 10.18.4.1.1 of the 7th edition of the Florida Fire Prevention Code (NFPA I, Fire Code).
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DATE: 3/5/2021
• Waste or refuse must be placed completely inside one or more containers with a closed lid.
After July 1, 2021, the following provisions in the amendment to the Fire Code take effect: 31
• Containers and lids located in an area that is not protected by fire sprinklers must be made entirely
of noncombustible materials that comply with the Fire Code. 32
• Containers and lids located in an area that is protected by fire sprinklers does not have to made
entirely of noncombustible materials that comply with the Fire Code.
Proponents of repealing the sunset date argue that the amendment to the Fire Code requires apartment
complex residents and doorstep refuse and recycling collection providers to use refuse and recycling
containers that are not readily available. Opponents of repealing the sunset date argue that repealing the
sunset date will allow refuse and recycling containers, which do not comply with the Fire Code, to be
placed in apartment access corridors. 33
Effect of the Bill
The bill repeals the sunset date of July 1, 2021. Thus leaving the provisions ins. 633.202(20), F.S., that
allow refuse and recycling containers to be lawfully placed in exit access corridors just as they have been
since the adoption of the provisions in 2018.
The bill also repeals the phase in period, which provisions had to be complied with by December 31, 2020.
B. SECTION DIRECTORY:
Section 1. Amends s. 633.202, F.S., repealing a sunset date and a phase in period .
Section 2. Provides an effective date of July 1, 2021.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1 . Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues :
None.
2. Expenditures:
31 Id.
32
Noncombustible materials must meet a peak rate of heat release not exceeding 150 kW/m 2 when tested in accordance with ASTME
1354 at an incident heat flux of 50kW/m2 in the horizontal orientation. Containers and lids must be listed or have a label from an
approved agency that the container or lid meets the Fire Code's requirement. Id.
33
See The Florida Channel, 3/3/21 Senate Committee on Community Affairs, https://thetloridachannel.org/videos/3-3-21-senate-
committee-on-community-affairs/ (last visited Mar. 4, 2021).
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DATE: 3/5/2021
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision :
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
According to DFS, removing the sunset date and the phase in period would create a conflict between
Florida Statutes and amendments to the Fire Code.
"The proposed bill language would allow trash containers with no fire-rated requirements
and located in the hallways used for egress, to obstruct the means of egress which would
cause obstacles to life safety in case of emergency. All of subsection (20) needs to be
repealed in accordance with the sunset provisions set forth in the law because it is in conflict
with and would cause confusion with the 7th edition of the Florida Fire Prevention Code,
which became effective December 31, 2020." 34
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
34
Department of Financial Services supra note 29.
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DATE: 3/5/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 6053 2021
1 A bill to be entitled
2 An act relating to doorstep waste containers; amending
3 s. 633.202, F.S.; deleting an obsolete provision;
4 removing the scheduled repeal of certain provisions
5 regulating the use of containers in exit access
6 corridors; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Paragraphs (d) and (e) of subsection (20) of
11 section 633.202, Florida Statutes, are amended to read:
12 633.202 Florida Fire Prevention Code.-
13 (20)
14 (d) The authority having jurisdiction shall allow
15 apartment oecupancies a phase in period until December 31, 2020 ,
16 to comply with this subsection .
17 (e) This subsection is repealed on July 1 , 2021.
18 Section 2. This act shall take effect July 1, 2021.
Page 1 of 1
CODING: Words strisken are deletions; words underl1ned are additions.
hb6053-00
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 6073 Individual Wine Containers
SPONSOR(S): LaMarca
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee
2) Commerce Committee
SUMMARY ANALYSIS
In Florida, the Beverage Law regulates the manufacture, distribution, and sale of wine, beer, and liquor by
manufacturers, distributors, and vendors. The Division of Alcoholic Beverages and Tobacco in the Department
of Business and Professional Regulation administers and enforces the Beverage Law.
Current law addressing limitations on the size of individual wine containers provides the following:
• The sale of wine in an individual container that holds more than one gallon of wine is prohibited.
• Wine may be sold in a reusable container of 5.16 gallons.
• Distributors and manufacturers are allowed to sell wine to other distributors and manufacturers in
containers of any size.
• Except for restaurants in certain situations, wine sold or offered for sale by a licensed vendor to be
consumed off the premises must be in the unopened original container.
• Violations are a second-degree misdemeanor.
The bill repeals the law relating to limitations on the size of individual wine containers.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2020.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h6073.RRS.DOCX
DATE: 3/4/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Beverage Law
In Florida, the Beverage Law 1 regulates the manufacture, distribution, and sale of wine, beer, and liquor
by manufacturers, distributors, and vendors .2 The Division of Alcoholic Beverages and Tobacco
(Division) in the Department of Business and Professional Regulation (DBPR) administers and
enforces the Beverage Law. 3
"Alcoholic beverages" are defined as "distilled spirits and all beverages containing one-half of 1 percent
or more alcohol by volume ." "Malt beverages" are brewed alcoholic beverages containing malt. 4
The license and registration classifications used in the Beverage Law include the following:
• "Manufacturers" are those "licensed to manufacture alcoholic beverages and distribute the same
at wholesale to licensed distributors and to no one else within the state, unless authorized by
statute."
• "Distributors" are those "licensed to sell and distribute alcoholic beverages at wholesale to
persons who are licensed to sell alcoholic beverages."
• "Importers" are those licensed to sell, or to cause to be sold, shipped, and invoiced, alcoholic
beverages to licensed manufacturers or licensed distributors, and to no one else in this state. 5
• "Vendors" are those "licensed to sell alcoholic beverages at retail only" and may not "purchase
or acquire in any manner for the purpose of resale any alcoholic beverages from any person not
licensed as a vendor, manufacturer, bottler, or distributor under the Beverage Law."6
Wine Container Limitations
"Wine" is defined as all beverages made from fresh fruits, berries, or grapes, either by natural
fermentation or by natural fermentation with brandy added, in the manner required by the laws and
regulations of the United States, and includes all sparkling wines, champagnes, combination of the
aforesaid beverages, sake, vermouths, and like products. Sugar, flavors, and coloring materials may be
added to wine to make it conform to the consumer's taste, except that the ultimate flavor or the color of
the product may not be altered to imitate a beverage other than wine or to change the character of the
wine. 7
Current law prohibits the sale of wine in an individual container that holds more than one gallon.
However, wine may be sold in a reusable container of 5.16 gallons. 8
Distributors and manufacturers are authorized to sell wine to other distributors and manufacturers in
containers of any size. 9
1
Section 561.01(6), F.S., provides that the "The Beverage Law" means chs. 561 , 562,563,564,565 , 567, and 568, F.S.
2
See s. 561.14, F.S.
3
S. 561.02, F.S.
4
S. 563 .01, F.S.
5
S. 561.01(5), F.S.
6
S. 561.14, F.S.
7
S. 564.01(1), F.S.
8
S. 564.05, F.S.
9 Id.
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DATE: 3/4/2021
Except for restaurants in certain situations, 10 wine sold or offered for sale by a licensed vendor to be
consumed off-premises must be in the unopened original container. 11
Violations are a second-degree misdemeanor, punishable by a maximum $500 fine 12 and 60 days in
prison. 13
Effect of the Bill
The bill repeals s. 564.05, F.S., relating to limitations on the size of individual wine containers .
B. SECTION DIRECTORY:
Section 1 Repeals s. 564.05, F.S., relating to limitations on the size of individual wine containers.
Section 2 Provides for an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill will allow the sale of wine in an individual container of any size. This may have a positive fiscal
impact on businesses that sell wine.
D. FISCAL COMMENTS:
None.
10
S. 564.09, F.S. The exception allows restaurant patrons to leave the premises with "one unsealed bottle of wine for consumption off
the premises," provided certain conditions are met. The wine bottle must be partially consumed with a full course meal, securely
resealed by the licensee or one of its employees, secured in a bag or container, wrapped in a way that shows it was previously opened,
attached to a dated receipt indicating the full course meal, and transported in a locked vehicle glove compartment, locked trunk, or
behind the last upright seat of a motor vehicle that is not equipped with a trunk.
11
S. 564.05, F.S.
12
S. 775.083(1)(e), F.S.
13
Section 775.082(4)(b), F.S.
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DATE: 3/4/2021
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not appear to create a need for rulemaking or rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
NIA
STORAGE NAME: h6073.RRS .D0CX PAGE: 4
DATE: 3/4/2021
F L O R I D A H O U S E 0 F R E P R E S E N T A T I V E S
HB 6073
2021
1 A bill to be entitled
2 An act relating to individual wine containers;
3 repealing s. 564.05, F.S., relating to the limitation
4 of size of individual wine containers; providing an
5 effective date.
6
7 Be It Enacted by the Legislature of the State of Florida:
8
9 Section 1. Section 564.05, Florida Statutes, is repealed.
10 Section 2. This act shall take effect July 1, 2021.
Page 1 of 1
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hb6073-00
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