Bill Text: FL S0744 | 2017 | Regular Session | Engrossed
Bill Title: Community Associations
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Vetoed) 2017-05-03 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1237 (Ch. 2017-188), HB 6027 (Ch. 2017-161), CS/SB 1520 (Ch. 2017-122) [S0744 Detail]
Download: Florida-2017-S0744-Engrossed.html
CS for CS for SB 744 First Engrossed 2017744e1 1 A bill to be entitled 2 An act relating to community associations; creating s. 3 633.2225, F.S.; requiring certain condominium or 4 cooperative associations to post certain signs or 5 symbols on buildings; requiring the State Fire Marshal 6 to adopt rules governing such signs or symbols; 7 providing enforcement; providing penalties; amending 8 s. 718.111, F.S.; prohibiting an officer, director, or 9 manager from soliciting, offering to accept, or 10 accepting a kickback for which consideration has not 11 been provided; providing criminal penalties; requiring 12 that an officer or director charged with certain 13 crimes be removed from office; providing requirements 14 for filling the vacancy left by such removal; 15 prohibiting such officer or director from being 16 appointed or elected or having access to official 17 condominium association records for a specified time; 18 providing an exception; requiring an officer or 19 director to be reinstated if the charges are resolved 20 without a finding of guilt; prohibiting an association 21 from hiring an attorney who represents the management 22 company of the association; prohibiting a board 23 member, manager, or management company from purchasing 24 a unit at a foreclosure sale under certain 25 circumstances; revising recordkeeping requirements; 26 providing that the official records of an association 27 are open to inspection by an association member’s 28 authorized representative; providing that a renter of 29 a unit has a right to inspect and copy the 30 association’s bylaws and rules; providing requirements 31 relating to the posting of specified documents on an 32 association’s website; providing a remedy for an 33 association’s failure to provide a unit owner with a 34 copy of the most recent financial report; revising 35 reporting requirements; requiring the Division of 36 Florida Condominiums, Timeshares, and Mobile Homes to 37 maintain and provide copies of financial reports; 38 prohibiting a condominium association and its 39 officers, directors, employees, and agents from using 40 a debit card issued in the name of the association, or 41 billed directly to the association, for the payment of 42 any association expense; providing that the use of 43 such debit card for any expense that is not a lawful 44 obligation of the association may be prosecuted as 45 credit card fraud; amending s. 718.112, F.S.; 46 authorizing an association to adopt rules for posting 47 certain notices on a website; revising provisions 48 relating to required condominium and cooperative 49 association bylaws; revising provisions relating to 50 evidence of condominium and cooperative association 51 compliance with the fire and life safety code; 52 revising unit and common elements required to be 53 retrofitted; revising provisions relating to an 54 association vote to forego retrofitting; providing 55 applicability; amending s. 718.113, F.S.; revising 56 voting requirements relating to alterations and 57 additions to certain common elements or association 58 property; amending s. 718.117, F.S.; revising 59 legislative findings; revising voting requirements for 60 the rejection of a plan of termination; increasing the 61 length of time to consider a plan of termination under 62 certain conditions; revising the requirements to 63 qualify for payment as a homestead owner if the owner 64 has rejected a plan of termination; revising and 65 providing notice requirements; providing 66 applicability; amending s. 718.707, F.S.; revising the 67 time period for classification as bulk assignee or 68 bulk buyer; amending s. 719.104, F.S.; revising 69 recordkeeping and reporting requirements; amending s. 70 719.1055, F.S.; revising provisions relating to 71 required condominium and cooperative association 72 bylaws; revising provisions relating to evidence of 73 condominium and cooperative association compliance 74 with the fire and life safety code; revising unit and 75 common elements required to be retrofitted; revising 76 provisions relating to an association vote to forego 77 retrofitting; providing applicability; amending s. 78 719.106, F.S.; revising requirements to serve as a 79 board member; prohibiting a board member from voting 80 via e-mail; requiring that directors who are 81 delinquent in certain payments owed in excess of 82 certain periods of time be deemed to have abandoned 83 their offices; authorizing an association to adopt 84 rules for posting certain notices on a website; 85 amending s. 719.107, F.S.; specifying certain services 86 that are obtained pursuant to a bulk contract to be 87 deemed a common expense; amending s. 720.303, F.S.; 88 prohibiting a board member from voting via e-mail; 89 revising certain notice requirements relating to board 90 meetings; revising financial reporting requirements; 91 authorizing an association to adopt rules for posting 92 certain notices on a website; amending s. 720.306, 93 F.S.; revising elections requirements; amending s. 94 720.3085, F.S.; providing applicability; providing an 95 effective date. 96 97 Be It Enacted by the Legislature of the State of Florida: 98 99 Section 1. Section 633.2225, Florida Statutes, is created 100 to read: 101 633.2225 Condominium and cooperative buildings without 102 sprinkler systems; notice requirements; enforcement.— 103 (1) The board of a condominium or cooperative association 104 that operates a building of three stories or more that has not 105 installed a sprinkler system in the common areas of the building 106 shall mark the building with a sign or symbol approved by the 107 State Fire Marshal in a manner sufficient to warn persons 108 conducting fire control and other emergency operations of the 109 lack of a sprinkler system in the common areas. 110 (2) The State Fire Marshal shall: 111 (a) Ensure that the dimensions and placement of the sign or 112 symbol do not diminish the aesthetic value of the building; and 113 (b) Adopt rules necessary to implement the provisions of 114 this section, including, but not limited to: 115 1. The dimensions and color of such sign or symbol. 116 2. The time within which the condominium or cooperative 117 buildings without sprinkler systems shall be marked as required 118 by this section. 119 3. The location on each condominium or cooperative building 120 without a sprinkler system where such sign or symbol must be 121 posted. 122 (3) The State Fire Marshal, and local fire officials in 123 accordance with s. 633.118, shall enforce this section. An 124 association that fails to comply with the requirements of this 125 section is subject to penalties as provided in s. 633.228. 126 Section 2. Paragraphs (a) and (d) of subsection (1), 127 subsections (3), (9), (12), and (13) of section 718.111, Florida 128 Statutes, are amended, and subsection (15) is added to that 129 section, to read: 130 718.111 The association.— 131 (1) CORPORATE ENTITY.— 132 (a) The operation of the condominium shall be by the 133 association, which must be a Florida corporation for profit or a 134 Florida corporation not for profit. However, any association 135 which was in existence on January 1, 1977, need not be 136 incorporated. The owners of units shall be shareholders or 137 members of the association. The officers and directors of the 138 association have a fiduciary relationship to the unit owners. It 139 is the intent of the Legislature that nothing in this paragraph 140 shall be construed as providing for or removing a requirement of 141 a fiduciary relationship between any manager employed by the 142 association and the unit owners. An officer, director, or 143 manager may not solicit, offer to accept, or accept any thing or 144 service of value or kickback for which consideration has not 145 been provided for his or her own benefit or that of his or her 146 immediate family, from any person providing or proposing to 147 provide goods or services to the association. Any such officer, 148 director, or manager who knowingly so solicits, offers to 149 accept, or accepts any thing or service of value or kickback is 150 subject to a civil penalty pursuant to s. 718.501(1)(d) and, if 151 applicable, a criminal penalty as provided in paragraph (d). 152 However, this paragraph does not prohibit an officer, director, 153 or manager from accepting services or items received in 154 connection with trade fairs or education programs. An 155 association may operate more than one condominium. 156 (d) As required by s. 617.0830, an officer, director, or 157 agent shall discharge his or her duties in good faith, with the 158 care an ordinarily prudent person in a like position would 159 exercise under similar circumstances, and in a manner he or she 160 reasonably believes to be in the interests of the association. 161 An officer, director, or agent shall be liable for monetary 162 damages as provided in s. 617.0834 if such officer, director, or 163 agent breached or failed to perform his or her duties and the 164 breach of, or failure to perform, his or her duties constitutes 165 a violation of criminal law as provided in s. 617.0834; 166 constitutes a transaction from which the officer or director 167 derived an improper personal benefit, either directly or 168 indirectly; or constitutes recklessness or an act or omission 169 that was in bad faith, with malicious purpose, or in a manner 170 exhibiting wanton and willful disregard of human rights, safety, 171 or property. Forgery of a ballot envelope or voting certificate 172 used in a condominium association election is punishable as 173 provided in s. 831.01, the theft or embezzlement of funds of a 174 condominium association is punishable as provided in s. 812.014, 175 and the destruction of or the refusal to allow inspection or 176 copying of an official record of a condominium association which 177 is accessible to unit owners within the timeframe required by 178 general law in furtherance of any crime is punishable as 179 tampering with physical evidence as provided in s. 918.13 or as 180 obstruction of justice as provided in chapter 843. An officer or 181 director charged by information or indictment with a crime 182 referenced in this paragraph must be removed from office, and 183 the vacancy shall be filled as provided in s. 718.112(2)(d)2. 184 until the end of the officer’s or director’s period of 185 suspension or the end of his or her term of office, whichever 186 occurs first. If a criminal charge is pending against the 187 officer or director, he or she may not be appointed or elected 188 to a position as an officer or a director of any association and 189 may not have access to the official records of any association, 190 except pursuant to a court order. However, if the charges are 191 resolved without a finding of guilt, the officer or director 192 must be reinstated for the remainder of his or her term of 193 office, if any. 194 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, 195 SUE, AND BE SUED; CONFLICT OF INTEREST.— 196 (a) The association may contract, sue, or be sued with 197 respect to the exercise or nonexercise of its powers. For these 198 purposes, the powers of the association include, but are not 199 limited to, the maintenance, management, and operation of the 200 condominium property. After control of the association is 201 obtained by unit owners other than the developer, the 202 association may institute, maintain, settle, or appeal actions 203 or hearings in its name on behalf of all unit owners concerning 204 matters of common interest to most or all unit owners, 205 including, but not limited to, the common elements; the roof and 206 structural components of a building or other improvements; 207 mechanical, electrical, and plumbing elements serving an 208 improvement or a building; representations of the developer 209 pertaining to any existing or proposed commonly used facilities; 210 and protesting ad valorem taxes on commonly used facilities and 211 on units; and may defend actions in eminent domain or bring 212 inverse condemnation actions. If the association has the 213 authority to maintain a class action, the association may be 214 joined in an action as representative of that class with 215 reference to litigation and disputes involving the matters for 216 which the association could bring a class action. Nothing herein 217 limits any statutory or common-law right of any individual unit 218 owner or class of unit owners to bring any action without 219 participation by the association which may otherwise be 220 available. 221 (b) An association may not hire an attorney who represents 222 the management company of the association. 223 (9) PURCHASE OF UNITS.—The association has the power, 224 unless prohibited by the declaration, articles of incorporation, 225 or bylaws of the association, to purchase units in the 226 condominium and to acquire and hold, lease, mortgage, and convey 227 them. There shall be no limitation on the association’s right to 228 purchase a unit at a foreclosure sale resulting from the 229 association’s foreclosure of its lien for unpaid assessments, or 230 to take title by deed in lieu of foreclosure. However, except 231 for a timeshare condominium, a board member, manager, or 232 management company may not purchase a unit at a foreclosure sale 233 resulting from the association’s foreclosure of its lien for 234 unpaid assessments or take title by deed in lieu of foreclosure. 235 (12) OFFICIAL RECORDS.— 236 (a) From the inception of the association, the association 237 shall maintain each of the following items, if applicable, which 238 constitutes the official records of the association: 239 1. A copy of the plans, permits, warranties, and other 240 items provided by the developer pursuant to s. 718.301(4). 241 2. A photocopy of the recorded declaration of condominium 242 of each condominium operated by the association and each 243 amendment to each declaration. 244 3. A photocopy of the recorded bylaws of the association 245 and each amendment to the bylaws. 246 4. A certified copy of the articles of incorporation of the 247 association, or other documents creating the association, and 248 each amendment thereto. 249 5. A copy of the current rules of the association. 250 6. A book or books that contain the minutes of all meetings 251 of the association, the board of administration, and the unit 252 owners, which minutes must be retained for at least 7 years. 253 7. A current roster of all unit owners and their mailing 254 addresses, unit identifications, and voting certifications, and, 255 if known, telephone numbers. The association shall also maintain 256 the electronic mailing addresses and facsimile numbers of unit 257 owners consenting to receive notice by electronic transmission. 258 The electronic mailing addresses and facsimile numbers are not 259 accessible to unit owners if consent to receive notice by 260 electronic transmission is not provided in accordance with sub 261 subparagraph (c)3.e.subparagraph (c)5.However, the association 262 is not liable for an inadvertent disclosure of the electronic 263 mail address or facsimile number for receiving electronic 264 transmission of notices. 265 8. All current insurance policies of the association and 266 condominiums operated by the association. 267 9. A current copy of any management agreement, lease, or 268 other contract to which the association is a party or under 269 which the association or the unit owners have an obligation or 270 responsibility. 271 10. Bills of sale or transfer for all property owned by the 272 association. 273 11. Accounting records for the association and separate 274 accounting records for each condominium that the association 275 operates. All accounting records must be maintained for at least 276 7 years. Any person who knowingly or intentionally defaces or 277 destroys such records, or who knowingly or intentionally fails 278 to create or maintain such records, with the intent of causing 279 harm to the association or one or more of its members, is 280 personally subject to a civil penalty pursuant to s. 281 718.501(1)(d). The accounting records must include, but are not 282 limited to: 283 a. Accurate, itemized, and detailed records of all receipts 284 and expenditures. 285 b. A current account and a monthly, bimonthly, or quarterly 286 statement of the account for each unit designating the name of 287 the unit owner, the due date and amount of each assessment, the 288 amount paid on the account, and the balance due. 289 c. All audits, reviews, accounting statements, and 290 financial reports of the association or condominium. 291 d. All contracts for work to be performed. Bids for work to 292 be performed are also considered official records and must be 293 maintained by the association. 294 12. Ballots, sign-in sheets, voting proxies, and all other 295 papers and electronic records relating to voting by unit owners, 296 which must be maintained for 1 year from the date of the 297 election, vote, or meeting to which the document relates, 298 notwithstanding paragraph (b). 299 13. All rental records if the association is acting as 300 agent for the rental of condominium units. 301 14. A copy of the current question and answer sheet as 302 described in s. 718.504. 303 15. All other written records of the association not 304 specifically included in the foregoing which are related to the 305 operation of the association. 306 16. A copy of the inspection report as described in s. 307 718.301(4)(p). 308 17. Bids for materials, equipment, or services. 309 (b) The official records of the association must be 310 maintained within the state for at least 7 years. The records of 311 the association shall be made available to a unit owner within 312 45 miles of the condominium property or within the county in 313 which the condominium property is located within 105working 314 days after receipt of a written request by the board or its 315 designee. However, such distance requirement does not apply to 316 an association governing a timeshare condominium. This paragraph 317 may be complied with by having a copy of the official records of 318 the association available for inspection or copying on the 319 condominium property or association property, or the association 320 may offer the option of making the records available to a unit 321 owner electronically via the Internet or by allowing the records 322 to be viewed in electronic format on a computer screen and 323 printed upon request. The association is not responsible for the 324 use or misuse of the information provided to an association 325 member or his or her authorized representative pursuant to the 326 compliance requirements of this chapter unless the association 327 has an affirmative duty not to disclose such information 328 pursuant to this chapter. 329 (c)1. The official records of the association are open to 330 inspection by any association member or the authorized 331 representative of such member at all reasonable times. The right 332 to inspect the records includes the right to make or obtain 333 copies, at the reasonable expense, if any, of the member or 334 authorized representative of such member. A renter of a unit has 335 a right to inspect and copy the association’s bylaws and rules. 336 The association may adopt reasonable rules regarding the 337 frequency, time, location, notice, and manner of record 338 inspections and copying. The failure of an association to 339 provide the records within 10 working days after receipt of a 340 written request creates a rebuttable presumption that the 341 association willfully failed to comply with this paragraph. A 342 unit owner who is denied access to official records is entitled 343 to the actual damages or minimum damages for the association’s 344 willful failure to comply. Minimum damages are $50 per calendar 345 day for up to 10 days, beginning on the 11th working day after 346 receipt of the written request. The failure to permit inspection 347 entitles any person prevailing in an enforcement action to 348 recover reasonable attorney fees from the person in control of 349 the records who, directly or indirectly, knowingly denied access 350 to the records. 351 2. Any person who knowingly or intentionally defaces or 352 destroys accounting records that are required by this chapter to 353 be maintained during the period for which such records are 354 required to be maintained, or who knowingly or intentionally 355 fails to create or maintain accounting records that are required 356 to be created or maintained, with the intent of causing harm to 357 the association or one or more of its members, is personally 358 subject to a civil penalty pursuant to s. 718.501(1)(d). 359 3. The association shall maintain an adequate number of 360 copies of the declaration, articles of incorporation, bylaws, 361 and rules, and all amendments to each of the foregoing, as well 362 as the question and answer sheet as described in s. 718.504 and 363 year-end financial information required under this section, on 364 the condominium property to ensure their availability to unit 365 owners and prospective purchasers, and may charge its actual 366 costs for preparing and furnishing these documents to those 367 requesting the documents. An association shall allow a member or 368 his or her authorized representative to use a portable device, 369 including a smartphone, tablet, portable scanner, or any other 370 technology capable of scanning or taking photographs, to make an 371 electronic copy of the official records in lieu of the 372 association’s providing the member or his or her authorized 373 representative with a copy of such records. The association may 374 not charge a member or his or her authorized representative for 375 the use of a portable device. Notwithstanding this paragraph, 376 the following records are not accessible to unit owners: 377 a.1.Any record protected by the lawyer-client privilege as 378 described in s. 90.502 and any record protected by the work 379 product privilege, including a record prepared by an association 380 attorney or prepared at the attorney’s express direction, which 381 reflects a mental impression, conclusion, litigation strategy, 382 or legal theory of the attorney or the association, and which 383 was prepared exclusively for civil or criminal litigation or for 384 adversarial administrative proceedings, or which was prepared in 385 anticipation of such litigation or proceedings until the 386 conclusion of the litigation or proceedings. 387 b.2.Information obtained by an association in connection 388 with the approval of the lease, sale, or other transfer of a 389 unit. 390 c.3.Personnel records of association or management company 391 employees, including, but not limited to, disciplinary, payroll, 392 health, and insurance records. For purposes of this sub 393 subparagraphsubparagraph, the term “personnel records” does not 394 include written employment agreements with an association 395 employee or management company, or budgetary or financial 396 records that indicate the compensation paid to an association 397 employee. 398 d.4.Medical records of unit owners. 399 e.5.Social security numbers, driver license numbers, 400 credit card numbers, e-mail addresses, telephone numbers, 401 facsimile numbers, emergency contact information, addresses of a 402 unit owner other than as provided to fulfill the association’s 403 notice requirements, and other personal identifying information 404 of any person, excluding the person’s name, unit designation, 405 mailing address, property address, and any address, e-mail 406 address, or facsimile number provided to the association to 407 fulfill the association’s notice requirements. Notwithstanding 408 the restrictions in this sub-subparagraphsubparagraph, an 409 association may print and distribute to parcel owners a 410 directory containing the name, parcel address, and all telephone 411 numbers of each parcel owner. However, an owner may exclude his 412 or her telephone numbers from the directory by so requesting in 413 writing to the association. An owner may consent in writing to 414 the disclosure of other contact information described in this 415 sub-subparagraphsubparagraph. The association is not liable for 416 the inadvertent disclosure of information that is protected 417 under this sub-subparagraphsubparagraphif the information is 418 included in an official record of the association and is 419 voluntarily provided by an owner and not requested by the 420 association. 421 f.6.Electronic security measures that are used by the 422 association to safeguard data, including passwords. 423 g.7.The software and operating system used by the 424 association which allow the manipulation of data, even if the 425 owner owns a copy of the same software used by the association. 426 The data is part of the official records of the association. 427 (d) The association shall prepare a question and answer 428 sheet as described in s. 718.504, and shall update it annually. 429 (e)1. The association or its authorized agent is not 430 required to provide a prospective purchaser or lienholder with 431 information about the condominium or the association other than 432 information or documents required by this chapter to be made 433 available or disclosed. The association or its authorized agent 434 may charge a reasonable fee to the prospective purchaser, 435 lienholder, or the current unit owner for providing good faith 436 responses to requests for information by or on behalf of a 437 prospective purchaser or lienholder, other than that required by 438 law, if the fee does not exceed $150 plus the reasonable cost of 439 photocopying and any attorney’s fees incurred by the association 440 in connection with the response. 441 2. An association and its authorized agent are not liable 442 for providing such information in good faith pursuant to a 443 written request if the person providing the information includes 444 a written statement in substantially the following form: “The 445 responses herein are made in good faith and to the best of my 446 ability as to their accuracy.” 447 (f) An outgoing board or committee member must relinquish 448 all official records and property of the association in his or 449 her possession or under his or her control to the incoming board 450 within 5 days after the election. The division shall impose a 451 civil penalty as set forth in s. 718.501(1)(d)6. against an 452 outgoing board or committee member who willfully and knowingly 453 fails to relinquish such records and property. 454 (g)1. By July 1, 2018, an association with 150 or more 455 units which does not manage timeshare units shall post digital 456 copies of the documents specified in subparagraph 2. on its 457 website. 458 a. The association’s website must be: 459 (I) An independent website or web portal wholly owned and 460 operated by the association; or 461 (II) A website or web portal operated by a third-party 462 provider with whom the association owns, leases, rents, or 463 otherwise obtains the right to operate a web page, subpage, web 464 portal, or collection of subpages or web portals dedicated to 465 the association’s activities and on which required notices, 466 records, and documents may be posted by the association. 467 b. The association’s website must be accessible through the 468 Internet and must contain a subpage, web portal, or other 469 protected electronic location that is inaccessible to the 470 general public and accessible only to unit owners and employees 471 of the association. 472 c. Upon a unit owner’s written request, the association 473 must provide the unit owner with a username and password and 474 access to the protected sections of the association’s website 475 which contain any notices, records, or documents that must be 476 electronically provided. 477 2. A current copy of the following documents must be posted 478 in digital format on the association’s website: 479 a. The recorded declaration of condominium of each 480 condominium operated by the association and each amendment to 481 each declaration. 482 b. The recorded bylaws of the association and each 483 amendment to the bylaws. 484 c. The articles of incorporation of the association, or 485 other documents creating the association, and each amendment 486 thereto. The copy posted pursuant to this sub-subparagraph must 487 be a copy of the articles of incorporation filed with the 488 Department of State. 489 d. The rules of the association. 490 e. Any management agreement, lease, or other contract to 491 which the association is a party or under which the association 492 or the unit owners have an obligation or responsibility. 493 Summaries of bids for materials, equipment, or services must be 494 maintained on the website for 1 year. 495 f. The annual budget required by s. 718.112(2)(f) and any 496 proposed budget to be considered at the annual meeting. 497 g. The financial report required by subsection (13) and any 498 proposed financial report to be considered at a meeting. 499 h. The certification of each director required by s. 500 718.112(2)(d)4.b. 501 i. All contracts or transactions between the association 502 and any director, officer, corporation, firm, or association 503 that is not an affiliated condominium association or any other 504 entity in which an association director is also a director or 505 officer and is financially interested. 506 j. Any contract or document regarding a conflict of 507 interest or possible conflict of interest as provided in ss. 508 468.436(2) and 718.3026(3). 509 k. The notice of any unit owner meeting and the agenda for 510 the meeting, as required by s. 718.112(2)(d)3., no later than 14 511 days before the meeting. The notice must be posted in plain view 512 on the front page of the website, or on a separate subpage of 513 the website labeled “Notices” which is conspicuously visible and 514 linked from the front page. The association must also post on 515 its website any document to be considered and voted on by the 516 owners during the meeting or any document listed on the agenda 517 at least 7 days before the meeting at which the document or the 518 information within the document will be considered. 519 l. Notice of any board meeting, the agenda, and any other 520 document required for the meeting as required by s. 521 718.112(2)(c), which must be posted no later than the date 522 required for notice pursuant to s. 718.112(2)(c). 523 3. The association shall ensure that the information and 524 records described in paragraph (c) which are not permitted to be 525 accessible to unit owners are not posted on the association’s 526 website. If protected information or information restricted from 527 being accessible to unit owners is included in documents that 528 are required to be posted on the association’s website, the 529 association shall ensure the information is redacted before 530 posting the documents online. 531 (13) FINANCIAL REPORTING.—Within 90 days after the end of 532 the fiscal year, or annually on a date provided in the bylaws, 533 the association shall prepare and complete, or contract for the 534 preparation and completion of, a financial report for the 535 preceding fiscal year. Within 21 days after the final financial 536 report is completed by the association or received from the 537 third party, but not later than 120 days after the end of the 538 fiscal year or other date as provided in the bylaws, the 539 association shall mail to each unit owner at the address last 540 furnished to the association by the unit owner, or hand deliver 541 to each unit owner, a copy of the most recent financial report 542 or a notice that a copy of the most recent financial report will 543 be mailed or hand delivered to the unit owner, without charge, 544 within 5 business days afteruponreceipt of a written request 545 from the unit owner. The division shall adopt rules setting 546 forth uniform accounting principles and standards to be used by 547 all associations and addressing the financial reporting 548 requirements for multicondominium associations. The rules must 549 include, but not be limited to, standards for presenting a 550 summary of association reserves, including a good faith estimate 551 disclosing the annual amount of reserve funds that would be 552 necessary for the association to fully fund reserves for each 553 reserve item based on the straight-line accounting method. This 554 disclosure is not applicable to reserves funded via the pooling 555 method. In adopting such rules, the division shall consider the 556 number of members and annual revenues of an association. 557 Financial reports shall be prepared as follows: 558 (a) An association that meets the criteria of this 559 paragraph shall prepare a complete set of financial statements 560 in accordance with generally accepted accounting principles. The 561 financial statements must be based upon the association’s total 562 annual revenues, as follows: 563 1. An association with total annual revenues of $150,000 or 564 more, but less than $300,000, shall prepare compiled financial 565 statements. 566 2. An association with total annual revenues of at least 567 $300,000, but less than $500,000, shall prepare reviewed 568 financial statements. 569 3. An association with total annual revenues of $500,000 or 570 more shall prepare audited financial statements. 571 (b)1. An association with total annual revenues of less 572 than $150,000 shall prepare a report of cash receipts and 573 expenditures. 5742. An association that operates fewer than 50 units,575regardless of the association’s annual revenues, shall prepare a576report of cash receipts and expenditures in lieu of financial577statements required by paragraph (a).578 2.3.A report of cash receipts and disbursements must 579 disclose the amount of receipts by accounts and receipt 580 classifications and the amount of expenses by accounts and 581 expense classifications, including, but not limited to, the 582 following, as applicable: costs for security, professional and 583 management fees and expenses, taxes, costs for recreation 584 facilities, expenses for refuse collection and utility services, 585 expenses for lawn care, costs for building maintenance and 586 repair, insurance costs, administration and salary expenses, and 587 reserves accumulated and expended for capital expenditures, 588 deferred maintenance, and any other category for which the 589 association maintains reserves. 590 (c) An association may prepare, without a meeting of or 591 approval by the unit owners: 592 1. Compiled, reviewed, or audited financial statements, if 593 the association is required to prepare a report of cash receipts 594 and expenditures; 595 2. Reviewed or audited financial statements, if the 596 association is required to prepare compiled financial 597 statements; or 598 3. Audited financial statements if the association is 599 required to prepare reviewed financial statements. 600 (d) If approved by a majority of the voting interests 601 present at a properly called meeting of the association, an 602 association may prepare: 603 1. A report of cash receipts and expenditures in lieu of a 604 compiled, reviewed, or audited financial statement; 605 2. A report of cash receipts and expenditures or a compiled 606 financial statement in lieu of a reviewed or audited financial 607 statement; or 608 3. A report of cash receipts and expenditures, a compiled 609 financial statement, or a reviewed financial statement in lieu 610 of an audited financial statement. 611 612 Such meeting and approval must occur before the end of the 613 fiscal year and is effective only for the fiscal year in which 614 the vote is taken, except that the approval may also be 615 effective for the following fiscal year. If the developer has 616 not turned over control of the association, all unit owners, 617 including the developer, may vote on issues related to the 618 preparation of the association’s financial reports, from the 619 date of incorporation of the association through the end of the 620 second fiscal year after the fiscal year in which the 621 certificate of a surveyor and mapper is recorded pursuant to s. 622 718.104(4)(e) or an instrument that transfers title to a unit in 623 the condominium which is not accompanied by a recorded 624 assignment of developer rights in favor of the grantee of such 625 unit is recorded, whichever occurs first. Thereafter, all unit 626 owners except the developer may vote on such issues until 627 control is turned over to the association by the developer. Any 628 audit or review prepared under this section shall be paid for by 629 the developer if done before turnover of control of the 630 association.An association may not waive the financial631reporting requirements of this section for more than 3632consecutive years.633 (e) A unit owner may provide written notice to the division 634 of the association’s failure to mail or hand deliver to him or 635 her a copy of the most recent financial report within 5 business 636 days after he or she submitted a written request to the 637 association for a copy of such report. If the division 638 determines that the association failed to mail or hand deliver a 639 copy of the most recent financial report to the unit owner, the 640 division shall provide written notice to the association that 641 the association must mail or hand deliver a copy of the most 642 recent financial report to the unit owner and the division 643 within 5 business days after it receives such notice from the 644 division. An association that fails to comply with the 645 division’s request may not waive the financial reporting 646 requirement provided in paragraph (d). A financial report 647 received by the division pursuant to this paragraph shall be 648 maintained, and the division shall provide a copy of such report 649 to an association member upon his or her request. 650 (15) DEBIT CARDS.— 651 (a) An association and its officers, directors, employees, 652 and agents may not use a debit card issued in the name of the 653 association, or billed directly to the association, for the 654 payment of any association expense. 655 (b) Use of a debit card issued in the name of the 656 association, or billed directly to the association, for any 657 expense that is not a lawful obligation of the association may 658 be prosecuted as credit card fraud pursuant to s. 817.61. 659 Section 3. Paragraphs (c) and (l) of subsection (2) of 660 section 718.112, Florida Statutes, are amended to read: 661 718.112 Bylaws.— 662 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 663 following and, if they do not do so, shall be deemed to include 664 the following: 665 (c) Board of administration meetings.—Meetings of the board 666 of administration at which a quorum of the members is present 667 are open to all unit owners. Members of the board of 668 administration may use e-mail as a means of communication but 669 may not cast a vote on an association matter via e-mail. A unit 670 owner may tape record or videotape the meetings. The right to 671 attend such meetings includes the right to speak at such 672 meetings with reference to all designated agenda items. The 673 division shall adopt reasonable rules governing the tape 674 recording and videotaping of the meeting. The association may 675 adopt written reasonable rules governing the frequency, 676 duration, and manner of unit owner statements. 677 1. Adequate notice of all board meetings, which must 678 specifically identify all agenda items, must be posted 679 conspicuously on the condominium property at least 48 continuous 680 hours before the meeting except in an emergency. If 20 percent 681 of the voting interests petition the board to address an item of 682 business, the board, within 60 days after receipt of the 683 petition, shall place the item on the agenda at its next regular 684 board meeting or at a special meeting called for that purpose. 685 An item not included on the notice may be taken up on an 686 emergency basis by a vote of at least a majority plus one of the 687 board members. Such emergency action must be noticed and 688 ratified at the next regular board meeting. Notice of any 689 meeting in which a regular or special assessment against unit 690 owners is to be considered must specifically state that 691 assessments will be considered and provide the estimated amount 692 and a description of the purposes for such assessments.However,693 Written notice of a meeting at which a nonemergency special 694 assessment or an amendment to rules regarding unit use will be 695 considered must be mailed, delivered, or electronically 696 transmitted to the unit owners and posted conspicuously on the 697 condominium property at least 14 days before the meeting. 698 Evidence of compliance with this 14-day notice requirement must 699 be made by an affidavit executed by the person providing the 700 notice and filed with the official records of the association. 701 Upon notice to the unit owners, the board shall, by duly adopted 702 rule, designate a specific location on the condominium or 703 association property where all notices of board meetings must be 704 posted. If there is no condominium property or association 705 property where notices can be posted, notices shall be mailed, 706 delivered, or electronically transmitted to each unit owner at 707 least 14 days before the meeting. In lieu of or in addition to 708 the physical posting of the notice on the condominium property, 709 the association may, by reasonable rule, adopt a procedure for 710 conspicuously posting and repeatedly broadcasting the notice and 711 the agenda on a closed-circuit cable television system serving 712 the condominium association. However, if broadcast notice is 713 used in lieu of a notice physically posted on condominium 714 property, the notice and agenda must be broadcast at least four 715 times every broadcast hour of each day that a posted notice is 716 otherwise required under this section. If broadcast notice is 717 provided, the notice and agenda must be broadcast in a manner 718 and for a sufficient continuous length of time so as to allow an 719 average reader to observe the notice and read and comprehend the 720 entire content of the notice and the agenda. In addition to any 721 of the authorized means of providing notice of a meeting of the 722 board, the association may, by rule, adopt a procedure for 723 conspicuously posting the meeting notice and the agenda on a 724 website serving the condominium association for at least the 725 minimum period for which a notice of a meeting is required to be 726 physically posted on the condominium property. Any rule adopted 727 must, in addition to other matters, include a requirement that 728 the association send an electronic notice in the same manner as 729 required for a notice for a meeting of the members, which must 730 include a hypertext link to the website where the notice is 731 posted, to unit owners whose e-mail addresses are included in 732 the association’s official recordsNotice of any meeting in733which regular or special assessments against unit owners are to734be considered must specifically state that assessments will be735considered and provide the nature, estimated cost, and736description of the purposes for such assessments. 737 2. Meetings of a committee to take final action on behalf 738 of the board or make recommendations to the board regarding the 739 association budget are subject to this paragraph. Meetings of a 740 committee that does not take final action on behalf of the board 741 or make recommendations to the board regarding the association 742 budget are subject to this section, unless those meetings are 743 exempted from this section by the bylaws of the association. 744 3. Notwithstanding any other law, the requirement that 745 board meetings and committee meetings be open to the unit owners 746 does not apply to: 747 a. Meetings between the board or a committee and the 748 association’s attorney, with respect to proposed or pending 749 litigation, if the meeting is held for the purpose of seeking or 750 rendering legal advice; or 751 b. Board meetings held for the purpose of discussing 752 personnel matters. 753 (l) Certificate of compliance.—A provision that a 754 certificate of compliance from a licensed electrical contractor, 755orelectrician, or professional engineer may be accepted by the 756 association’s board as evidence of complianceof the condominium757unitswith the applicable fire and life safety code must be 758 included. Notwithstanding chapter 633 orofany other code, 759 statute, ordinance, administrative rule, or regulation, or any 760 interpretation of the foregoing, an association, residential761condominium,or unit owner is not obligated to retrofit the 762 common elements, association property, or units of a residential 763 condominium with a fire sprinkler system or other engineered 764 lifesafety system in a building that is 75 feet or less in 765 height. There is no obligation to retrofit for a building 766 greater than 75 feet in height, calculated from the lowest level 767 of fire department vehicle access to the floor of the highest 768 occupiable story,has been certified for occupancy by the769applicable governmental entityif the unit owners have voted to 770 forego such retrofitting by the affirmative vote of two-thirdsa771majorityof all voting interests in the affected condominium. 772 There is no requirement that owners in condominiums of 75 feet 773 or less conduct an opt-out vote, and such condominiums are 774 exempt from fire sprinkler or other engineered lifesafety 775 retrofitting. The preceding sentence is intended to clarify 776 existing law. The local authority having jurisdiction may not 777 require completion of retrofitting with a fire sprinkler system 778 or other engineered lifesafety system before January 1, 2022 7792020. By December 31, 20182016, ana residential condominium780 association that operates a residential condominium that is not 781 in compliance with the requirements for a fire sprinkler system 782 or other engineered lifesafety system and has not voted to 783 forego retrofitting of such a system must initiate an 784 application for a building permit for the required installation 785 with the local government having jurisdiction demonstrating that 786 the association will become compliant by December 31, 20212019. 787 1. A vote to forego required retrofitting may be obtained 788 by limited proxy or by a ballot personally cast at a duly called 789 membership meeting,orby execution of a written consent by the 790 member, or by electronic voting, and is effective upon recording 791 a certificate executed by an officer or agent of the association 792 attesting to such vote in the public records of the county where 793 the condominium is located. When an opt-out vote is to be 794 conducted at a meeting, the association shall mail orhand795 deliver to each unit owner written notice at least 14 days 796 before the membership meeting in which the vote to forego 797 retrofitting of the required fire sprinkler system or other 798 engineered lifesafety system is to take place. Within 30 days 799 after the association’s opt-out vote, notice of the results of 800 the opt-out vote must be mailed orhanddelivered to all unit 801 owners. Evidence of compliance with this notice requirement must 802 be made by affidavit executed by the person providing the notice 803 and filed among the official records of the association. Failure 804 to provide timely notice to unit owners does not invalidate an 805 otherwise valid opt-out vote if notice of the results is 806 provided to the owners. After notice is provided to each owner, 807 a copy must be provided by the current owner to a new owner 808 before closing and by a unit owner to a renter before signing a 809 lease. 810 2. If there has been a previous vote to forego 811 retrofitting, a vote to require retrofitting may be obtained at 812 a special meeting of the unit owners called by a petition of at 813 least 10 percent of the voting interests or by a majority of the 814 board of directors. The approval of two-thirds of all voting 815 interests in the affected condominium is required to require 816 retrofitting.Such a vote may only be called once every 3 years.817 Notice shall be provided as required for any regularly called 818 meeting of the unit owners, and must state the purpose of the 819 meeting.Electronic transmission may not be used to provide820notice of a meeting called in whole or in part for this purpose.821 3. As part of the information collected annually from 822 condominiums, the division shall require condominium 823 associations to report the membership vote and recording of a 824 certificate under this subsection and, if retrofitting has been 825 undertaken, the per-unit cost of such work. The division shall 826 annually report to the Division of State Fire Marshal of the 827 Department of Financial Services the number of condominiums that 828 have elected to forego retrofitting. Compliance with this 829 administrative reporting requirement does not affect the 830 validity of an opt-out vote. 831 4. Notwithstanding s. 553.509, a residential association 832 may not be obligated to, and may forego the retrofitting of, any 833 improvements required by s. 553.509(2) upon an affirmative vote 834 of a majority of the voting interests in the affected 835 condominium. 836 5. This paragraph does not apply to timeshare condominium 837 associations, which shall be governed by s. 721.24. 838 Section 4. Subsection (2) of section 718.113, Florida 839 Statutes, is amended to read: 840 718.113 Maintenance; limitation upon improvement; display 841 of flag; hurricane shutters and protection; display of religious 842 decorations.— 843 (2)(a) Except as otherwise provided in this section, there 844 shall be no material alteration or substantial additions to the 845 common elements or to real property which is association 846 property, except in a manner provided in the declaration as 847 originally recorded or as amended under the procedures provided 848 therein. If the declaration as originally recorded or as amended 849 under the procedures provided therein does not specify the 850 procedure for approval of material alterations or substantial 851 additions, 75 percent of the total voting interests of the 852 association must approve the alterations or additions before the 853 material alterations or substantial additions are commenced. 854 This paragraph is intended to clarify existing law and applies 855 to associations existing on the effective date of this act 856October 1, 2008. 857 (b) There shall not be any material alteration of, or 858 substantial addition to, the common elements of any condominium 859 operated by a multicondominium association unless approved in 860 the manner provided in the declaration of the affected 861 condominium or condominiums as originally recorded or as amended 862 under the procedures provided therein. If a declaration as 863 originally recorded or as amended under the procedures provided 864 therein does not specify a procedure for approving such an 865 alteration or addition, the approval of 75 percent of the total 866 voting interests of each affected condominium is required before 867 the material alterations or substantial additions are commenced. 868 This subsection does not prohibit a provision in any 869 declaration, articles of incorporation, or bylaws as originally 870 recorded or as amended under the procedures provided therein 871 requiring the approval of unit owners in any condominium 872 operated by the same association or requiring board approval 873 before a material alteration or substantial addition to the 874 common elements is permitted. This paragraph is intended to 875 clarify existing law and applies to associations existing on the 876 effective date of this act. 877 (c) There shall not be any material alteration or 878 substantial addition made to association real property operated 879 by a multicondominium association, except as provided in the 880 declaration, articles of incorporation, or bylaws as originally 881 recorded or as amended under the procedures provided therein. If 882 the declaration, articles of incorporation, or bylaws as 883 originally recorded or as amended under the procedures provided 884 therein do not specify the procedure for approving an alteration 885 or addition to association real property, the approval of 75 886 percent of the total voting interests of the association is 887 required before the material alterations or substantial 888 additions are commenced. This paragraph is intended to clarify 889 existing law and applies to associations existing on the 890 effective date of this act. 891 Section 5. Subsections (1) and (3) of section 718.117, 892 Florida Statutes, are amended, and subsection (21) is added to 893 that section, to read: 894 718.117 Termination of condominium.— 895 (1) LEGISLATIVE FINDINGS.—The Legislature finds that: 896 (a) Condominiums are created as authorized by statute and 897 are subject to covenants that encumber the land and restrict the 898 use of real property. 899 (b) In some circumstances, the continued enforcement of 900 those covenantsthatmay create economic waste or,areas of 901 disrepair which threaten the safety and welfare of the public,902 or cause obsolescence of thea condominiumproperty for its 903 intended use and thereby lower property tax values, andthe904Legislature further finds thatit is the public policy of this 905 state to provide by statute a method to preserve the value of 906 the property interests and the rights of alienation thereof that 907 owners have in the condominium property before and after 908 termination. 909 (c)The Legislature further finds thatIt is contrary to 910 the public policy of this state to require the continued 911 operation of a condominium when to do so constitutes economic 912 waste or when the ability to do so is made impossible by law or 913 regulation. 914 (d) It is in the best interest of the state to provide for 915 termination of the covenants of a declaration of condominium in 916 certain circumstances, in order to: 917 1. Ensure the continued maintenance, management, and repair 918 of stormwater management systems, conservation areas, and 919 conservation easements. 920 2. Avoid transferring the expense of maintaining 921 infrastructure serving the condominium property, including, but 922 not limited to, stormwater systems and conservation areas, to 923 the general tax bases of the state and local governments. 924 3. Prevent covenants from impairing the continued 925 productive use of the property. 926 4. Protect state residents from health and safety hazards 927 created by derelict, damaged, obsolete, or abandoned condominium 928 properties. 929 5. Provide for fair treatment and just compensation for 930 individuals, preserve property values, and preserve the local 931 property tax base. 932 6. Preserve the state’s long history of protecting 933 homestead property and homestead property rights by ensuring 934 that such protection is extended to homestead property owners in 935 the context of a termination of the covenants of a declaration 936 of condominiumThis section applies to all condominiums in this937state in existence on or after July 1, 2007. 938 (3) OPTIONAL TERMINATION.—Except as provided in subsection939(2) or unless the declaration provides for a lower percentage,940 The condominium form of ownership may be terminated for all or a 941 portion of the condominium property pursuant to a plan of 942 termination meeting the requirements of this section and 943 approved by the division. Before a residential association 944 submits a plan to the division, the plan must be approved by at 945 least 80 percent of the total voting interests of the 946 condominium. However, if 510percent or more of the total 947 voting interests of the condominium have rejected the plan of 948 termination by negative vote or by providing written objections, 949 the plan of termination may not proceed. 950 (a) The termination of the condominium form of ownership is 951 subject to the following conditions: 952 1. The total voting interests of the condominium must 953 include all voting interests for the purpose of considering a 954 plan of termination. A voting interest of the condominium may 955 not be suspended for any reason when voting on termination 956 pursuant to this subsection. 957 2. If 510percent or more of the total voting interests of 958 the condominium reject a plan of termination, a subsequent plan 959 of termination pursuant to this subsection may not be considered 960 for 2418months after the date of the rejection. 961 (b) This subsection does not apply to any condominium 962 created pursuant to part VI of this chapter until 105years 963 after the recording of the declaration of condominium, unless 964 there is no objection to the plan of termination. 965 (c) For purposes of this subsection, the term “bulk owner” 966 means the single holder of such voting interests or an owner 967 together with a related entity or entities that would be 968 considered an insider, as defined in s. 726.102, holding such 969 voting interests. If the condominium association is a 970 residential association proposed for termination pursuant to 971 this section and, at the time of recording the plan of 972 termination, at least 80 percent of the total voting interests 973 are owned by a bulk owner, the plan of termination is subject to 974 the following conditions and limitations: 975 1. If the former condominium units are offered for lease to 976 the public after the termination, each unit owner in occupancy 977 immediately before the date of recording of the plan of 978 termination may lease his or her former unit and remain in 979 possession of the unit for 12 months after the effective date of 980 the termination on the same terms as similar unit types within 981 the property are being offered to the public. In order to obtain 982 a lease and exercise the right to retain exclusive possession of 983 the unit owner’s former unit, the unit owner must make a written 984 request to the termination trustee to rent the former unit 985 within 90 days after the date the plan of termination is 986 recorded. Any unit owner who fails to timely make such written 987 request and sign a lease within 15 days after being presented 988 with a lease is deemed to have waived his or her right to retain 989 possession of his or her former unit and shall be required to 990 vacate the former unit upon the effective date of the 991 termination, unless otherwise provided in the plan of 992 termination. 993 2. Any former unit owner whose unit was granted homestead 994 exemption status by the applicable county property appraiser as 995 of the date of the recording of the plan of termination shall be 996 paid a relocation payment in an amount equal to 1 percent of the 997 termination proceeds allocated to the owner’s former unit. Any 998 relocation payment payable under this subparagraph shall be paid 999 by the single entity or related entities owning at least 80 1000 percent of the total voting interests. Such relocation payment 1001 shall be in addition to the termination proceeds for such 1002 owner’s former unit and shall be paid no later than 10 days 1003 after the former unit owner vacates his or her former unit. 1004 3. For their respective units, all unit owners other than 1005 the bulk owner must be compensated at least 100 percent of the 1006 fair market value of their units. The fair market value shall be 1007 determined as of a date that is no earlier than 90 days before 1008 the date that the plan of termination is recorded and shall be 1009 determined by an independent appraiser selected by the 1010 termination trustee. For a personan original purchaser from the1011developer who rejects the plan of termination andwhose unit was 1012 granted homestead exemption status by the applicable county 1013 property appraiser, or was an owner-occupied operating business, 1014 as of the date that the plan of termination is recorded and who 1015 is current in payment of both assessments and other monetary 1016 obligations to the associationand any mortgage encumbering the1017unitas of the date the plan of termination is recorded, the 1018 fair market value for the unit owner rejecting the plan shall be 1019 at least the original purchase price paid for the unit. For 1020 purposes of this subparagraph, the term “fair market value” 1021 means the price of a unit that a seller is willing to accept and 1022 a buyer is willing to pay on the open market in an arms-length 1023 transaction based on similar units sold in other condominiums, 1024 including units sold in bulk purchases but excluding units sold 1025 at wholesale or distressed prices. The purchase price of units 1026 acquired in bulk following a bankruptcy or foreclosure shall not 1027 be considered for purposes of determining fair market value. 1028 4. The plan of termination must provide for payment of a 1029 first mortgage encumbering a unit to the extent necessary to 1030 satisfy the lien, but the payment may not exceed the unit’s 1031 share of the proceeds of termination under the plan. If the unit 1032 owner is current in payment of both assessments and other 1033 monetary obligations to the association and any mortgage 1034 encumbering the unit as of the date the plan of termination is 1035 recorded, the receipt by the holder of the unit’s share of the 1036 proceeds of termination under the plan or the outstanding 1037 balance of the mortgage, whichever is less, shall be deemed to 1038 have satisfied the first mortgage in full. 1039 5. Before a plan of termination is presented to the unit 1040 owners for consideration pursuant to this paragraph, the plan 1041 must include the following written disclosures in a sworn 1042 statement: 1043 a. The identity of any person or entity that owns or 1044 controls 2550percent or more of the units in the condominium 1045 and, if the units are owned by an artificial entity or entities, 1046 a disclosure of the natural person or persons who, directly or 1047 indirectly, manage or control the entity or entities and the 1048 natural person or persons who, directly or indirectly, own or 1049 control 1020percent or more of the artificial entity or 1050 entities that constitute the bulk owner. 1051 b. The units acquired by any bulk owner, the date each unit 1052 was acquired, and the total amount of compensation paid to each 1053 prior unit owner by the bulk owner, regardless of whether 1054 attributed to the purchase price of the unit. 1055 c. The relationship of any board member to the bulk owner 1056 or any person or entity affiliated with the bulk owner subject 1057 to disclosure pursuant to this subparagraph. 1058 d. The factual circumstances that show that the plan 1059 complies with the requirements of this section and that the plan 1060 supports the expressed public policies of this section. 1061 (d) If the members of the board of administration are 1062 elected by the bulk owner, unit owners other than the bulk owner 1063 may elect at least one-third of the members of the board of 1064 administration before the approval of any plan of termination. 1065 (e) Subsection (2) does not apply to optional termination 1066 pursuant to this subsection. 1067 (21) APPLICABILITY.—This section applies to all 1068 condominiums in this state in existence on or after July 1, 1069 2007. 1070 Section 6. The amendments made by this act to s. 718.117, 1071 Florida Statutes, are intended to clarify existing law, are 1072 remedial in nature and intended to address the rights and 1073 liabilities of the affected parties, and apply to all 1074 condominiums created under the Condominium Act. 1075 Section 7. Section 718.707, Florida Statutes, is amended to 1076 read: 1077 718.707 Time limitation for classification as bulk assignee 1078 or bulk buyer.—A person acquiring condominium parcels may not be 1079 classified as a bulk assignee or bulk buyer unless the 1080 condominium parcels were acquired on or after July 1, 2010, but1081before July 1, 2018. The date of such acquisition shall be 1082 determined by the date of recording a deed or other instrument 1083 of conveyance for such parcels in the public records of the 1084 county in which the condominium is located, or by the date of 1085 issuing a certificate of title in a foreclosure proceeding with 1086 respect to such condominium parcels. 1087 Section 8. Paragraphs (a) and (b) of subsection (2) and 1088 paragraphs (b) and (c) of subsection (4) of section 719.104, 1089 Florida Statutes, are amended to read: 1090 719.104 Cooperatives; access to units; records; financial 1091 reports; assessments; purchase of leases.— 1092 (2) OFFICIAL RECORDS.— 1093 (a) From the inception of the association, the association 1094 shall maintain a copy of each of the following, where 1095 applicable, which shall constitute the official records of the 1096 association: 1097 1. The plans, permits, warranties, and other items provided 1098 by the developer pursuant to s. 719.301(4). 1099 2. A photocopy of the cooperative documents. 1100 3. A copy of the current rules of the association. 1101 4. A book or books containing the minutes of all meetings 1102 of the association, of the board of directors, and of the unit 1103 owners, which minutes shall be retained for a period of not less 1104 than 7 years. 1105 5. A current roster of all unit owners and their mailing 1106 addresses, unit identifications, voting certifications, and, if 1107 known, telephone numbers. The association shall also maintain 1108 the electronic mailing addresses and the numbers designated by 1109 unit owners for receiving notice sent by electronic transmission 1110 of those unit owners consenting to receive notice by electronic 1111 transmission. The electronic mailing addresses and numbers 1112 provided by unit owners to receive notice by electronic 1113 transmission shall be removed from association records when 1114 consent to receive notice by electronic transmission is revoked. 1115 However, the association is not liable for an erroneous 1116 disclosure of the electronic mail address or the number for 1117 receiving electronic transmission of notices. 1118 6. All current insurance policies of the association. 1119 7. A current copy of any management agreement, lease, or 1120 other contract to which the association is a party or under 1121 which the association or the unit owners have an obligation or 1122 responsibility. 1123 8. Bills of sale or transfer for all property owned by the 1124 association. 1125 9. Accounting records for the association and separate 1126 accounting records for each unit it operates, according to good 1127 accounting practices. All accounting records shall be maintained 1128 for a period of not less than 7 years. The accounting records 1129 shall include, but not be limited to: 1130 a. Accurate, itemized, and detailed records of all receipts 1131 and expenditures. 1132 b. A current account and a monthly, bimonthly, or quarterly 1133 statement of the account for each unit designating the name of 1134 the unit owner, the due date and amount of each assessment, the 1135 amount paid upon the account, and the balance due. 1136 c. All audits, reviews, accounting statements, and 1137 financial reports of the association. 1138 d. All contracts for work to be performed. Bids for work to 1139 be performed shall also be considered official records and shall 1140 be maintained for a period of 1 year. 1141 10. Ballots, sign-in sheets, voting proxies, and all other 1142 papers and electronic records relating to voting by unit owners, 1143 which shall be maintained for a period of 1 year after the date 1144 of the election, vote, or meeting to which the document relates. 1145 11. All rental records where the association is acting as 1146 agent for the rental of units. 1147 12. A copy of the current question and answer sheet as 1148 described in s. 719.504. 1149 13. All other written records of the association not 1150 specifically included in the foregoing which are related to the 1151 operation of the association. 1152 (b) The official records of the association must be 1153 maintained within the state for at least 7 years. The records of 1154 the association shall be made available to a unit owner within 1155 45 miles of the cooperative property or within the county in 1156 which the cooperative property is located within 105working 1157 days after receipt of written request by the board or its 1158 designee. This paragraph may be complied with by having a copy 1159 of the official records of the association available for 1160 inspection or copying on the cooperative property or the 1161 association may offer the option of making the records available 1162 to a unit owner electronically via the Internet or by allowing 1163 the records to be viewed in an electronic format on a computer 1164 screen and printed upon request. The association is not 1165 responsible for the use or misuse of the information provided to 1166 an association member or his or her authorized representative 1167 pursuant to the compliance requirements of this chapter unless 1168 the association has an affirmative duty not to disclose such 1169 information pursuant to this chapter. 1170 (4) FINANCIAL REPORT.— 1171 (b) Except as provided in paragraph (c), an association 1172 whose total annual revenues meet the criteria of this paragraph 1173 shall prepare or cause to be prepared a complete set of 1174 financial statements according to the generally accepted 1175 accounting principles adopted by the Board of Accountancy. The 1176 financial statements shall be as follows: 1177 1. An association with total annual revenues between 1178 $150,000 and $299,999 shall prepare a compiled financial 1179 statement. 1180 2. An association with total annual revenues between 1181 $300,000 and $499,999 shall prepare a reviewed financial 1182 statement. 1183 3. An association with total annual revenues of $500,000 or 1184 more shall prepare an audited financial statement. 1185 4. The requirement to have the financial statement 1186 compiled, reviewed, or audited does not apply to an association 1187 if a majority of the voting interests of the association present 1188 at a duly called meeting of the association have voted to waive 1189 this requirement for the fiscal year. In an association in which 1190 turnover of control by the developer has not occurred, the 1191 developer may vote to waive the audit requirement for the first 1192 2 years of operation of the association, after which time waiver 1193 of an applicable audit requirement shall be by a majority of 1194 voting interests other than the developer. The meeting shall be 1195 held prior to the end of the fiscal year, and the waiver shall 1196 be effective for only one fiscal year.An association may not1197waive the financial reporting requirements of this section for1198more than 3 consecutive years.1199 (c)1. An association with total annual revenues of less 1200 than $150,000 shall prepare a report of cash receipts and 1201 expenditures. 12022.An association in a community of fewer than 50 units,1203regardless of the association’s annual revenues, shall prepare a1204report of cash receipts and expenditures in lieu of the1205financial statements required by paragraph (b), unless the1206declaration or other recorded governing documents provide1207otherwise.1208 2.3.A report of cash receipts and expenditures must 1209 disclose the amount of receipts by accounts and receipt 1210 classifications and the amount of expenses by accounts and 1211 expense classifications, including the following, as applicable: 1212 costs for security, professional, and management fees and 1213 expenses; taxes; costs for recreation facilities; expenses for 1214 refuse collection and utility services; expenses for lawn care; 1215 costs for building maintenance and repair; insurance costs; 1216 administration and salary expenses; and reserves, if maintained 1217 by the association. 1218 Section 9. Subsection (5) of section 719.1055, Florida 1219 Statutes, is amended to read: 1220 719.1055 Amendment of cooperative documents; alteration and 1221 acquisition of property.— 1222 (5) The bylaws must include a provision whereby a 1223 certificate of compliance from a licensed electrical contractor, 1224orelectrician, or professional engineer may be accepted by the 1225 association’s board as evidence of complianceof the cooperative1226unitswith the applicable fire and life safety code. 1227 (a)1. Notwithstanding chapter 633 or any other code, 1228 statute, ordinance, administrative rule, or regulation, or any 1229 interpretation of the foregoing, an associationa cooperativeor 1230 unit owner is not obligated to retrofit the common elements or 1231 units of a residential cooperative with a fire sprinkler system 1232 or other engineered lifesafety system in a building that is 75 1233 feet or less in height. There is no obligation to retrofit for a 1234 building greater than 75 feet in height, calculated from the 1235 lowest level of fire department vehicle access to the floor of 1236 the highest occupiable story,has been certified for occupancy1237by the applicable governmental entityif the unit owners have 1238 voted to forego such retrofitting by the affirmative vote of 1239 two-thirdsa majorityof all voting interests in the affected 1240 cooperative. There is no requirement that owners in cooperatives 1241 of 75 feet or less conduct an opt-out vote, and such 1242 cooperatives are exempt from fire sprinkler or other engineered 1243 life safety retrofitting. The preceding sentence is intended to 1244 clarify existing law. The local authority having jurisdiction 1245 may not require completion of retrofitting with a fire sprinkler 1246 system or other engineered life safety system before January 1, 1247 2022the end of 2019. By December 31, 20182016, a cooperative 1248 that is not in compliance with the requirements for a fire 1249 sprinkler system or other engineered lifesafety system and has 1250 not voted to forego retrofitting of such a system must initiate 1251 an application for a building permit for the required 1252 installation with the local government having jurisdiction 1253 demonstrating that the cooperative will become compliant by 1254 December 31, 20212019. 1255 2. A vote to forego required retrofitting may be obtained 1256 by limited proxy or by a ballot personally cast at a duly called 1257 membership meeting,orby execution of a written consent by the 1258 member, or by electronic voting, and is effective upon recording 1259 a certificate executed by an officer or agent of the association 1260 attesting to such vote in the public records of the county where 1261 the cooperative is located. When the opt-out vote is to be 1262 conducted at a meeting, the cooperative shall mail orhand1263 deliver to each unit owner written notice at least 14 days 1264 before the membership meeting in which the vote to forego 1265 retrofitting of the required fire sprinkler system or other 1266 engineered lifesafety system is to take place. Within 30 days 1267 after the cooperative’s opt-out vote, notice of the results of 1268 the opt-out vote must be mailed orhanddelivered to all unit 1269 owners. Evidence of compliance with this notice requirement must 1270 be made by affidavit executed by the person providing the notice 1271 and filed among the official records of the cooperative. Failure 1272 to provide timely notice to unit owners does not invalidate an 1273 otherwise valid opt-out vote if notice of the results is 1274 provided to the owners. After notice is provided to each owner, 1275 a copy must be provided by the current owner to a new owner 1276 before closing and by a unit owner to a renter before signing a 1277 lease. 1278 (b) If there has been a previous vote to forego 1279 retrofitting, a vote to require retrofitting may be obtained at 1280 a special meeting of the unit owners called by a petition of 1281 least 10 percent of the voting interests or by a majority of the 1282 board of directors. The approval of two-thirds of all voting 1283 interests in the affected condominium is required to require 1284 retrofitting.Such vote may only be called once every 3 years.1285 Notice must be provided as required for any regularly called 1286 meeting of the unit owners, and the notice must state the 1287 purpose of the meeting.Electronic transmission may not be used1288to provide notice of a meeting called in whole or in part for1289this purpose.1290 (c) As part of the information collected annually from 1291 cooperatives, the division shall require associations to report 1292 the membership vote and recording of a certificate under this 1293 subsection and, if retrofitting has been undertaken, the per 1294 unit cost of such work. The division shall annually report to 1295 the Division of State Fire Marshal of the Department of 1296 Financial Services the number of cooperatives that have elected 1297 to forego retrofitting. Compliance with this administrative 1298 reporting requirement does not affect the validity of an opt-out 1299 vote. 1300 Section 10. Paragraphs (a) and (c) of subsection (1) of 1301 section 719.106, Florida Statutes, are amended, and paragraph 1302 (m) is added to that subsection, to read: 1303 719.106 Bylaws; cooperative ownership.— 1304 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 1305 documents shall provide for the following, and if they do not, 1306 they shall be deemed to include the following: 1307 (a) Administration.— 1308 1. The form of administration of the association shall be 1309 described, indicating the titles of the officers and board of 1310 administration and specifying the powers, duties, manner of 1311 selection and removal, and compensation, if any, of officers and 1312 board members. In the absence of such a provision, the board of 1313 administration shall be composed of five members, except in the 1314 case of cooperatives having five or fewer units, in which case 1315 in not-for-profit corporations, the board shall consist of not 1316 fewer than three members. In a residential cooperative 1317 association of more than 10 units, coowners of a unit may not 1318 serve as members of the board of directors at the same time 1319 unless the coowners own more than one unit or unless there are 1320 not enough eligible candidates to fill the vacancies on the 1321 board at the time of the vacancy. In the absence of provisions 1322 to the contrary, the board of administration shall have a 1323 president, a secretary, and a treasurer, who shall perform the 1324 duties of those offices customarily performed by officers of 1325 corporations. Unless prohibited in the bylaws, the board of 1326 administration may appoint other officers and grant them those 1327 duties it deems appropriate. Unless otherwise provided in the 1328 bylaws, the officers shall serve without compensation and at the 1329 pleasure of the board. Unless otherwise provided in the bylaws, 1330 the members of the board shall serve without compensation. 1331 2. A person who has been suspended or removed by the 1332 division under this chapter, or who is delinquent in the payment 1333 of any monetary obligation due to the association, is not 1334 eligible to be a candidate for board membership and may not be 1335 listed on the ballot. A director or officer charged by 1336 information or indictment with a felony theft or embezzlement 1337 offense involving the association’s funds or property is 1338 suspended from office. The board shall fill the vacancy 1339 according to general law until the end of the period of the 1340 suspension or the end of the director’s term of office, 1341 whichever occurs first. However, if the charges are resolved 1342 without a finding of guilt or without acceptance of a plea of 1343 guilty or nolo contendere, the director or officer shall be 1344 reinstated for any remainder of his or her term of office. A 1345 member who has such criminal charges pending may not be 1346 appointed or elected to a position as a director or officer. A 1347 person who has been convicted of any felony in this state or in 1348 any United States District Court, or who has been convicted of 1349 any offense in another jurisdiction which would be considered a 1350 felony if committed in this state, is not eligible for board 1351 membership unless such felon’s civil rights have been restored 1352 for at least 5 years as of the date such person seeks election 1353 to the board. The validity of an action by the board is not 1354 affected if it is later determined that a board member is 1355 ineligible for board membership due to having been convicted of 1356 a felony. 1357 3. When a unit owner files a written inquiry by certified 1358 mail with the board of administration, the board shall respond 1359 in writing to the unit owner within 30 days of receipt of the 1360 inquiry. The board’s response shall either give a substantive 1361 response to the inquirer, notify the inquirer that a legal 1362 opinion has been requested, or notify the inquirer that advice 1363 has been requested from the division. If the board requests 1364 advice from the division, the board shall, within 10 days of its 1365 receipt of the advice, provide in writing a substantive response 1366 to the inquirer. If a legal opinion is requested, the board 1367 shall, within 60 days after the receipt of the inquiry, provide 1368 in writing a substantive response to the inquirer. The failure 1369 to provide a substantive response to the inquirer as provided 1370 herein precludes the board from recovering attorney’s fees and 1371 costs in any subsequent litigation, administrative proceeding, 1372 or arbitration arising out of the inquiry. The association may, 1373 through its board of administration, adopt reasonable rules and 1374 regulations regarding the frequency and manner of responding to 1375 the unit owners’ inquiries, one of which may be that the 1376 association is obligated to respond to only one written inquiry 1377 per unit in any given 30-day period. In such case, any 1378 additional inquiry or inquiries must be responded to in the 1379 subsequent 30-day period, or periods, as applicable. 1380 (c) Board of administration meetings.—Members of the board 1381 of administration may use e-mail as a means of communication but 1382 may not cast a vote on an association matter via e-mail. 1383 Meetings of the board of administration at which a quorum of the 1384 members is present shall be open to all unit owners. Any unit 1385 owner may tape record or videotape meetings of the board of 1386 administration. The right to attend such meetings includes the 1387 right to speak at such meetings with reference to all designated 1388 agenda items. The division shall adopt reasonable rules 1389 governing the tape recording and videotaping of the meeting. The 1390 association may adopt reasonable written rules governing the 1391 frequency, duration, and manner of unit owner statements. 1392 Adequate notice of all meetings shall be posted in a conspicuous 1393 place upon the cooperative property at least 48 continuous hours 1394 preceding the meeting, except in an emergency. Any item not 1395 included on the notice may be taken up on an emergency basis by 1396 at least a majority plus one of the members of the board. Such 1397 emergency action shall be noticed and ratified at the next 1398 regular meeting of the board. Notice of any meeting in which 1399 regular or special assessments against unit owners are to be 1400 considered must specifically state that assessments will be 1401 considered and provide the estimated amount and description of 1402 the purposes for such assessments.However,Written notice of 1403 any meeting at which nonemergency special assessments, or at 1404 which amendment to rules regarding unit use, will be considered 1405 shall be mailed, delivered, or electronically transmitted to the 1406 unit owners and posted conspicuously on the cooperative property 1407 not less than 14 days before the meeting. Evidence of compliance 1408 with this 14-day notice shall be made by an affidavit executed 1409 by the person providing the notice and filed among the official 1410 records of the association. Upon notice to the unit owners, the 1411 board shall by duly adopted rule designate a specific location 1412 on the cooperative property upon which all notices of board 1413 meetings shall be posted. In lieu of or in addition to the 1414 physical posting of notice of any meeting of the board of 1415 administration on the cooperative property, the association may, 1416 by reasonable rule, adopt a procedure for conspicuously posting 1417 and repeatedly broadcasting the notice and the agenda on a 1418 closed-circuit cable television system serving the cooperative 1419 association. However, if broadcast notice is used in lieu of a 1420 notice posted physically on the cooperative property, the notice 1421 and agenda must be broadcast at least four times every broadcast 1422 hour of each day that a posted notice is otherwise required 1423 under this section. When broadcast notice is provided, the 1424 notice and agenda must be broadcast in a manner and for a 1425 sufficient continuous length of time so as to allow an average 1426 reader to observe the notice and read and comprehend the entire 1427 content of the notice and the agenda. In addition to any of the 1428 authorized means of providing notice of a meeting of the board, 1429 the association may, by rule, adopt a procedure for 1430 conspicuously posting the meeting notice and the agenda on a 1431 website serving the cooperative association for at least the 1432 minimum period for which a notice of a meeting is required to be 1433 physically posted on the cooperative property. Any rule adopted 1434 must, in addition to other matters, include a requirement that 1435 the association send an electronic notice in the same manner as 1436 required for a notice for a meeting of the members, which must 1437 include a hypertext link to the website where the notice is 1438 posted, to unit owners whose e-mail addresses are included in 1439 the association’s official records.Notice of any meeting in1440which regular assessments against unit owners are to be1441considered for any reason shall specifically contain a statement1442that assessments will be considered and the nature of any such1443assessments.Meetings of a committee to take final action on 1444 behalf of the board or to make recommendations to the board 1445 regarding the association budget are subject to the provisions 1446 of this paragraph. Meetings of a committee that does not take 1447 final action on behalf of the board or make recommendations to 1448 the board regarding the association budget are subject to the 1449 provisions of this section, unless those meetings are exempted 1450 from this section by the bylaws of the association. 1451 Notwithstanding any other law to the contrary, the requirement 1452 that board meetings and committee meetings be open to the unit 1453 owners does not apply to board or committee meetings held for 1454 the purpose of discussing personnel matters or meetings between 1455 the board or a committee and the association’s attorney, with 1456 respect to proposed or pending litigation, if the meeting is 1457 held for the purpose of seeking or rendering legal advice. 1458 (m) Director or officer delinquencies.—A director or 1459 officer who is more than 90 days delinquent in the payment of 1460 any monetary obligation due the association shall be deemed to 1461 have abandoned the office, creating a vacancy in the office to 1462 be filled according to law. 1463 Section 11. Paragraph (b) of subsection (1) of section 1464 719.107, Florida Statutes, is amended to read: 1465 719.107 Common expenses; assessment.— 1466 (1) 1467 (b) If so provided in the bylaws, the cost of 1468 communications services as defined in chapter 202, information 1469 services, or Internet servicesa master antenna television1470system or duly franchised cable television serviceobtained 1471 pursuant to a bulk contract shall be deemed a common expense, 1472 and if not obtained pursuant to a bulk contract, such cost shall 1473 be considered common expense if it is designated as such in a 1474 written contract between the board of administration and the 1475 company providing the communications services as defined in 1476 chapter 202, information services, or Internet servicesmaster1477television antenna system or the cable television service. The 1478 contract shall be for a term of not less than 2 years. 1479 1. Any contract made by the board after April 2, 1992, for 1480 a community antenna system or duly franchised cable television 1481 service, communications services as defined in chapter 202, 1482 information services, or Internet services may be canceled by a 1483 majority of the voting interests present at the next regular or 1484 special meeting of the association. Any member may make a motion 1485 to cancel the contract, but if no motion is made or if such 1486 motion fails to obtain the required majority at the next regular 1487 or special meeting, whichever is sooner, following the making of 1488 the contract, then such contract shall be deemed ratified for 1489 the term therein expressed. 1490 2. Any such contract shall provide, and shall be deemed to 1491 provide if not expressly set forth, that any hearing impaired or 1492 legally blind unit owner who does not occupy the unit with a 1493 nonhearing impaired or sighted person may discontinue the 1494 service without incurring disconnect fees, penalties, or 1495 subsequent service charges, and as to such units, the owners 1496 shall not be required to pay any common expenses charge related 1497 to such service. If less than all members of an association 1498 share the expenses of cable television, the expense shall be 1499 shared equally by all participating unit owners. The association 1500 may use the provisions of s. 719.108 to enforce payment of the 1501 shares of such costs by the unit owners receiving cable 1502 television. 1503 Section 12. Paragraphs (a) and (c) of subsection (2) and 1504 subsection (7) of section 720.303, Florida Statutes, are amended 1505 to read: 1506 720.303 Association powers and duties; meetings of board; 1507 official records; budgets; financial reporting; association 1508 funds; recalls.— 1509 (2) BOARD MEETINGS.— 1510 (a) Members of the board of administration may use e-mail 1511 as a means of communication, but may not cast a vote on an 1512 association matter via e-mail. A meeting of the board of 1513 directors of an association occurs whenever a quorum of the 1514 board gathers to conduct association business. Meetings of the 1515 board must be open to all members, except for meetings between 1516 the board and its attorney with respect to proposed or pending 1517 litigation where the contents of the discussion would otherwise 1518 be governed by the attorney-client privilege. A meeting of the 1519 board must be held at a location that is accessible to a 1520 physically handicapped person if requested by a physically 1521 handicapped person who has a right to attend the meeting. The 1522 provisions of this subsection shall also apply to the meetings 1523 of any committee or other similar body when a final decision 1524 will be made regarding the expenditure of association funds and 1525 to meetings of any body vested with the power to approve or 1526 disapprove architectural decisions with respect to a specific 1527 parcel of residential property owned by a member of the 1528 community. 1529 (c) The bylaws shall provide the following for giving 1530 notice to parcel owners and members of all board meetings and, 1531 if they do not do so, shall be deemed to includeprovidethe 1532 following: 1533 1. Notices of all board meetings must be posted in a 1534 conspicuous place in the community at least 48 hours in advance 1535 of a meeting, except in an emergency. In the alternative, if 1536 notice is not posted in a conspicuous place in the community, 1537 notice of each board meeting must be mailed or delivered to each 1538 member at least 7 days before the meeting, except in an 1539 emergency. Notwithstanding this general notice requirement, for 1540 communities with more than 100 members, the association bylaws 1541 may provide for a reasonable alternative to posting or mailing 1542 of notice for each board meeting, including publication of 1543 notice, provision of a schedule of board meetings, or the 1544 conspicuous posting and repeated broadcasting of the notice on a 1545 closed-circuit cable television system serving the homeowners’ 1546 association. However, if broadcast notice is used in lieu of a 1547 notice posted physically in the community, the notice must be 1548 broadcast at least four times every broadcast hour of each day 1549 that a posted notice is otherwise required. When broadcast 1550 notice is provided, the notice and agenda must be broadcast in a 1551 manner and for a sufficient continuous length of time so as to 1552 allow an average reader to observe the notice and read and 1553 comprehend the entire content of the notice and the agenda. In 1554 addition to any of the authorized means of providing notice of a 1555 meeting of the board, the association may, by rule, adopt a 1556 procedure for conspicuously posting the meeting notice and the 1557 agenda on a website serving the association for at least the 1558 minimum period for which a notice of a meeting is required to be 1559 physically posted on the association property. Any rule adopted 1560 must, in addition to other matters, include a requirement that 1561 the association send an electronic notice in the same manner as 1562 required for a notice for a meeting of the members, which must 1563 include a hypertext link to the website where the notice is 1564 posted, to members who have provided an e-mail address to the 1565 association for the purpose of receiving notice by electronic 1566 transmission. The association may provide notice by electronic 1567 transmission in a manner authorized by law for meetings of the 1568 board of directors, committee meetings requiring notice under 1569 this section, and annual and special meetings of the members; 1570 however, a member must consent in writing to receiving notice by 1571 electronic transmission. 1572 2. An assessment may not be levied at a board meeting 1573 unless the notice of the meeting includes a statement that 1574 assessments will be considered and the nature of the 1575 assessments. Written notice of any meeting at which special 1576 assessments will be considered or at which amendments to rules 1577 regarding parcel use will be considered must be mailed, 1578 delivered, or electronically transmitted to the members and 1579 parcel owners and posted conspicuously on the property or 1580 broadcast on closed-circuit cable television not less than 14 1581 days before the meeting. 1582 3. Directors may not vote by proxy or by secret ballot at 1583 board meetings, except that secret ballots may be used in the 1584 election of officers. This subsection also applies to the 1585 meetings of any committee or other similar body, when a final 1586 decision will be made regarding the expenditure of association 1587 funds, and to any body vested with the power to approve or 1588 disapprove architectural decisions with respect to a specific 1589 parcel of residential property owned by a member of the 1590 community. 1591 (7) FINANCIAL REPORTING.—Within 90 days after the end of 1592 the fiscal year, or annually on the date provided in the bylaws, 1593 the association shall prepare and complete, or contract with a 1594 third party for the preparation and completion of, a financial 1595 report for the preceding fiscal year. Within 21 days after the 1596 final financial report is completed by the association or 1597 received from the third party, but not later than 120 days after 1598 the end of the fiscal year or other date as provided in the 1599 bylaws, the association shall, within the time limits set forth 1600 in subsection (5), provide each member with a copy of the annual 1601 financial report or a written notice that a copy of the 1602 financial report is available upon request at no charge to the 1603 member. Financial reports shall be prepared as follows: 1604 (a) An association that meets the criteria of this 1605 paragraph shall prepare or cause to be prepared a complete set 1606 of financial statements in accordance with generally accepted 1607 accounting principles as adopted by the Board of Accountancy. 1608 The financial statements shall be based upon the association’s 1609 total annual revenues, as follows: 1610 1. An association with total annual revenues of $150,000 or 1611 more, but less than $300,000, shall prepare compiled financial 1612 statements. 1613 2. An association with total annual revenues of at least 1614 $300,000, but less than $500,000, shall prepare reviewed 1615 financial statements. 1616 3. An association with total annual revenues of $500,000 or 1617 more shall prepare audited financial statements. 1618 (b)1. An association with total annual revenues of less 1619 than $150,000 shall prepare a report of cash receipts and 1620 expenditures. 16212.An association in a community of fewer than 50 parcels,1622regardless of the association’s annual revenues, may prepare a1623report of cash receipts and expenditures in lieu of financial1624statements required by paragraph (a) unless the governing1625documents provide otherwise.1626 2.3.A report of cash receipts and disbursement must 1627 disclose the amount of receipts by accounts and receipt 1628 classifications and the amount of expenses by accounts and 1629 expense classifications, including, but not limited to, the 1630 following, as applicable: costs for security, professional, and 1631 management fees and expenses; taxes; costs for recreation 1632 facilities; expenses for refuse collection and utility services; 1633 expenses for lawn care; costs for building maintenance and 1634 repair; insurance costs; administration and salary expenses; and 1635 reserves if maintained by the association. 1636 (c) If 20 percent of the parcel owners petition the board 1637 for a level of financial reporting higher than that required by 1638 this section, the association shall duly notice and hold a 1639 meeting of members within 30 days of receipt of the petition for 1640 the purpose of voting on raising the level of reporting for that 1641 fiscal year. Upon approval of a majority of the total voting 1642 interests of the parcel owners, the association shall prepare or 1643 cause to be prepared, shall amend the budget or adopt a special 1644 assessment to pay for the financial report regardless of any 1645 provision to the contrary in the governing documents, and shall 1646 provide within 90 days of the meeting or the end of the fiscal 1647 year, whichever occurs later: 1648 1. Compiled, reviewed, or audited financial statements, if 1649 the association is otherwise required to prepare a report of 1650 cash receipts and expenditures; 1651 2. Reviewed or audited financial statements, if the 1652 association is otherwise required to prepare compiled financial 1653 statements; or 1654 3. Audited financial statements if the association is 1655 otherwise required to prepare reviewed financial statements. 1656 (d) If approved by a majority of the voting interests 1657 present at a properly called meeting of the association, an 1658 association may prepare or cause to be prepared: 1659 1. A report of cash receipts and expenditures in lieu of a 1660 compiled, reviewed, or audited financial statement; 1661 2. A report of cash receipts and expenditures or a compiled 1662 financial statement in lieu of a reviewed or audited financial 1663 statement; or 1664 3. A report of cash receipts and expenditures, a compiled 1665 financial statement, or a reviewed financial statement in lieu 1666 of an audited financial statement. 1667 Section 13. Paragraph (a) of subsection (9) of section 1668 720.306, Florida Statutes, is amended to read: 1669 720.306 Meetings of members; voting and election 1670 procedures; amendments.— 1671 (9) ELECTIONS AND BOARD VACANCIES.— 1672 (a) Elections of directors must be conducted in accordance 1673 with the procedures set forth in the governing documents of the 1674 association. Except as provided in paragraph (b), all members of 1675 the association are eligible to serve on the board of directors, 1676 and a member may nominate himself or herself as a candidate for 1677 the board at a meeting where the election is to be held; 1678 provided, however, that if the election process allows 1679 candidates to be nominated in advance of the meeting, the 1680 association is not required to allow nominations at the meeting. 1681 An election is not required unless more candidates are nominated 1682 than vacancies exist. If an election is not required because 1683 there are either an equal number or fewer qualified candidates 1684 than vacancies exist, and if nominations from the floor are not 1685 required pursuant to this section or the bylaws, write-in 1686 nominations are not permitted, and such candidates shall 1687 commence service on the board of directors, regardless of 1688 whether a quorum is attained at the annual meeting. Except as 1689 otherwise provided in the governing documents, boards of 1690 directors must be elected by a plurality of the votes cast by 1691 eligible voters. Any challenge to the election process must be 1692 commenced within 60 days after the election results are 1693 announced. 1694 Section 14. Paragraph (b) of subsection (3) of section 1695 720.3085, Florida Statutes, is amended to read: 1696 720.3085 Payment for assessments; lien claims.— 1697 (3) Assessments and installments on assessments that are 1698 not paid when due bear interest from the due date until paid at 1699 the rate provided in the declaration of covenants or the bylaws 1700 of the association, which rate may not exceed the rate allowed 1701 by law. If no rate is provided in the declaration or bylaws, 1702 interest accrues at the rate of 18 percent per year. 1703 (b) Any payment received by an association and accepted 1704 shall be applied first to any interest accrued, then to any 1705 administrative late fee, then to any costs and reasonable 1706 attorney fees incurred in collection, and then to the delinquent 1707 assessment. This paragraph applies notwithstanding any 1708 restrictive endorsement, designation, or instruction placed on 1709 or accompanying a payment. A late fee is not subject to the 1710 provisions of chapter 687 and is not a fine. The foregoing is 1711 applicable notwithstanding s. 673.3111, any purported accord and 1712 satisfaction, or any restrictive endorsement, designation, or 1713 instruction placed on or accompanying a payment. The preceding 1714 sentence is intended to clarify existing law. 1715 Section 15. This act shall take effect July 1, 2017.