The Division proposes the rule amendment to update the cooperative resolution guidelines for unit owner controlled associations to reflect legislative changes to Chapter 719, F.S.

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

Division of Florida Condominiums, Timeshares and Mobile Homes

RULE NOS.:RULE TITLES:

61B-78.002Definitions and Purpose

61B-78.003Educational Resolution

61B-78.004Enforcement Resolution and Civil Penalties

PURPOSE AND EFFECT: The Division proposes the rule amendment to update the cooperative resolution guidelines for unit owner controlled associations to reflect legislative changes to Chapter 719, F.S.

SUMMARY: The amendment updates the cooperative resolution guidelines for unit owner controlled associations.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: the economic review conducted by the agency.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 719.501(1)(f) FS.

LAW IMPLEMENTED: 719.301(5), 719.501(1)(d)4., 719.501(1)(m) FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Debbie Miller, Government Analyst I, Division of Florida Condominiums, Timeshares, and Mobile Homes, 1940 North Monroe Street, Tallahassee, Florida 32399-1030, [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

61B-78.002 Definitions and Purpose.

(1) Definitions. For the purposes of this rule chapter, Rules 61B-78.002, 61B-78.003, and 61B-78.004, F.A.C., the following definitions shall apply:

(a) “Accepted complaint” means a complaint received by the division from someone with standing to file a complaint containing sufficient documentation and addressing a subject within the jurisdiction of the division, pursuant to Section 719.501(1), F.S. A complaint that merely recites the statutes or is based on mere suspicion or speculation, without a plain statement of facts clearly describing what is alleged to have occurred, will not be accepted.

(b) No change.

(c) “Alleged repeated violation” means any accepted complaint for the same or substantially similar recurring conduct cited in an accepted complaint received by the division within two years from the resolution of a previous complaint, the issuance of a final arbitration order or court order, or the entering of a final order by the division regarding that conduct.

(d) through (e) No change.

(2) No change.

(3) These resolution penalty guidelines are promulgated pursuant to the division’s authority in Section 719.501(1)(d), (f), and (m)(k), F.S. These rules do not preclude the division from imposing affirmative or corrective action pursuant to Section 719.501(1)(d)2., F.S. Nothing in these rules shall limit the ability of the division to informally dispose of administrative actions or complaints by stipulation, settlement agreement, or consent order. Rules 61B-78.002, 61B-78.003, and 61B-78.004, F.A.C., are necessary to explain explicate the division’s education and enforcement policies policy. These rules are not intended to cover, or be applied to, willful and knowing violations of Chapter 719, F.S., or the administrative rules by an officer or association board member, pursuant to Section 719.501(1)(d)4., F.S. Such violations shall be strictly governed by the provisions of Section 719.501(1)(d)4., F.S. These rules are not intended to cover, or be applied to, violations of Chapter 719, F.S., or the administrative rules by a cooperative developer as defined by Section 719.103(16)(13), F.S. Such violations shall be strictly governed by the provisions of Chapter 61B-77, F.A.C., and Section 719.301(5), F.S.

Rulemaking Specific Authority 719.501(1)(f) 719.501(1)(d)4., (f) FS. Law Implemented 719.501(1)(d)4., 719.501(1)(m) 719.501(1)(d)4., (k) FS. History–New 6-4-98, Amended_________.

 

61B-78.003 Educational Resolution.

(1) through (2) No change.

(3) Alleged Repeated Minor Violations. A subsequent accepted complaint that is, directed at the same association involving a possible violation identified as minor in these guidelines, will be resolved as follows:

If based on the complaint, the division has reasonable cause to believe that a statutory or rule violation may have occurred, a Warning Letter will be sent to the association. The Warning Letter will give the association 14 calendar days a reasonable period of time in which to address, correct, or dispute the violation. The Warning Letter will identify the violation, and provide a contact telephone number and an investigator’s name so that the association may contact the division for educational assistance or an educational conference in obtaining compliance.  However, it is solely the responsibility of the association to take action, when applicable, to achieve statutory or rule compliance. Failure to respond to a Warning Letter, or take affirmative or corrective action as requested by the division, will result in the division proceeding with an enforcement resolution lead to further investigation. The Warning Letter shall not be considered final agency action. The division will notify the complainant of the educational resolution of the complaint, or if applicable, alternative dispute resolution options.

(4) Alleged Major Violations. An initial accepted complaint that is, directed at an association and involving a possible violation identified as major in these guidelines, will be resolved as follows:

If based on the complaint, the division has reasonable cause to believe that a statutory or rule violation may have occurred, a Warning Letter will be sent to the association. The Warning Letter will give the association 14 calendar days a reasonable period of time in which to address, correct, or dispute the violation. The Warning Letter will identify the violation, and provide a contact telephone number and an investigator’s name so that the association may contact the division for educational assistance or an educational conference in obtaining compliance. However, it is solely the responsibility of the association to take action, when applicable, to achieve statutory or rule compliance. Failure to respond to a Warning Letter, or take affirmative or corrective action as requested by the division, will result in the division proceeding with an enforcement resolution lead to further investigation. The Warning Letter shall not be considered final agency action. The division will notify the complainant of the educational resolution of the complaint, or if applicable, alternative dispute resolution options.

Rulemaking Specific Authority 719.501(1)(f) 719.501(1)(d)4., (f) FS. Law Implemented 719.501(1)(d)4., 719.501(1)(m) 719.501(1)(d)4., (k) FS. History–New 6-4-98, Amended_________.

 

61B-78.004 Enforcement Resolution and Penalty Guidelines Civil Penalties.

(1) The division will seek compliance through an enforcement resolution for repeated minor or major violations, or for the failure to correct or address a violation or provide unit owner redress as requested by the division. If the division issues a notice to show cause, it will notify the association of its right to a hearing under Chapter 120, F.S. These guidelines list aggravating and mitigating factors that will reduce or increase the listed penalty amounts within the specified range and those circumstances that justify a departure from the range. No aggravating factors will be applied to increase a penalty for a single violation above the statutory maximum of $5,000. The guidelines in this rule section are based upon a single count violation of each provision listed. Multiple counts of the violated provision or a combination of the listed violations will be added together to determine an overall total penalty. Nothing in these rules shall limit the ability of the division to informally dispose of administrative actions or complaints by stipulation, settlement agreement, or consent order.

(2) No change.

(3) Aggravating and Mitigating Factors. The division will consider aggravating and mitigating factors, which will reduce or increase the penalty amounts within the specified range, in determining penalties for both minor and major violations listed in this rule section. No aggravating factors will be applied to increase a penalty for a single violation above the statutory maximum of $5,000. The factors are not necessarily listed in order of importance, and they shall be applied against each single count of the listed violation.

(a) Aggravating Factors:

 

No.	Description
1.	Filing or causing to be filed any materially incorrect document in response to any division request or subpoena.
2.	Financial loss to parties or persons affected by the violation.
3.	Financial gain to parties or persons responsible for who perpetrated the violation.
4.	The disciplinary history of the association, including such action resulting in an enforcement resolution as detailed in Rule 61B-78.004, F.A.C., or Section 719.501, F.S.
5.	The violation caused substantial harm, or has potential to cause substantial harm to unit owners, cooperative residents or other persons, or entities.
6.	Undue delay in initiating or completing, or failure to take, affirmative or corrective action after the association received the division’s written notification of the violation.
6.7.	The violation had occurred for a long period of time.
7.8.	The violation was repeated within 2 years a short period of time.
8.9.	The association impeded the division’s investigation or authority.
10.	The investigation involved the issuance of a notice to show cause or other proceeding.

 

(b) Mitigating Factors:

 

No.	Description
1.	Whether current members of the association board have sought and received educational training, other than information provided pursuant to Rule 61B-78.003, F.A.C., on requirements of Chapter 719, .F.S, within the past two years.
2.	Reliance on written professional or expert counsel and advice.
1.3.	The violation or harm was related to a natural or manmade disaster(s). Acts of God or nature.
2.	Financial hardship to respondent.
3.4.	The violation caused no harm to unit owners, cooperative residents or other persons, or entities.
4.	The violation occurred despite reliance on written professional or expert counsel advice.
5.	The association took affirmative or corrective action before it received the division’s written notification of the violation.
6.	The association expeditiously took affirmative or corrective action after it received the division’s written notification of the violation.
7.	The association cooperated with the division during the investigation.
8.	The investigation was concluded through consent proceedings.

 

(4) through (6) No change.

(7) Penalties.

(a) Minor Violations. The following violations shall be considered minor due to their lower potential for public consumer harm. If an enforcement resolution is utilized, the division shall impose a civil penalty between $1 and $5, per unit, for each minor violation. The penalty will be assessed beginning with the middle of the specified range and adjusted either up or down based upon any accepted aggravating or mitigating factors submitted with proper documentation. An occurrence of six or more aggravating factors or five or more mitigating factors will result in a penalty being assessed outside of the specified range. The total penalty to be assessed shall be calculated according to these guidelines or $100, whichever amount is greater. Finally, In no event shall a penalty of more than $2,500 be imposed for a single violation. The following are identified as minor violations:

 

No.	Category	Statute or Rule Cite	Description of Conduct/Violation
1.	Assessments	719.108(6), F.S.	Failure to provide within 15 days a certificate stating all assessments and other moneys owed to the association by the unit owner with respect to the cooperative parcel.
2.	Board	719.1055(4)(b), F.S.	Failure to include the full text showing underlined or strikethrough language in the proposed amendment to the cooperative documents.
3.	Board	719.1035(1), F.S.	Failure to maintain corporate status of the association.
	Board	719.104(8)(b), F.S.	Improper use of secret ballot, or use of proxy, by board members at a board meeting.
4.	Board	719.106(1)(a)2., F.S.	Failure to provide a timely or substantive response to a written inquiry received by certified mail.
5.	Board	719.106(1)(b)1., F.S.	Action taken at unit owner meeting without quorum. Improper quorum at unit owner meeting.
	Board	719.106(1)(b)2., F.S.	Failure of proxy to contain required elements.
6.	Board	719.106(1)(c), F.S.	Failure to properly notice and conduct board of administration or committee meetings.: Notice failed to indicate assessment would be considered;. Failure to maintain affidavit by person who gave notice of special assessment meeting.; Failure to ratify emergency action at next meeting.; Failure to adopt a rule regarding posting of notices.: Failure to notice meeting; non-emergency action taken at board meeting, not on agenda; no meeting agenda.: Action on item not on agenda. Notice did not include agenda. Failure to allow unit owners to speak or unreasonably restricting the frequency, duration, or manner of unit owner statements at meeting;. Failure to permit a unit owner to tape record or videotape meeting.: Failure to allow unit owner to attend meeting.
7.	Board	719.106(1)(d), F.S.	Failure to provide notice of the annual meeting not less than 14 days prior to the meeting. Failure to include agenda. Failure to maintain affidavit by person who gave notice of annual meeting. Failure to adopt a rule designating a specific place for posting notice of unit-owner meetings.
8.	Board	719.106(1)(d)2., F.S.	Permitting unit owner action by written agreement without express authority from Chapter 719, F.S., or the cooperative governing documents. Failure to hold a unit owner meeting to obtain unit owners’ approval when written agreements are not authorized.
9.	Board	719.106(1)(h), F.S.	Failure to include the of amendment to bylaws to contain full text showing underlined or strikethrough language in the proposed amendment to the bylaws; etc.
	Board	719.106(1)(i), F.S.	Failure to have the authority in the cooperative documents when levying transfer fees or security deposits.
	Board	719.108(3), F.S.	Failure to have the authority in the cooperative documents when levying late fees.
10.	Board	719.3026(1), F.S.	Failure to obtain competitive bids on contracts that exceed five percent of the association’s budget.
	Board	719.303(3), F.S.	Failure to have the authority in the cooperative documents when levying fines. Failure to provide proper notice of fines.
11.	Board	719.106(1)(b)5., F.S.	Failure to provide a speaker phone for board or committee meetings held by teleconference.
12.	Board	719.106(1)(c), F.S. 61B-75.004, F.A.C.	Failure to allow a unit owner to tape record or video tape meetings.
	Board	61B-75.005(13), F.A.C.	Failure to fill vacancy properly.
13.	Budgets	719.106(1)(e)1., F.S.	Failure to timely notice budget meeting. Failure to timely deliver proposed budget.
14.	Budgets	719.106(1)(e)2., F.S.	Failure of board to call a unit owners’ meeting to consider alternate budget.
15.	Budgets	719.106(1)(j)1., F.S. 719.504(20)(c), F.S.	Failure to include applicable line items in proposed budget.
16.	Budgets	61B-76.003(1)(b), F.A.C.	Failure to disclose the beginning and ending dates of the period covered by the proposed budget.
17.	Budgets	61B-76.003(1)(c), F.A.C.	Failure to disclose periodic assessments for each unit type in proposed budget.
	Budgets	61B-76.003(1)(e),(f), F.A.C. 61B-76.005(1), F.A.C.	Failure to provide for funding of one or more reserve fund categories in the proposed budget.
	Elections	719.106(1)(d)1., F.S. 61B-75.005(3), F.A.C.	Improper nomination procedures in election.
	Elections	719.106(1)(d)1., F.S. 61B-75.005(5), F.A.C.	Including candidate who did not provide timely notice of candidacy.
	Elections	61B-75.005(6), F.A.C.	Failure to provide candidate a receipt for written notice of intent to be a candidate.
18.	Elections	61B-75.005(8), (10), F.A.C.	Counting ballots not cast in inner and outer envelopes.  Failure to provide space for name, unit number, and signature on outer envelope.
	Elections	61B-75.005(10)(c), F.A.C.	Failure to timely hold runoff election.
19.	Elections	61B-75.005(9), F.A.C.	Failure to list candidates alphabetically by surname on the ballot.
20.	Elections	61B-75.005(10)(b), F.A.C.	Improper verification of outer envelopes.
21.	Records	719.104(2)(a)2., F.S.	Failure to maintain a copy of the cooperative documents.
22.	Records	719.104(2)(a)5., F.S.	Failure to maintain a current and complete unit owner roster. Failure of roster to include all elements.
23.	Records	719.104(2)(a)12., F.S. 719.104(2)(c), F.S.	Failure to maintain or annually update a copy of the question and answer sheet.
24.	Records	719.104(2)(a)13., F.S.	Failure to maintain other association records related to the operation of the association.
	Records	719.104(2)(b),(c), F.S.	Failure to provide access to records.
25.	Records	719.104(8)(b), F.S.	Failure of minutes to reflect how board members voted at board meeting. Failure to record a vote or an abstention in the minutes for each board member present at the board meeting.
26.	Records	61B-76.003(3), F.A.C.	Failure to reflect the adoption of the budget in meeting minutes to reflect adoption of the proposed budget.
	Reporting	719.104(4)(a), F.S. 61B-76.006(6)(a), F.A.C.	Failure to timely provide the annual financial report.
27.	Reporting	61B-76.006(3)(a)5., F.A.C.	Failure to disclose in the annual year-end financial statements the manner by which reserve items were estimated and/or the date the estimates were last made.
28.	Reporting	61B-76.006(3)(b)(c), F.A.C.	Failure to disclose the Improper disclosure in the year-end financial statements of method of allocating income revenues and expenses in the annual financial statements. Improper special assessment disclosures in the year-end financial statements.
	Reporting	61B-76.006(5)(c), F.A.C.	Failure to include the required reserve fund disclosures in the annual financial report.

 

(b) Major Violations. The following violations shall be considered major due to their increased potential for public consumer harm. If an enforcement resolution is utilized, the penalty will be assessed beginning with the middle of the specified range and adjusted either up or down based upon any accepted aggravating or mitigating factors submitted with proper documentation. An occurrence of six or more aggravating factors or five or more mitigating factors will result in a penalty being assessed outside of the specified range. The total penalty to be assessed shall be calculated according to these guidelines or $100, whichever amount is greater. Finally, In no event shall a penalty of more than $5,000 be imposed for a single violation. The penalties are set forth in categories 1 and 2, for each violation are as follows:

Level Category 1: $6 – $10 per unit.

Level Category 2: $12 – $20 per unit.

 

No.	Category	Statute or Rule Cite	Description of Conduct/Violation	Suggested Penalty Level
1.	Accounting Records	719.104(2)(a)9., F.S.	Insufficient or incomplete detail in the accounting records. Failure to maintain sufficient accounting records.	2
2.	Assessing	719.106(1)(g), F.S.	Failure to assess at sufficient amounts to meet expenses.	1
3.	Assessing	719.106(1)(g), F.S.	Collecting assessments less frequently than quarterly.	1
4.	Assessing	719.107(2), F.S.	Failure to assess based upon the shares proportionate share or as stated in the cooperative documents.	2
5.	Assessing	719.108(3), F.S.	Failure to charge interest on past due assessments.	2
6.	Assessing	719.108(1), (8), F.S.	Developer or other owner improperly excused from paying assessments.	2
	Board	719.106, F.S.	Failure to follow method of amendment.	2
7.	Board	719.104(3), F.S.	Failure to insure the association property.	2
8.	Board	719.104(5), F.S.	Improper use fee.	1
9.	Board	719.104(8)(b), F.S.	Use of proxies or improper use of secret ballots by board members at a board meeting.	1
10.	Board	719.105, F.S. 719.109(1), F.S.	Unit owner denied access to unit or to common areas.	1
11.	Board	719.1055, F.S.	Improperly amending the cooperative documents.	2
12.	Board	61B-75.005(13), F.A.C.	Improperly filling a vacancy of an unexpired term on the board.	1
13.	Board	719.106(1)(a)1., F.S.	Compensating Improper compensation of officers or members of the board without express authority from the cooperative governing documents directors.	21
14.	Board	719.106(1),F.S.	Allowing ineligible person to serve on board of administration.	2
15.	Board	719.106(1)(b)2., F.S.	Improper use of general proxies. Use of non-conforming limited proxies.	1
16.	Board	719.106(1)(c), F.S.	Excluding unit owners from board or committee meetings.	1
17.	Board	719.106(1)(d), F.S.	Failure to hold annual meeting.	2
18.	Board	719.106(1)(f), F.S.	Improper removal of board member.	1
19.	Board	719.106(1)(h), F.S.	Improperly amending the association bylaws.	2
20.	Board	719.106(1)(i), F.S.	Requiring transfer fees or security deposits without express authority from the cooperative governing documents. Requiring excessive transfer fees.	1
21.	Board	719.106(1)(k), F.S.	Failure to maintain adequate fidelity bonding for all persons who control or disburse distribute association funds.	2
22.	Board	719.108(3), F.S.	Levying late fees without express authority from the cooperative governing documents.	1
23.	Board	719.115(3), F.S.	Failure to notify, or timely notify, unit owners of legal action.	1
24.	Board	719.303(3),(4),(5),(6), F.S.	Imposing fines without proper notice. Imposing excessive fines. Improper suspension of use rights and voting rights; failure to provide proper notice.	1
	Board	719.501(2)(a), F.S.	Failure to pay annual fees to the division.	2
25.	Budgets	719.106(1)(e), F.S.	Failure to propose/adopt budget for a given year.	2
26.	Budgets	61B-76.003(1)(e), 5., F.A.C.	Failure to disclose converter reserve funding.	1
27.	Budgets	61B-76.003(1)(e), (f), (g), F.A.C.	Failure to include reserve schedule in the proposed budget.	1
28.	Budgets	61B-76.003(1)(e),(f), F.A.C. 61B-76.005(1), F.A.C.	Failure to include a required reserve item in proposed budget.	1
29.	Budgets	719.106(1)(j)2., F.S. 61B-76.005(3), F.A.C.	Improper calculation of reserve requirements.	1
30.	Commingle	719.104(7), F.S.	Commingling association funds with non-association funds.	2
31.	Commingle	719.104(7), F.S.	Association funds deposited in account not in association’s name.	1
32.	Commingle	719.104(7), F.S. 61B-76.005(2), F.A.C.	Commingling reserve funds with operating funds.	1
33.	Common Expenses	719.107(1), F.S.	Using association funds for other than common expenses.	2
34.	Converter Reserves	719.618(3)(b), F.S.	Improper use of converter reserves.	1
35.	Converter Reserves	61B-76.003(1)(e)5., F.A.C. 61B-76.006(3)(a)6., F.A.C. 61B-76.006(5)(c), F.A.C.	Failure to include converter reserve disclosures in the proposed budget, year-end financial statements, or annual financial report.	1
36.	Elections	719.106(1)(d), F.S. 61B-75.005(2), F.A.C.	Failure to hold election.	2
37.	Elections	61B-75.005(2), F.A.C.	Election not held at time and place of annual meeting.	1
38.	Elections	719.106(1)(d)1., F.S. 61B-75.005(3), F.A.C.	Use of nomination procedures in an election.	2
39.	Elections	719.106(1)(d)1.a., F.S. 61B-75.005(4), F.A.C.	Failure to provide, or timely provide, first notice of election.	21
40.	Elections	719.106(1)(d)1.a., F.S. 61B-75.005(5), F.A.C.	Ballot included candidate who did not timely submit notice of candidacy.	2
41.	Elections	61B-75.005(6), F.A.C.	Failure to provide candidate a receipt for personally delivered written notice of candidacy.	1
42.	Elections	719.106(1)(d)1.a., F.S. 61B-75.005(7), (8), F.A.C.	Failure to provide, or timely provide, second notice of election or omitting materials such as ballots, envelopes, and candidate information sheets.	21
43.	Elections	61B-75.005(7), F.A.C.	Distributing candidate information sheets consisting of more than one page.	1
44.	Elections	61B-75.005(8), F.A.C.	Voters allowed to rescind or change their previously cast ballots.	1
45.	Elections	61B-75.005(8), F.A.C.	Second notice of election included comments by board about candidates.	2
46.	Elections	719.106(1)(d)1.a., F.S. 61B-75.005(7), F.A.C.	Association altered or edited candidate information sheets.	2
47.	Elections	719.106(1)(d)1., F.S.	Failure to use ballots or voting machines.	2
48.	Elections	61B-75.005(10)(a), F.A.C.	Inner envelopes not placed in separate receptacle before being opened.	2
49.	Elections	719.106(1)(d)1.a., F.S. 61B-75.005(9), F.A.C.	Failure to include all timely submitted names of eligible candidates on the ballot.	21
50.	Elections	61B75.005(9), F.A.C.	Ballots not uniform.  Ballots identify voter. Ballots included space for write-in candidate.	2
51.	Elections	61B-75.005(10), F.A.C.	Outer envelopes not checked against list of eligible voters.	1
52.	Elections	61B-75.005(10)(a), (b), F.A.C.	Counting ineligible ballots. Not counting ballots in the presence of unit owners.	1
53.	Elections	61B-75.005(10)(a), F.A.C.	Failure to count properly cast ballots.	1
54.	Elections	61B-75.005(10), F.A.C.	Outer envelopes opened prior to election meeting. Outer envelopes not opened in presence of unit owners.	2
55.	Elections	61B-75.005(10)(a), F.A.C.	Not counting ballots in the presence of unit owners.	2
56.	Elections	61B-75.005(10)(a), F.A.C.	Ballots not counted by impartial committee.	1
57.	Elections	61B-75.005(10)(b), F.A.C.	Failure to notice meeting to verify outer envelope information.	1
58.	Elections	61B-75.005(10)(c), F.A.C.	Failure to hold, or timely hold, runoff election.	2
59.	Elections	61B-75.005(10)(a), F.A.C.	No blank ballots available at election meeting.	2
60.	Final Order	719.501(1)(d)4., F.S.	Failure to comply with final order of the division.	2
	Records	719.104(2)(a)10., F.S.	Failure to maintain election materials for one year.	1
61.	Records	719.104(2)(a)4., F.S.	Failure to maintain minutes of meetings.	1
62.	Records	719.104(2)(a)6., F.S.	Failure to maintain a copy of a current insurance policy.	1
63.	Records	719.104(2)(a)7., F.S.	Failure to maintain copy of management agreement or other contract under which the association has obligations.	1
64.	Records	719.104(2)(a)8., F.S.	Failure to maintain bills of sale or transfer.	1
65.	Records	719.104(2)(a)10., F.S.	Failure to maintain election or voting materials for one year.	1
66.	Records	719.104(2)(a)11., F.S.	Failure to maintain rental records.	1
67.	Records	719.104(2)(c), F.S. 719.107(1)(a), F.S.	Requiring a unit owner to pay a fee for access to association records.	1
68.	Records	719.104(2)(b), F.S.	Failure to maintain records within Florida.	2
69.	Records	719.104(2)(b), (c), F.S.	Failure to provide access to records. Failure to allow scanning or copying of records.	1
70.	Records	719.104(2)(e), F.S.	Failure of outgoing board or committee member to relinquish all official records and property of the association in his or her possession or under his or her control to the incoming board within 5 days after the election.	2
71.	Reporting	719.104(4)(a), F.S. 61B-76.006(6), (8), F.A.C.	Failure to provide, or timely provide, the annual financial report or statements.	2
	Reporting	719.104(4)(b), F.S. 61B-76.006(6)(b), F.A.C.	Failure to provide year-end financial statements in a timely manner.	1
	Reporting	719.104(4)(b), F.S. 61B-76.006(8), F.A.C.	Failure to provide year-end financial statements.	2
72.	Reporting	61B-76.006(1), F.A.C.	Failure to prepare annual year-end financial statements using fund accounting. Failure to prepare annual year-end financial statements on accrual basis.	1
73.	Reporting	719.104(4)(a), F.S. 61B-76.006(1), F.A.C.	Failure to prepare annual year-end financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Failure to have reviewed or audited annual year-end financial statements prepared by a Florida licensed CPA.	2
74.	Reporting	61B-76.006(2), F.A.C.	Failure to include one or more components of the annual year-end financial statements (incomplete).	1
75.	Reporting	61B-76.006(3)(a)1.-5.4., F.A.C. 61B-76.006(5)(c), F.A.C.	Failure to make significant reserve fund disclosures in the annual year-end financial statements or annual financial report.	1
76.	Reporting	61B-76.006(3)(a)6., F.A.C.	Failure to include converter reserve disclosures in the annual financial statements.	1
77.	Reporting	61B-76.006(5)(c), F.A.C.	Failure to include converter reserve disclosures in the annual financial report.	1
78.	Reporting	61B-76.006(5)(c), F.A.C.	Failure to include the required reserve fund disclosures in the annual financial report.	1
79.	Reporting	61B-76.006(3)(c), F.A.C.	Failure to include the special assessment disclosures in the annual financial statements.	1
80.	Reporting	61B-76.006(3)(d), F.A.C.	Incomplete or missing guarantee disclosures in the annual financial statements.	1
81.	Reporting	61B-76.006(5)(a), (b), F.A.C.	Failure to prepare the annual financial report on a cash basis. Failure to include in the annual financial report specified receipt or expenditure line items.	1
82.	Reporting	719.104(4)(a), F.S.	Failure to include in the annual financial report specified receipt or expenditure items.	1
83.	Reporting	61B-76.006(8), F.A.C.	Providing lower level of annual financial reporting for year-end financial statements than required.	2
	Reserves	719.106(1)(j)2., F.S. 61B-76.005(3), F.A.C.	Failure to calculate reserve funds properly.	1
84.	Reserves	719.106(1)(j)2., F.S. 61B-76.005(6), F.A.C.	Failure to fund reserves in a timely manner. Failure to fully fund reserves.	1
85.	Reserves	719.106(1)(j)2., F.S. 61B-76.005(6), (8), F.A.C.	Failure to follow proper method to waive or reduce reserve funding.	1
86.	Reserves	719.106(1)(j)3., F.S. 61B-76.005(7), F.A.C.	Failure to obtain unit owner approval prior to Using reserve funds for other purposes without proper unit owner approval.	2
87.	Special Assessment	719.108(9), F.S.	Failure to Using use special assessment funds for other than intended purposes.	1
88.	Special Assessment	719.108(9), F.S.	Failure to state purpose of special assessment in the special assessment notice.	1

 

Rulemaking Specific Authority 719.501(1)(f), 719.501(1)(d)4 FS. Law Implemented 719.501(1)(d)4., 719.501(1)(m) 719.501(1)(k)) FS. History–New 6-4-98, Amended_________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Ronnie Whitaker, Director, Division of Florida Condominiums, Timeshares, and Mobile Homes, 1940 North Monroe Street, Tallahassee, Florida 32399-1030

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Ken Lawson, Secretary, Department of Business and Professional Regulation

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 21, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: May 9, 2014